So maybe you’re running a business or organization, or involved in hiring for one. Or, you might be just dipping your toes into the world of business, thinking along the lines of…
“How much does it cost to hire for a business?”
Regardless of what situation you’re in, it stands to reason that your next question might be along the lines of,
“How much does it cost to hire a [insert job position here]?”
And at this point, we’d need to tell you that you’ve likely already started out on the wrong foot. Here’s why- we can bet you’re thinking about the cost of a monthly salary, but we feel hiring new staff is about much more. However large or small your organization is, we assure you the costs to you will go far beyond a monthly payroll.
Working from the office?
There are the basics- your office space rental, utilities (water, electricity, internet, heat), desk space, stationary, computer hardware, software, subscriptions, internet connections and an IT support specialist to help you set up everyone on the last 4 items. And don’t forget coffee and office snacks. Staff might even expect you to subsidize parking or transit costs.
Working from home?
Even if your company has jumped on the WFH (work from home) bandwagon, you’ll still need to think about vacation times, benefits, insurance, sick days and potential salary disputes. Not to mention the subsidies for WFH that many staff expect. Sure, you’ve saved them a 40 minute commute, but they’re still not paying out of pocket to buy Microsoft Word or a blue tooth headset. That’s on you. Not to mention the new software costs to you might have to take on setup and maintain a WFH team.
How about hiring?
And there’s also the expense of the whole hiring process itself. Think about how much money was spent on your last round of hiring efforts. Whether you’re paying your administrator, secretary, HR department, posting classifieds or online job listings, using a premium LinkedIn membership or even a recruitment agency, the costs can add up very quickly. Also, if you’re working with a smaller team, you might also consider the opportunities lost by assigning valuable staff to these hiring tasks when they could be helping you grow your business.
And what about the time?
Yes, there are monetary costs, and then there’s time- one of the most valuable resources within your company, especially if you’re working with a smaller team. On average, companies spend 23.5 hours reviewing candidates, and 1-3 months to fully hire and onboard new staff. That’s not even mentioning the extra costs if the staff you spent time painstakingly assessing, hiring and training choose to leave. To top it off, according to technologyadivce.com, “26 percent of small business owners who do payroll in-house spend three to five hours per month on payroll”. And of course, don’t forget about time spent processing the aforementioned employee disputes, employee benefits and health claims.
Here’s the secret
What would you do if we told you there was a way to save on hiring costs and get access to stability, skills and scalability in the form of a remote team working just for you, with nothing to worry about except a simple payroll? That’s right. A way to forget about everything we went over (again, except pay).
The answer is outsourcing. Outsourcing absorbs massive costs for your organization, and regardless of your size, gives you access to enterprise level services. Imagine being able to provide your customers with things like:
- After hours or 24/7 technical support
- Multi-channel voice, email, live chat and social customer service
- Fast response times to grow customer satisfaction and meet industry standards
Outsourcing can help you make this happen. We know the value of human capital, but we also know hiring is hard work, and what you really want to do is focus on growing your business. So whether you’re a more experienced firm looking for a new vendor or just curious about how outsourcing works, we can help. Or if you want to learn more about what it is, how it works and its pros and cons, check out our in-depth walkthrough here.