Subscription model in modern tech hiring: more flexibility, less cost

According to Glassdoor, the average cost of hiring a tech employee is about $4,000, while a more senior position may cost up to $20,000. However, when adding up the hidden costs, it could be much higher. A study by SHRM (Society for Human Resource Management) estimated that it costs an average of six to nine months of an employee's salary to replace them. This means that for a tech employee who earns $100,000 per year, the cost of replacement could be up to $75,000.

Traditional recruitment methods such as advertising on job boards, headhunting, and using recruitment agencies can be expensive, adding up to thousands or even tens of thousands of dollars per hire. However, there is an alternative model that can help companies save money and streamline their recruitment processes: the subscription model.

With a subscription model, an IT company pays a fixed fee, typically on a monthly basis, to receive a range of recruitment services. This fee can be significantly lower than the cost of traditional recruitment methods, particularly if several vacancies need to be filled within a short period of time. For example, an IT company paying an average price of $2,000 per month for a subscription model could receive services such as job postings, candidate screening, and applicant tracking. As a result, the time and resources spent on recruitment can be reduced, allowing companies to focus on other areas of their business.

In addition to cost savings, the subscription model can also offer other benefits for IT companies. For example, subscription services often have access to a large pool of talent, including passive candidates who may not be actively searching for a new job but could be open to the right opportunity. This can help companies find the best candidates for their vacancies, resulting in better hires and lower turnover rates.

Another advantage of the subscription model is that it can offer flexibility. Companies can adjust the level of services they receive based on their needs, such as increasing or decreasing job postings or candidate screening depending on hiring levels. This can help companies manage their recruitment costs more effectively and make hiring decisions more quickly.

Moreover, subscription models offer businesses a considerable return on investment. A single subscription can have the potential to fill multiple vacancies, which can quickly add up to substantial savings in the long run. Additionally, subscription models may offer a retention strategy to encourage long-term employment for successful hires, minimizing costly turnover.

Overall, the savings an average IT company can make on recruiting with a subscription model can be significant. By paying a fixed monthly fee and receiving a range of services, companies can reduce their recruitment costs, streamline their processes, and find the best candidates for their vacancies. With the flexibility and access to talent that subscription services offer, IT companies can focus on growing their businesses rather than spending time and resources on recruitment.