The average cost of hiring a new employee in the U.S. is $4,700, according to the Society for Human Resource Management (SHRM), with total costs for specialized roles like IT and engineering potentially reaching up to several times the employee’s salary. These talent acquisition costs are becoming a significant financial strain for companies, especially as the demand for skilled workers continues to grow.
Here at Centris, we offer a cost-effective solution through nearshore outsourcing. By providing access to highly skilled, bilingual talent in Mexico, we help businesses reduce their recruitment expenses without compromising on quality.
In this blog post, we’ll explore the factors driving up talent acquisition costs and explain how nearshore solutions can provide a more affordable alternative. Let’s get started with this guide to talent management solutions.
The High Cost of Talent Acquisition
The cost of acquiring skilled talent has skyrocketed in recent years, particularly in industries like IT, engineering, and other specialized fields.
These rising costs are not limited to recruitment alone-they also include onboarding and long-term retention, making the overall financial impact even greater for businesses.
Recruitment Expenses
Recruiting the right talent involves significant upfront costs, starting with:
- Job postings on platforms
- Advertising expenses
- Recruitment agency fees
In competitive industries, the need to stand out can drive up costs further, as companies may need to offer referral bonuses or other incentives to attract the right candidates.
In addition to these direct expenses, the length of the hiring process itself is costly. When companies take longer to fill roles due to a shortage of skilled candidates, they not only lose out on productivity but also incur additional costs from extended interviews, screening processes, and the need for temporary staff or overtime work to cover the gap.
For businesses in competitive markets, the expenses tied to lengthy recruitment can quickly add up, putting further strain on budgets.
Onboarding and Retention Costs
Of course, once the right candidate is hired, the costs don’t stop there. Onboarding and training new employees require significant investment in both time and resources.
Businesses must allocate funds to properly integrate employees into the team, provide necessary tools and training, and ensure they are set up for success. The time it takes for new hires to become fully productive also affects a company’s bottom line.
Retention is another critical factor. High turnover rates mean that companies are repeatedly paying for recruitment and onboarding, creating a cycle of ongoing expenses. To retain skilled employees, businesses must offer:
- Competitive salaries
- Benefits
- Opportunities for career growth
All of this further drives up the long-term talent acquisition costs.
Nearshore Outsourcing as a Solution
With the rising cost of talent acquisition, nearshore outsourcing has emerged as a cost-effective alternative for businesses. This approach allows companies to access skilled professionals while reducing recruitment expenses significantly.
What Is Nearshore Outsourcing?
Nearshore outsourcing involves hiring talent from nearby countries, such as Mexico, which share similar time zones and cultural affinities with the U.S.
Unlike offshoring, which often requires working across greater distances and different time zones, nearshoring simplifies communication and collaboration. For U.S. companies, nearshoring offers the benefit of proximity, making visits to outsourcing locations more convenient.
Cost Benefits of Nearshore Outsourcing
One of the biggest advantages of nearshore outsourcing is the significant cost savings. Businesses can reduce recruitment, onboarding, and retention costs by tapping into a skilled workforce in countries where labor is more affordable.
For instance, Centris provides access to a talented, bilingual workforce in Mexico, which helps companies cut costs by up to 45% compared to hiring domestically. This allows businesses to fill critical roles quickly and efficiently, without compromising on quality.
Nearshore outsourcing also reduces overhead costs related to benefits, training, and turnover, offering a sustainable long-term solution to talent acquisition challenges.
Nearshore Outsourcing With Centris
Nearshore outsourcing with Centris provides businesses with a seamless, cost-effective solution for accessing skilled talent. Here’s how our nearshore model works to offer companies the flexibility and savings they need without compromising on quality.
Efficient Recruitment and Onboarding
Centris streamlines the entire talent acquisition process by managing recruitment, onboarding, and training. We handle the heavy lifting of sourcing candidates, conducting interviews, and ensuring a good cultural fit for your company.
Once the ideal candidates are selected, Centris takes care of the onboarding process, getting employees trained and up to speed with your company’s specific needs and software. The process is tailored to your business, ensuring the new team members are operational quickly, which saves your business time and resources.
Customized Solutions for Your Business Needs
Centris offers flexible, customized solutions tailored to your business’s specific requirements. Whether you need customer support, technical assistance, or back-office operations, our teams can adapt to fit your needs. This customization allows you to maintain high service levels while leveraging skilled talent from our nearshore locations.
Our project managers work closely with your team to ensure that every aspect of our service aligns with your objectives, from language preferences to cultural nuances.
Case Study: Auto Insurance Transformation
To give you a better idea of the benefits of nearshore outsourcing, consider this case study of a leading auto insurance company. They sought to enhance customer service while reducing talent acquisition costs. Initially, they faced high expenses with their in-house U.S. contact center and lacked bilingual agents to serve their Hispanic clientele.
They turned to Centris, leveraging our nearshore outsourcing model. Within just 90 days, they experienced a 50% reduction in costs while improving service quality.
We provided trained bilingual agents, resulting in a more empathetic customer experience. This partnership not only saved the company $3 million in the first year but also allowed them to scale operations from 25 to 120 agents, with plans for continued growth.
How to Combat Talent Acquisition Costs
The bottom line is that as talent acquisition costs continue to rise, nearshore outsourcing with Centris presents a strategic solution for businesses seeking skilled talent at a lower price. By partnering with us, you can access a bilingual workforce, streamline recruitment and onboarding, and benefit from tailored solutions that fit your specific needs.
Our commitment to quality ensures that you maintain high service standards while reducing overhead. Contact Centris today to learn how we can help you enhance your operations and achieve your goals through effective nearshore solutions. We’re here to help.
