The benefits of outsourcing: recruitment and costs

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Outsourcing customer service and business process operations has become increasingly popular in recent years as more companies are looking to streamline their operations and reduce overheads. Whether it’s cost savings or scalability – outsourcing will bring value to your business if you find the right partner (cost and quality).

Different studies put the average recruitment costs in UK between £3000 - £5000. This is the sum of resources spent in recruiting a single employee which includes internal and external costs like candidate screening, job sourcing, contractors, background checks, in-house recruiting staff, recruitment technology and referrals.

However, to understand the actual cost of a new employee you would need to consider a wider range of tangible and intangible costs such as salary, equipment, software licenses, holiday, sick days, unplanned absence, office space, training and HR costs.

‣ The average cost of equipment is £1,300 per employee

‣ Commonly accepted space needed per person is 100 sq. ft.

‣ It takes 12 – 28 weeks for an employee to reach the desired productivity level

‣ Average days of sickness is around 8 days and turnover at 18% in contact centres

A study from the Society for Human Resource Management (SHRM) predicts the actual cost to replace an employee equals their salary for 6 – 9 months. Based on this we can estimate the cost to be around £10 000 - £15 000 for an employee with a £20 000 salary and the total cost including the salary to be at £30 000 - £35 000.

On top of that, an employer is also responsible for pension and national insurance contributions and many opt to pay bonuses. The minimum employer pension contribution is currently at 3% and employer’s NICs is at 13.8% on any salary above the national insurance secondary threshold.

As you can see, the costs can add up quickly as there are a wide array of factors business should consider when calculating the cost per employee. By outsourcing elements of your customer operations or business processes, you will be able to sidestep many of the costs and challenges associated with onboarding and growth.

Our services at TieTa are designed to add value to your business by tailoring the solution to your requirements and finding the most cost-effective model. We offer inbound and outbound services across all voice and non-voice channels, ranging from specialist roles to large scale contact centre and business process solutions. We will be an extension of your team and work with you to achieve your business goals.