While it may seem like a no-brainer to take care of hiring internally, many companies find that this can cost them more money, take longer, and may result in lower-quality candidates. This was already a challenge pre-COVID but is more difficult now due to the current labor market.
When it comes to money and time, loss of cash flow can have an immense impact on your business. One way to reduce costs while keeping your business productive is outsourcing hiring. An effective staffing partner will decrease time and financial expenditures while bringing in quality employees.
The 3 risks of managing hiring in-house
- Increased turnover
While it may seem easier and more cost-effective to handle hiring internally, studies show this may result in lower-quality candidates and hires who are not the right fit for the role. A single bad hire can impact team morale and ultimately increase employee turnover. One study found that the average cost to replace just one employee can have a huge financial impact on your business.
- The cost to replace a $10/hour retail worker would be $3,328.
- The cost to replace a $40k manager would be $8,000.
- The cost to replace a $100k CFO is $213,000.
- Loss in productivity
When companies handle hiring internally, often this responsibility is an addition to their normal day. It starts with spending money to post the position, weed through possibly hundreds of applicants and resumes in hopes of finding the needle in the haystack. Next comes scheduling and conducting interviews, doing reference checks, and pre-screenings while continuing to do your “day job”. If you were to pass the hiring off to a trusted partner, you could then focus valuable time on revamping your business to function in the new norm.
- Drain company bankroll
The cost of a new hire does not stop with getting them interviewed, onboarded, and paid. You’re adding another person to your payroll, benefits as well as the exposure for worker’s compensation and any unemployment costs.
True cost savings when partnering with a staffing agency
Bonney has worked hard to better help companies and provide employment for talent during the current labor market. Here are a couple of ways we’ve been able to help our clients find top associates.
Access to both passive and active candidate pool:
Think of everything you have to do to hire candidates, there’s a long checklist that needs to be completed in a short amount of time before you can even get the hire you need working. Staffing agencies have a pool of qualified workers that they can tap into, saving you time and effort in the long run. They deal with the time-suck of weeding through candidates, screening, interviewing, and preparing candidates for the position all while you are focusing on your core business. Often, they will fill your vacant positions faster than you expect. Staffing partners also have the technology and expertise to guide you through hiring, even with restrictions on face-to-face meetings.
Reduce training costs:
Every time you make a new hire, there is a certain learning curve or training that has to take place for this person to perform their everyday duties. Hiring through a staffing firm will most likely eliminate/reduce your training costs because these teams pre-qualify candidates to find those with the expertise you need to perform the job.
“Try before you buy” a candidate before you commit:”
A great added benefit of working with a staffing agency is that you can employ temp and temp-to-hire workers. You can see how they fit and make sure they are the correct match for your business before you bring them on full-time. If for some reason they don’t work out, you can ask your staffing partner to end the assignment. You are not responsible for unemployment or the necessary paperwork to let someone go.
Lower overhead costs:
Staffing agencies can offer significant financial savings when it comes to employer costs you would normally provide to your employees. Health benefits, 401k, sick days, PTO, workers compensation, unemployment, and all employer taxes are the responsibility of your staffing partner.
As you can see, there is a much higher cost than simply what you pay the employee. Shift the time, costs, responsibility, and headaches of hiring to our staffing experts.
You have far more important business aspects to worry about. We will find the talent that is the right match for your business, so you can achieve your business goals and save valuable time and money.
Let’s schedule a meeting to discuss possible savings you could see with a staffing partner.