Sometimes it’s hard to prove that a hiring a new employee will be worth it. How do you justify shelling out that salary every week? How can you predict whether they’ll be a hard worker? And even if they are a really hard worker, how do you know whether your business will see results because of it? Here’s how you can determine the return on investment of a new employee.
Choose a measurement method
Decide how you’ll know whether a new hire will be worth it. Yes, you’ll have to pay salary, benefits and other hidden costs. But will you miss out on profits by not filling a position? Figure out the goal for that role. More experienced IT talent to help streamline technology? Better customer service to handle an excess of inquiries? Do a cost/benefit analysis to work out how this new hire will impact profits.
Add up ALL the costs
There are a lot of hidden costs when you make a new hire. You have to account for your recruiting costs, as well as training and orientation costs. There might even be additional hidden costs for extra perks you’re doling out—whatever you paid to snag your new, talented employee!
Complete hiring due diligence
Cross your t’s and dot your i’s as you trudge through the hiring process! Write detailed job descriptions and attractive job postings! Then scan those resumes thoroughly, conduct those background checks, call references and make those interview questions solid! When in doubt, call for an extra round of interviews. Or wait for more applications. It’s more expensive to let someone go who wasn’t a great fit and have to start again than to leave a position open!
Give recruiters the tools they’ll need
Your hiring process will take less time and is more likely to be successful if your recruiters have the tools they need to find a good fit for your company. Make sure your job descriptions are accurate and you’ve detailed exactly what you’re looking for in a hire. They should have any numbers they need to determine the most productive sources for finding candidates. The more you frontload the hiring process, the better your chances are for finding a talented match for your company.
Hire only the best
If you’re trying to maximize your return on investment, don’t resort to hiring employees who aren’t stellar. Then you have to let someone go, and start the hiring process anew. Remember that recruiting, hiring, onboarding and training are expensive, and not something you can do on a whim. If you hire the best candidates and can justify you made a good hire, the higher-ups in your company will be more likely to approve a new round of hiring the next time you need it.
For more tips on how to staff your team with the most talented workers, contact PrideStaff St. Pete Clearwater today.