Have you ever stopped to consider the cost to recruit new staff into your business?
Lets think about this!
Firstly, what would you determine to be your hourly rate (or dedicating 1 or 2 of your staff to this process)?
Lets say it is between $75 and $100 / hour.
Next how many hours do you think the full recruitment process will take?
Lets say 25-30 hrs depending on the type of role.
That’s taking into account the following process:
Create a great advert
Posting the advert online
Receiving responses & inquiries
Social media posts
Reading every resume
Calling potential candidates
Initial Phone screen
Setting up interviews – phone and follow up email
Preparing for interviews
No shows – how annoying is that!
Completing the interview
Setting up questions to ask referees
Doing the reference check
Making the offer
Letting unsuccessful candidates know
→ Great – a job well done.
Now, add on 50% – this covers off on the time lost on your real work.
Don’t forget advertising costs – $500
Total cost to recruit someone: $4070
Hourly Rate x Time to Recruit
+ 50% for your lost time
+ Advertising Costs
