So you've lost or fired an employee…
…and now you have to find a replacement. It’s easy to start calculating their salary and benefits cost, but have you thought about all the other costs?
Costs during the recruiting process:
- Costs and time involved with writing the description and posting
- Time reviewing applicants and cost of tracking system
- Time on phone screening, scheduling, prepping for interviews, executing interviews
- Time re-interviewing, scheduling, checking references, and testing
And this doesn’t even factor in lost productivity, loss of customers, loss of brand equity, training costs, etc. Some estimates range from 30-50% of the annual salary for entry-level employees, 150% for middle level employees, and up to 400% for specialized, high level employees! With numbers like these, it’s easy to see why increasing the quality of your hiring can be a great financial performance booster for your organization!