Fall, 2001 Newsletter

Although the extremely tight labor market has eased somewhat in the past few months, the best-qualified technical individuals remain very difficult to find. These highly skilled, proven technical professionals will continue to be in high demand for the foreseeable future.

During this age of challenging technical recruiting, traditional methods of recruiting and hiring candidates are more costly than ever. In an effort to monitor recruiting and hiring expenses, many companies calculate cost-per-hire (CPH). These calculations generally include:

• Costs of advertising, employment fairs and agencies
• Travel and lodging expenses for recruiters or hiring managers
• Relocation packages, if applicable
• Employee Referral Programs

The Employment Management Association estimates that the average CPH for an exempt worker in 2000 was $10,500. This estimate does not consider internal recruiter salaries and benefits nor does it include the time hiring managers spent reviewing resumes and interviewing candidates.

Additionally, CPH computations overlook some significant intangible costs. Most important of these is the opportunity cost of an open position. Many technical vacancies remain unfilled for 2-3 months, representing significant lost revenue opportunities for companies. Also difficult to quantify is the negative effect key vacancies have on employee morale and team productivity.

Yet another factor missing from CPH figures is the cost associated with making a poor hiring decision. When an employeeâs skills are determined to be insufficient for the job, management must expend more time and effort in supervisory functions. Team productivity certainly suffers. As well, hiring the wrong person often leads to administrative costs related to possible disciplinary action and separation activities.

There is a better way! Contract-to-direct arrangements minimize direct and intangible costs while finding the best candidate in the shortest period of time. With contract-to-direct, an individual works as a contractor for six months and then is eligible to become a direct employee at no cost. The advantages of this arrangement are many:

• Professional, proven recruiters locate and personally pre-screen the most qualified candidates for each technical opening
• For the duration of the contract, all employment expenses (including payroll taxes, workers compensation insurance, unemployment insurance, etc.) are paid by the agency
• The ability to determine, with virtually no risk, whether the candidate is right for the job
• Reduced turnover as candidates have proven that they have the skills to be successful before ever becoming direct employees

Triad Engineering Corp has specialized for over 32 years in helping clients fill their technical staffing needs on a contract and contract-to-direct basis. Triad is locally owned and operated and offers the most personalized service and experienced staff available. Please contact us at 800-649-1514 or visit our web site www.triad-eng.com for more information.