It costs $4969, on average, to replace an hourly employee. This takes into account lost productivity, time spent on interviewing and hiring, and the costs of job postings. By cutting down time to hire, building your talent pool, and being confident in your hires you will also save money while hiring.
Hire Right the First Time
The way to save the most amount of money is simple. Hire right the first time. When you make the best hire for your company, you will see the positive impacts on your business. Increased productivity, a positive attitude, increased retention. But, it also means that you won’t have to make new hires as often – saving you thousands of dollars. To increase your confidence in choosing the right applicant, learn how Sprockets can help.
Build Your Talent Pool
One of easily identifiable monetary impacts on the hiring process is posting open positions! While some avenues are free, many have “sponsored post” options to make your position stand out, which adds up. This is why it pays to build your talent pool, so you have applicants to turn to when the position becomes available. A talent pool may include information about past applicants that were great but not needed at the time, employee referrals, and even avenues like Facebook or LinkedIn groups for people in your industry.
Streamline Your Process
Your time is valuable. When you spend anywhere from 30 minutes to three hours sorting through resumes, doing phone interviews, and bringing in candidates, it costs you. When you use a screening mechanism, like a skills test or pre-hire assessment like Sprockets, it narrows down which applicants are a good match for the open position. By narrowing your candidate pool, you save time and money by avoiding lost time that was spent on poor prospects.
Optimize Free Marketing Channels
Social media should be used as a platform to not only display fun company information but to advertise your job openings. If you are constantly posting photos of mouth-watering food or fun staff parties, mention these perks in a post and invite interested followers to apply! Facebook offers an option to post jobs. This means you can reach applicants where they spend their time – social media. See how it works.
In the end, taking the time to craft your hiring strategy pays off. By outlining where you’ll find applicants, how you will vet them, and the criteria for a new hire, you will save yourself time and money in the long run.
Using the four tips in this article, you can be on your way to a great hiring process. Keep them in mind as you craft your hiring strategy and move forward!