Here’s How You Hire In 2020
The ultimate guide: all the parts you need to know what goes into hiring
Hiring is always a tricky process: you want to shorten the hiring process but to find the right employee, you need to spend more time in it. With the advent of technology and remote teams, the hiring dimension has shifted drastically—the fundamentals still remain the same. Without properly managing the process, hiring can become a frustrating, time-consuming and even costly one.
As such, companies are often calculating the costs that go into hiring.
Recruiter fees, advertisements, and promotions are all example of costs. Opportunity costs and lowered productivity (when the team leaders are taken out of their posts to interview and evaluated candidates) are also factored in as hidden costs.
The total cost varies depending on how you calculate it. An article by Joe Hadzima, a Senior Lecturer at the MIT Sloan School of Management, said that it typically costs 1.25 to 1.4 times more than the base salary. A study by the National Association of Colleges and Employers calculated that an employee takes USD$7,645 to hire.
If you’re hiring because someone left the company and you need a direct replacement, turnover costs can go up to 33% of a worker’s annual salary.
