If you need to hire an employee, you may be wondering why it costs so much. Replacing an employee can cost up to 150 percent of their annual salary. But if you think about it, hiring consists of multiple tasks, all taking time away from the business productivity of people involved.
Step by Step: The Process Involved in Hiring
When you look at the hiring process, there are many steps that must take place across several different departments.
Someone has to develop a job posting. It must specify the skills and experience needed. If there is a job description, great. It can serve as a base. If there isn’t, it has to be developed. If you have a human resources department, they can do it. If you don’t, it generally falls to the hiring manager, who may need to consult staff members. Plus, an appropriate salary structure needs to be decided upon. Second, someone has to determine where to post the job. Third, someone has to review the resumes that come in. Fourth, the best candidates must be chosen.
Hiring means you have to advertise your open position, which means paying for a service such as Monster or CareerBuilder or a job fair to attract qualified candidates. This not only takes money but also costs you in time. Next, receiving candidate applications gets more time intensive. Usually, three or more applicants come in for interviews. It might be more, depending on the position. The candidates might be interviewed by the hiring manager, human resources, or a combination of both. Some candidates are interviewed by team members they will be working with. Also, the position might require testing of skills or expertise.
The most promising people are usually brought back for a second interview — and sometimes even a third or fourth. References need to be checked. Background checks or other vetting of employees may need to be performed.
In the end, the number of people and tasks needed to hire for just one position are quite extensive. While these tasks are being done, none of these people can turn their attention to specific revenue-generating work. Time = money in business life. The time required to hire someone can impact the money your organization is bringing in.
How a Staffing Service Can Help
Fortunately, there is a solution to the time and productivity lost to the hiring process. It’s using a staffing service. Staffing services can assume many of the roles in the hiring process. They can develop and update postings in conjunction with company managers. They already have a platform on which to post the position. They may already have people suitable for the job and access to many more. In addition, they are experienced in interviewing and vetting employees. They can take on at least preliminary interviews and testing, and set up in-house company interviews as needed. Your hiring costs in terms of productivity and time are very likely to be less with a staffing service. It pays to hire them for your recruitment needs.
What goes into the price of staffing services? Well, many things. Staffing services, like Graham, will cover the cost of advertising your job opening, recruiting the best candidates, vetting, screening, skills testing, and presenting you with the best option to fit your staffing needs. Once you choose a Graham employee, Graham remains the employer and provides the paycheck for the employee who started working at your office. This means the staffing service handles all the taxes (FICA, federal unemployment, state unemployment, Medicare, Social Security), offers benefits, and assumes all the cost and risk of having an employee on their payroll. The risk to your organization is passed on to the staffing company. If you choose to convert an employee to a full-time member of your organization, staffing services make that transition seamless. Countless outstanding professionals are converted every day from temporary employees to full-time direct hires. The companies benefit greatly because they have already witnessed the productivity and value of their new employee in action. It’s a win-win-win.
Want help with hiring personnel?
We’re here for you! Graham Staffing Services is happy to help. Contact us today.