As with every business decision, hiring decisions entail a degree of risk: What is the risk you incur by hiring on either a permanent or contract basis? MSI’s Technology Talent Acquisition and Executive Search Teams are designed to help you understand and mitigate your risks, while maximizing your return on investment in human resources.
Hiring presents challenges because staffing needs change with circumstances: the skill sets you need, the urgency with which you need to hire, the position’s location, and the position’s level of responsibility. MSI's Talent Acquisition/ Executive Search experts apply both industry-specific understanding and hiring practice expertise to help you decide which of three methods will best serve you:
Contract: tapping our extensive base of contract employees can help you quickly ramp up and down to respond efficiently and economically to rapidly changing market conditions.
Permanent: Bringing someone on board in a permanent position requires more of a commitment, but there are times when only a permanent placement will do. Like when the position being filled has managerial responsibilities, security privileges, or access to critical information systems. Having our team help you search for, screen, and test candidates minimizes the time, cost, and uncertainty involved in the process.
Contract-to-Hire: This strategy can dramatically reduce your hiring risk by enabling you to test the employee’s skills, compatibility, and work ethic before making a long-term hiring decision. Likewise, the employee can determine if the position and company are perfect fits for them, which in turn helps you reduce unexpected turnover.
Managers understand that vacant positions on their teams can increase the workload of other team members, reduce overall productivity, impact employee morale, and affect customer relationships. Yet even with all these repercussions, few organizations know the financial cost of vacancy (COV). As the new economy continues to evolve, managers must know the true cost of an empty position to make informed decisions about whether to recruit internally, hire temporary help, engage a professional search firm, or leave a position open.
Calculating COV can be a daunting challenge. Each position’s salary and business impact varies based on industry, responsibility, expertise, and value to your company’s projects or products. While it may not be necessary to conduct this analysis for every position at your firm, understanding the opportunity cost of your critical positions is essential to workforce planning.
The best practice in calculating the cost of a vacancy is to partner with the finance and accounting departments to determine an average or approximate value that will be used for HR and personnel budgeting decisions. The entire company can then operate under the same cost assumptions.