It has always been extremely difficult to calculate how much it really costs to employ someone, but what happens when you employ the wrong person for the job?
Employing a new team member should be an exciting time. It means your business is growing and you need help to expand. It can also be a very stressful time, there are all sorts of costs you need to take into account and this carries new challenges and untimely a huge fee.
The salary is the easy part to distinguish, this is the single biggest cost of a new employee. However, as you probably already know, much more goes into recruiting a new member of staff. For example, how much tax an employee will cost, sickness and legal fees. Also, the process of recruiting talent alone can have endless cost implications; advertising for the position, time cost, cost of an internal recruiter, time cost of recruiter’s assistant, time cost reviewing resumes, cost interviewing candidates, background checks, administrative work and other recruitment tasks. Furthermore, the cost of training, once you have found someone for the role. Your business needs to provide training so the real work can start for your new employee.
According to research published by the Federation of Small Businesses (FSB) and the Centre for Economics and Business Research (Cebr) a business with one employee and one owner faces an average employment cost of £35,500 per worker. A business with 20-49 employees cost on average £25,100 per worker.
The first employee is the most expensive, but the subsequent get cheaper the more you hire. However, hiring a new employee is still a risky business. In today’s competitive marketplace businesses need to make sure they get value for money. Employing the wrong person for a role is a costly mistake to make.
The pressure is on for businesses, recruiters and HR professions to ensure they employ the right people. The cost implications of making the wrong hiring decision is extremely high. Not to mention the added strain it causes for your current employees, they usually have to help pick up the slack before the position is filled. This can even cause them to leave because of it.
Once a poor hiring decision has been resolved, including the legal and administrative work involved with the departing employee, the recruitment process has to be repeated. And any training and development spending on the outgoing employee will all be lost.
We Want To Help…
We want to help businesses make better hiring decisions. The risks are high, the market is competitive and you are in a war for talent. JobsTheWord can help.
Thanks to the internet, social networking and smartphones, more data is being collected and stored than ever before. 98 per cent of the world’s information is now stored digitally, the volume of data has quadrupled since 2007 and it’s still growing.
Big data has ability to analyse hundreds of millions of tiny snippets of information, in a multitude of different formats extracted from the internet each day, and we are using this to discover high quality candidates.
This means you receive applicants with the right skills, experience, culture and attitude you desire for your next hire. You don’t need to sift through hundreds or even thousands of resumes, you now have the right balance between volume and quality, rather than a desk full of poor quality candidates. This means you can spend your time much more rationally, making sure the person you hire is perfect for your role.
Get in touch and find out how we can help you:
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