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COST PER HIRE
The average cost per hire for a professional level position nationally in 2007 was $6,000. This cost includes not only the advertising medium utilized to help attract candidates, but also the time spent in gathering and reviewing resumes and screening and interviewing candidates.
Another factor you need to consider regarding the hiring process is the expense your company incurs when a position is left vacant. Does it cost you overtime to have someone else do the work? Is there a revenue loss because this position directly or indirectly helps your company generate income? This dollar value can have a wide range and drastically affect your budget.
The final factor to consider is how team morale is affected when a postion is left vacant too long, or when your organization rushes and makes a bad hire.
RECRUITING CHOICES
Recruitment and Staffing Firm - In 2007, companies in the United States spent $17.5 billion with Search and Placement Firms to find candidates.
The average amount spent filling a position when utilizing a recruiting firm was 25% to 30% of the first year's annual salary. For a $70,000 per year position, the cost ranges from $18,750 to $21,000. Although most recruiting firms offer a 60- to 90-day guarantee, what happens if the person hired leaves within a year? Are you prepared to pay that fee again?
With most companies in the marketplace operating as lean as possible, every department is doing more with less. Still, your typical human resources department has many other functions in addition to recruiting. When a position needs to be filled urgently, many companies look to recruitment and staffing firms because they're often considered to provide the most quality candidates. Fifty-nine percent of all companies utilize recruiting firms to fill permanent positions.
The average turnaround time from contacting the recruiting firm to filling the position is 15 weeks. The results will typically yield a high-quality candidate, but at a hefty price.
In-paper and Online Ads - More than 98% of the market utilizes these products for recruiting. Many companies place ads in the local newspapers and even more place ads online with a major job board.
The average response to a newspaper ad yields 50 to 70 resumes for each Sunday it is posted, and the average 30-day posting online fetches another 200 to 300 responses.
It will likely take one to two weeks to review all of the resumes if you look at each resume for two to three minutes. Candidates then need to be screened. If 25% of the resumes are from candidates who meet the basic qualifications, and you spend 15 to 20 minutes talking with each candidate, it will take 24 to 30 hours of talk time to screen all of the prospective candidates. This will most likely be spread out over a three- to four-week period.
You now get to bring in the top 10 or 12 candidates for interviews and second interviews. Depending on your schedule and the hiring manager's schedule, completeing the interview process can take five to six weeks. Add in the offer process and a twoweeks notice, and this entire process can take 16 to 18 weeks.
This process is much more cost effective than using a staffing firm, and will still yield quality candidates. The average recruiting cost for advertising in newspapers and online is $1,300 to $1,600 per position. But how much more is it really costing your organization, considering the process took four or five months?
THE SOLUTION
If your organization would like to fill its positions through a service that utilizes the best recruiting products in the marketplace while providing the service of a recruiting firm, then you need to call Total Recruitment Solution Plus.
Total Recruitment Solution Plus takes your job openings and posts ads in the best newspapers, online with the best job posting outlets, and searches the best local, national and niche resume databases. Total Recruitment Solution Plus reaches more active and passive job seekers looking for an opportunity like yours. We then screen all candidates with questions that you want answered and forward all qualified candidate resumes and screening results to you, so you can get busy interviewing. It's typically a three- to four-week process, giving you the ability to fill most positions in six to eight weeks.
Compare our process and cost to your process and you will see that the Total Recruitment Solution Plus is the No. 1 choice. Save time and save money. Call Total Recruitment Solution Plus today.