Shocking new figures released in a report conducted by economics consultancy Oxford Economics indicate the true cost of replacing staff. The data published by Recruiter shows that it can cost businesses up to thirty-thousand pounds to replace staff members who leave.
What Does the Research Say?
The study states that there are two main ways employers lose money: logistical costs including advertising and recruitment agency fees, and salary costs to new employees who can take up to 28 weeks to reach full productivity. With each employee costing between twenty-five and thirty-thousand pounds to replace, it is costing UK employers a shocking estimated four billion pounds annually to recruit new staff. This number is huge and signifies a real need to find the right staff quickly.
Which Type of Business Suffers the Most?
The research also shows that it is the larger businesses that lose the most money - mainly due to the lengthier time it takes to train a new member of staff in a larger organisation; smaller companies were shown to have staff trained up to full productivity four weeks before those starting out in larger companies.
With all this in mind, it is important for any business to dedicate a great amount of energy and dedication to recruiting the right members for their team first time around and not make a bad hiring decision.
How Can You Save Money Replacing Staff?
If you are starting your search for a replacement employee, it is important to make sure you have all your advertising bases covered from the outset, making it easy for candidates to find your position and apply for it. Having the ability track down an enthusiastic candidate who can be a quick learner can pay dividends when it comes to signing off the wage bill, so give your vacancy as much exposure as you can.
When it comes to saving on recruitment costs…that’s where we come in.
RecruitmentRevolution.com offer a pioneering service whereby clients pay no upfront fee, drastically reducing the cost of the recruitment process. Our model gives companies the opportunity to pay upon hire.
Jamie Mistlin, RecruitmentRevolution.com - find me on Google+.