How much would you spend to hire a new employee? Would it be cheaper to keep your current employees? Try saving some money by figuring out the real costs of each option.
Recruiting new employees costs vary depending on whether you are using outside recruiting firms or are doing it in-house. After you hire an employee, you will save money by keeping your current employees. So how much would you spend to find a new employee?
My first piece of advice is to remember that recruiting will not save you money. Most likely, it will cost you money, unless you hire someone that is exceptionally qualified for the job.
My second piece of advice is to do some research to determine what the real costs of recruiting are. Take the following time frame as an example. If you hired someone that does not meet your expectations, you could be spending thousands of dollars. This includes recruiting, employee training, performance reviews, employee reviews, salaries, and so on.
New Employee Salary (Before Performance Reviews) – For each new employee, you will pay salaries for them, employee benefits, a performance review, and so on. This could cost you anywhere from $2,500 to $5,000.
Most recruiters will charge anywhere from $2,500 to $4,500 for a new employee. It will also cost you time and training.
If you hire someone who is excellent for your position, it could cost you $10,000 or more. This includes an initial bonus, salaries, employee reviews, performance reviews, and so on.
Perks for New Employees – This is the “baggage” that you need to pay for. Examples include employee snacks, extra equipment, team outings, regular lunches, healthy lunches, training, and so on.
After you find the right employee for your business, you will have to reward them. This could be in the form of hiring another employee, giving them a nice bonus, offering more perks to them, and so on.
The cost of recruiting could range anywhere from $5,000 to $50,000. All of this will probably not be covered in your recruiting costs.
If you have an outside recruiter, they will probably try to do a little bit of recruiting for you. However, they will most likely try to do it for you on the cheap. If you want the best results, you need to do it yourself.
Using Recruiting Software
You could save thousands of dollars by using new employee onboarding software as part of the following strategy. If you are doing it in-house, it will cost you some time and training. Your employee performance reviews and wages will still cost you, but this will not be your biggest cost.
A Bottom-Line Opinion
No matter what type of employer you are, you will likely need to spend money. So how much would you spend to find the best employee?
Most companies will spend anywhere from $5,000 to $20,000. Most of this will probably not be covered in the recruitment fees, so you need to figure out the real cost of the employee.
Perks – Perks cost money, so it will cost you between $10,000 to $50,000 to offer perks to your new employees.