Costs of Hiring

For many companies, more thought and time goes into replacing a computer printer than hiring "their most important asset" People!

Doesn't it seem odd that a company that regards "people as it's most important asset," doesn't accurately measure the cost of acquiring that asset. That is exactly what happened when an independent study collect data for an annual survey. Chances are the same management teams that know the company's actual and projected revenue streams to the penny are 50 percent less likely to know the cost of hiring employees and terminating employment.

The independent survey estimates the cost of hiring one employee at $4,263 in per year.

The cost of hiring an employee has enormous impact on both productivity and profitability and costs over four times more than what you might spend on something as basic as a computer printer. Before you purchase a new printer you do a bit of research. Not a lot, but enough to feel comfortable with your decision. You visit the local office supply stores like Staples and OfficeMax. Then you surf the Web for consumer feedback and best buys. You evaluate how many pages you print each month, the cost of the toner or ink, and whether you want color or black and white. Finally, you compare the specifications of several brands and models within those brands until you make your purchase. All this for a purchase that comes in under $2000, maybe even less than $500. Why do companies continue to ignore the importance of human competence?

Studying these cost of hiring statistics offer some insight. Of the approximately 2,000 organizations participating in the study, only half had solid financial data reflecting the true cost of hiring one employee. It is obvious - too many organizations don't know how much recruitment, staffing and turnover cost their companies. That is an erroneous and dangerous assumption.

While we are discussing numbers, let's test one more assumption. If the cost of hiring an employee is $4,263, then the company loses an equal amount on the balance sheet if that employee doesn't work out and the hiring cycle starts all over. One hiring mistake now costs $8,526 to replace a single employee. When all is said and done, the cost to hire one employee in a competitive industry can cost nearly 30 percent of the employee's annual salary. This expense doesn't even take into consideration the cost of training, lost opportunities, impact on morale of co-workers, and strain on productivity.

Is there a way to avoid hiring mistakes without making the hiring process completely burdensome? Yes, with the use of profiletraits.com.

With thousands of tests available on the Internet, how do you know which are best for you and your business? Job Fit and Team Fit from profiletraits.com will do the job.

Common Concerns

A very common question asked to us is "can't a candidate fake the test". The answer is yes. They can try to fake it but the Job Fit Assessment System has several checks and balances to validate the candidate.

There are no right and wrong answers, no passing or failing grades. Profile Traits simply help determine whether a candidate is a match for the job, and as a member of your team. While they may not fit in one particular job, they might be a top performer match in another.