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The cost of hiring entails more than just the person’s hourly rate. These costs start to incur before before the employee works his/her first hour and may continue on even after the employment is over. When you are hiring in a hurry and in volume, these costs and risks get magnified. This is an area where contingent staffing could provide a cost-effective solution.
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When you have to hire in a hurry
A quick cost-comparison on how the contingent staffing model can provide a cost-effective solution to help you build up staff quickly.
Your organization is growing fast and now you hire a lot of people to support that growth.
Before you say “I can do it fast.”
Consider the underlying costs.
What’s in a hire?
What’s in a hire?The cost of hiring involves more than a
person’s salary.
What’s in a hire?The cost of hiring involves more than a
person’s salary. Hiring costs incur before the first hour is
worked.
What’s in a hire?The cost of hiring involves more than a
person’s salary. Hiring costs incur before the first hour is
worked.There are costs involved in recruiting, keeping
the employee on board, and attrition costs, sometimes long after employment ends.
What’s in a hire?
Recruiting activitiesWhat’s in a hire?
Recruiting activitiesSource for candidates: job postings $100-$250/posting
What’s in a hire?
Recruiting activitiesSource for candidates: job postings $100-$250/posting
Sort resumes: depending on position, postings could result in several hundred resumes.
What’s in a hire?
Recruiting activitiesSource for candidates: job postings $100-$250/posting
Sort resumes: depending on position, postings could result in several hundred resumes.
Contact viable candidates for pre-screening.
What’s in a hire?
Recruiting activitiesSource for candidates: job postings $100-$250/posting
Sort resumes: depending on position, postings could result in several hundred resumes.
Contact viable candidates for pre-screening. Interview candidates: number of interviews and
interviewers vary by position.
What’s in a hire?
Recruiting activitiesSource for candidates: job postings $100-$250/posting
Sort resumes: depending on position, postings could result in several hundred resumes.
Contact viable candidates for pre-screening. Interview candidates: number of interviews and
interviewers vary by position.Reference checks and verification of credentials.
What’s in a hire?
Recruiting activitiesSource for candidates: job postings $100-$250/posting
Sort resumes: depending on position, postings could result in several hundred resumes.
Contact viable candidates for pre-screening. Interview candidates: number of interviews and
interviewers vary by position.Reference checks and verification of credentials.
Background checks.
What’s in a hire?
Recruiting activitiesSource for candidates: job postings $100-$250/posting
Sort resumes: depending on position, postings could result in several hundred resumes.
Contact viable candidates for pre-screening. Interview candidates: number of interviews and
interviewers vary by position.Reference checks and verification of credentials.
Background checks.
What’s in a hire?
Cost to hire on your own:
Recruiting activitiesSource for candidates: job postings $100-$250/posting
Sort resumes: depending on position, postings could result in several hundred resumes.
Contact viable candidates for pre-screening. Interview candidates: number of interviews and
interviewers vary by position.Reference checks and verification of credentials.
Background checks.
What’s in a hire?
Cost to hire on your own: If you hire on your own, you will be doing all of the above and incur all costs associated with it.
Recruiting activitiesSource for candidates: job postings $100-$250/posting
Sort resumes: depending on position, postings could result in several hundred resumes.
Contact viable candidates for pre-screening. Interview candidates: number of interviews and
interviewers vary by position.Reference checks and verification of credentials.
Background checks.
What’s in a hire?
Recruiting activitiesSource for candidates: job postings $100-$250/posting
Sort resumes: depending on position, postings could result in several hundred resumes.
Contact viable candidates for pre-screening. Interview candidates: number of interviews and
interviewers vary by position.Reference checks and verification of credentials.
Background checks.
What’s in a hire?
Cost if using a contingent staffing firm:
Recruiting activitiesSource for candidates: job postings $100-$250/posting
Sort resumes: depending on position, postings could result in several hundred resumes.
Contact viable candidates for pre-screening. Interview candidates: number of interviews and
interviewers vary by position.Reference checks and verification of credentials.
Background checks.
What’s in a hire?
Cost if using a contingent staffing firm: Included in staffing firm’s rates. Time investment is minimized to time spent interviewing top candidates
What’s in a hire?
Mandatory Employer CostsWhat’s in a hire?
Mandatory Employer CostsThe obvious: employee’s salary
What’s in a hire?
Mandatory Employer CostsThe obvious: employee’s salary
Payroll taxes
What’s in a hire?
Mandatory Employer CostsThe obvious: employee’s salary
Payroll taxesFederal and State Unemployment Insurance (FUI, SUI)
What’s in a hire?
Mandatory Employer CostsThe obvious: employee’s salary
Payroll taxesFederal and State Unemployment Insurance (FUI, SUI)
Benefits: medical, dental, vision, etc
What’s in a hire?
Mandatory Employer CostsThe obvious: employee’s salary
Payroll taxesFederal and State Unemployment Insurance (FUI, SUI)
Benefits: medical, dental, vision, etcWorkers Compensation
What’s in a hire?
Mandatory Employer CostsThe obvious: employee’s salary
Payroll taxesFederal and State Unemployment Insurance (FUI, SUI)
Benefits: medical, dental, vision, etcWorkers Compensation
Other benefits
What’s in a hire?
Mandatory Employer CostsThe obvious: employee’s salary
Payroll taxesFederal and State Unemployment Insurance (FUI, SUI)
Benefits: medical, dental, vision, etcWorkers Compensation
Other benefits
What’s in a hire?
Cost if you hired on your own:
Mandatory Employer CostsThe obvious: employee’s salary
Payroll taxesFederal and State Unemployment Insurance (FUI, SUI)
Benefits: medical, dental, vision, etcWorkers Compensation
Other benefits
What’s in a hire?
Cost if you hired on your own: As the employer of record, you will incur all costs.
Mandatory Employer CostsThe obvious: employee’s salary
Payroll taxesFederal and State Unemployment Insurance (FUI, SUI)
Benefits: medical, dental, vision, etcWorkers Compensation
Other benefits
What’s in a hire?
Mandatory Employer CostsThe obvious: employee’s salary
Payroll taxesFederal and State Unemployment Insurance (FUI, SUI)
Benefits: medical, dental, vision, etcWorkers Compensation
Other benefits
What’s in a hire?
Cost if using a contingent staffing firm:
Mandatory Employer CostsThe obvious: employee’s salary
Payroll taxesFederal and State Unemployment Insurance (FUI, SUI)
Benefits: medical, dental, vision, etcWorkers Compensation
Other benefits
What’s in a hire?
Cost if using a contingent staffing firm: Being the Employer of Record, the contingent staffing firm is responsible for all of the above (prior to conversion to regular status).
What’s in a hire?
Attribution CostsWhat’s in a hire?
Attribution CostsWhat’s in a hire?It happens. If you’re hiring in a hurry, chances are you will have some turn over. Here are the risks you incur when that happens.
Attribution Costs
Recruiting and re-training costs if a replacement is needed.
What’s in a hire?It happens. If you’re hiring in a hurry, chances are you will have some turn over. Here are the risks you incur when that happens.
Attribution Costs
Recruiting and re-training costs if a replacement is needed. Outplacement costs, Loss of productivity
What’s in a hire?It happens. If you’re hiring in a hurry, chances are you will have some turn over. Here are the risks you incur when that happens.
Attribution Costs
Recruiting and re-training costs if a replacement is needed. Outplacement costs, Loss of productivityCOBRA
What’s in a hire?It happens. If you’re hiring in a hurry, chances are you will have some turn over. Here are the risks you incur when that happens.
Attribution Costs
Recruiting and re-training costs if a replacement is needed. Outplacement costs, Loss of productivityCOBRAPossible legal costs if the ex-employee files grievance
What’s in a hire?It happens. If you’re hiring in a hurry, chances are you will have some turn over. Here are the risks you incur when that happens.
Attribution Costs
Recruiting and re-training costs if a replacement is needed. Outplacement costs, Loss of productivityCOBRAPossible legal costs if the ex-employee files grievance
What’s in a hire?It happens. If you’re hiring in a hurry, chances are you will have some turn over. Here are the risks you incur when that happens.
If the termination occurs while the employee was on the contingent staffing firm’s payroll, the risks are minimized.
Hiring in a hurry The cost of hiring entails more than just the person’s hourly rate. These costs start to incur before before the employee works his/her first hour and may continue on even after the employment is over.
When you are hiring in a hurry and in volume, these costs and risks get magnified. This is an area where contingent staffing could provide a cost-effective solution.
AboutLisa Amorao is currently the Marketing Programs Manager for ATR International. She maintains a blog where she talks about recruiting and the contingent staffing industry, which can be found at: http://lisaamorao.com/blog.
Copyright Lisa Amorao
