Hiring New Employees: Quality and Cost
The process of recruiting employees is crucial to an organization's success.Indeed, hiring new staff, particularly at the right time, can result in increased productivity, higher sales and ultimately, increased revenue for your business. With the right hire, the benefits to your company may even reach beyond the scope of the new recruit's initial job description.
However, not only is finding the right employee a time-consuming affair, it is also quite often very expensive. Finding the appropriate amount of funding to add the right new ingredient to your team is a challenge, especially when banks are sometimes hesitant or slow-moving and other lenders are too expensive.
The fact is, whether your company has experienced a couple of bad quarters that has left it financially vulnerable, or there has been a seasonal lull in the business, if you’ve gone to the bank and come back empty-handed, there are other options available. Lendified is just such an example. As an alternative lender with reasonable rates and a track record of success, they can get your business the money it needs to expand.
Read on below to find some tips, tricks and valuable factoids that can help you successfully choose the right new employee, as well as find the financing to do so quickly and easily.
When Should Businesses Hire New Employees?
Deciding when to expand your staff can be difficult, and because each company is different, there is no “right” answer. However, if you consider these questions, you may find yourself with a better idea of whether or not it’s the right time to grow your team:
- Is your company steadily growing, and is it growing enough to support a new hire?
- How would you rate your current level of customer service?
- What is the workload of the current crop of employees? Are they working efficiently, or are they stretched to the limit?
- Is it possible to restructure certain roles within the organization to meet goals?
- How often do we turn away new business because of a lack of staff?
How Should I Go About Hiring?
There are a few common ways employers achieve their staffing goals. Depending on the industry and size of the business in question, a variety of methods are available, each with different pros and cons. Businesses can fill positions using:
- Internal Recruitment
- External Recruitment
- Website Career Page
- Online Job Boards
- Career Fairs
Filling Positions Internally
Among the most obvious advantages of hiring from within is a reduced cost for the search, less training time after the hire, and a familiarity with the company culture and organizational goals. Internal employees will also be more familiar industry as a whole. And while this is not a guarantee, employees hired from within are likely to feel more valued and have increased feelings of loyalty for the company, especially if they connect their previous hard work with promotion and career development.
Filling Positions Externally
By bringing in new blood, you can increase the diversity of your team of employees. These new hires can not only bring in new skills and experience, their fresh perspectives and ideas will enhance the organization in other ways as well. While this method will undoubtedly require more training than when hiring internally, externally-hired candidates, especially experts, present the possibility of gaining a competitive advantage by the addition of new strategies and forward-thinking approaches.
Website Career Page
This is one of the most passive ways to recruit. By simply listing the open positions in your company on your website, you are relying on people finding your website’s career page, and hoping that the right candidate reaches out to you. While this is certainly one of the cheapest options available, it is not always the right approach if you need to hire a new staffer right away. However, for some large companies that have hundreds of thousands of visitors per month and an in-house HR staff, this strategy works just fine.
Online Job Boards
Technology has had a large impact on how businesses recruit, mostly through reducing the costs and increasing the efficiency of the task. Many companies have sprouted up over the last decade to fill this market niche, and they charge fees to advertise on their sites. Examples of these companies are LinkedIn (which uses a pay-per-click model), Monster, Ziprecruiter, Glassdoor, Indeed, and others. Except for LinkedIn, these companies typically charge a few hundred dollars per month to advertise with them.
While most people appreciate the efficiency of online recruiting, sometimes there is a great advantage to meeting a potential new recruit in person. Staff members can hand out materials, network, ask and answer questions, and get a good sense of how an employee might fit in with your company’s culture in a way you can’t do through a computer screen. That said, there are costs associated with this as well. Not only will you have to foot the bill to participate, there will also be the associated costs such as accommodation, travel, marketing materials, etc.
What Should I Look For in a New Employee?
Just because a potential recruit looks good on paper doesn’t mean they will be a match for your company. Knowing a little bit more about what makes these employees tick will help you get a better idea of whether or not they will be a match.
After all, besides the job-related skills they have, knowing how they respond to authority, how they go about solving problems, how they work in a team, and their level of social skills will also be good indicators. Ideally, you’ll want to find out what each potential recruit’s career goals and expectations are. You’ll also want to find an employee that has the following qualities:
- Communication and social skills
- Honestly and integrity
- Work Ethic, determination and persistence
- Flexibility and adaptability
- Desire to learn and grow
- Problem solving skills
How Much Will it Cost to Hire Someone New?
No matter what industry you’re in, hiring a new candidate is complex, takes lots of time and patience, and most importantly if costs money.
The costs vary depending on what type of business you are, but some recent data indicated that the average cost to hire a new employee was between $4,000 (according to Glassdoor) and $7,645 (according to the National Association of Colleges and Employers). Additionally, these hires typically took and average of between 42 and 52 days to complete.
The costs factor in a number of variables, including advertising costs, in-house recruiter salaries (in the case of companies with HR departments), third-party recruiter fees, travel expenses, sign-on bonuses, background check and training costs, etc.
How Can I Afford to Hire When Financing is Tight?
In many cases, the old adage is true: you have to spend money to make money.
If your business needs a financial boost in order to hire an employee so you can continue to grow and satisfy your customer base, call Lendified today. We’ll get you the help you need, and make sure that you can afford to hire the right staff member at the right time.
In fact, at Lendified, providing financing to businesses so they can hire and train new employees is one of our specialties. Let us worry about the upfront costs so you can focus on what’s important: continuing to grow your business.
Lendified will review financial applications from any companies that meet the following criteria:
- Business incorporated in Canada
- More than 6 months in operation
- $100,000 or more in annual revenue
- A 610+ personal credit score
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About the Author
Lendified is Canada's premier online lender for small businesses. The company was founded by former bank executives dedicated to provide businesses with fast, easy, and affordable financing. The Lendified team regularly produces blogs and guides to help small business owners succeed.