The cost of replacing an employee is clustered between 10-30% of their annual salary. There are direct and indirect costs involved in replacing staff members.
The direct costs include:
1. Separation costs such as exit interviews.
2. The cost to cover their duties temporarily by staff overtime.
3. Replacement costs such as advertising, screening applicants, interviewing and selecting, background checks, employment testing, applicant travel and relocation costs.
5. Training costs and uniforms.
The indirect costs include:
1. Lost productivity for the departing employee.
2. Giving additional work to other employees.
3. Costs incurred due to reduced quality, errors and waste as the new employee learns the job.
4. Reduced morale.
5. Lost clients and institutional knowledge.
So, why use a trusted recruitment partner when searching for new employees? Les face it, it is a time consuming, yet vitally important process.
Benefit 1: In business, time is money and they will save you time because they take care of the beginning steps of the hiring process. They will sift through the hundreds of applicants and deselect the significant amount who will not be qualified or not be right for the job.
Benefit 2: A Recruitment Business will also have access to talent that is currently employed elsewhere and who are looking for a new challenge and opportunity.
Benefit 3: Recruitment businesses will often have allocations on top job boards, so you can ensure that your job is advertised in all the correct places. A Recruitment business can also negotiate the best salary and guide you on what you might need to do to guarantee that top candidate that everyone else is after too!
Benefit 4: The screening process when hiring has several layers. A Recruitment Business will see that background checks on potential employees, references and preliminary interviews to make sure the candidate matches the promises they make on their CV are taken care of before you meet anyone for your own interviews. You will feel assured that anyone you meet has already passed these tests.
Benefit 5: A good Recruitment Business is going to have a proven track record of finding the right employees for the job. When you meet their narrowed down choice, you can feel more confident with your final decision.
Benefit 6: Once you have developed a relationship with a Recruitment Business that you trust, your future hiring will go even more smoothly. The Recruitment Business will be aware of the qualities that it takes to make the right fit within your company and what you expect from them. The next time you have an available position, you can fill it quickly and satisfactorily.