«   |   »

What’s Costing You the Most in Your Hiring Process?

What’s Costing You the Most in Your Hiring Process?

Hiring the right personnel is one of the most important tasks of an HR Manager. If the wrong person is hired, you can expect poor performance, frustrated Managers and higher costs when trying to do damage control. However, the hiring process, done correctly, is not easy or cheap as there are a lot of measures and steps that have to be taken before you can give out that offer letter.

Costs Associated with the Hiring Process

  1. Recruitment costs. These include hiring a recruitment firm, defining the position, advertising the position and test scheduling.
  2. Selection costs. Selection costs range from shortlisting, interviews, communication with applicants, security checks, and the job offer.
  3. Productivity costs. When a position is vacant, other employees are forced to do the work of that position which means they put less effort into their job. The hiring team also takes a lot of time away from their regular duties during the hiring process to do all the recruitment and selection meaning there is work that is not being done, and that is a loss of revenue.

Extra Costs Associated with Hiring

  1. Some companies will be forced to hire a consultant or temporarily fill the position before someone is hired permanently and doing this will cost money (sometimes a lot of money).
  2. In the case that the team hires the wrong person and fires them due to poor performance, the company can be sued if there was a contract signed. Kenneth P. Carp, an Attorney in St. Louis says, “The process of obtaining or protesting unemployment benefits can be extremely complicated and can implicate state law, regulations, administrative agencies, and Missouri and federal case law. While you are not required to have an attorney at any point in an unemployment dispute, the assistance of a lawyer can often have a significant impact on the outcome of a case. “
    For that reason, it is vital for employees and employer to contact an employment attorney to help them settle the dispute whether it is handled in or out of court.

The Problem with Terminating an Employee

One problem with terminating an employee is that you may be liable for Unemployment benefits and/or your unemployment insurance rates may go up. According to Kenneth Carp, Employers can challenge unemployment claims in Missouri for a variety of reasons, including the following:

  • Inadequate earnings – To be eligible for unemployment benefits, the law in Missouri requires that an employee had earned a certain amount of money from their employment in a designated 12-month period of time, referred to as the “base period.” If an employee has not met the minimum earnings, they should not receive benefits.
  • The employee voluntarily left the position – If an employee quits their job, they generally should not qualify for unemployment. Some employees may try to claim constructive discharge due to harassment and you should be prepared to contest these claims when needed.
  • You fired the employee for misconduct – Employees often try to argue that their behavior did not rise to the level of “misconduct” under Missouri law. These definitions have recently changed in our state and it is imperative to have a lawyer who understands the current requirements for misconduct.
  • The employee is not seeking or accepting suitable work – If an employee is not searching for a new job or has refused suitable work, you can challenge their continued unemployment benefits.



Streamlining the hiring process will save the company a lot of time and money that will be utilized elsewhere. With all the new techniques and technological advances we have at our fingertips’, hiring doesn’t have to be as time-consuming or stressful as before.

You might also like: