The financial impact of good personnel management.

Sep 4, 2015

An effective management of human resources is a real asset to stand out from the competition. Employment agencies must therefore adopt and develop ever more efficient practices in order to be able to set up a network of qualified candidates. In addition to improving organizational efficiency, good staff management is another important aspect that should not be overlooked: the positive financial impact of such an administration.


Improving staff management


Long defined as a secondary activity and support to other functions of the company, personnel management has become the element that allows a company to stand out from the competition.


The recruiting agency therefore has a leading role in this success. In order to guarantee optimum performance for companies, and thus position themselves as a leader in the face of competition, personnel management must be planned and organized in the best way possible, thus avoiding additional costs. Innovation is therefore being sought through the development of effective human resource management practices that will result in attracting and retaining a skilled workforce at a lower cost.


Decrease management costs


Calculating recruitment costs is a complex but necessary task, since without good management, the amounts invested in this function can reach levels that are beyond comprehension.


According to a recent Conference Board of Canada report, the average cost per hiring would range from $ 3,000 to $ 4,000 for administrative or support staff. However, the bill can easily inflate $ 10,000 for expert technicians and $ 40,000 for senior executives. This amount is directly associated, in addition to salary costs, the cost of the agency responsible for posting the job, managing the candidates and selecting the candidate, in other words: the placement agency.


These findings demonstrate how important it is for the placement agency to properly assess needs and effectively manage its active staff and candidates in order to avoid costly mistakes.


Therefore it is essential for employment agencies to be equipped in the most efficient way possible in order to save companies money and time.


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