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Recruiting Costs

Sparks Group is a leading staffing and recruiting firm proven to enhance talent acquisition processes by reducing overall recruiting costs and increasing the quality and retention of new hires.

Recruiting costs manifest themselves monetarily, operationally, and mentally, as finding the next addition to your team can be costly and stressful. The average cost-to-hire, according to the Society for Human Resource Management, rose to $4,425 in recent years.

There are two kinds of recruiting costs: internal and external. Internal costs include salaries for internal HR employees, referrals programs, any networking event fees, and more. External costs can include working with a third-party agency, a background check provider, or job board fees.

Partnering with staffing and recruiting firms can have a positive impact on the effectiveness and costs associated with recruiting new employees. Outsourcing HR responsibilities to proven professionals whose sole function is to find the right candidate quickly can have major benefits. These include reduced overall recruiting costs, finding top talent, and freeing up resources to perform your core competencies.

Minimize Recruiting Costs

Reduce HR Overhead

The typical company has 1.4 HR staff members per 100 employees and human resources account for 1.6 percent of total operational costs. For companies with over 2,500 employees, this equates to $644 spent on HR per employee. Those costs soar when looking at small businesses and companies under the 2,500 employee benchmark.

Managing people is both costly and critical. More often than not, flourishing companies will credit their collective success to their people and culture. It’s not wise to eliminate HR departments entirely. However, outsourcing the staffing and recruiting process to agencies that specialize in exactly that can help reduce HR overhead. Fewer, or maybe no, full-time internal positions will need to be maintained to ensure quality candidates are hired in a timely fashion.

Decrease Employee Turnover

Separation rate is defined as the percentage of employees who left an organization during a specific reporting period. The Bureau of Labor Statistics (BLS) reports that the average annual total separation rate across 20+ industries in 2017 was 43 percent. Additionally, the separation rate has increased year-over-year for the past five years. Turnover is extremely costly to organizations who then must not only rehire for that position, but also retrain the new employee.

Hiring a staffing or recruiting firm can give you a direct line to highly qualified, highly motivated candidates who are vetted for both a company and cultural fit to eliminate employee turnover.

Learn More: Recruiting Process Tips to Find the Perfect Candidate

Leverage Temporary and Contract Staffing Services

Another option for employers to reduce recruitment costs is by exploring temporary and contract staffing services. Temporary staffing services prove to be effective ways to reduce the amount of expenditure on employee benefits. The BLS reports that nearly 32 percent of all costs associated with any given employee in 2018 was the cost of benefits.

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Minimize Recruiting Costs with Sparks Group

Optimize your HR operations by partnering with Sparks Group. Our expert team works with you to reduce recruitment costs by eliminating overhead, matching you with qualified candidates, decreasing employee turnover, and exploring temporary hires of contract work.

Submit the form to request a consultation and see how our team can partner with you to minimize your recruiting costs.

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