Many small growing businesses often fail to budget for hiring costs associated with turnover or anticipated expansion hires. Consequently, many small businesses lack the financial resources to hire quality talent.
The average cost to hire is about $7K, yet I’ve found many business owners reluctant to spend any money at all for recruiting. They first try to hire friends, family, and then friends of friends. The do-it-yourself hiring approach works like doing your own plumbing. Sometimes you create a bigger mess!
When it comes to hiring, business owners tend to be reactive rather than proactive. To improve the quality of hires, businesses should create an annual staffing plan that includes a budget for hiring replacement or expansion hires. Planning helps businesses from being caught off guard financially. And, with allocated dollars set aside for recruiting, companies will have a better chance of hiring top talent.