3 Challenges That Come With In-House Hiring & The Cost of A Bad Hire
A lot goes into finding and hiring the best employees.
There are the hours of time and internal resources that go into job postings, and then reviewing and selecting candidates, as well as scheduling and conducting interviews, before making a job offer. Then there’s the cost of initial onboarding expenses, like training materials and training hours. The time and money it takes to hire new employees is a big business expense. This doesn’t include the added costs you’ll have to pay if you hire the wrong employee for the position.
Luckily, you can avoid hiring the wrong employee and save your valuable time and money by working with EzHire Cannabis. We have the solutions and resources you need to hire qualified cannabis industry professionals, fast. EzHire Cannabis is a hiring platform that leverages the power of technology to enable recruiting, staffing, and employee management in the legal US-based cannabis sector. We provide cannabis businesses with a full-cycle solution to post, curate, and hire qualified candidates.
Top 3 Difficulties of In-House Hiring
We understand that handling your hiring in-house is something every company needs to consider. A successful business owner considers all of their options. At the same time, our experienced team has found a way to attract top talent and leverage technology in a way that overcomes the top 3 difficulties of in-house hiring.
1. Job Boards Are Outdated And Tedious
Let’s face it, online job boards are becoming a thing of the past. Job boards, like Indeed, are where businesses can post open positions and job seekers search and apply.
This idea looks great on paper. It’s usually free, or relatively inexpensive. However, it’s estimated that 73% of potential candidates are considered passive job seekers. A passive job seeker is someone who already has a job, is open to the idea of moving to another company, but isn’t actively seeking employment. This means when you post to a job board, you’re only getting in front of active job seekers, who only account for only 1 of every 4 potential candidates that could be a great fit for the role you need to fill.
In addition to drastically reducing the exposure of your job opening to the best quality candidates, there’s all the tediousness that comes with this old process. You have to spend time creating the posting and hope it’s written in a way that attracts the level of candidate you need. Once it is posted, you have to spend even more time managing the posts, often juggling several posts across multiple platforms. The time it takes to manage job board postings for each of your open positions adds up fast. All of this is time you could be spending on running your business, instead of trying to find quality employees.
EzHire Cannabis is more than a boring old job board. We are an entire talent engagement platform built to source top-tier cannabis industry professionals and connect them with cannabis business owners. Not only do we take the time out of managing job postings, but our platform also enables full-cycle staffing that includes reviewing, rating, and sharing applicants internally, managing a candidate pipeline, and post-hire employee onboarding.
2. Hiring Costs Time and Money
When you’re busy running your business, you know that reducing costs and saving time are two factors that can significantly impact your bottom line. EzHire Cannabis provides you with the solutions you need to do both when it comes to filling open positions in the cannabis industry.
We know what employers are up against. Research from the Society for Human Resource Management (SHRM) shows that an average of 250 resumes are submitted for a single job posting in all industries. The number of resumes received for open positions in the cannabis industry is believed to be even higher. Again, this makes job boards sound like you’re going to get a lot of applicants which you might. The truth is, the same research shows that only 4 to 6 of those 250 candidates will actually be qualified enough for an interview.
Do you really want to spend the time it would take to review 250 or more resumes to maybe interview 4 to 6 candidates? We didn’t think so, but we don’t just save your cannabis business time by taking care of resume review. We also handle the heavy lifting of interview scheduling and logistics to make the hiring process even easier. Our propriety hiring process and unique technological tools allow us to cut your hours of internal resources used for new hires by more than half.
On average, hiring in the cannabis industry requires 25 hours of internal resources. Our clients report an average time investment of 10 hours per hire. This allows you to spend more time on staff training and retention. Our process saves your business valuable time, which results in reducing your hiring costs. You can use that extra money you save for whatever else your business might need, to get you where you want to go, faster.
3. Recruiters Are Expensive
Traditional recruiters or headhunters charge hefty ransoms for their services. EzHire Cannabis offers ransom-free recruiting. We do this in two ways. First, we believe firmly in delivering value and earning your continued business. This is why we offer month-to-month agreements with no long-term commitments. We believe in our ability to connect you with the best-qualified candidates for your open positions fast, and our commitment to do that can be seen in not needing long-term contracts.
EzHire Cannabis also reduces hiring expenses in the cannabis industry by leveraging technology and passing the savings on to you. Using the right technology is proven to attract and retain talented professionals. According to more research from SHRM, 88% of businesses around the world use artificial intelligence in some way for hiring and human resources. If you aren’t already integrating today’s technology into your current hiring process, you’re falling behind in global hiring strategy. Don’t let your business’s hiring process get stuck in the past. Using EzHire Cannabis ensures your business is at the forefront of global recruiting strategies without having to invest directly in any additional technological resources, or overpriced traditional recruiters.
Hiring the Wrong Employee Hurts Your Bottom Line
It’s easy to see how much time and money it can cost your business to handle hiring in-house.
It’s difficult enough to get your job posting in front of the most qualified candidates. It’s even more difficult to wade through a flood of unqualified applicants only to find less than a handful worth considering for an interview. Even if you do manage to find a new hire, there’s a good chance they may be the wrong person for the job. One survey found that 2 in 3 workers report having accepted a job only to realize it was a bad fit afterward. Half of those workers quit within the first 6 months of employment.
Turnover rates are even higher in the cannabis industry. According to The National Cannabis Industry Association, turnover rates are 40% to 60% within the first two months. This means you should expect to lose some of your employees to turnover. This is why we actively manage a candidate pipeline of qualified industry talent tailored to the needs of your business. This way you can focus less on hiring and more on the other goals of your business. Having direct access to our talent pool can save you a substantial amount of money best used for other purposes.
How Much Does A Bad Hire Cost?
You could choose to take on all of the complexities of hiring yourself. However, without leveraging the solutions at EzHire Cannabis, you put your business at a higher risk for paying the high costs of a bad new hire. The U.S. Department of Labor reports the average cost for each bad hire can equal 30 percent of that individual’s annual earnings. Thus, when you hire the wrong mid-level accounting manager or application developer earning $60,000, the real cost to your organization will be $78,000. Imagine what you could do for your business with an extra $78,000.
Unfortunately, bad hires cost your business more than money. They also negatively affect your other employees. Recent statistics released for hiring managers state that bad hires result in a 36% reduction in productivity, and a 32% reduction in employee morale. This means hiring the wrong employee will impact how productive your other employees are, which impacts everything about your business. It can also increase employee dissatisfaction, which can lead to a higher rate of turnover. In an industry that already has one of the highest rates of turnover, hiring the wrong employee in the cannabis industry can set your business back considerably.
Save Time And Money With EzHire Cannabis
Reducing your time and costs associated with hiring the wrong employee is only one of the ways you save time and money by working with us. Our unique approach to recruiting ensures alignment between cannabis companies and cannabis industry professionals. Remember, EzHire Cannabis clients report that our recruiting services cut their internal resource hours for new hires by more than half. Don’t wait to get your business up or running or to take it to the next level. Let us help you scale your cannabis business by securing you the perfect candidates for your open positions, and we’ll make hiring your next employee or employees easy and cost-efficient.