Unveiling Hidden Expenses in the Hiring Process

When your team needs a new member, it’s easy to question the value of investing a bit more to bring in outside assistance to find the perfect fit. You’re intimately familiar with your business, right? Who could possibly identify the right candidate more quickly and efficiently than you?

Let’s examine the genuine costs that pile up when positions go unfilled, along with the expenses associated with recruiting and training new hires. By gaining clarity on these concealed costs, you’ll be better equipped to make informed choices about your staffing requirements and set a more accurate budget for the upcoming year.

In research conducted by CareerBuilder.com, they found that swift placement in an open role is crucial for cost-effectiveness. The longer a position remains vacant, the longer it takes to address critical timelines and objectives, customer concerns, fulfill orders, or cultivate new business. They propose an easy, two-step formula to determine the real cost of an unfilled position.

Step 1: Calculate Revenue per Employee by dividing your annual company revenue by the number of employees (R/E = Revenue per Employee).

Step 2: Calculate Daily Revenue per Employee by dividing the annual revenue per employee by 365 days to obtain the daily revenue per employee.

This calculation acts as a simple foundation, as distinct roles incur varying costs per day based on their contribution to the organization’s revenue. Weighing the expenses of your open position against recruitment costs will guide your decision-making process.

The Veiled Cost of Hiring on Your Own

Finding the right candidate for a role can be a time-consuming ordeal. A marketing professional, for example, should be focused on their forte—marketing—rather than juggling recruiter responsibilities. Think for a moment about the hidden expenses incurred when a marketer is diverted by tasks like:

This time would be better utilized in managing projects, delivering results, and tackling marketing-related duties. The recruitment process can become counterproductive, overwhelming marketers with added workload. Missed marketing deadlines translate to unmet targets, potentially impacting your return on investment.

The Benefits of Working with a Staffing Agency

Here’s the reality: the expense of hiring goes far beyond the paycheck for the newcomer, or just the fee paid to an agency. In the current job landscape, there are more vacant roles than skilled professionals to fill them. This makes discovering qualified candidates tougher than ever. Plus, if a portion of your workweek is consumed by recruitment tasks, not only are you short one team member for the role you’re recruiting for, but you’re also not fully functioning in your own position.

Considering these factors, collaborating with an established staffing agency could be a smart move. Consider these compelling reasons:

1. You can trust that recruiters are actively scouting exceptional candidates all the time, allowing you to refocus on driving your company’s objectives.
2. Teaming up with a reputable staffing agency frees you from the nitty-gritty details and time required for candidate selection. The longer the hiring process, the greater the chance of missing out on well-qualified and interested candidates.
3. Recruiters have an extensive network of top-tier talent in all areas of expertise. They can pinpoint those elusive candidates who possess the unique blend of skills, experience, and personality you desire that will fit in not only with your team, but also with the company culture. Whether it’s staffing a project, covering a leave of absence, or identifying someone with a specialized skill set for a newly established role, recruiters can help to quickly find your ideal match.

The next time you’re grappling with understaffing, pausing, and applying these ideas can help to gauge the true expenses of hiring. This will help you in deciding whether it’s wiser to go solo or collaborate with a reputable staffing agency like McKinley Marketing Partners to help you find your next team member.