The end-goal of a business is to make profits, but in the beginning, there are more expenses to the company than income. And one of the biggest expenses – often rightly termed as an investment – is the people.
From costs on hiring to training to retaining talent, employees are the most valuable assets of any business. So, when you see a talented worker leave your organisation, it almost hurts physically. Today, let us understand why hiring and retaining talent is such an expensive affair and what you can do to minimise this expense. We will also delve into the role and benefits of contract staffing, and why it is important.
What is the cost of hiring a skilled employee? To gauge this, we need to understand the processes most companies use in their recruitment:
Finding talent: While most business-owners would love it if the most talented people were to covet their organisation, this is often not the case. Candidates have become quite picky in deciding where they are going to spend their next (on an average) one to two years. Businesses have to work hard on reaching out to them in the right forums, which means – advertising costs.
Many times, to fill specific roles, employers have to devise employment referral programs to get the most qualified candidates. While this usually means that the referred employee may stay for some time, the referring employee still draws a bonus which is an overhead for the company.
Recruitment team: Believe us when we say this – when the responsibility of hiring falls solely on the HR, they are visibly stretched thin. Which is why it is prudent to go for a separate recruitment team. If this is an internal team that you have picked, other than their salary, you are liable to pay for their benefits, infrastructure, travel costs to career events and more. If you are looking for fresh graduates, your team will probably visit campuses to conduct interviews, and this too incurs a significant cost.
Signing on an employee: In high-level roles, there are usually sign-on bonuses involved. At times, you may even have to pay for employee relocation.
After all this, we only managed to onboard the candidate. So, all your costs up till now have only been an investment without the returns.
The cost of retaining talent
Now comes the real challenge – retaining talent! What are the costs involved in this, you wonder?
All these activities are still not enough to guarantee whether you can successfully retain talent in the long run or not.
Cost of losing talent > Cost of hiring + Cost of retaining talent
This is, perhaps, the most bitter pill to swallow for any business owner. No matter how much effort you put in, when the employee leaves, they take with them more than what you invested in them. How did we arrive at this conclusion?
How can contract staffing help?
In contract staffing, the company outsources temporary positions that are filled by a staffing agency. So, a lot of responsibilities that were on your shoulders are already offloaded to the agency. One of the key areas handled by a staffing agency is employee grievance management. BetterPlace, for instance, has a ticket-based grievance management system which helps any employer access automated ground intelligence reports from the dashboard to discover and address employee challenges and feedback.
Here are some ways in which contract staffing can help you overcome the cost of hiring and retaining talent:
In the end, you get to decide what is best for your company. Recruitment and retaining talent are challenging tasks. But with contract staffing, you can focus on building your organisation, while still enjoying the benefits of a skilled workforce.
Using A Staffing Agency For Hiring Related Articles:
Top 5 Staffing Solutions in Bangalore
Candidate Assessments For Staffing Agencies
Benefits Of Outsourcing Staffing
Trends Impacting Staffing In India
Selecting a Staffing Provider
Staffing Agency Roles And Responsibilities
Changes In Temp Staffing
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