What's the Cost of Hiring a New employee?

What's the Cost of Hiring a New employee?

Recruitment can be costly. Plan your strategy carefully.

By Marcia Smith

List your costs

To evaluate the full costs of hiring a new employee, you need to think about every stage of the process.

First, there’s up-front recruitment expenditure, such as advertising the position, the cost of management time to sift through the applications and conduct interviews, plus the costs of checking references and any background screening.

Once a person is hired, there’s the immediate costs of integrating them into the office. This could mean a new desk and computer, setting up a new email account and creating their security pass. This is soon followed by the costs of induction and training, which will be required to get them up to full productivity levels.

Finally, you will need to consider the ongoing costs of paying their salary and any benefits or bonuses for which they may qualify.

Use recruitment tools

There are several tools that can make your recruitment process more efficient. All of them work by trying to ensure that the best candidates for the role are selected, while weeding out poorer applicants as early as possible.

Tools include online screening questions, by which you can ask for key qualifications or experience. Tests and quizzes can also be used to assess aptitude for the role, either by applying a threshold score or simply selecting the top five or ten results. These tools save time, enabling you to automatically reject unsuitable applicants without having to read the rest of their application.

IT tools can also be used at the advertising stage, to insert your recruitment ad into key sites, publications or social media platforms.