Finding and acquiring talent comes with a few challenges — including significant additions to overhead. According to research conducted by the Society for Human Resource Management, the average cost per hire is $4,683. This figure escalates dramatically when hiring for leadership roles, with executive-level talent acquisition costing an average of $28,329 per hire. Add in the impact of high turnover rates, and it's clear that recruitment-related expenses can quickly spiral out of control, putting a strain on your organization's resources.
If your organization is looking for a simple solution to reducing talent acquisition costs, consider partnering with a recruitment process outsourcing (RPO) provider. RPO providers apply a streamlined, strategic approach to hiring and can help your company overcome expensive and time-consuming challenges.
Here's more on how an RPO can help your organization save money.
The demands of specialized talent and high-volume roles often strain internal HR teams, leading to longer hiring cycles and missed opportunities.Companies who turn to temporary solutions to fill essential roles may be significantly increasing their labor costs. For example, working with travel nurses more than doubles staffing costs, on average.
Manufacturers also commonly rely on temporary staffing solutions to quickly fill roles, which can impact their bottom line in various ways. Researchers have found that temporary employees tend to invest less effort into their work because they know they might not be hired permanently. Their perspective can influence permanent staff and decrease morale, leading to productivity loss.
Fortunately, businesses can turn to RPO providers to fill specialized or high-demand roles efficiently and save themselves the high cost of working with temporary solutions. RPO providers leverage sophisticated technology, industry-specific expertise, dedicated recruiters, and custom marketing strategies to accelerate hiring.
RPOs are also experts at building robust talent pipelines, empowering organizations to make hard-to-fill hires quickly,decreasing dependence on staffing agencies. For instance, we helped a partner save $610,000 by eliminating a need for travel CRNAs.
Industries like healthcare, retail, and manufacturing are often burdened by high turnover costs. Depending on a company's size, a high turnover rate could lead to thousands or millions of dollars lost each year in direct and indirect costs.
For example, Duke University Health System saw roughly $114, 645 in turnover-related expenses per respiratory therapist. Imagine losing five respiratory therapists in a year. That loss could exceed half a million dollars for Duke Health.
RPO providers can resolve the issue of high turnover by hiring value-aligned candidates. Value-aligned hiring involves learning about a company's values and culture and tailoring recruitment strategies to attract the right talent. By ensuring that new hires resonate with your company’s mission, values, and vision, you can cultivate a more engaged and committed workforce, ultimately decreasing turnover rates and boosting overall organizational stability.
Although building an in-house recruitment team has its perks, this approach can be costly, time-consuming, and may not always yield the desired results.. Expanding your internal team requires budgeting for salaries, training-related expenses, and benefits. Considering the average recruiter salary in the United States is around $56,000, the cost to support a robust internal team can be steep.
By partnering with an RPO provider, you can avoid the cost of hiring in-house recruiters and pay only the agreed-upon fees. RPOs provide a team of skilled recruiters already trained in recruitment techniques and technology, so you don't have to worry about training expenses.
RPO providers typically offer flexible pricing models, allowing you to pay for the services you need, when you need them, avoiding the overhead costs associated with maintaining a larger permanent recruitment staff. This model not only reduces your fixed costs but also allows you to allocate resources more strategically across other critical areas of your business.
Are you concerned about meeting the demands of your peak hiring season? There's no need to maintain a large internal team to handle busy periods efficiently. One of the significant advantages of working with an RPO provider is their ability to scale recruitment efforts according to your needs. Whether you're facing a sudden spike in hiring demands or need to fill niche roles quickly, an RPO can adjust its resources to match the intensity of your recruitment needs.
This flexibility means you can handle large-scale hiring efforts or specialized recruitment without the long-term commitment of expanding your internal team. Once the demand subsides, the RPO provider can easily scale down its operations, providing a cost-effective and agile solution to your fluctuating hiring needs.
A good RPO provider will also assist your organization with workforce planning, helping you save on costs related to over- or under-staffing.
Talent acquisition is inherently challenging in a constantly evolving and competitive labor market. It takes focused effort, marketing savvy, and technical skills to maximize hiring resources and recruit value-aligned talent efficiently.
An RPO partner relieves your organization of talent acquisition challenges and saves it from the related costs. With a collaborative partner like Hueman, your internal team can focus on maintaining relationships and supporting core business growth while we handle the rest.
Ready to explore the Hueman way of streamlining talent acquisition? Contact our team today to increase candidate quality, decrease time-to-fill, and discover the cost benefits of a flexible RPO partnership.