Having a flourishing business sounds well doesn’t it? But, for a business owner who has not planned about growth, it is possible to find himself or herself in the crossroads – not knowing where to go next. Furthermore, the challenge rises when the perfect employee for the job is asking for a competitive salary.
Employers must calculate the hiring budget and the total cost of hiring a new employee. Additionally, they can find new ways to gain the help they are looking for on how to keep hiring costs low.
COST OF HIRING A NEW EMPLOYEE
Since the workforce of Singapore consists of a diverse mix of employees in terms of age, gender, and ethnicity, employers are strongly advised to practice fairness especially in the matters of talent recruitment.
This fairness expands to the general obligations of the employers. For instance, the cost of hiring a new employee includes the taxes issues for foreign employees and the Central Provident Fund (CPF) contributions for the local employees. CPF is mandatory for all local employees including Singaporean citizens and Permanent Residents that earn more than S$50 a month. And, the maximum CPF contribution rate for the employer is 16%.
Aside from this, the recruitment process can cost you if you are planning to pay for a job advertisement. Fortunately, you can post cheap or free position Ads online through various websites that are available here.
Once you select the perfect candidate, you may have to accommodate to their needs such as purchasing new desk, computer, writing materials, and other tools. Lastly, the hourly wage or the base salary heavily affects the cost of hiring a new employee.
ALTERNATIVE WAYS TO GET HELP
After analyzing all the factors that contribute to the cost of hiring a new employee, you may come to a conclusion that you are still low in hiring funds. This is when creativity and alternative ways to get help comes in.
1. ENHANCE YOUR CURRENT EMPLOYEE’S SKILLS
Instead of hiring a new employee, enhance your current employee’s skills to meet your company’s needs. As the business grows, relatively increase the level of responsibility and the amount of salary. By doing so, you can enhance the current employee’s productivity, effectiveness, and loyalty to your company.
Upgrading your employee’s skills does not necessarily equate to burning your pocket. You can search for a variety of affordable workshops that Groupon.sg offers. Here are just some:
a. Instead of hiring a social media manager, learn with the 3 Hr Branding + SEM + Facebook Marketing Workshop for S$28.
b. Instead of hiring a graphic designer for a few projects, learn with the Adobe Photoshop CC Online Course from Teacherbird.com for S$23.
2. HIRE PART-TIME EMPLOYEES FOR YOUR TEMPORARY NEEDS
If your company’s needs are temporary only, hire a part-time employee, as it is more cost efficient. A sense of flexibility, in both the salary and employment benefits, is undeniable when hiring part-time employees. The working hours of these employees are less than 35 hours a week.
Image Credits: Alex France via Flickr with Creative Commons Attribution-ShareAlike
With all these in mind, ask yourself this: “Is Hiring A New Employee Worth It For Your Booming Business?”
3. Outsourced Staff
Of course, if you’re truly in need of the assistance and short of human resources staff, you can always rely on a good old recruitment agency to help you out.
It has become a trick of the trade for most companies to hire a Philippine, Indian or China recruitment agency. Should there be a temporary vacant spot in the company’s roster, companies choose to outsource a temp instead of having their current staff pick up the slack. This also guarantees that everyone in the company stays focused on their core tasks.
