The Hidden Costs of Hiring New Employees
When you choose a full-cycle recruitment strategy for hiring and recruiting new employees, the costs associated with the hiring process may soon mount up. Let’s look at the hidden costs of hiring new employees so that you know what’s to come.
Recruiting the Best Employees
You’ll need to spend extra coin if you want to find the most qualified employees for your company. While putting up a hiring sign in front of your business is the most cost-effective method, how do you know that qualified candidates will see it?
Recruiting will likely be your costliest expense. You’ll have to dip into your budget to post on job boards since most job seekers are perusing openings through online job searches. You also might consider hiring recruiters to scour resumes on these sites to find the ideal candidate, like a needle in a haystack.
Finally, interviewing potential employees isn’t free. Between the initial interview and getting John Hancock on tax forms, you’ll lose many hours and spend many dollars doing it all.
The Time Involved in Onboarding
Even though many companies now onboard remote workers, you’ll still spend a lot of time onboarding once you’ve acquired your new hire. Onboarding is crucial in retaining new hires and ensuring that you provide them with the resources they need to succeed.
The hidden costs of onboarding include orientation, filing paperwork, and IT expenses. Orientation periods vary depending on the occupation, but you can’t throw a newbie into the fire without an appropriate introduction to the company.
You must also have W-4 forms signed and filed along with other important documents. Lastly, a new employee can’t hop onto a company’s computer all willy-nilly. The IT department will need to spend hours setting up their new log-in to grant access to everything they’ll need.
Paying for Their Benefits
Bundled with an employee’s salary are their benefits. The bulk of your recruiting expenditures will probably consist of salaries and benefits. Your total expenses may vary depending on the perks you provide and how much you contribute toward retirement accounts and health insurance. Additional perks for employees may include things like complimentary coffee and snacks, tuition assistance, additional health and dental coverage, and life insurance.
Hours Lost While Training
Now that you found the hire, onboarded them, and started paying them, the costs of hiring are over—right? No, they aren’t because the next step of the process is training them. Although it might be costly, investing in training is one of the most crucial decisions you can make. Lack of well-planned training exercises may cause your new employee to underperform and eventually quit, making everything for naught.
Learning the hidden costs of hiring new employees proves that it’s a substantial financial undertaking. Fortunately, with allies like Racket Reps offering outsourced BDR services, you won’t have to break the bank to get the help you need. Racket Reps has highly-touted, US-based candidates who can help you in your time of need. Contact Racket Reps today to see how we can lend out our expert staff for however long you need!