As economic outlooks brighten, many companies are preparing to expand their team.

According to the most recent data from the Bureau of Labor Statistics Job Openings and Labor Turnover Survey, hiring rates are increasing, and job openings are decreasing. The timing of these shifts suggests that organizations are filling roles slowly. We’ve noticed a similar trend while building outsourced inside sales teams for our clients.

Hiring slowly has benefits and detriments. On one hand, you’ll know more about your new team member, and likely feel more confident about bringing them onboard. On the other, you’ll have a role sitting open, and your team will be investing a lot of time to chat with candidates. All of these variables impact the costs of recruiting BDRs, SDRs, and other inside sales professionals. We explored the costs of turnover earlier this year – let’s use those tools to examine how longer hiring timelines will impact your team.

External Recruiting Costs for SDRs & BDRs

Once you’ve identified your internal costs, you need to examine the external costs of recruiting SDRs & BDRs. These are any expenses incurred during the hiring process. It can be helpful to trace the steps of the hiring process to identify these costs. Ask yourself:

  • How much will we spend to post the job opening?
  • How much will we pay to market our open roles?
  • How expensive are the platforms used to post job openings and market them?
  • If we attend events to recruit candidates, how much will we pay to travel and attend?
  • How much do we pay for background checks?
  • If we work with a recruiting partner to fill the role, how much will it cost?
  • If a candidate travels for an interview, how much will we need to reimburse them?
  • Will we need to pay the candidate to relocate?

According to a 2017 report from the SHRM, the average cost per hire is $4,425. However, this cost varies widely depending on the industry, specialization of the role, and company structure.

Internal Recruiting Costs for SDRs

Once you’ve connected with the right candidates, you’ll need to get to know them. This is when your internal recruiting costs will start to climb.

Internal cost estimates start with the time spent on recruiting. If you have a dedicated recruiting team, their salaries will be part of this calculation. Additionally, you’ll need to evaluate the cost of interviews by considering the time your team spends completing them. Longer interview processes may help you learn more about new candidates, but they’ll drive up your total cost. Similarly, the more team members you have participating in interviews, the higher the total cost of recruiting new employees. Following a structured interview process will help you reduce those costs.

If you offer a referral bonus for current team members, you’ll also need to incorporate those costs in this evaluation. Last but not least, you’ll need to consider the costs of compliance, equipment, and any internal systems that support your recruiting efforts.

Reducing Recruiting Costs for SDRs

If your team is entering a growth phase, recruiting, hiring, and onboarding new team members can feel like a time sink. To connect with high-quality talent quickly, contact Bandalier – our outsourced inside sales professionals are ready to ramp up fast.