Hiring a new employee is a considerable risk for any business. Between training the new worker, purchasing equipment to accommodate their duties, and providing healthcare, the average cost to hire is getting up there.
In the 2021 Bureau of Labor Statistics report, the overall turnover rate is 57.3 %, but that number drops to 25% when considering only voluntary turnover, 29% when considering involuntary turnover, and just 3% when looking at only high-performers.
With a turnover rate of close to 19% for most industries, reports show that the average cost-per-hire for a new employee is $4129. It costs an employer an average of 33% of an employee’s yearly salary for their exit.
The Society for Human Resource Management (SHRM) also reported that on average it costs a company 6 to 9 months of an employee’s salary to replace him or her. For an employee making $60,000 per year, that comes out to $30,000 – $45,000 in recruiting and training costs.
With such a significant financial investment, you may find yourself wondering, “Is there a way to ‘test out’ a new staff member before bringing them on board with a salary, 401k, and benefits?” As it turns out, there is a way to do this with a workforce solution company like Employnet.
The Pros of Trial Hiring in the Employee Hiring Process
When recruiting potential employees for trial employment, it’s essential to keep in mind that you are both going for a test spin; The employee is trying the job on for size, and you are determining if they are a good fit for the role.
You must ensure that the trial terms are clear to avoid any confusion or frustration amongst trial workers. While trial periods can vary, most of them last between 30 to 180 days, with 90 days being the most common length. Some of the benefits of trial to hire agreements for employers include:
- Businesses can determine a candidates strengths and weaknesses in a real-world environment as opposed to on paper
- Companies can terminate a trial agreement at any point without cause
- Trial workers do not receive the benefits and salary of a full-time employee, which can save money
- The time spent recruiting a trial worker is less than the time spent recruiting a full-time employee
- Trial employees can leave more easily if they feel the job or company is not a fit
For employees, trial employment is an excellent way to get their foot in the door if they are fresh out of college, changing careers, or simply lack experience.
An Overview of Trial Hiring
Trial employees, like full-time employees, are considered at-will workers. At-will employment is an employer’s ability to terminate any employee for any (legal) reason without warning. Before hiring a trial employee, business owners must understand their state’s at-will employment regulations. Every state recognizes at-will employment, but some states have limitations on the doctrine. The next step in hiring a trial employee is to draft a written contract that both the employer and the employee will sign.
The agreement should detail the trial terms, including trial length, job duties, job title, pay, etc., so that both parties are clear about what is expected of them. If you decide to terminate a trial employee, you do not have to provide a reason, though it may be helpful to do so to prevent any discrimination claims.
Even with a few minor drawbacks, hiring employees on a trial basis has many significant benefits to both employers and candidates. If you are considering hiring trial employees as part of your employee hiring process, consider using a firm specializing in trial employment, as they can make the entire process even more accessible.
Workforce management companies, like Employment, conduct interviews and reference checks for temporary professionals, which saves you a lot of hassle. Our seasoned recruiting team combines industry expertise with individualized attention to bring you high-quality talent that meets your business needs. Your brand, culture, and vision are an integral part of the recruiting process.
Let us help improve your employee retention! Contact Employnet for your next trial hire!