Is it expensive to recruit?

Why saving in recruiting can be expensive

It almost sounds easy to fill a job: You publish a job advertisement on a single platform, invite the first available applicants for an interview and hire the best among them. Job filled, problem solved. But the recruiting process brings with it a few more construction sites and unsuitable or dissatisfied employees create new vacancies.

At first glance, it may seem as if the costs in the recruiting process are mainly incurred in the job posting. Even if, depending on the type and number of job portals, costs in the four-digit range can arise, there are still various expenses hidden behind the filling of positions that must be taken into account.

Even if the recruiting process only begins with the advertised position, costs can start to accumulate days, weeks or months before, depending on the situation. Another big variable is the type of position: Filling a junior marketing manager position will be more cost-effective than filling a Head of Marketing position.

The costs in the recruiting process

If we actually start the list of expenses with the job advertisement, it can already be expensive here as well. While some job portals offer free advertisements on apps or, in rare cases, on the website, posting on portals quickly costs between CHF 300 and CHF 600 for a month Google or social media, being mentioned in newsletters or publishing in partner portals can cost over CHF 1,000 for a month.

Social recruiting is also a great way to reach marketers. Here, too, there is the free option of publishing organic posts on various social media channels and posting a job advertisement on LinkedIn. But if you want to achieve more coverage, it is not free to advertise the contributions and thus push them beyond your own network.

When the applications come in

With the announcement of the position one is still a long way from filling it. Now the first applications should land in the inbox, depending on the complexity and requirement profile of the position, the company will receive more or fewer documents. Checking and sorting out the application documents can therefore be very time-consuming. The personnel costs for this must also be included in the recruitment costs.

This is followed by invitations and rejections to the applicants - another time expenditure, corresponding personnel expenditure. The interview lasts at least one hour per applicant and anyone who wants to get an even better picture of the applicant invites them to a trial day. Perhaps the company will also cover the travel expenses or lunch for the trial worker.

Signed contract - that's it?

Once the apparently suitable applicant has been found, there is the administrative effort involved in drawing up the contract, adjusting the payroll accounting and registering with the social security institute. If the new employee's first day of work follows, billing cannot be completed here either.

Several days, weeks or months have to be allowed for in order to train an employee - of course this also depends on the position. During this time, the employees who take care of the induction cannot carry out their actual tasks with full commitment. Orders can be in process longer and it can take a moment for the team to improve with the new addition.

The helping hand

If your own office does not have enough capacity or know-how to carry out the recruitment, external recruiters or agencies can also be employed. In this way, internal personnel costs can be saved, but commissioning an external person or an external company is again costly.

If the entire application process is handled internally, it can be helpful to have an application tool that helps you manage the dossiers and data. These tools must also be budgeted in the recruiting costs.

Is avarice awesome?

If one becomes aware of all these costs in the recruiting process, one may wonder whether it is not better to make savings in recruiting. Even in the case of job advertisements that can only be found on an app, some applicants become aware of this and introduce themselves to the company. And instead of organizing an interview and a trial day including lunch, the candidate can come by in the morning and do a few tasks right away.

But even if quality over quantity always applies to applications, this motto does not help if only a few, unsuitable applicants get in touch. If only the second best candidate is chosen due to a lack of options or possible savings in wages, it can become even more expensive for the company.

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The causes and consequences of an incorrect appointment

If a position is filled by a person who leaves the company after a few months because they were overqualified or underqualified or simply did not fit into the company, the recruiting process starts all over again. Not only does the position have to be filled again, but a workforce and accumulated know-how are also lost. All costs of the job advertisement and the effort of the interviews have to be borne again.

An incorrect appointment can occur if those responsible in the application process do not examine the applicants thoroughly enough or if there is too much pressure from the company to fill the position as quickly as possible. Without a trial day, the team does not know the applicant and cannot provide any input on whether it fits on a personal level. Several interviews can also be used to better find out whether the applicant has the skills and enthusiasm for the position.

While the recruiting process itself can cost several thousand francs depending on the situation, the wages paid, the lack of work after the termination and any interim staff must also be taken into account in the event of an incorrect appointment. For example, the costs due to the incorrect filling of the position can amount to 50% of the annual wage of this person, or up to twice or three times as high, for example in management positions.

Bad mood inevitable

Not only must financial losses be expected in the event of an incorrect appointment, the working atmosphere can also suffer from the constant change in staff. Employees can feel left out if they never see the applicants. If you then train the new employee for a month, only that he quits afterwards, it feels like wasted time.

The mood of employees can suffer if new employees do not fit into the team and quit during the probationary period. The ex-employees also like to let their frustration run free on rating platforms and social media or advise people around them not to apply to this company. This can seriously damage the company's reputation and make it even more difficult to fill the position.

What employers should look out for

Precisely because wrong appointments, especially in management positions, entail such high costs, it is worthwhile not to make excessive savings in the recruiting process. Distributing the job advertisement on different platforms and channels ensures the receipt of several applications so that you can make a choice from the best. With a detailed interview and a trial day, the applicant's skills can be examined carefully and the team can already get a first impression of the person.

Should it happen that the employment relationship is terminated, transparent internal communication is central. If you discuss the situation and what is being done with the employee who is leaving the company as well as with the team, negative feelings can be kept in check. Financially, it doesn't make a big difference at first glance, but the reputation of the company is less likely to be scratched by dissatisfied (ex) employees.