Your company's workforce is likely one of your highest business expenses. Between sourcing, recruiting and hiring costs, each new employee represents a significant investment. This news roundup of the RPOA Weekly covers the cost of talent acquisition and the steps you can take to decrease it.
Do you know how much it costs to replace an employee? Employee turnover is expensive for companies, with costs that include recruiting hours, lost productivity, and assessing and vetting potential candidates. This article discusses the cost of employee turnover, emphasizing the importance of knowing exactly how much you lose when an employee leaves and what you stand to gain when a new employee turns out to be a great fit. It then introduces Novotus’s turnover calculator, which helps recruiters put an exact number on the cost of employee turnover.
Recruiting is expensive, and companies are constantly trying to find a way to cut their recruiting costs. This article introduces recruitment process outsourcing, or RPO, as a way to lessen the price of recruiting while maintaining and even improving the quality of their new hires. It discusses five ways that RPO companies help reduce recruiting costs, including sharing risk, speeding up the time-to-hire, smoothing out the recruitment cycle, decreased infrastructure costs, and lower cost per hire.
There are a lot of different metrics involved in hiring and talent acquisition, including time to offer, time to hire, cost of hire – the list goes on. This article adds one more measurement to the list: cost of vacancy. It introduces the elements that go into cost of vacancy, including direct costs like the opportunity cost of a vacancy or cost to fill a vacancy, indirect costs like sliding customer service levels and loss of market share, and soft costs like decreased team performance and morale and underutilization of space and equipment. It finally suggests recruitment process outsourcing as a potential solution to cost of vacancy, citing four different ways that RPO can deliver decreased costs.
What’s the most important measurement for your recruiting program? According to this article, the common answer of “cost per hire” is dead wrong. The article explores the role of the cost-per-hire metric in understanding the overall investment in a recruiting program, and argues that looking at cost-per-hire in a vacuum can contribute to viewing your recruiting program as a cost center instead of a profit center. It also uses the fictional companies Dumb Inc. and Smart Inc. to illustrate how the investment in cost for hire pays major dividends over the long run.
Want to decrease your labor costs? The answer isn’t necessarily a hiring freeze or layoffs. This article suggests using contingent labor, also known as independent contractors or temporary employees, as a way to reduce infrastructure and payroll costs for your company. It discusses the importance of having a contingent labor strategy in place to get the most from your contingent labor cost-savings, and discusses several contingent labor best practices. These include standardizing the pay rate for temporary talent, looking for hidden savings like discounts for volume, and using a managed service provider to manage your contingent labor workforce.