The Solution to High Recruitment Costs
As any employer can tell you, hiring an employee is not easy. First, the job role must be defined, then a message must be put out that you are hiring. There are two ways to do this, one by doing it yourself. This involves advertising on social media such as LinkedIn. The other method is to use a recruitment agency which is pricier but saves you some trouble.
Additionally, the employee’s salary must be discussed. Once a suitable candidate is found, he/she might want a higher salary than what you have decided on. Once a suitable candidate is found, the candidate must be trained. Employee bonuses, pension, national insurance, and other costs involved must be discussed. Therefore, all these amounts add up when hiring an employee.
Nazia Ahamed, the HR director of BE offices said that “The total cost of hiring a new member of staff can be higher than it first appears”. Therefore, companies need to be careful when hiring new employees to ensure that they stay within a budget.
All the above-mentioned expenses are known as the recruitment cost of an employee or in other terms the amount of money an employer spends to get a new employee. But do you know that the cost of recruitment has increased?
40% of employers talked about increased recruitment costs per employee.
This can be contributed to the constrained employment market. Further factors such as increased remote hiring, and digital recruitment methods are also contributing factors. And with the pandemic situation causing an unstable job market, making a bad recruitment decision can cost a company a lot. It can be prohibitive for small businesses.
Recruitment costs can also increase if the wrong candidate is hired for a job.
It was found that the average cost of bad hiring decisions was about £125K.
Additionally, a wrong hire may result in loss of productivity, low-profit margins, low cash flow, and decreased customer relations as a bad hire might lead to a skills shortage in a certain area of the company, putting excessive strain on other employees. Therefore, what can you do to reduce this recruitment cost? The best way will be to simply ensure that you hire the right person for the right job. And Compaira is just the tool to help you do it.
Compaira can help you turn your recruitment cost into an investment. By using Compaira’s advanced AI algorithms, you don’t need to worry about selecting the wrong candidate. The system built by Compaira ensures that each applicant is analysed based on their qualifications, experience, and talents based on the company’s requirements. And thereby also avoiding any bias. Compaira is a cost-effective solution that makes hiring easy. So, are you interested?
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