As you probably know, hiring new employees is expensive. In fact, it’s estimated that the entire process of interviewing and onboarding a single employee costs as much as nine months’ worth of that person’s salary. Essentially, this money spent bringing aboard new employees isn’t something that can be recouped; it’s simply the cost of running a business.
Of course, there are ways to keep the cost of hiring to a minimum, such as:
- Combating turnover
- Being ultra-selective
- Using easily-accessible knowledge
- Auditing and tracking your hiring processes
Let’s discuss each in a bit more detail.
1) Combating Turnover
Before thinking about how you can save money during the hiring process, you should consider how to avoid having to make a new hire in the first place. If your company tends to be a revolving door of sorts, consider the changes you could make that would keep employees around for longer periods of time. You don’t necessarily need to increase wages or anything, either. There are a number of ways to improve employee morale without spending much (or any) cash up front. Even if you do have to spend some money combatting turnover, it will almost certainly be much less than what you’ll spend bringing on a new employee every few months.
2) Be Ultra-Selective
Obviously, hiring the wrong person can be incredibly detrimental to your company for a number of reasons – not the least of which is the money you’ll lose in bringing them on just to let them go and look for someone else.
So, when you do hire a new employee, make sure you’ve properly vetted them – and don’t simply settle for the “best” of a cohort if you know they aren’t a perfect fit. If none of the people you interviewed seem like they’d work well within your company, do some outreach and look elsewhere.
It might cost you time, money and and other resources while you look for the absolute best person for the job – but not nearly as much as hiring the wrong person would.
3) Use Easily-Accessible Knowledge
In the last section, we talked about doing research and reaching out to more qualified individuals. Thanks to the internet, doing this is rather easy. Take the time to browse LinkedIn, Indeed, and all the other job sites out there, both to vet the individuals who applied for a position within your company, and to seek out those who are qualified but haven’t reached out.
In doing so, you’ll easily be able to tell which of your prospective employees is looking to make a career out of working with your organization – and which are likely to jump ship at the slightest inconvenience.
4) Audit and Track Hiring Expenditures
As with all other business-related processes, you should audit your processes after every new hire you make.
As alluded to in the previous section, don’t just think of money spent, either. Consider the time it took you to find and onboard your new employee, as well as the resources spent in doing so. Additionally, look further back to before your last employee left and determine the potential gains that were lost while searching for your new worker.
This, of course, is a cyclical process: after each new hire, you can again go back and do it all over – hopefully making improvements each time you do so. But it can also be an eye-opener for those who didn’t realize just how much they were losing in the first place. At any rate, the more you know about your hiring process, the more streamlined you can make it work.
Are you looking for a strategic staffing partner?
Working with The Panther Group will help to mitigate the expense and costs. As a trusted partner The Panther Group will help to combat turnover working with you on the skillset culture, doing a deep dive into your requirements. Panther has an adept process vetting top talent supporting the goal of being “ultra selective”. With networks and access to a vast range of active as well as passive candidates, this helps to make the right hire and ultimately mitigate turnover. Contact us to learn how partnering with The Panther Group can benefit your company.