According to ACAS the average cost of replacing a single employee is £30,000. What are you doing to ensure this startling base cost does not exceed your employers’ expectations, and the ‘right’ employee is recruited?
Cost per hire is the total sum of money needed to take on a new employee into your organisation (HR Zone). Including everything from internal to external costs. It is one of the most frequently used recruiting metrics, varying from business to business(dependant on organisational size, infrastructure and specific needs).
And whilst understanding this metric is a bonus for improving efficiency of your HR department, poor planning can potentially lead to bad hires, for example; according to REC a mid-manger with a £42,000 salary can cost the business over £132,000 if hired poorly, as a result of HR departments cutting corners in trying to find the ‘right’ employee.
4 ways we can help reduce your cost-per-hire
1. Effectively utilise your HR functions time
The time and money spent managing potential hires is unwritten, according to Hundred5 around 90-95% of companies underestimate how long hiring new employees really takes. From initial candidate conversations to exploring references and vetting CV’s – using a recruitment agency like The ONE Group allows your HR function to take back time from the hiring process and focus more on other HR functionalities. Our specialist consultants are here to guide each candidate through the recruitment process and have time to invest in their journey with your company.
2. Eliminate the need to purchase exclusive recruitment technology
Sourcing skilled employees with the ability to meet the gaps in your organisation is competitive and difficult, which is why more and more organisations are investing in technology to aid their recruitment process. With a staggering 15% of all HR costs attributed to recruitment (Hire, by Google) – using a recruitment agency allows your organisation to invest in what matters most to you, rather than costly application tracking systems (ATS), that recruitment agencies like The ONE Group live and breathe daily.
3. Take away the need to train your employees on specialist recruitment technology
To gain the best out of systems like ATS - it’s essential HR departments are comfortable and confident in their use. Along with the monetary value of investing in such systems, the time and money associated with training employees to use these specialist technologies could be better spent elsewhere in the department.
4. Consideration of unforeseen circumstances
According to REC, 85% of HR decision-makers own up to making a bad hire. We understand that not all candidates work out, that’s why The ONE Group’s rebate terms mean that we will offer you a free replacement or percentage of the fee back, should your chosen candidate not work out in their first few weeks.