March 1, 2023
With each passing year, the most common hurdle many businesses are facing is finding and retaining good quality help. This comes at a high price for many businesses, and it seems quality help is getting harder to find.
Cost #1 How Understaffing Can Damage Your Business
Ensuring proper staffing levels is vital to a business’s success and operating without the proper staffing volumes can contribute to a wealth of other issues and cost your business.
- Loss of Sales and Customers
- Brand Damage
- Decrease in Work Quality
- Stressed Employees
- High Staff Turnover Rate
Cost #2 The Hiring Process
Now let’s examine the typical hiring process and how time-consuming this can be if done effectively. Remember hiring isn’t about filling desks its about filling needs, and locating those best suited for those specific needs can be hard in any industry. To effectively recruit there are several steps you must wade through to locate those diamonds in the rough!
1: Evaluating which positions you need to fill
2: Figuring out your recruitment strategy
3: Writing your job description and posting
4: Sifting through applicants and interviewing those deemed qualified.
5: Background checks, follow-up interviews, and job offers
6: Onboarding and training
Unless you have a dedicated HR team invested in this role and its duties that is a lot of your time spent recruiting quality help. Not to mention employee turnover which can leave you back at square one again.
Cost #3 – Employee Wages and Costs
As an employer, there are a lot of costs associated with hiring employees, beyond the base salary. Employers have many other costs that arise when hiring, which can add up fast if you are not evaluating your investment properly.
- Base Salary
- Benefits
- Employee Taxes
- Worker’s Compensation
- Vacation Pay
- Larger Workspace
- Outfitting the work area to accommodate an employee (desk, chair, etc.)
Accurately calculating employee costs is not just a good hiring practice, it’s an essential budgeting task. When you start adding up these factors you will see a much higher figure than your base salary quoted in the interview.
Cost #4 – Employee Management Time and Fill-in Roles
Having a clear understanding of everything that goes into maintaining an employee may change the way you look at your human capital. Nevertheless, while substantial, these costs shouldn’t be viewed as an unfair burden on your company, as investing in your workforce is key to sustaining a successful business.
However, your time is valuable and staff management can become a daily task you simply do not have time for. It is also good to think about how you will operate during that member’s off time such as vacations, sick days, breaks, and lunches. Considering this may show that you need to have two employees capable of those duties at any given time to avoid your attention being required.
If your business is losing costs in any of the above areas it may be time to consider outsourcing. Did you know that Conversational can handle your calls effectively the way you want them handled? Trusting your business to someone is a hard step to take but check out our client’s feedback on our website and hear about their success stories https://conversational.com/testimonial/
What do you have to lose other than costs? Gain your time back and contact us today to sign up for your 30-Day Money Back Guarantee.
Let Conversational worry about the hiring and management of your frontline staff, while you work to grow your business in other areas.
