The cost of a hiring mistake can leave a painful scar on your bottom line, averaging about 30 percent of an individual’s first-year earnings. For instance, if a position pays $50,000, there’s a potential $15,000 loss to the employer.
- Numerous CEOs have estimated that hiring mistakes have cost their companies more than $100,000 apiece –more than $3 million in the case of high-power sales and executive positions.
Your financial setback is compounded by a significant negative impact on team performance, productivity and morale. One misfire hire can throw an entire department into chaos as team members suffer the repercussions. A deep sense of demoralization can result from committing your time and energy into onboarding and accepting a new team member into your culture – then losing them before you reap the rewards.
Partner With a Pro
There are numerous advantages to partnering with a staffing company that specializes in your industry as you avoid bad hires and fine tune your workforce strategy.
- Staffing expertise: A staffing agency’s level of experience far exceeds that of most HR departments, simply because sourcing and recruitment are their core business. They are constantly up to date and in tune with employment trends, legal developments and best practices.
- Knowledge of your industry: Look for a firm with a successful track record with clients in your own industry. Then you’ll know they can walk the walk. Ask for and follow up with references before you make a decision.
- Deep talent pools: The best staffing companies have robust pipelines of candidates who are ready to hit the ground running. They also have broad networks of professional contacts and access to top-performing passive candidates.
Recruiting, screening and hiring top talent takes a lot of time and resources. Working with a qualified staffing partner, you can turn much of this responsibility over to them, freeing you up to concentrate on the other tasks on your likely-very-full plate. In addition:
- You lower your advertising budget. Staffing firms already have funds set aside for broadcasting open jobs as part of their total effort on your part. You can leverage these dollars and save your own.
- You convert fixed costs to variable costs. You may have little room for overhead expenses but still need employees at times of high customer demand. If this is the case, your staffing firm can enable you to staff up and down as needed. Even though you don’t have a markup in hourly rates, you don’t have to carry fixed employee costs during down times.
- Risk is reduced. You get the talent without the HR overhead. Staffing agency employees report to you, but you have no liability for their worker’s comp costs, payroll taxes or unemployment claims.
As noted by Apple, Inc., cofounder and CEO Steve Jobs, “I noticed that the dynamic range between what an average person could accomplish and what the best person could accomplish was 50 or 100 to 1. Given that, you’re well advised to go after the cream of the cream … A small team of A+ players can run circles around a giant team of B and C players.”
To formulate the best plans to find your “cream of the cream” talent, consider working with a team of specialized experts. Read our related posts or contact CPS and Professionals Inc. today. If you are looking for a staffing agency in Syracuse, contact us today.