It’s no secret that recruiting is a costly process. It’s costly in resources, time, and manpower, and can cost double as much if your new hires don’t stay long. In this week’s RPOA Roundup, we take a look at the cost of recruiting talent, from scouting new hires, employee turnover, and RPO costs to tips for demonstrating recruiting ROI and how to dramatically cut the costs of finding new employees.
Most people consider RPO as a solution to their recruiting needs because they believe it will lower their costs. This article explains how there is no one-size-fits-all cost for recruitment process outsourcing. Rather, cost depends on the model that the RPO provider employs. The article explains five common cost models used by RPO providers, and provides tips for comparing internal and RPO costs.
It’s getting to be that time again – the time of year where you prove the return on investment for your division or department, and prove that your budget for next year is worth the money. This article highlights the importance of using trends and data to prove the ROI for recruiting efforts, and identifies some metrics that help determine how cost-effective your recruitment efforts have been and how you stack up against the competition. It also identifies trends in the workforce that could make recruitment even more difficult later on.
When it comes to hiring recruitment, numbers can speak loud than words. The loudest numbers have dollar signs in front of them. This article identifies the numerical cost of making a poor hiring decision by highlighting three expensive repercussions: in total, it costs about 300 times a person’s hourly wage to hire one new employee; your failed new hires can negatively affect your relationships with your clients; and when you make a hiring mistake, it can result in missed profits and opportunities and decreased productivity and morale.
Continuing the trend of putting a numerical value on mistakes, this article introduces statistics that show what employee turnover can really cost a business. It presents both a pessimistic and more conservative estimate of how much per year it costs to replace employees at several levels, and then applies that to a hypothetical business that loses 12 employees a year to see the total cost per year of turnover. It follows the concerning results with suggestions on how to encourage employees to remain with their employers, and uses a personal anecdote to warn against halfhearted or lackluster measures when trying to retain employees.
Social media is changing the recruiting landscape as it becomes an increasingly common sourcing channel and recruitment vehicle. This article uses insights from a talent acquisition manager at Time Warner Cable and the founder of a company that specializes in Facebook recruiting for Fortune 500 business to shed light on the ways social media can be used as an inexpensive recruiting tool. It suggests tips to get the best results from Facebook recruiting ads, and suggests the best type of Facebook ads for recruiting, as well as an ad budget.