Wage Analysis as a Possible Solution for High Employee Cost
Employees are generally considered one of the most valuable resources that a company can have. Unfortunately, while many businesses have graduated pay plans for their employees, they may be garnering high employee costs unnecessarily. While increasing employee pay is crucial for continued success and growth, performing a wage analysis to determine a baseline is extremely important. This can not only ensure employees are all being paid fairly based on their Wage Analysis duties or position, but it can also ensure that high employee costs are kept to a minimum.
When an organization pays an employee more money than they should, it can often create a ripple effect among the employees around them and the organization as a whole. In many instances, this hinders employee development and can eliminate resources that could be used in other areas of the business that need it most. Overpayment is a common problem nationwide that doesn’t get enough attention. However, high employee costs can easily be offset when a wage analysis is completed to determine what fair wages may be – even if employee salaries can’t be decreased.
How Does Wage Analysis Improve Employee Costs?
During the ramp-up phase of a business, performing a wage analysis on vital positions can help determine if employees are being overpaid for the amount of work they are currently completing. With this information, employees that are presently overpaid may need to take on more duties to compensate for the level of pay that they are obtaining. But can a wage analysis directly impact employee costs or ensure that a business doesn’t inadvertently set itself up to lose cash that could be better utilized within the organization. Although, this often requires an ongoing commitment to maintain.
Performing a wage analysis can also provide valuable insight into what “pay caps” should be implemented based on positions. Once these pay caps are hit, the only way for employees to continue to make money is by being moved into a new, higher position within the organization. This process can create a system of checks and balances that ensures high employee costs are avoided at each step of the employee life cycle. In addition to this, new employees can be offered competitive salaries that allow room to grow if they decide to stay with the company long-term – creating a roadmap for success into the future and beyond.
It is counterintuitive to increase wages until they are exceeding what is typical for a position. Unfortunately, many businesses may be doing this unintentionally both when hiring an employee or increasing pay for existing employees. A wage analysis is considered one of the best ways to verify salary and set caps for future employees to ensure room for growth. For this reason, companies need to ensure that they are doing an annual wage analysis to keep up with changing markets. Through performance based staffing services, Certified Source can help any business ensure that they give employees adequate wages without sacrificing existing finances.
Targeted Recruitment & Retention Programs as a Possible Solution for High Employee Cost
As a company grows, the need for qualified employees increases. Often this is due to higher demand in the market. Demand can easily affect a company's budget if it is not approached with the right strategy. To prevent the budget from going overboard is crucial to develop targeted recruitment and retention programs strategy.
These strategies will help decrease employment costs while assuring quality and productivity. Targeted recruitment begins with a company defining its budgets, qualifications, and responsibilities for the position that needs to be filled. Keeping realistic expectations while determining these potential threats will help a company looking for specific skills target the most suitable candidates for any vacant position.
Human resources teams often battle to find quality employees without overspending. A qualified employee is aware of their talents and will often demand a higher price for their inherent worth. Therefore, by designing projected salary packages, companies can stay on budget without compromising the quality of employees. For projected salary packages to be successful, companies also need to invest in a retention program strategy that will help control their budget while ensuring long-term relationships with their employees.
How can Target Recruitment and Retention Programs Decrease Employee Cost?
When developing a targeted recruitment and retention strategy, a company should never stop analyzing patterns from the process and then use them to track effectiveness. These studies should include the source of the hire, the cost of the employment, and the type of candidate recruited. Investing in the resources that more often lead to high-quality talent for the lowest price will allow companies to keep up with their budget.
Calculating the actual total cost of filling a position with top candidates is another way to implement a targeted recruiting program that can help decrease employee costs. Often, this cost goes beyond the proposed salary and encompasses the expenses of a recruiter’s services, the salaries of other members responsible for implementing developed strategies, any advertising costs, and additional fees that are accrued. While these costs can typically range between $3500 and $5000, calculating these expenses will help establish and maintain the company budget.
An additional strategy to decrease employment costs is by developing a solid retention program. It will make time and money available for other company plans while reducing the need to search for new candidates. Alternatively, these programs can help with maintaining top employees to ensure they stay motivated and productive. Companies that attempt to decrease employment costs can invest in new opportunities and attract and retain top talent.
Most employers do not have the systems needed to support targeted recruiting and retention programs to grow. Certified Source can help simplify the process of eliminating high employee cost through performance-based staffing services. With this strategy in mind, employees can rest easy knowing they are not only attracting the best talent possible but ensuring they have the incentivization to stay long term at the lowest price possible.
Pre-screening as a Possible Solution for High Employee Cost
There is a common misconception that employee cost is only calculated based on wages. However, many different factors contribute to employee costs, and they are essential to consider. Particularly for companies trying to improve their budgets.
The best approach to decrease high employee costs is to modify the hiring process. This process is directly responsible for the factors that cause excessive spending: onboarding and turnover. By utilizing pre-screening, hiring managers can ensure that the top candidates are a long-term fit and possess the skills required to perform on the job. Finding talented candidates looking for long-term career placement will lower turnover rates. This approach can help save the company time and money on its onboarding process.
Employee turnover can cost about two times an annual projected salary. For companies attempting to offset this problem, pre-screening is considered the most effective method that directly helps companies decrease their high employee cost. Pre-screening brings many benefits to a company, including finding top talent that aligns with the company's goals and values.
How Can Pre-Screening Decrease High Employee Costs?
With all the technology available in modern times, candidates can easily apply for multiple positions in just one click, often without needing to read over the requirements of a job. This increases the number of unqualified candidates applying for a position.
Hiring managers will often have to spend countless hours identifying top candidates without knowing if the best choice is being made. Companies usually implement a pre-screening process to avoid poor decisions to override these technology-based challenges and ensure that the top candidate is being selected in less time. A process that is guaranteed to help with reducing high employee costs.
With pre-screening, hiring managers can quickly discard all non-qualified candidates and better get to know the top talent. Pre-screening also accurately reflects a candidate's past job experience, skills, time employed, qualifications, and any other job history the company will be interested in.
With the extensive information pre-screening processes provide, hiring managers will be sure that the right choice is being made. By learning more about the candidates' experience, the company won't have to guess their intrinsic value and can more easily make a job offer that accurately represents their worth. This simultaneously eliminates the chances of overpaying for an underqualified candidate.
Depending on the position that needs to be filled, hiring managers should also consider personalizing and changing the pre-screening process. Once tailored, they can target qualified candidates and ensure that their character and personality align with the company's pre-existing culture—the chances for new employees to assimilate quickly and stay along-term increases, reducing turnover and poor quality.
Perfecting and implementing a pre-screening process is a lengthy process that could be harmful if done wrong. Certified Source has developed innovative pre-screening methods to ensure our performance-based staffing clients find the right candidate the first time while limiting the potential for high employee costs. By offloading pre-screening and other associated hiring processes to a staffing agency, companies can invest their time and money researching and negotiating additional growth opportunities.
Pre-Employment Evaluations as a Possible Solution for High Employee Costs
There is a common misconception among businesses that wages are the only payment they are responsible for. Unfortunately, several other factors can heavily contribute to high employee costs, including onboarding, human resource salaries, extra training, and turnover costs. While it can be tricky to calculate the financial responsibilities associated with these factors, knowing them is crucial for mitigating high employee costs. Without these costs in check, the consequences can be devastating.
One of the easiest ways for a company to decrease high employee costs is to implement pre-employment evaluations. Not only does this help ensure the hiring manager can complete the required processes efficiently, but it also ensures that only top talent is acquired, and those extended a job offer are encouraged to stay. By implementing pre-employment evaluations, businesses can reduce turnover, secure qualified candidates, and reduce high employee costs. However, this is just one piece of the overall puzzle, and a strong retainment strategy is critical for continued success.
How Do Pre-Employment Evaluations Decrease High Employee Costs?
When pre-employment evaluations are used, hiring managers can increase their chances of finding the perfect applicant for an open position. By ensuring that only top talent is making it through the process, the likelihood of early turnover will decrease substantially. Although an investment is required to implement pre-employment evaluations, the overall cost and time savings far outweigh the financial loss due to high turnover.
One benefit of pre-employment evaluations is that they can often predict qualification levels accurately. This, in turn, allows a business to determine the appropriate salary package and any included benefits that will help with retainment. In addition to salary guidance, pre-employment evaluations can also accurately gauge what additional training will be needed during the onboarding process. If the expected training leads to high employee costs, the candidate may not be a good fit for the position. Knowing a candidate's actual value can also help ensure overpayment doesn't contribute to high employee costs.
Pre-employment evaluations are essential when dealing with modern candidates. Not only can employers determine if a candidate meets their qualifications, but they can also ensure that they are providing fair compensation for the skills and experience the candidate has. Simply put, without pre-employment evaluations, companies may be spending more money than they realize in pursuit of a suitable candidate. Decreasing these costs whenever possible is vital for success in modern industries and should not be taken lightly.
At Certified Source, we work closely with employer clients to determine the exact qualifications they need in a great candidate and carefully match them with our job seeker pools. Through our performance based staffing services, organizations can mitigate turnover and ensure high employee costs are not draining financial reserves. Our team can help develop legal and effective pre-employment evaluations to ensure only the top talent is being extended offers. If that employee doesn't work out, our unique staffing approach can help mitigate many associated costs they could create a negative impact.
Site Orientation as a Possible Solution for High Employee Costs
Site orientation usually isn't at the top of the list when businesses are looking for ways to cut high employee costs. Onboarding can become incredibly expensive without the correct processes; however, not having a good site orientation program could lead to more financial loss if new employees don't stick around. It's hard to ensure both parties' best interests, from turnover to overpayment on projected salaries, are fulfilled. With so much on the line financially, how can a company ensure that they aren't inadvertently contributing to the problem further?
Eliminating high employee costs when scaling a business is critical for continued growth. Not only will site orientation ensure that candidates have the skills needed to make a positive impact at the company, but it will also ensure that new employees feel valued and confident in their abilities and designated positions. Any company struggling with high employee costs should take a hard look at their site orientation programs during a ramp-up phase to ensure they aren't overspending when they don't have to.
How Can Site Orientation Decrease High Employee Costs?
High employee costs can be contributed to by various factors that may not be readily apparent. For instance, if an employee is stuck in training for an extended period, they aren't impacting the day-to-day operations; however, they are still being paid for the time they are learning.
While an essential part of the process, ensuring that site orientation is efficient and effective is critical for mitigating this potential downtime. By streamlining the onboarding process, businesses can quickly ensure that new employees join their respective divisions and perform at expected levels.
Poor training will also lead to decreased motivation and productivity among new employees, often simply because they are unsure how to perform their daily duties correctly. Flattening the learning curve and giving new employees the resources and confidence to bridge skills gaps can ensure that the entire organization works in harmony. Inevitably, this will eliminate high employee costs while also ensuring that internal revenue and goals are being achieved whenever possible.
Every industry faces high employee costs if they aren't careful enough to mitigate the sources that contribute to them. Certified Source has developed performance-based staffing processes that ensure site orientation is effective and affordable. By working directly with candidates to ensure they are prepared by day one, we not only decrease the chances of poor site orientation contributing to high employee costs but eliminate the concern altogether.
Our staffing team works directly with the top talent available in the local market to match their skills with an employer client's needs. During this process, we ensure that the appropriate price points are met when developing a salary and that candidates actually possess the skills and experience they claim. That means you can focus on building your business while we help fulfill your staffing needs – all without the concern of high employee costs being accumulated unnecessarily. That is the Certified difference that each employer client can expect.
Exploring Function-Specific Training as a Possible Solution for High Employee Costs
Building a business while ensuring that headcount goals are met within a designated budget can often be a tight-rope act. Not only do you need to ensure that your employees will be able to fulfill their daily roles and duties, but you also have to give them a fair wage that reflects the level of work that they will be performing. However, hiring minimum wage employees, especially in industries that require specific skills and training, makes the process even harder.
Staffing is a struggle in every industry. Although, that doesn’t mean that you must shell out high levels of cash to new employees to fill open positions. Instead, why not consider implementing function-specific training to mold candidates into the ideal employee you would like to hire at a fraction of the cost. This ensures that they are well-versed in your company’s specific internal processes and have a full understanding of what the position requires.
How Can Function Specific Training Reduce High Employee Costs?
It’s no secret that every new hire will require onboarding and training, even if they understand the core goals of the role that they will be a part of. It is infrequent that a new employee will; be able to immediately hop into a new position and begin delivering on their first shift. Payroll expenses will often suffer when training is completed in-house but hasn’t been effectively structured or developed.
There is an incredible demand for minimum wage workers in many cities nationwide to help reduce high employee costs. But what if you could hire a new employee at a competitive wage and only need to provide them with minimal training required to begin making a positive impact on the organization? Dealing with high employee costs often occurs at the new hire level because employers are trying to fix staffing problems quickly with the candidates they think best fit those roles; however, it doesn’t always work out that way.
Instead, hiring teams struggling with high employee costs may need to set their sights in a different direction during ramp-up periods and look for moldable candidates who will be happy with a lower salary range that can benefit immensely from the training they will receive. Even better, bonds can be created with these new employees since they will be more grateful for their opportunities. This approach, in turn, not only reduces high employee costs immediately but also bolsters existing retainment programs to create long-term employees.
Any business struggling to decrease high employee costs internally will likely benefit from the support provided by a performance-based staffing specialist like Certified Source. We work directly with top employers to fulfill their staffing needs at a reasonable hourly rate while also ensuring that candidates with the appropriate skills are given the fundamental training to develop skills they need to succeed within a new role. If you are in an industry that requires repetition or monotonous work daily, we can help your new hires succeed.