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Know Your HR Numbers Important For Hiring

According to a report published by the Work Institute, it costs an employer 33 percent of an employee’s salary to replace them if they leave unexpectedly. Having great team members is an important part of what makes a business successful.

Are you looking for new employees to fill vital positions within your company? If so, now is the time to start planning out this hiring process in detail.

While business owners use things like online employee work schedule maker software to help them keep their current employees in line, they forget all about technology when trying to hire new team members. Using technology will allow a business owner to figure out vital information needed to reduce the errors made during the hiring process.

The following are some of the HR numbers you need to know when attempting to hire great employees for your company.

The Time it Takes to Fill an Open Position

The term “time-to-fill’ refers to the number of days that pass from the time a position with your company comes open and when you actually fill it. Ideally, you want this number to be as low as possible. Generally speaking, the longer it takes to fill a position, the more money you will ultimately spend as a business owner.

Typically, it takes most businesses around 37 days to fill open positions. This number varies based on the industry a business operates in. Retail-based industries generally fill positions the fastest, while government positions take the longest amount of time to fill.

The Overall Cost of Hiring

Knowing the overall cost of hiring is also important. With information regarding how much it takes to find and hire talent, a business owner can see where costs can be cut. The following is some information published by the Huffington Post regarding the price of hiring – In the US.

  • Job Board Postings- Businesses usually spend about 2 hours posting on these boards. The cost of posting on a job board can be between $40 and $400
  • Cost of Reviewing Applicants- Companies invest about 23 hours of time into reviewing the applicants for their job openings. The cost of this time is around $600.
  • Employee Candidate Pre Screening- The time spent pre screening employees is around 4 hours and costs a company about $100.
  • The Actual Hiring of a New Employee- The time spent calling, interview and checking the references of an employee is about 8 hours, which costs a business about $200.

Taking a good look at your existing hiring practices may provide you with some useful information on how you can reduce costs.

What Does a Bad Hire Cost?

When a position is vacant for too long, it can make a business owner feel a bit impatient. In some cases, this impatience can lead to a business owner rushing to hire anyone to fill the position. While this may seem like a good idea, the cost of a hire can be quite high.

In a recent study, nearly 41 percent of business owners polled claimed to have made a bad hire at one time or another. A bad hire can cost a company up to $25,000. This same study also found that nearly 38 percent of the bad hires made by the businesses they polled were a result of human resource managers being rushed.

Instead of rushing through the hiring process and letting your business suffer as a result, be sure to weigh all of your options before making this important decision.

Your Team is the Life Blood of Your Company

Considering just how important the right employees are to the overall success of your company, you will need to invest time and money to make the best hires possible. Often, working with a staffing agency can help you avoid mistakes and make the hiring process more efficient.

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