When a valuable team member suddenly becomes an empty slot in your organization, the effects are far reaching. First, it puts a strain on other staff members, managers and anyone who picks up the slack. Duties are juggled around and everyone feels the effects. But have you stopped to consider the exact cost of even one missing employee?
The Breakdown: What's the Cost of a Missing Employee?
Of course, there is the obvious cost involved in filling a position. This can include:
- Recruiting: Time and cost involved in posting the position or actually head-hunting for a qualified candidate.
- Interviewing: Gathering resumes, reviewing them and making phone calls to schedule interviews. Then, there's the time involved in the actual interview process.
- Selection and training: Once you think you've located the right candidate, there will be salary negotiations, benefits, payroll expenses, and the entire training process (especially if the new employee seems like a good fit but still needs to be trained on certain software or tasks they may not be familiar with).
Looking at the hiring process and lumping these tasks together can make it sound like a quick and rather stress-free process, but is it really? Think back to the last time you lost a key employee. You may have thought it would take a week or two, but in reality it probably ended up dragging on much longer, especially when you take training into account. Things always take longer than we think they will. According to CareerBuilder, there are over 50 resumes received for every advertised position. The process of analyzing and sorting through them is only a small fraction of the hiring process, but will take a good chunk of your time.
The true breakdown of the hiring process timeline and the cost of a lost employee looks more like this:
Real Costs Involved in the New Hire Process
- Advertisement - $200 or more
- Internal Recruiter Cost - between 30-100 hours of work per position (multiply by HR hourly rate)
- Background checks, assessment of skills, other pre-employment tests - 3-5 hours of work per candidate (multiply by HR or your hourly value)
- Training - The cost of the immediate supervisor and staff members to train the new employee can vary, but generally costs 100 or more hours of direct time, involving several staff members. This includes orientation training and materials, real time one-on-one training, plus the salary of the new employee while they are in training.
- Review - Even after the new hire is on board and trained, there is a direct cost involved in reviewing the work of the new hire by the supervisor (calculate 40 hours of supervisor's hourly rate).
What About Lost Productivity Costs?
As the new hire is learning the ropes of your organization, they are not fully productive. Use the following guidelines to calculate the cost of this lost productivity:
- Until the employee is fully trained, they are contributing at a 25% productivity level which generally lasts for the first 2 - 4 weeks.
- During weeks 5 - 12 the new hire generally operates at a 50% productivity level.
- During weeks 13 - 20 the new hire is contributing at a 75% productivity level.
- There is also the cost of coworkers and managers lost productivity during the training process.
- The cost of reduced productivity of the person or person(s) involved in training the new staff member and sacrifices his or her own duties to a degree.
Feeling overwhelmed yet? According to statistics, the total cost of a new hire can easily reach $50,000 or higher over the duration of the training process. The impact of an open position affects the productivity of the entire organization.
How can you reduce these costs, speed up the hiring process, and guarantee that your new staff member actually has the skills necessary to fill the position? Using HH Staffing Services to fill open positions within your Bradenton, Sarasota, Orlando, or Tampa organization will reduce costs dramatically.
We do the legwork, so the tasks you were responsible for are reduced to one phone call to our qualified staffing recruiters who ask the appropriate questions to fill your position. We then pull from our vast database of temporary and temp to perm employees who already have a proven track record of reliability to go along with the skill set you're looking for. From that first phone call to HH Staffing Services, we work with you every step of the way, providing only the most qualified employees.
What if They Don't Work Out?
This is always the worst fear of employers looking to fill a position. After interviewing, hiring, and training, --what if they don't work out? All of that effort is lost. Not so with HH Staffing Services. If an employee is not the right fit for your organization, you don't have to start all over again. We simply provide you with another candidate. Using our Clearwater/Tampa, Orlando, Sarasota or Bradenton staffing agency is truly a partnership that you shouldn't do without!
Give HH Staffing Services a call today, and have the right employee at your door in the morning!