Whether your company is growing or you are simply filling an open position, the hiring process can be painstaking for any business owner. Where do you start? Should you post a listing to online job sites? Should you place ads around the local university? Do you set up a booth at a job fair?
Hiring the right people is not an easy task. It can be a lengthy process that takes away from other priorities, like growing your business. It takes an average of 52 days to fill an open position, according to a recruitment study from Bersin by Deloitte.
The Right Candidate
Let’s imagine that you have a new opening. The job has been posted and now it’s time for an interview. The candidate shows up early. They look sharp. Their resume shows experience where you need it. They have all the right answers. You make the offer and they accept.
A month later, you now see an entirely different person showing up at the office. They come in late. They miss deadlines. Your business is now struggling because you’re not getting the work you expected. The U.S. Department of Labor and Statistics notes that the average cost of a bad hire can equal 30 percent of that employee’s first year potential earnings.
Whether it’s an employee that develops a bad attitude affecting the general morale, or a person that simply doesn’t meet and exceed the expectations of their position, the effects of a bad hire can be devastating to a small business.
In the end, the person you choose now represents you and your business. As an employer, if you fail to exercise due diligence and someone is harmed by a person you employ, you can expect a lawsuit.
Accusations of negligent hiring can have lasting consequences. Employers have lost more than 79 percent of negligent hiring cases with settlements of $1 million on average. That is why it is so important to do a thorough background check on job candidates, making the hiring process that much more laborious.
Once you hire the right person, you want to keep them to avoid having to start the never ending hiring process all over again. A study performed by The Society for Human Resource Management, showed that it costs 6 to 9 months’ salary on average to replace an employee over retaining that person. Between interviewing, screening, onboarding, training cost, errors, and loss of productivity, the process can take a financial toll on small business.
GMS is a professional employer organization that offers consultation on techniques to aid in employee retention. We can help you retain an engaged and enthusiastic workforce through the use of team building activities, rewards programs, incentives, survey tools, and more.
We are here to help manage the administrative burdens associated with all aspects of the employee life cycle. You retain full control over hiring decisions – we just make it easier.
Contact GMS today to learn more about our services and how we can make your business simpler, safer, and stronger.