Maximizing ROI: The Cost-Effective Approach to Remote Hiring with Remote Resource
Before we talk about remote hiring and why it presents a gold mine opportunity for businesses, let us ask you a question.
What do you believe is the cost of hiring a resource?
According to a new study by the Society for Human Resource Management, the average cost per hire is around $4,700. However, this figure only considers the hard cost of hiring, relating to talent sourcing, selection, onboarding. But this estimate does not consider the opportunity cost of the time spent by business leaders and departmental managers in assisting the HR specific roles in hiring process.
According to Edie Goldberg the true cost of a new hire is three or four times the position’s salary. So, if you are hiring for a job that pays $50,000 per month, you pay around $150,000 or more to fill that vacancy, including the hard and soft costs.
Mind boggling! Isn’t it?
Implications of a Bad Hire
But what happens if after all your effort you end up hiring a misfit?
The cost implications of a bad hire on business are enormous. Along with the monthly salary, a business bears several non-wage costs relating to the new hire. Non-wage costs relate to periodic social security contribution, cost of sickness, red tape, legal fees, opportunity cost of the entrepreneur/ team lead for time invested in admin work, etc.
According to a 2016 estimate by the U.S. Department of Labor, the true cost of a bad hire is about 30% of the employee’s first year salary. Jörgen Sundberg puts the figure at $240,000. But the fiscal impact is only the tip of the iceberg. Disengagement in the workplace is contagious. And when a disengaged employee does not put in the efforts, good employees end up getting burned out making up for it.
Therefore, the actual cost of bad hire goes beyond the financial implications and impacts on the productivity and morale of the department or business. For a small business, an investment of such magnitude in the wrong person can be cause of existential threat.
If you believe this to be an exaggeration, consider this.
Dissecting the Cause behind Business Failures
A recent study by Forbes Advisor revealed that “20% of businesses fail in the first year, 30% in the second year and 50% in year five.” If we go deeper, then the number one cause behind business failure appears to be exhaustion of capital reserves. And among the cost drivers, labor wages come at the top, accounting for 70% of business spending.
Hence, you can comprehend the efforts businesses have to put in to source the perfect hire and the implications of a misfit. However, despite all the precautions companies still end up hiring disengaged employees.
Disengaged Employees
A 2022 survey by Gallup revealed only 32% of full-time and part-time employees working for an organization were engaged. So, for every 1.8 engaged people, there is a disengaged person in our enterprise. No wonder out of 33.3 million small businesses, 27.1 million are solo ventures. In other words, eight out of ten small businesses have no employees!
If you think this to be the ideal situation to be in, think again.
Should You Go Solo?
A business must take care of varied functions to survive or compete successfully. From admin jobs to fulfilling orders, there is a lot on the platter of every solopreneur. Hence, 19% of small business owners work for 60+ hours in a week and 30% work for 50–59 hours per week. And only 57% of small business owners ever take a vacation.
Study shows that extreme passion for work coupled with risk of failure and social isolation increases the risk of burnout amongst entrepreneurs’ manifolds. More importantly, this can cause you to lose focus on vital tasks like responding to customer queries and concerns. Therefore, it is not surprising that one in three small businesses do not have a website.
The Solution
But there is a solution that you can easily leverage- remote hiring. When you opt for remote hiring, you do not have to spend time or money searching for the ideal candidate. You also do not have to deal with the risk of a bad hire. Instead, you leave the job of searching and looking for the perfect fit to a remote staffing organization at no cost.
Whether you are looking to hire email marketing experts, web developers, cold callers, app developer, etc., you can approach remote staffing organization to find the perfect fit in the shortest time interval for free. Here are some other ways remote staffing organizations like Remote Resource TM can help you maximize ROI through cost effective hiring.
Access Top Talents
Top talents in the US command a fortune that is beyond the reach of most small and medium enterprises. However, with remote hiring you can work with the top 10% talents in the industry at lesser costs compared to local rates. For example, Remote Resource TM offers social media marketers for hire at about at about 50% lesser costs compared to local rates.
Simple Hassle-Free Process
Remote staffing organizations offer you a simplified and hassle-free hiring experience comprising of the following steps-
You share the job descriptions and the skills you are looking for.
Based on your needs, the remote staffing organization offers you an assorted collection of top candidates from its pre-vetted in-house employees
You conduct a final interview, select a candidate, and start working.
Additionally, Remote Resource TM offers a one-week free trial. For example, if you are looking for a content marketer for hire, Remote Resource TM will offer you 3–4 candidates based on your requirements. You can select one content marketer and have him/ her work one week for you free.
Within this you can evaluate whether it was a good hiring decision or not. You can also judge whether the new candidate will fit in with your organization culture. This reduces the chances of making a bad hiring decision and helps you save thousands of dollars.
Core Competency Focus
By letting a remote hiring organization address your hiring needs and take care of all hard and soft costs, you will have more time and resource to dedicate to core competencies. As the working capital and cash flow of your business improves, you can invest more in future growth areas. This will help you build a definite competitive advantage eventually.
For More Info, Reach Out Us At: https://www.remoteresource.com/contact-us/
Summing up
The above pages explain why remote hiring is better and more cost effective compared to hiring local resources. Remote staffing organizations like Remote Resource TM can help you hire the perfect candidate in the shortest time interval for free. Moreover, the resources you hire through Remote Resource TM cost a fraction of local rates.
This can help you save around 50% with each new hire and stay ahead of the competition. Moreover, this alternative will also help you save overhead expenses and maximize ROI eventually. Please let us know your thoughts or hiring challenges in the comment section and follow us to stay updated.