Calculating your cost-per-hire
Do you know how much your company spends on hiring the right candidate?
When starting the hiring process, most companies don’t realise the true cost of hiring a candidate until the process is complete. There are a large range of variables that go into the hiring process that can drastically affect the cost of your recruitment.
Working out your cost-per-hire is one of the most important things you can do to save your company money, however, because so many factors go into recruiting, it can be difficult to calculate an accurate cost-per-hire across your organisation.
But what is cost-per-hire? By definition, cost-per-hire is the sum of the resources spent in recruiting a single employee to your organisation. This can include external recruiting costs like job sourcing, background checks, job boards, and marketing costs. This also includes internal hiring costs for your in-house recruiting staff, any referral rewards, and ATS systems. It is also important to realise that cost-per-hire for one company may be completely different to another, even in the same industry.
So how do I work out my company's cost-per-hire? Luckily we have compiled all the information you need to work this out.
The average cost of hiring a new worker in the UK is around £3000 after all internal and external costs have been taken into account. Not only that, it takes the average employer 27.5 days to sort through all the applications, whittle down the applicants to a shortlist, schedule interviews and then hire their chosen candidate. This can consume a tremendous amount of resources to take away from a company's day to day workings.
Here at The Talent Hub, we can reduce the cost of your recruitment by up to 80% while also saving you valuable time with our specialised state-of-the-art system which will sort through your applicants and shortlist only the best candidates for your business. Talent Hub ATS (Applicant Tracking System) is an evidence based, talent acquisition and recruitment management system, going beyond any traditional ATS.
With the money you save with us during this process, you could allocate those funds to provide better training via specialised courses. There are a number of external training providers available that would be of huge benefit to your company and to your new hire. This will also have the added effect of instilling your staff with the confidence that you value them, and that by investing time and money into them you see them as valuable and are committed to their personal development.
The Talent Hub provides candidate attraction programmes tailored to your company's individual requirements. Our approach to recruitment reduces traditional recruitment costs, without compromising the quality of service or standard of candidates. In the past 10 years we’ve significantly reduced the budget costs for our clients which stem from both the corporate and SME world.
Find out more about how we can help you by getting in touch with one of our friendly staff today on 0800 634 4477 or https://www.thetalenthub.org/53/get-in-touch
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