Using an outside recruiter is certainly not cheap. However, keeping hiring internal can be just as expensive and ultimately even more costly.
When properly executed, the candidate selection process takes time ─ and your time is valuable. If you factor in your time spent recruiting and the opportunity costs of that time, using an outside recruiter can be more cost-effective than internal hiring.
A good recruiter will also drastically reduce the chances of a bad hire ─ which can be the most costly long-term mistake a business can make. In fact, the U.S. Department of Labor currently estimates the average cost of a bad hire is equal to 30 percent of the person’s first-year potential salary. So, hiring the wrong employee with a $100,000 salary will cost your company roughly $30,000.
3 Side Effects of Being Short-Staffed
When your staff isn’t at full capacity, your business can’t function as normal. While you’re slowly making your way through the hiring process, expect to encounter the following three less-than-ideal issues:
- Burnout of Existing Staff: Your employees have enough of their own work to accomplish each day, without the added burden of having to pick up the slack because you’re short-staffed. High stress and long hours quickly lead to burnout, so in no time at all you’ll have even more team members to replace.
- Subpar Work: When people are overwhelmed with extra work, they focus on simply getting it all done ─ not doing it well. Additionally, you can’t expect employees to complete high-quality work on tasks they’ve never been properly trained to complete. Learn to anticipate lots of mistakes, as that’s exactly what you’re going to get.
- Costly Overtime: When non-exempt, hourly employees put in extra hours, you’re legally required to pay them overtime wages. Shelling out time-and-half adds up very quickly, so you’ll need to find a lot of extra room in your budget to cover the costs.
Taking all of these things into consideration, the overall costs- both tangible and intangible- of hiring the right impact player can far exceed outsourced recruiting fees. Longview offers both traditional and non-traditional fee structures to our clients. We incur all the typical recruiting expenses and time investment, allowing you to focus on what you do best ─ running your business.