As the hiring manager, you are often concerned with the true costs of your hiring process. While it can vary greatly on the positions you hire for, the real cost of hiring is often not known. This can cause issues for your company; therefore, it is important that you understand the true cost of your hiring process.
Here are some of the expenses you should consider when determining the real cost of your hiring:
- Salary is a given when you consider costs in your hiring process. It is important to determine the salary range you will use in your positions. This will make it easier to stay on budget, and in the rare case you decide to go over your range, you will be able to determine the impact on your costs quickly.
- Bonuses are not paid by every facility, however, if this is part of your hiring package, you must determine a percentage annually. This also includes any sign on bonuses you might offer.
- Benefits and Perks cost your company money, therefore, it is important that you sign a dollar value to them. It is best to list each benefit and perk separately, then assign the value to each. This way, you can assign the value for each given to a particular position easily.
- If you offer relocation, the easiest way to account for this is by setting a cap or ceiling. This way you can add this cost with certainty.
- Continuing education costs in the healthcare industry is a common expense for companies, however, if you do not understand how your program works, there will be no way to assign a value to it. Again, make sure you determine the costs for this program per position.
- Often forgotten when determine hiring costs are your normal overhead costs, such as attorney fees to review contracts, malpractice insurance costs, and even your costs for the interviewing, etc. Make sure that you account for all of the “extra” costs.
Determining the real cost of your hiring process is important for many reasons, however, when you understand the true cost of what it takes to hire for a position, you can be more objective in trying to streamline your process. In addition, it is a great tool to help you understand what you can truly afford to offer a candidate.
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