When employees leave a company, they take with them the skills
acquired and knowledge gained while at your company. Furthermore, when
adding all of the direct and indirect costs, the total cost of turnover
can easily be two or three times the base salary of the position. For
any company, a lost employee is lost money.
Direct and Indirect Costs of Hiring
Having the right resources on staff is a must to the success of your
team. It is more important than ever to find and retain the best staff
possible. Here is a list of costs relating to hiring:
DIRECT COSTS
• Placement Fee
• Screening Resumes
• Advertising
• Interview Process
• Training
• Relocation
• Admin Expenses
• Testing/Background Checks
• Legal Fees
• Travel Expenses
• Sign-on Bonus
INDIRECT COSTS
Consulting Fees
Ramp-Up
Company process orientation time spent
Contractor Fees
Lost Revenue (due to void in sales territory)
Project Slippage or Lost Opportunities due to time spent on hiring process
Exit Interviews
Increase in Unemployment Tax
Replacing your company’s most important assets may cost more than you think!
As companies recognize the mounting lost revenue due to a bad hire,
they begin to search for the most effective ways to hire the right
employees and retain valuable staff. The purpose of this white paper is
to help you avoid many common mistakes in the hiring process.
To err in hiring is human – and very expensive. Many “standard”
hiring procedures are actually common mistakes, so to choose more
competent candidates, prepare to revise your hiring methods. Learn the
nine hiring errors managers often make, then eliminate them from your
hiring practices to help you choose only the cream of the crop.
To receive a copy of HR Chally's " the 9 most common hiring mistakes
and how to avoid them", email me at joe@springgroupcareers.com and we
will forward this enlightening information to you immediately.