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Posted By: jbaloun / |
Let’s face it. Most hiring managers and HR Departments dread the hiring process just as much as job candidates dread the job search. It takes up valuable, time, resources and most of all, money. Hiring costs encompass everything from job postings/advertising, job fairs, and interviewing. The cost of a bad hire, and loss of productivity and time must also be taken into account. This process becomes even more of costly when you are trying to fill a high turnover position.
How costly? The U.S. Department of Labor currently estimates that the average cost of a bad hiring decision can equal 30% of the individual’s first-year potential earnings. That means a single bad hire with an annual income of $50,000 can equal a potential $15,000 loss for the employer.
With that big of a risk, is it even worth the gamble? What many managers don’t consider is the other choice, which is partnering with a reputable staffing agency that offers direct hire placement services. You may already partner with an agency for your temporary staffing needs, so why not reap the same, if not more, benefits when it comes to your direct hiring needs.
The 3 Benefits of Hiring a Staffing Agency for Your Direct Hire Placement Services
1. The Cost of Direct Hiring
This is number one for a reason. If you are a hiring manager or own a business, you know how expensive it is to fill a position. Some of the associated costs include:
Sourcing costs – costs incurred during the initial search for the candidate. These costs may include fees for online job board posts/social media posts, employee referral programs, job fairs, etc.
Screening costs – the cost of the internal recruiter’s time to understand the job requirements, develop and implement a sourcing strategy, review resumes and backgrounds, check references, prepare candidate assessments, etc.
Interviewing costs – includes the cost of scheduling interviews, the reimbursement of travel to and from the interview, and the actual time involved (for all employees) in conducting the interviews.
Testing costs – cost for pre-employment tests to help assess a candidate’s skills, abilities, aptitude, attitude, values and behaviors. These costs include any software subscription fees, per-test charges.
By partnering with a trusted staffing agency, like Link Staffing, these costs are either eliminated or greatly reduced.
2. Staffing Agencies Save You Time and Increase Productivity
According to NACE, the average time from interview to offer is 22.5 days. Add the additional time of position analysis, posting the position, accumulating resumes, reviewing resumes, and scheduling interviews and you’ve quickly lost a large amount of time.
Imagine the things that you could accomplish with this time. Industry specialized staffing agencies have a pool of qualified and screened candidates for your positions of specialization, allowing you to focus on other important aspects of your jobs.
3. Staffing Agencies Reduce Your Hiring Risks
As many as 84% of new hires do not live up to the new employer’s expectations. One reason being résumé fraud. Unfortunately, the employer pays the price, when a new employee who has misrepresented himself has to be replaced. Remember the average cost of hiring a new employee? Most companies cannot afford the time or money to gamble with these risks.
Direct placement services reduce the risk of a bad hire in two ways. First, the referred candidate is thoroughly screened, interviewed, background and reference checked to verify skills, experience and work history. Additionally, most staffing services guarantee the quality of their direct placements for several months – and will find you a replacement if you’re not satisfied.
It is a significant investment of money and resources to internally implement the hiring process. By partnering with a trusted staffing agency like Link, not only does this save you money, but it allows you to focus your time and resources on the core aspects of your business, while we manage your search for candidates. Looking for help with direct placement hiring? Contact Us or call 1.888.929.LINK.
