The hiring process can take a lot of two things: time and money. We don’t need to tell you how big of an expense hiring can be for your business. Because of this, you’re likely always looking for ways to save both of these things. Fortunately, by being aware of the cost, you can create an efficient and cost-conscious way of hiring.
What is your cost per hire?
To determine where you can save, you first need to know how much you spend. By determining your cost per hire, you can see directly how much you put into finding candidates. For perspective, a recent survey calculated the average cost of this to be more than $4,000.
Now, this number will vary based on how many hires you make in a year. To start, you need to add up all the costs of recruiting, like job board fees, HR salaries, assessment costs, etc. Once you see how much you spent last year, you can divide this number by how many people you hired to see what your average cost per hire looks like.
Knowing what your average is, you can begin to think about the next year. Take that cost per hire and decide how many potential hires you will make this year. Say your cost per hire is $3,000, and you plan to hire 5 people. Based on this, your hiring costs will be around $15,000.
This number, whatever it is for you, gives you a very broad look at your expenses, but to drill down, you need to make a budget.
Assemble your hiring budget
The previous steps allowed you to gather resources to see just how much you spend each year for hiring. With that knowledge, you can make a budget for the next year to keep you in line.
Start with making a budget from at least one previous year to detail where the money went. If you want a more accurate overview, you can do this for several years back. Next, make a projected budget for this year.
This can make you aware of potential expenses and help you see where you can save money in the process. Instead of just going through the steps, you can pay close attention to where the money goes to help you be more cost-conscious.
Get help when you need it
Sterling Personnel offers staffing solutions in the South Texas and Texas Gulf Coast areas, but we are anything but your typical agency. We understand you’re looking for money well spent, which is why we’re dedicated to helping you overcome challenges and deliver real ROI. On top of this, we help you save time and money. Contact us today to learn more about how we’re here for you.