How much does it really cost to hire a new employee? Cost per hire is one of the most used HR metrics but maybe inaccurate.
“Hiring expenses are both visible and invisible. Anticipated expenses, such as consultant fees, travel or relocation expenses are but just a tip of iceberg..”Shweta dahiya shanbhag, pARTNER MANFRA
Five top uncalculated costs:
- Cost of initial decrease in productivity when a new hire join in.
- Cost of loss of morale when a senior or productive team-member quit.
- Cost of time spent by senior team on interviewing/selection process.
- Cost of on-boarding a new employee.
- Cost of competition- paying more to get the same quality of talent from competition.
Above mentioned hiring costs are harder to quantify but research data indicate that these costs add upto 60% of actual hiring cost and actual hiring cost round up to three times the CTC of an outgoing executive.
An expert executive search advisor typically would-
- Understand your business, industry, competition and mandates in totality.
- Build your employer brand by educating applicants on business, work culture and expectations.
- Conduct Pre-Referral assesement to qualify applicants.
- Present a detailed assesement review of applicants to facilitate your decision-making
- Reduce no shows by managing expectations through the process.
Today like never before HR leaders are grooming, partnering and engaging with executive search partners as having the right one on your side is an investment and not a cost.
Happy Hunting!