When you make the decision to hire new employees for your tech company, there is always one question that needs to be asked — how much will it cost? The costs of hiring go beyond wages and benefits. They include the costs for marketing, training, background checks, onboarding, advertising, and more — and yet there are still hidden costs that many hiring companies do not always take into account.
These hidden costs of hiring are amplified even more in a hyper-competitive market where higher expenses or losses in productivity will have a more significant impact on your bottom line. This makes finding fast and efficient ways to find and hire remote employees even more important for U.S.-based tech companies and Truss may be able to help with our global hiring platform.
Contact Truss today to find out how we can help you minimize the costs of hiring remote employees in Central Asia!
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5 Hidden Costs of Hiring in a Competitive Market
When you hire a new employee for your workforce, salary and wages always get the headlines — but they are far from the only costs associated with hiring. The hidden costs that are married to hiring remote employees can be difficult to quantify and can include lost productivity, missed opportunities, and more that can be tied to having open positions on your team. These hidden costs make an efficient and effective hiring process even more critical for U.S.-based tech companies.
Here is a better look at a few hidden costs that are tied to hiring and can be even more important to account for in a competitive market:
1. Loss of Productivity
Tech companies that are hiring have already established that they have a need within the framework of their team — whether that is because of increased demand or another employee has left the company. When companies are in this position of need, every day that the position is not filled and no one is hired, tech companies will see a loss in productivity that is not always easy to quantify and could result in missed deadlines.
2. Missed Opportunities
When tech companies have open positions that need to be filled, it limits new projects that they are able to take on. Without the employees and the capacity to take on new projects, companies will miss out on lucrative business opportunities or miss deadlines that can cost a company future business.
3. Employee Burnout and Turnover
Do you have open positions on your team that you need to hire for? Those open positions can have a lasting impact on the rest of your team and contribute to burnout. A less-than-full complement of employees means that those who remain must pick up the slack, making their jobs harder and leading to burnout — which if the hiring process is not efficient can lead to more employees leaving the company.
4. Damaged Brand Identity and Reputation
Open positions on your team that remain open create a chain reaction with losses in productivity, missed opportunities, and employee burnout that can lead to increased employee turnover. Those hidden costs can further contribute to a negative image of your company as a tech provider if your team provides lackluster communication with customers or misses deadlines.
5. Additional Bad Hire Costs
It is important to be fast and efficient with your hiring process — but that doesn’t mean you should hire the wrong candidates. A bad hire can cost your company even more to the tune of 1.5x – 3.5x the annual salary of that employee. This includes direct hiring costs, compensation, training, lost productivity, damage to team morale, and replacement costs.
How To Avoid the Hidden Costs of Hiring
Armed with an overview of the hidden costs of hiring you have a better understanding of how a slow hiring process or hiring the wrong person can have an impact on your bottom line — but how do you avoid those hidden costs and those mistakes? The short answer is a more efficient and improved hiring process and here is how you can accomplish that goal for your tech company.
Create a More Efficient and Effective Hiring Process
The key to avoiding hidden hiring costs is having an efficient and effective hiring process in place. This involves taking several steps to improve your hiring process:
- Define the required roles, skillsets, and qualifications clearly.
- Use structured interviews to be able to evaluate potential candidates objectively against other candidates.
- Conduct thorough background checks and evaluations of work history and skillsets.
- Include multiple team members in the interview process to help determine the best fit.
- Streamline the hiring process by eliminating unnecessary steps in the process to reduce the time to hire.
- Use innovative tech tools to expedite the hiring process, save time, and save money.
- Leverage data and key metrics to identify where your hiring process may be falling short or could be more efficient.
Improve the Onboarding Process
The onboarding part of the hiring process can lead to hidden costs that impact the productivity of your company. A slow and complicated onboarding process means it takes longer for new hires to get up to speed and get started on new projects, which has a negative impact on productivity. Tech companies can avoid this by creating a set checklist for onboarding and getting feedback from new hires on how the process can be improved.
Invest in Employee Retention
What is the best way to avoid hiring costs? Improve employee retention and avoid the added costs of hiring altogether. Investing in efforts to improve employee retention by keeping them engaged and providing opportunities to grow is a great way to help you avoid all of the visible and hidden costs of hiring brand-new employees.
READ MORE: What You Need to Know About English Proficiency in Central Asia
Make Hiring More Efficient with Truss
Are you interested in making hiring more efficient and effective to avoid the hidden costs of hiring in a competitive market? Truss may prove to be the solution.
With an innovative global hiring platform and years of experience finding, recruiting, hiring, onboarding, and managing remote employees in Central Asia, Truss has the capability to make your hiring process more efficient and help you avoid hidden costs. We will provide you with qualified job candidates based on your requirements within a few days and expedite the process, so you can avoid losses in productivity and missed opportunities. Truss will also act as your Employer of Record in Central Asia to make sure you remain compliant with the local employment laws.
Contact Truss today for more information on how we can help make hiring more efficient for your tech company!
