Depending on what literature you read, the cost of replacing an employee can run from half to twice the employee’s annual salary. The more senior the position and the more complex the role, the greater the cost.
Costs associated with an employee’s departure and backfilling the position traditionally fall into those categorised as direct and indirect.
The below are all direct and indirect cost factors that add to the expense of losing (and replacing) an employee:
Often such costs involve payment to a recruitment agency to present candidates for the vacant position. Market rates for recruitment vary but 15% to 30% of the salary package for a placement is not unusual. At a ballpark, you generally don’t get much change from $15,000 should you elect to use an agency for the replacement of a mid-level skilled employee.
Truth be told, while good recruitment is a skill, much of what an agency does can be replicated by a business owner with the guidance of an experienced HR professional.
Here are a few items to consider:
Bare Bones Consulting is not a recruitment agency. We are experts in HR with prior recruitment experience and can show you the techniques to recruit like a pro…getting the right person the first time.
From entry-level to executive, we can assist in attracting the best people to your advertising, guide your interview and selection process and introduce you to online personal assessment tools for the perfect candidate fit. There’s no rocket science behind our approach; it doesn’t take a huge investment in time to see genuine improvement in most recruitment processes and, once you know how to recruit effectively, you’ll recoup your Bare Bones expense time and time again.
Call for a chat today on 0401 279 065. Our initial consultation is complimentary and we’re happy to meet when and where it works for you.
You can also obtain some great tips on Hiring Employees through the Fair Work Ombudsman’s Online Learning Centre.
Give Bare Bones Consulting a call to discuss our range of HR services to help your business succeed.
Even if you elect to not proceed after our first complimentary consultation you’ll be in a better position to know what’s possible.
We believe our approach to HR is unique... but then again, so is your business.