Hiring skilled employees results in the company making more money, right? Perhaps in the long run, but throughout the hiring process you’ll need to be prepared for some hidden costs that can really add up. Let’s go over some recruitment costs that you’ll want to consider before beginning your hiring process.
Time and money are the easy hiring costs to identify. Dedicated HR staff compensation can be pretty costly per year, and less cost effective for smaller businesses. If your business is too small for a dedicated HR team, you’ll likely need to assign recruitment work to other employees in the office, which eats up time that could be spent on their normal day to day activities. Additionally, creating advertisements for the position takes time and planning, as employee qualifications need to be carefully considered before posting the position. Apart from time, the advertisements themselves can also be upwards of a few hundred dollars per day. If your ad is poorly written, it can deter the right candidates or bring in the wrong candidates, resulting in a longer hiring process in which the ad cost per day really starts to add up. On top of these costs, you’ll also be spending money on any equipment the employee will need, such as laptops, tablets, software, and other supplies.