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Cost of a New Hire

The Cost of a New Hire

Reading Time: 3 minutes

Workforce trends are shifting from the Great Resignation to a Great Resurgence, and there’s a demand for new hires. But there’s also a cost, and it isn’t strictly financial. Even after finally reaching the hiring process, not every hire is a good one. And the right hire could be the difference between company-spread relief or burden.

Let’s talk urgency

The need for filling positions isn’t as simple as one might think. An ideal scenario would go as follows:

You have a position open and put out a listing on a job board. Then, a stellar prospect responds and is interviewed. They begin working, and bam! Both company and candidate ride off into the workforce sunset. 

But the truth of the matter is that getting from having an open position to actually filling it, is time-consuming, expensive, and an overall drain on a business owner’s resources and attention. However, these concerns can’t be met with hasty decision-making and placing just any random job-seeker onto your team; if only it were that easy.

Let’s talk money

The most obvious cost of a new hire is financial. A study conducted by SHRM reported that the cost of a new hire averages to around $4,129 and could take about 42 days to fill an open position. With those stats in mind, not only are you shelling out money to search for and hire a new employee, but there’s almost a month and a half of money being lost until that new hire is in place. 

From losing money because a position is open to spending money on a new hire’s onboarding and set up, the expenses keep stacking. Here’s just a basic list of tasks that can be expected as well as costly:

  • Job advertising
  • Vetting and background checks
  • 1st, 2nd, and even 3rd interviews
  • New hire paperwork and administrative formalities
  • Onboarding and office or workload set up
  • Training and probationary periods until newly hired employees can get caught up to speed

And that’s per open position and per candidate, assuming you get the right fit on your first try.

Let’s talk upkeep

Aside from money, there’s a strain on the thinned-out resources involved in the time it takes to get someone not only settled in but up to speed. The effect of vacancies within your company is felt not only by management, but also by the individuals and teams that have to make up for the loss or unattended work. 

With additional tasks and responsibilities often falling on employees who already have a lot on their plate, you run the risk of burning them out and losing even more valuable players. 

But let’s say you manage filling the position quickly and with ease, what if the new hire you add to the team turns out to be an imperfect match? Either in skillset or cultural fit? Then the process starts all over again and the investment you put into finding and training that new hire poofs out of existence. And let’s face it, no business, let alone your business can afford a stop-and-go rhythm of workflow. Therefore, the right hire isn’t only wanted, it’s needed.

Let’s talk specialization

Whether you’re a small business handling hiring alone or a company of any size with an HR department, the strain on money, time, and resources is still the same. Luckily, recruitment platforms can be a dependable option for companies looking to relieve the burden.

The benefit of working with a recruiter from gpac, is that there’s no upfront or hidden fee to review resumes, speak with candidates, and even interview them. Unlike with other recruitment services, gpac understands that there’s no guarantee that you’ll hire the first candidate put in front of you. So, what’s the point of paying for a service before you have the chance to experience the results? Only once you hire a candidate sourced by a gpac search consultant is a fee required, but even better than that is the contingencies in place for replacements if the candidate you hire doesn’t work out within a specified time frame. 

After digging into the workforce for 30+ years, gpac knows where to find A-list candidates and what they’re looking for. A team of over 700 industry experts is taking the time, daily, to help lessen the stress and burden of not only the talent search, but the interview and hiring process as well.

There’s no need to roll the dice, hoping you’ll eventually come across a good hire or even an outstanding one. Because there’s a chance that a gpac recruiter has already found what you’re looking for. Listen to gpac’s former Director of Production and current shareholder and board member, Jason Lawrenson, in this podcast episode about landing the right hire. And when you’re done, give a gpac search consultant a call to find out how gpac can help fill your most pressing needs.

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