Posts tagged ‘hire’
by internships.com writer
Do you have a vacancy at your company that needs to be filled by a competent, valuable employee? Great! Are you worried about the cost incurred during the recruitment/hiring period? Not great. It’s time to think about another option for finding and hiring the perfect person to fill the empty office—hire an intern.
I don’t mean hire an intern as a permanent solution, rather create an internship that will allow you to vet various candidates, give young people good experience in your industry, get extra (probably much needed) assistance in the office, and choose the perfect employee from a pool of possibilities that you already know. It’s a win-win situation.
A recent survey, conducted jointly by the Employment Management Association and the Society for Human Resources of 636 professionals, produced the following statistics regarding the most common costs included in a Cost Per Hire:
- Advertising and event costs (76%) – Converting an intern to a full-time hire means no expensive job listings in newspapers or journals
- Internet services (63%) – Reduce fees needed for individual job postings
- Third-party agency contract and fees (52%) – Unnecessary cost if hiring from within
- Referral bonus costs (49%) — Reduce staff time spent at job fairs, preparing job ads, resume review, interview time, phone pre-screens. These are just a few of the places your staff will save time and effort by hiring from a current intern pool.
- Signing bonus (37%) — No need to pay a signing bonus if you are converting an intern to a full-time employee. Also, employers report that salaries tend to be lower when hiring a current intern.
- Technology-based hiring management (19%) – The Internet has increased the number of resumes submitted for positions. Reduce the time spent sorting, reviewing and organizing the paperwork by converting an intern to a new hire.
SHRM surveys report that exempt positions are at $6,943 CpH (Cost Per Hire). Non-exempt positions are reported at $2,546 per hire. And CpH for high skills range from $9,777 to $19,219. Overall, it is reported that companies typically spend $10,000 – $50,000 in tangible costs alone to replace and retrain when a single employee leaves the company.
Basically, it’s a large expense for a company of any size—astronomical for a small company, but nothing to ignore even for a larger company. Converting an intern to a new hire is worth it if you are just looking at the numbers, but when reviewing all of the mutually beneficial aspects of the conversion it’s clearly an excellent solution for all involved.