Staffing is a very important task in a company. Staffing is defined as the process of determining human resource (HR) needs in an organization and securing sufficient quantities of qualified people to fill those needs. The objective of the staffing process is to ensure that an organization continuously has the right quality and quantity of employees in the right place at the right time to perform successfully (Caruth 1). It is important for performance, growth, vitality, and success of the company. It does cost the company to staff both directly and indirectly.
Direct staffing costs include advertising, test’s, salaries of the staffing specialists, use of office and equipment and much more. A large company typically spends around $10,000 during the hiring process of one employee. According to a survey on cost related staffing by the Bureau of National Affairs, budgets for human resource represent a median of 2.7 percent of a total company’s payroll and 1 percent of the operating budget.
Indirect staffing costs, meaning the expense of staffing that is readily identified without financial need, consists of a few category’s. First, the time HR spends interviewing prospective employees, conducting performance appraisals, making promotion or termination decisions, documenting staffing actions, and more. Secondly, The time supervisors or employees spend training new employees. Third, the amount of productivity lost by the new employee while in the process of learning to perform the job. Fourth, in some instants, the amount of wasted materials resulting from the new employees mistake’s while learning the job (Caruth 3-4). Referring to both direct and indirect costs, it is important to select the best person for the job, to ensure that the organiz ...