The continual need for new developers, designers, and engineers has increased competition for tech talent more than ever. As we all know, the technology sector is currently booming in the market. So, how do you get your foot in the door with a potential hire? This is the most challenging question for recruiters and employers to answer. Without any doubt, this is not as simple as it was a few years ago. The market is becoming more competitive as technology advances year after year. Tech talent is hard to come by, so when you do find it, you must be prepared to make a decision. The competition for tech talent is fierce. The number of organizations actively fighting for Tech expertise has rapidly increased over the previous five years, and with the borders closed, no fresh talent is entering the market. Everyone is essentially fighting for the right candidate for their company.
For businesses, recruiting may be a complex undertaking, especially regarding the time and money involved. It is not only about filling a position; it is also about finding the appropriate person who fits your company’s culture. In addition, you’ll probably need someone willing to grow with the company, which can take some time!
It’s not only a question of pay! Hiring new staff will cost much more than this. The hiring process is time-consuming and expensive, primarily when a company employs a full-cycle recruiting approach to hiring and recruiting new employees. Employee turnover is a problem for any firm, and it is worsened by lengthy onboarding processes and interactions with recruiters. A recent study reveals the true cost of hiring a developer, and the findings may surprise you. Jobs are becoming more skill-based and less repetitive as the recruitment process becomes more automated. In addition, with increasing competition among companies to hire the best talent while remaining profitable, recruiters are being tasked with hiring talented candidates on record budgets. Two recruitment process metrics that help organizations measure their total spending and time associated with filling a vacancy are cost per hire and time to hire.
Though we have a good notion of how much it costs to hire the person, there are some costs that may not have been included in the total. So, let’s take a closer look at the factors behind the incremental rise in recruitment costs for software talents.
1. Long-run: Recruitment process
Aside from salary, one of the most significant recruiting hiring costs is the recruitment costs that a firm might incur. Recruitment costs cover a slew of expenses that you demonstrate to be a substantial factor in the incremental rise in the cost of Tech talent recruitment. Job board fees are the first in the queue. Different employment boards use various price models.
Some work on a pay-per-click basis (you pay the price for each job seeker who clicks on your post), while others allow you to post a specific number of positions for a fixed fee. Followed by this is the recruiter cost up in the queue. Whether you utilize in-house or external recruiters, their time and travel expenditures (if any) costs the firm a handsome amount of money.
Manually screening resumes consumes the time of HR professionals. In terms of time spent interviewing many candidates, phone, in-person, and remote video interviews all cost money. Also, considering that HR professionals do not come from a tech-savvy background, they may reject suitable candidates which results in increased hiring costs.
Furthermore, businesses pay an upfront fee for recruitment and HR software, which is quite beneficial in terms of saving time and selecting the right talent. Organizing recruiting fairs costs money in terms of location, catering, and employee hours.
2. Pre-employment background checks
A background check, also known as a background investigation or background screening, is a procedure that looks into various aspects of a candidate’s past. Employers can use background checks to verify a person’s identity using information such as Social Security numbers (SSNs), driver’s license numbers, and public records.
There are numerous advantages to conducting a background check on job applicants and employees. Conducting background checks on prospective employees can hold them accountable by ensuring that the information they provide about themselves is accurate. There is no federal, state, county, or city law that requires employers to do background checks on potential employees.
Companies continue to go through this process to ensure that they recruit someone truthful and honest. Costs vary depending on the sort of background checks performed and other criteria, but simple criminal background checks can range from $20 to $100 per hire. If you conduct the test in many states or choose more extensive testing, your costs will skyrocket. Credit checks typically cost $25 to $35 per hire.
3. High costs of advertising
Marketing plays a vital role in reaching out to large groups of people. When a company advertises for a job, the number of responses they receive tends to be more significant. A company posts a job on a popular site not only because job seekers are more likely to visit those pages but also to attract workers in that specific field by posting relevant job information. But the cost of advertising is a prominent factor in increasing the recruitment process.
The cost of posting a job advertisement on one of the larger job boards begins at around $400. Typically, a company will select two or three of these to be safe, totaling close to $1000. The company then wants to spend a few hundred dollars on advertising on specialized job boards. At this point, it is worth at least $1500 to $2000. But those aren’t the only expenses. The company must also pay for the time it takes an employee to post on these message boards, as well as the time it takes to locate the best-specialized sites to market on.
It also needs to be monitored, and if something happens and the company is unable to find a suitable applicant, it will have to pay all of these fees again the following month and possibly the month after that.
Working from home has become the new norm of the 20th century. But, the increasing costs of hiring Tech talent are still swinging. New employees will still require training, equipment, and onboarding to help them adjust to their new positions and achieve success. As your firm expands, you’ll need to hire additional talents. Regardless of who you’re employing or the tools you’re using to locate and pick them, there are various strategies a company can use to decrease recruitment costs – without sacrificing hiring quality.
Increasing global demand for software talent is fuelling a sales war among tech giants which is manifesting itself in increased costs of hiring software talent.