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The True Cost of Recruitment

The True Cost of Recruitment

When hiring an apprentice you are investing in your business, and you want to make sure you recruit the right person to avoid costly ‘bad hires’.  Using a Group Training Organisation (GTO) to source and supply the right apprentice for your business can save you time and money, and help ensure your new apprentice is the right fit for your business.

Methods of recruitment

There are different ways of recruiting apprentices, using specialist recruiters, in-house recruiting, or a combination of these. While in-house recruiting may initially appear to be the cheaper option, it rarely is, usually taking more time and having lower retention rates. This is due, in part, to recruitment expertise, and access to the pool of suitable talent being severely reduced.

Cost of a vacant position

In Australia, it takes on average 68 days to fill a job vacancy, this figure almost doubling since 2010. For the period a position sits vacant, productivity is reduced and revenue may fall. Senior staff may take time from their own roles to cover the vacancy, or the position may be covered by contract labour. All of these are costs absorbed by your business.

When in-house staff carry out the hiring process, which usually takes 20 to 60 work hours, there will be more associated costs. To fill the position, you or staff must first take the time to write a job advertisement that breaks through all the others in order to reach and attract your desired candidates. Then there is the time spent sorting resumes, checking references, and conducting interviews.  In addition, you may have the cost of medical & criminal checks, tests for competency, etc.

In contrast, by using a GTO, like Smart Employment Solutions, all of these things are taken care of for you. We source, vet, and deliver excellent apprenticeship candidates, suitable for your business. Additionally, Smart Employment Solutions will take care of all the administrative paperwork; we pay wages, allowances, superannuation etc., we organise training and monitor apprentice performance, further saving your business time and money. We are always here to help if you require assistance, and are flexible if your requirements change.

Once the position is filled

You and your new apprentice don’t find out if they fit in with the culture of the workplace until they begin. With 22% of staff turnover occurring in the first 45 days, it is important to help new apprentices feel comfortable and provide them with everything they need to fulfill their duties, tools, materials, etc.

Smart Employment Solutions will coordinate apprentice training, and an Employment Officer will be assigned to your business and keep in regular contact with you and your apprentice.

Quality of hire

When a new employee leaves within the first 12 months, it is estimated to cost the company up to three times the salary of that individual. This is why a strong recruitment strategy is vital to help ensure appropriate and quality hires.

Final Thought

When you add up all the costs of recruiting, onboarding, and training, and consider the possibility and costs of a bad hire, meaning the whole process must be repeated, you may be a little shocked. These things highlight why it is beneficial to use a Group Training company, hiring from professionals like Smart Employment Solutions. We can cut down the time taken to fill your apprentice position, and deliver quality applicants to your business. If you’re considering hiring a new apprentice, Sesat are here to help; Call us today on 13 30 24