Your employment budget – spend for profit

Consider how your company goes about identifying and qualifying prospective employees. How are you allocating your employment budget? Is your major investment at the employee-selection stage? Or, is it at the opposite end of the process, in outplacement or exit interviews? You may be proud of the fact that you have managed to keep your company's average cost-per-hire low. Now consider your staff turnover rate...30 to 40%?

Low up-front hiring expenses often lead to a high turnover percentage, and a high turnover of staff has associated costs that amount to a figure that is far greater than the average nationwide cost-per-hire.
Associated costs such as...

• training and retraining
• the cost of productive time on the part of supervisors/managers in training employees
• the disruption in the continuity and productivity of the workforce
• direct labour costs of employing people eg: wages and benefits

Pound smart and pennywise

Spending your budget at the front end of the recruitment process leads to higher retention of staff. And the advantages of this far outweigh hiring costs. The careful selection of employees saves money down the road in terms of retaining a happy and efficient workforce and maintaining productivity at every level. Here’s an example of how profitable spending your recruitment budget wisely can be...

A few years ago, Monster.co.uk was asked to handle the recruitment at a new start-up manufacturing facility. Initially, we received more than 6,000 applications for around 300 new jobs. We advertised the openings, screened the pile of applications, scheduled initial and follow-up interviews and carefully checked references. We even set up on-the-job training, carefully explaining the company's goals and philosophies to each new group of employees. Our aim was to ensure that the best people possible were hired for the jobs to be filled, from factory floor to senior management. Needless to say, the cost-per-hire was more than the average figure. But, such care and attention to detail ensured that, at the end of the first year of operation, the rate of staff turnover was less than 4%. The moral of the story is clear. Over time, a higher cost-per-hire will be more than made up in the profitability of a solid, stable and effective workforce. Let Monster help you to attract and retain quality people – you can’t afford not to.

Monster offers free training to employers on how to use your Monster Account, making the most of Monster tools and packages and getting the best results from online recruitment

To join one of our live interactive online sessions...

• Send an email to clientservices@monster.co.uk
• Write your name and contact details in the email.
• We will contact you to arrange a session time that’s convenient for you.

Online training is free, so sign up today!