Reap the benefits of outsourcing recruitment services.
In this article we show the exact numbers that impact your success and point out how to prevent such devastating loss of talent and money.
In this article, we cover:
To have an idea about what it means to replace an employee, here are some stats:
Let’s be clear. When an employee leaves the company, the management faces numerous types of expenses and problems.
More importantly, the result is always a short- and medium-term financial loss. When the costs carry over for a longer period, the business needs to bring some structural changes.
These are the “first-impact” costs from an employee turnover:
There are the consequential costs that every organization faces:
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Face the facts. The cost of employee turnover often goes unrecognized.
Unfortunately, many companies do not recognize the cost of turnover as a major problem.
Studies found that less than half of organizations have a process in place to properly calculate turnover costs.
Another issue is that the cost of turnover is often underestimated and deemed to be an “unavoidable” cost of doing business.
It is true that some degree of turnover is inevitable, and may even be advantageous.
The goal should be to retain top talent while replacing low performers.
Managers who are conscious of the rate and cost of turnover in their organizations are better positioned to control these costs.
How can you counter the damages? - By utilizing the benefits of outsourced recruitment.
What matters to qualified talent?
A Harvard University study found that 80% of employee turnover stems from mistakes made during the hiring process.
It’s all about prevention. Don’t wait until your organization has a turnover crisis.
Having an intelligent and informed hiring strategy is one of the best ways to prevent excessive turnover costs.
According to a PwC Future of Recruiting Survey, job applicants shared the following feedback:
To avoid missing out on fantastic talent and retain your current employees, here’s what to do.
According to Zappia’s average cost per hire research, on average, it takes 36 to 42 days to fill an average position in the United States. It also costs about $4,425 per hire.
What’s the obvious solution? - Integrate the benefits of outsourcing recruitment into your agile HR strategy.
How can a professional recruitment company help your business grow for less money?
Faster hiring process and better candidates
The secret is having a pool of qualified candidates to choose from for any position.
Knowing how time consuming is finding, assessing, and hiring the right talent, select a recruiting company that already has a vast candidate network.
Even with such advantage, the process may take between 7-21 days to complete, depending on the role and the employer’s criteria.
Another benefit is the access to highly skilled (in most cases, already screened) candidates from anywhere in the world.
Whether you want to hire an office employee or a remote talent, professional team of recruiters have already done that. Multiple times, for different clients.
According to research, internal human resources teams can increase a firm’s hiring costs by 50% or more.
An internal HR recruiter earning an annual salary of $51,000 increases hiring costs by at least $4,250 each month.
High turnover rates are very costly for companies and those numbers can be elusive. Studies show cost ranges from $15,000 to $50,000, if not more.
Companies incur sudden costs during talent acquisition and onboarding, which can include weeks of orientation, training, and ramp-up time to learn the key aspects of the role.
When companies make a poor hire, they lose money on time and resources spent, not to mention, a replacement.
Recruiting firms provide a helpful, thorough hiring process, which includes technical, intangible and cultural vetting, comprehensive background checks, and not to mention, helping clients reduce time-to-fill.
Combining a strategy of full-time and contract recruiters enables companies to meet the workload demands and the every-changing work environments.
Recruiting firms support the need for flexible hiring strategies by providing various hiring options, catered to your preferences.
The first solution, temporary staffing, is a great option for companies that are looking for temporary help for a short- or long-term project or for seasonal work.
Recruiting companies provide skilled professionals who can start right away, commonly within 24 hours.
They also handle payroll, benefits, and other HR needs on behalf of the temporary employee, which is a cost-saving solution for all employers.
Another great flexible solution offered by recruiting companies is a “try-before-you-buy” concept, that allows the client and candidate to get to know each other and determine chemistry and the culture fit for a long-time commitment.
And the biggest benefit comes with permanent hiring. Your hiring partners will provide employers the opportunity to rely on recruiting experts to conduct:
- Candidate identification
- Vetting and screening
- Interview process and management
- Offer negotiations
Most recruiting firms specialize or focus in their industry niche(s), so they already will have a pool of highly skilled candidates for you.
Employees and internal recruiters are routinely asked to fill positions across various departments which is time-consuming and can be overwhelming.
Recruiting firms bring expertise for hard-to-fill positions, something that internal recruiters may not be able to dedicate to, because of time or technical ability.
Around 69% of employees are more likely to stay with a company for three years if they had a good onboarding experience.
Recruiters spend the majority of their time talking to people, making them excellent communicators. That’s why when it comes to onboarding employees, their attention to detail and continuous follow-up efforts make for a positive welcome and improve the chances of new hires sticking around.
The power of first impression cannot be overstated. What the future employee thinks of their hiring experience transpires into the attitude toward the new employer and work they perform.
And we’re only scratching the surface when it comes to the benefits of outsourcing recruitment services.
Building positive experience and trust from the get go is the best way to start any journey, especially a professional one.
Do you need qualified remote professionals in your business?
Our team at Talentroo will assist you immediately.
Get in touch with us at firstname.lastname@example.org to set up a call.
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