How Much Does it Cost to Hire Internal IT Staff in 2022?
Hiring the right employee can be one of the most challenging aspects of human resource management. But if you know what to look for in a candidate and when to bring in the right kind of help, you can quickly find and go through the onboarding process with a new employee.
Thinking about ways to mitigate the overall cost of hiring is one of the most crucial components of hiring employees. There are numerous methods hiring managers can use to lower the costs of a new hire, but the most effective one is to improve employee retention and keep turnover low.
According to a study, the average price of employee recruitment is around $4,700. However, different factors, such as the size and location of your business, the role you’re hiring for, and the sector in which you operate, could all influence employee costs.
Look at the costs that any tech organization can expect during a new employee’s hiring process.
1. Hourly IT Contractor’s Pricing
Contract roles in technology command a premium. They have less job security, less time off must account for downtime between jobs, and their benefits, like health insurance, are not as comprehensive as those provided to full-time employees at companies.
The $4,700 above includes digital marketing, formulating an adequate job description and distributing job postings, talent development software, screening software used to assess qualified candidates, internal and external resources (such as an external recruiter), scheduling time, and productivity losses to open positions.
In addition to hiring and training costs, companies must pay 4.5% more for salaries and wages due to inflation and employee demands for higher pay. One of the advantages of working as a contract consultant is that you earn more money at an hourly rate.
These are just a few of the many factors that contribute to the firm’s recruitment costs. The new employee’s salary range in the example scenario at the top of this article is $110,000, which equates to $55/hour if a contract consultant premium is not considered.
To assure top talent on a fixed-term contract, the IT staffing company usually pays $60-$70 per hour or more.
2. Cost of Skilled Internal Personnel – Recruiters and Account Managers
Recruiters and account managers at IT staffing firms are marketers actively looking for talent, unlike HR departments, which advertise applicants and display incoming resumes. As a result, in this labor market, where the competition is at its peak, being assertive and tenacious leads to success in hiring the right IT candidate.
With 150 million employees in the US economy in 2018, the average staff turnover rate was 22%. This resulted in the monthly hiring of 5.8 million people at an average cost of $4,129 per hire, for a monthly average employment cost of $24 billion. As people left jobs more frequently in 2019, this percentage rose.
However, this figure will be even higher given the previously discussed macroeconomic changes. A 28% increase in turnover would imply that over 33 million people are hired yearly.
In a nutshell, tech staffing recruiters are active sales professionals. With these aspects and having salespeople in the tech sector, you have a winning combination. On the other hand, client managers and tech talent prefer to work with technologically advanced staff numbers professionals and will always choose this option over the option. This adds to the pricing structure that results in tech pricing.
3. The Cost of Posting Vacancies on a Job Board
Publicizing the vacancy is the first cost that an internal recruitment team must consider. The most popular option is to advertise on job boards, but costs vary depending on your site.
The Great Resignation was exacerbating an average of 3.9 million people to resign in 2021 as a result of government COVID-19 relief for jobless workers. People are also using this chance to better their priorities and look for work that makes them feel better and provides an excellent work-life balance.
However, if companies aren’t creative in their job postings to attract the right IT candidate, they risk being swept away. The ability to write an ad copy and having completed one posting takes approximately 1 hour and 30 minutes and costs roughly $37.50.
LinkedIn, a professional networking site, is a popular destination for job seekers and recruiters. Aside from the tree job posting model, which allows you only to have one free job post open at a time, they also operate a pay-per-click model, which will cost you $1.20 to $1.50 per click on your job ad, based on job designation, destination, and competitive pressure.
In addition to LinkedIn, the following are some high-level costs from popular job boards:
- Indeed, it depends on the designation, destination, and competition. Your budget can range from $0.10 to $5 per click
- Monster: A monthly membership fee ranging from $249 for one job to $999 for five jobs
- CareerBuilder: Depending on the number of roles, a monthly membership fee ranges from $219 to $599
- Dice: $395 for a single job posting for 30 days
- Craigslist charges between $10 and $75 for a 30-day job posting
4. Referral Programme Costs
According to a recent study, 60% of all millennials are willing to quit their jobs before the first year. “There’s no rationale for employees not to be searching for a new chance with the emergence of work from wherever, hire from just about anywhere, and a simpler interview process all done on the computer. “Companies must consider having a steady flow of potential candidates to fill their workforce,” said Evan Sohn, CEO of Recruiter.com.
Thus, hiring and retaining the right IT employees is increasingly necessary. Many companies have addressed the problem of shortage in the labor market by initiating a referral program within the organization.
Although It is challenging to develop an effective referral program, it is an effective tool for locating a high-quality IT candidate.
According to a study conducted by the employee referral service ERIN, a referral is four times more likely to be hired than other candidates. By relying on your current employees’ networks, you create a tremendous recruiting tool for finding top-tier candidates. Still, the final cost depends entirely on the incentives awarded and any program development costs.
How to Prepare for 2022
Many businesses are looking for ways to save money while trying to hire fast to meet this new hiring demand.
Fortunately, Recruiter.com can assist with both aspects. We have recruiters available for hire on an as-needed basis to help you fill positions quickly and effectively.
We also have powerful technology that provides a talent pool straight to your email to assist your recruiters in finding qualified applicants.
We’re here to assist you in navigating this new normal. Please contact us immediately if you’re interested in incorporating our services into your recruitment process!
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