Calculating Your Recruiting Cost Made Easy

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Making a good hire can be expensive and it can definitely take more time than you anticipated. Across industries, business leaders are focusing on making high-quality, strategic hires, which is one of the reasons why it takes longer to make a hire today, than ever before. Right now, it takes an average of 29 working days to fill a job in this country, but the outliers of this trend are what’s truly frightening. According to data from Workable, the industry average for filling tech jobs is 58 days but, as you can see, the length of the candidate search (and thus, the cost) can be much greater when filling certain positions.

calculating recruitment cost

A month-long vacancy is bad enough, but CareerBuilder estimates that, on average, employers lose more than $14,000 for every job that stays vacant for three months or longer, and this cost can be upwards of 25,000 for more advanced positions.

Drivers of High Recruitment Cost
In order to reduce your recruiting costs, you must first have a complete switzerland phone number list understanding of these costs. If you only have an “idea” of what your total recruitment costs are reaching, then you may be in for a nasty surprise at the end of the quarter or even halfway through a candidate search. But, before we get into calculating the cost of your company’s recruitment, let’s explore some of the most common drivers of high recruitment costs.

Extended Vacancies Extended vacancies drive up your recruiting cost by prolonging the variable costs of the hiring resources that your company uses. Additionally, extended vacancies are detrimental to the productivity and morale of your employees. Forced to take on extra and/or unfamiliar work, extended vacancies can push your hardest workers past their limits and can inspire them to find a new, less stressful position.

Bad Hires Besides being bad at their job, bad hires also end up costing you a great deal in recruiting expenses. Forgetting what it cost you to source the bad hire in the first place, the price of replacing bad or mediocre employees always depends on the position that is being occupied by the poor performer.