Ever wondered what it would cost to hire a new developer? This might surprise you!
According to a survey by the Society of Human Resource Management (SHRM), the average cost per hire is a little over $4,000. However, there are many factors that affect each company’s individual average cost per hire.
For example, cost per hire depends on hiring volume. The more people you hire, the lower your cost per hire will be. This is due to the fact that some fixed costs can be distributed across a greater number of recruits. Moreover, some positions and sectors (for example, engineering) take a longer time to fill, and the cumulative expenditures of a longer recruiting process result in greater costs per employee.
To actually define the hiring difficulties recruiters face, you must first understand the 3 key drivers of tech recruitment: cost, quality, and speed.
Some people wish for a low-cost, high-quality, and quick recruiting procedure, but this is unrealistic. It is conceivable to maximize two of these vertices, but it is nearly difficult to do so without sacrificing the third. The equilateral triangle indicates that the three variables must be in balance.
1. A top talent applicant is not always the best fit candidate:
Let me give you an example. A fast-paced organisation was looking for a senior software engineer. Multiple people applied, but when an ex-Googler applied for the position. They were overjoyed and gave this candidate top priority. They raised various red flags regarding his demeanor after the first interview since he was plainly not a match for the company's culture. However, he aced all of the code difficulties. So they made an immediate offer, which he accepted. He was fired in 10 weeks. Do you know why? Their teammates couldn't work with him because everyone was grumbling about his behaviour. This means that the best candidate must meet not only the technical requirements but also the company values.
2. Create a good recruitment strategy:
Did you know that 75% of candidates research a company's reputation before applying? If this is the case, we must exercise extreme caution. A solid plan comes before a great execution. So, first and foremost, you must address questions such as: What are the genuine needs? What is the best recruiting process? How many stages are you going through? Who should be a part of this? Most businesses are so preoccupied with performing a function that they overlook this basic approach.
3. Create a concise applicant path to improve their experience:
Are you aware that 95% of applicants who had a favorable experience would recommend it to others? If this is one of the primary routes for recruiting, it has the potential to enhance both the quality and number of candidates. In other words, if we ensure that all of the applicants have excellent backgrounds, they will automatically refer acceptable people from their networks.
Priority must be given to agility:
The world is changing quickly, and millennials consist of the largest worker generation. Millennial characteristics include nonconformism, technological competence, and a proclivity to hop from job to job. If this is the case, we must be quick to capture their attention. The old-fashioned approaches of ten years ago no longer work; it is time to be innovative in your Talent acquisition strategies.
2. Make use of technology to get the correct candidates:
I constantly see recruiters using outdated tools. Are you recruiting in bulk and still using Excel to keep track of all the candidates? That makes no sense because it is a non-collaborative framework. There are a variety of options available to meet your requirements which include Greenhouse, FastJobs.io, and SmartRecruiters. Furthermore, using screening tools and other accessible technologies will help you to manage your time more intelligently and efficiently.
3. Create the appropriate KPIs and be data-driven:
Do you belong to a group of recruiters who don't keep track of their numbers? You should be concerned because 25% of your rivals are already doing it. You can't find out which aspects of your hiring approach must be improved if you don't monitor them. Tracking your Offer Acceptance Rate, for example, will tell you whether you need to revise your offered terms.
1. Understand your actual hiring expenses:
I'm often wondering if the recruitment managers are aware of their recruiting expenditures. The majority of them say no! and ask for my assistance in locating the correct answer. The first step is to calculate the Cost Per Hire, which is the sum of internal and external expenditures, and divide it by the number of hires done. So, which expenses should be considered?
2. Recognize the latest Talent Acquisition funnel:
With the expanding relevance of this topic, the position of a recruiter increases with responsibilities. The new TA funnel contains not only the classic recruiting steps of Application-Evaluation-Hire, but also a series of previous stages known as Recruitment Marketing stages: Awareness-Consideration-Interest. This implies that in order to attract applicants, i.e. We could start sooner with a handful of marketing and employer branding campaigns to drive applications.
The data underlying "The True Cost of Hiring a Developer"
Time = money:
It may seem cliché, but it is true. The longer your position is vacant, the more money you will lose. It's become more difficult as a result of a scarcity of competent programmers. A vacant post will cost you up to $500 every day. According to certain studies, the average time to hire might be as lengthy as 95 days. According to the DHI Hiring Indicator, the most encouraging vacancy length in 2015 is 35.3 days. This means that you may lose up to $17,650.
2. Hiring a Software Engineer costs $50,000-
The cost of hiring a new programmer varies based on factors such as talent, position type, level, market demand, geographic location, and so on. However, the average cost of employing a software developer is roughly $50,000. The figure rises to $89,510 (£69,285, Quarsh) for a post paying $51,676 (£40 000, Quarsh). So, how do you calculate the cost of hiring a new programmer? It's not straightforward, however, the cost-per-hire (CPH) indication can help you estimate the cost:
CPH = (external expenses + internal costs) divided by the number of hires
How do I figure out my recruitment budget?
There are two methods for calculating your recruitment budget:
1. Use your average hiring cost-
Calculate it by adding last year's real recruitment expenditures and dividing by the number of hires you made. Then divide your average cost per hire by the number of hires you anticipate making this year.
2. Total all anticipated internal and external costs-
Assume you intend to recruit 50 individuals in the coming year. If you determine you need 50 job postings on 3 separate job boards, you may increase each job board's charge by 50 and then sum the 3 totals to obtain the total expected cost of job boards.
Get it right the first time with Recruitment Experts-
If you are looking for top talent in the market today, and you are paying too much for them, then we suggest you check out FastJobs.io.
FastJobs.io is disrupting the traditional recruiting industry by providing a streamlined, easy-to-use platform that saves you time and money. For example, if you need to hire a PHP developer, you can post your job to FastHQ in less than a minute, and if you need to hire a full team of PHP developers, FastJobs.io can make it happen at a fraction of the cost of traditional recruiting.
Let’s begin building your Tech dream team!
Register at FastJobs.io Today!.