We understand intuitively that the recruitment process is expensive, but we might not understand just how exponential those expenses become over time. The break-even point, as defined by the U.S. Small Business Administration, is the point at which total cost and total revenue are equal. As we talk about the break-even point in recruiting fees, we explore a timeline of months.
There are two ways to define “recruiting monthly payments.” The first involves recruitment fees through a subscription-based or retained searches model structured in monthly payments. The other less-considered definition involves the expenses a business accrues over the course of months to recoup the cost of recruiting employees. Sometimes, even without formal recruitment fees, it takes upwards of a year for a business to reach its break-even point on a single employee.
Fear not. AnswerNet is here with contact center solutions that reduce costs and energize your employees. Today, we’re going to discuss how to avoid recruiting monthly payments by diving into the real price of recruitment and the ways we can reward and maintain long term employees.
The Financial Cost of Recruitment
There are a huge number of variables that factor into the cost of recruitment, but we have some benchmarks that can point us in the right direction. The Society for Human Resource Management published a cost calculator in 2023 that includes expenses like recruiting advertisements, interviewing times and increased workloads for existing employees.
Other variables might not be as apparent. According to Training Magazine’s 2023 Training Industry Report, U.S. companies in 2023 spent on average $954 training every new employee. What’s more, those companies spent an average of 57 hours per employee to implement that training.
The Temporal Cost of Recruitment
Every financial cost is exacerbated by the massive amount of time it takes to conclude the recruitment process. The Josh Bersin Company’s 2023 Global Talent Climate report uncovered that the average recruitment process takes 43 days. That seems about 43 days too long.
Recruiting monthly payments extend beyond the recruitment process to include the recruitment break-even point. Here are some ways to build long term employees to either conclude or totally avoid recruiting monthly payments.
How to Build Long Term Employees
A 2023 Slack survey of more than 10,000 global workers revealed a key way to build long term employees: trust. Employees who felt trusted by their employers reported twice as much productivity and over four times as much satisfaction with their work.
Contrast that benefit with the harms of distrust in the workplace. A 2024 study from the Northeastern University School of Law and the National Whistleblower Center found that more than 90 percent of retaliation cases are triggered by internal disclosures, where the bosses know the identity of the whistleblower. When workplace distrust crosses those lines, you can say goodbye to long term employees.
Build Trust with a Whistleblower Hotline
A successful whistleblower hotline builds trust with meaningful protections for your employees. True anonymity promotes ethical behavior and allows you to address problems early, before they drive your employees away.
The majority of respondents in a 2023 Harvard Business Publishing Corporate Learning survey said their leaders lacked empathy, but a trusted whistleblower hotline is a great way to break that mold. If integrated well, a whistleblower hotline will lead to renewed growth for your employees and your business.
AnswerNet Avoids Recruiting Monthly Payments
A reliable contact center partner can revitalize your values, elicit emotional responses from employees and help you avoid steep costs. If you’re looking for a reliable contact center partner, you’re in the right place.
AnswerNet is an industry titan because our contact center services are employee-approved. To learn how to maintain employee satisfaction, reach out here or click the button below to get in contact.
