The Josh Bersin Company and AMS suggest that time to hire ratios are growing across the board in 2023. In fact, these rates are at an all-time high. While some jobs are filled in 2 weeks, many go vacant for 2-3 months or more. In the current environment, “the large number of days it takes to hire remains unsustainable if companies are to remain competitive and keep pace with the fast-changing needs of their industry”, the research states.
- Are you struggling to find the right remote talent for your company’s growth?
- Do you want to optimize your remote hiring process and minimize the time it takes to see a return on your investment?
- Would you like to discover the benefits of teaming up with a remote hiring agency to elevate your remote recruitment strategies?
- Do you want your recruitment & HR teams to be more efficient and speak to qualified candidates?
If you answer yes to any of these questions, then read on …:
Recruiting the right talent is crucial for the success of any company, but it can be a costly and time-consuming process. According to recent benchmarking data, the average cost per hire is nearly $4,700, with total recruitment costs often amounting to three to four times the position’s salary. These costs include both hard expenses, such as job adverts and recruitment agency fees, as well as soft costs, like the time invested by departmental leaders and managers. In 2023, companies can significantly reduce these costs and expand their talent pool by supplementing their internal recruitment efforts with a remote-first agency. In this article, we will explore the benefits of using a remote-first agency over a traditional recruitment agency, and how it can lead to cost savings, reduced vacancy costs, and a higher likelihood of hiring the right person for the job.
Reducing Cost to Hire and Vacancy Costs
These are 2 of the key metrics mentioned in our blog post on the 9 key recruitment metrics are Cost to Hire and Vacancy Costs. One of the main advantages of using a remote-first agency is the potential for significant cost savings compared to traditional recruitment methods. Traditional agencies often charge a percentage of the candidate’s salary as their fee, which can range from 20% to 30%. For a high-level position with a salary of $120,000, this would equate to agency fees of $24,000 to $36,000. In contrast, remote-first agencies typically offer more affordable pricing models, which can result in substantial cost savings for companies.
Moreover, the cost of vacant positions can quickly increase. The average time to fill a role is around 48 days in the UK and Ireland, and 43 days in the US. During this time, companies experience a loss of productivity and potential revenue. By leveraging the expertise of a remote-first agency, companies can tap into a larger talent pool and significantly reduce the time it takes to fill a position. With remote-first agencies, geographical boundaries are no longer a limitation, allowing companies to attract top talent from anywhere in the world. This increased efficiency in filling vacancies can save businesses valuable time and resources.
The Cost of Hiring the Wrong Person
Hiring the wrong person can have dire consequences for a company. Not only does it result in wasted recruitment costs, but it also leads to a loss of productivity and potential revenue. According to data, a poor hire at the mid-manager level with a salary of £42,000 can cost a business over £132,000 to resolve. This includes the cost of recruiting and training a replacement, as well as the impact on team morale and productivity.
Remote-first agencies can help mitigate the risk of making a bad hire by employing rigorous screening and assessment processes. They have experience in identifying candidates who possess the right skills, experience, and cultural fit for a company, reducing the likelihood of costly mistakes. Additionally, remote-first agencies often have a deep understanding of remote work dynamics and can source candidates who are specifically suited to thrive in a remote work environment.
Expanding the Talent Pool
In today’s globalized world, companies no longer need to limit their talent search to local candidates. By partnering with a remote-first agency, businesses can tap into a vast talent pool of remote workers who possess the skills and experience they need. Remote work has become increasingly popular, and many professionals are actively seeking remote opportunities. By embracing remote-first agencies, companies can attract top talent from around the globe, including individuals who may have been previously overlooked due to geographical constraints.
Total Costs of Using Recruiting Sites vs. Agency Costs
While there are many online recruiting sites available, they often come with their own set of costs and challenges. Posting job ads on these sites may require a subscription or payment per job posting. Additionally sorting through a large number of applications and resumes can be time-consuming for internal HR teams. This takes valuable time away from other important tasks and can prolong the hiring process.
On the other hand, remote-first agencies provide a more streamlined and efficient approach. They have access to a curated pool of candidates and can leverage their expertise to identify the most suitable individuals for a specific role. This saves time and effort for internal HR teams, allowing them to focus on other strategic initiatives.
When considering the total costs, including the subscription fees for recruiting sites and the time spent by internal HR teams, using a remote-first agency can often be more cost-effective in the long run. The agency fees may be higher upfront, but the overall efficiency and reduced time to hire can offset these costs and result in significant savings.
In 2023, companies should consider supplementing their internal recruitment efforts with a remote-first agency. The traditional recruitment process can be costly, time-consuming, and limited by geographical constraints. By embracing remote-first agencies, businesses can expand their talent pool, reduce the cost to hire, and mitigate the risks associated with hiring the wrong person.
Remote-first agencies offer cost-effective pricing models, a streamlined approach to recruitment, and access to a global talent pool. These agencies are experienced in sourcing and assessing remote workers, ensuring a higher likelihood of finding the right fit for a company’s specific needs.
By leveraging the benefits of remote-first agencies, companies can save valuable time and resources, reduce vacancy costs, and ultimately build a strong and talented workforce that drives their success in the modern remote work landscape.
About MGSD Pro
As an expert recruitment and Employer of Record (EOR) company, MGSDPro specializes in aiding businesses. We offer end-to-end recruitment solutions to help companies find highly skilled talent and streamline their hiring processes. We tailor solutions to meet the recruitment and marketing needs of organizations. Our services include providing exceptional talent through a robust selection process, offering flexible EOR services to ensure compliance with local laws, managing payroll and tax obligations, handling benefits administration, and providing guidance on employment contracts and HR documentation.
By partnering with MGSD Pro, businesses can access skilled talent, streamline their operations, and focus on driving business growth without the hassles of managing complex HR processes.
Navarra, K. (2022, April 11). The Real Costs of Recruitment. https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/the-real-costs-of-recruitment.aspx
Talent Insight Group. (n.d.). The True Cost of Recruitment. https://www.talentinsightgroup.co.uk/insights/cost-of-recruitment
Vasconcellos, E. (2023, February 21). What Does It Cost to Hire an Employee? https://www.businessnewsdaily.com/16562-cost-of-hiring-an-employee.html
MGSD Pro. (2023, June 28). Are you tired of recruitment guesswork? https://mgsdpro.com/are-you-tired-of-recruitment-guesswork/
Josh Bersin Time to hire fact book. https://joshbersin.com/time-to-hire-benchmark-factbook/