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.
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.
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.
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.
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.