How Focusing Too Much on “Cost Per Hire” Can Cost You More
March 13th, 2012As one of the leading staffing firms in Spokane, we know that cost is a big factor during the hiring process. You want to find talented people without having to spend an arm and a leg. We get it. However, focusing mostly on cost per hire – rather than focusing on attracting and recruiting top notch candidates – can actually wind up costing you more in the long run. Here’s why.
Hiring mistakes.
A cheap hiring process will likely result in poor quality candidates. Therefore, your risk of making expensive hiring mistakes goes up dramatically.
Quality is overlooked.
When you’re hiring, especially for an important position, recruiting top-notch candidates is going to take some time and money. But when you’re trying to get the job done as inexpensively as possible, you won’t be able to reach them because you’ll be too focused on how much everything costs.
ROI isn’t considered.
Yes, it will cost you more upfront to hire a quality candidate. However, that candidate will most likely deliver a much higher return on investment in the form of better productivity and better results. Looking back, that expensive cost per hire will seem like a bargain.
Cost cutting turns top candidates off.
When you have second-rate recruitment materials, you’re sending the message – whether you realize it or not – that you’re trying to cut costs, which isn’t exactly going to entice top candidates to want to work for you.
Obviously, in a perfect world, you could spend all the time and money you need to find the best candidates. Unfortunately, in this world, that’s simply not the case. And cost needs to be considered when you’re hiring, otherwise you’d go broke in the process.
That said, to hire the best you do need to invest some resources. So if your boss is putting the pressure on you to cut costs, then demonstrate how current top performers are delivering high returns on investment. Hopefully, he or she will see that the investment will pay off in the end.
And if you’d like some help with your hiring process, let us know. As one of the leading staffing firms in Spokane, we’ve been matching specialized talent with great companies since 1994.




