Have you or your department ever taken a few moments to understand the costs of your talent acquisition efforts? It may be more than you think. And those costs are likely going to increase in 2020. But where do you start analyzing these costs to see how much you’re spending to secure the talent your team needs to keep production running smoothly? Let’s take a closer look at the price of talent acquisition in 2020.
How to calculate the price of talent acquisition
Does your team truly understand the cost per hire? There are dozens of internal and external expenses that contribute to your talent acquisition efforts. In this tight talent market, it is becoming increasingly more difficult (and expensive) to hire top talent. Here are just a few of the many expenses your organization is paying to hire talent:
- Numerous job boards (Glassdoor, LinkedIn, Indeed, CareerBuilder, just to name a few)
- Paid social media advertisements
- Application tracking system/database
- The salary and time of your internal recruiting staff
This is not a comprehensive list of costs of talent acquisition. If you sit down and think about all the tools, resources, and manpower of your recruiting efforts, the costs really start to add up. In some industries, talent acquisition expenses are even higher due to the nature of today’s tight talent pool. For example, due to today’s tight labor market, many employers are struggling to fill skilled labor positions such as electricians and EHS positions. As a result, we sometimes hear that employers have these types of positions open for months!
These costs don’t even include your costs associated with production losses, paying overtime for other employees to pick up the slack, and even worse, turnover from overworked employees. In other words, hiring is becoming very expensive, and it may be time to partner with a recruiting firm to fill your roles quicker with an overall cheaper cost per hire.
Competition is heating up
The costs mentioned above are just typical talent acquisition costs. With a half-century low unemployment rate, employers must offer more competitive compensation packages to attract the best candidates. It’s a candidate-driven market, and job seekers are demanding more; they want higher salaries, better benefits, and even bonuses are just a few of the additional acquisition costs employers are facing. Over the last 12 months, average hourly wages have increased by 2.9 percent, showing steady growth throughout 2019. To be competitive when it comes to your hiring efforts, you must come in with strong offers, or your candidates will likely move onto other opportunities.
How to overcome these costs
There are several simple ways employers can overcome these growing talent acquisition costs. To start, are you or have you considered utilizing contractors? Hiring contractors is an efficient way to secure talent that your team needs fast! The onboarding time is typically quicker, the cost for employment is usually cheaper, and you will face fewer production shortfalls, saving your team time and money. There are fewer risks and costs with utilizing contract workers, and if they don’t fit the needs of your organization, you don’t need to extend their contract. But if they are an excellent fit for your team, you can bring them on board as a full-time employee. It’s a win-win!
Secondly, you can utilize a recruiting firm, like Johnson Search Group, to help you fill your critical roles quickly. We will work with you to understand your hiring needs and present you with candidates that are a perfect match for your organization. So, what are you waiting for? Let’s have a conversation today and see how Johnson Search Group can help your team save money while securing the talent you need.