The Cost Of Hire
The Cost Of Hire
Agency vs. Internal
The time used for hiring is very valuable. According to the Employment Management Association, the overall cost per hire rose 22% last year. How much of your valuable time is wasted on this task? Recent statistics show that an individual’s net worth to a company is five times their annual salary.
- You advertise for a sales position at a $30,000 base + commission.
- You receive 200 resumes in response to an ad.
- You, the hiring authority are currently making $100,000.
Take your personal production and multiple by your net worth
$100,000 x 5 = $500,000
52 weeks per year worked x 40 hours per week = 2,080 hrs./wk.
$500,000 divided by 2,080 = 240.
This illustrates your worth at $240/hr.
Without even interviewing any candidates, 200 resumes takes an average of 67.8 hours – an average of 22 minutes per resume. 67.8 hours x $240 (your worth to the company) equals $16,272. This does not include the cost of the ad. Now you narrow it down to five candidates that you personally interview for two hours each. You have invested another $2,400 (5 interviews at 2 hours each) 10 hrs. x $240 hr. = $2,400. Add your invested time $16,272 plus $2,400 and come up with a grand total of $18,672. That is without even hiring someone.
Instead of 67.8 hours or 8 1/2 days, we can deliver qualified candidates within 3-5 days. Direct Recruiters fee on a $40,000 base is $12,000. Already a savings of $6,672 and you are not even half way through the hiring process. We can save you time and money and guarantee that the individuals we recommend will accept the job at the dollars offered.