The True Cost of Hiring – and How to Reduce It

The true cost of hiring is often much more than what’s on the surface. Handling the hiring process yourself is likely more expensive, time-consuming, and riskier than you think. For many organizations, the better and more cost-effective option is to make your first hire a trusted recruitment agency.

The true cost of hiring

According to Forbes, companies that use internal processes to hire new employees spend an average of 42 days to fill a position at an average cost of $40,000. 

Every step of the hiring process takes time and money that many organizations cannot afford:

• Advertising
• Screening
• Interviewing
• Re-interviewing
• Background checks
• Onboarding and training
• Payroll costs, salaries, insurance, legal fees, etc.

Every hour spent on hiring-related tasks is not spent on other business-critical activities. 

Outsource for greater efficiency

Your hiring needs probably fall into one of these three categories, all of which may benefit from a recruiting agency:

• Infrequent hiring: If you hire only one to three employees a year, it’s expensive to have an in-house recruiter on staff. Outsourcing to full-time professionals can be more efficient and help ensure you find the right employees to do the job.
• Regular hiring: If you hire once a month or more and have an in-house team, outsourcing can help them screen candidates and perform other tasks that can otherwise take hours of their time.
• Frequent hiring: If you always hire, an agency can effectively act as your HR department so your in-house teams can focus on training and other tasks.

Other benefits of recruitment agencies

Outsourcing to an agency is often a more cost-effective option. It can also be the right choice for other reasons. Experienced recruiters know how to find the best talent and have networks they can lean on to find candidates you might otherwise miss. They can also help you fine-tune and speed up your hiring process so you can fill your open positions faster.

Hire an expert team

Insero’s team has decades of experience working with businesses and nonprofits of all sizes. Insero’s direct-hire solutions can help you find better candidates in less time so you can grow your organization efficiently.