As we enter the last quarter of the calendar year, many business owners and executives are starting to finalize plans and budgets for 2018. In doing so, they might notice that the biggest expense is personnel: employees, their salary and benefits, and the cost to hire and train them.
They also realize during the planning process that their employees are the key to how they’ll achieve the growth that they’ve forecast for 2018.
At least once a year, employers are reminded that while employees are the biggest cost to business, without them, there’d be no business. This reality makes it all the more important to ensure a company hires the right employees in the first round in order to avoid the cost of repeated employee searches and trainings.
Cost of an Employee
There are numerous studies and polls on the cost of hiring, training and retaining an employee. Recent Bureau of Labor Statistics shows that private industry employer compensation costs averaged $33.26 per hour. And that’s just salary and benefits; it doesn’t include recruitment and training costs for an employee or other hidden costs such as lost productivity, cost of early on-the-job errors and any cultural impact to the organization.
Considering the costs of just one employee, it makes sense to retain them as long as possible. One way to keep employees is to do everything possible to hire the right person for the position from the start.
Benefits of Hiring the Right Employee the First Time
Besides cost-savings, there are several advantages in taking the time to find the right match for both the employee and the business:
- Immediate contribution to the business. When an employee and employer are aligned in work ethic and the employee understands the vision and mission of the business, he is more likely to get up to speed in the job more quickly, providing immediate value to the business.
- Little to no disruption of company culture. Recruiting and interviewing for company culture is just as important as interviewing for skills and capabilities. The wrong hire can devastate an organization’s culture, adding stress and cycles that disrupt operations. Taking the time to find the right cultural fit will keep operations humming as new hires get engaged in their roles.
- Gain a committed employee vs. compliant employee. If an employee understands the vision and is excited to see that vision become reality, he will commit to achieving the end goal with passion.
The Lee Group believes hiring the right person for a job is more important than filling a role quickly just to complete a hire. It’s not just about placing people in jobs. It’s about making sure there’s an optimal fit across the board, for both businesses and candidates alike.
Finding this fit requires an understanding of the goals and desires of the employer and the prospective employee to make sure there is alignment. The Lee Group specializes in finding the perfect match of employee / employer so that both parties thrive. Contact The Lee Group today if you’re looking for that perfect employee or perfect job.