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The Cost of Recruiting and Hiring an Employee: A Closer Look on data

May 23, 2023
The Cost of Recruiting and Hiring an Employee: A Closer Look on data
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Recruiting and hiring new employees can be a costly endeavor for businesses. Beyond the financial investment, it requires time, effort, and resources to find the right candidate for a position. In fact, our experience have shown that the average cost of recruiting and hiring an employee can exceed 5,000 euros. This significant expense has prompted companies to explore ways to optimize their hiring processes and reduce costs.

Our data

To gain further insights into what candidates prioritize in their careers, we conducted a survey with over 200 participants. One of the questions focused on the factors they considered most important when evaluating job opportunities. An overwhelming majority, 97%, emphasized that "Learning and Development" was one of their top priorities.

The responses shed light on the increasing significance candidates place on continuous learning and growth within their chosen fields. In today's rapidly evolving job market, professionals recognize the value of staying competitive by acquiring new skills and expanding their knowledge base. They view opportunities for training and development as essential components of their career progression and overall job satisfaction.

The comments provided by the survey participants further reinforced the significance of training and development. Many expressed a desire to work for organizations that prioritize employee growth, offering robust learning programs, mentorship opportunities, and access to cutting-edge technologies. They recognized that investing in their personal and professional development not only enhances their skills but also benefits their employers in terms of increased productivity, innovation, and employee retention.

Both side benefit

For companies, understanding the importance candidates place on training and development can help shape their recruitment strategies. By highlighting their commitment to employee growth and offering comprehensive learning and development programs, businesses can attract top talent and differentiate themselves from competitors. Moreover, by investing in their employees' ongoing training, companies can create a culture of continuous learning and development that fosters motivation, engagement, and long-term loyalty.

While the cost of recruiting and hiring an employee can be substantial, it is crucial for businesses to recognize that the investment goes beyond the initial financial outlay. To maximize the value of their recruitment efforts, companies should prioritize the training and development needs of their workforce. By nurturing a learning-oriented environment and providing opportunities for professional growth, organizations can not only attract top talent but also retain and empower their employees.

Is there a more innovative solution? Yes!

We as an IT company we are committed to retaining talent while giving our people the best opportunities to grow, we help companies that want to focus on core business activities, and we have a solution. The demand for skilled software engineers is at an all-time high as companies strive to develop innovative products and services in the digital age. However, recruiting and retaining top talent in this field can be a significant challenge for many businesses. This is where the staff augmentation or outstaffing model can provide a valuable solution.  I'd like to outline why companies should consider hiring software engineers using the staff augmentation/outstaffing model.

  1. Access to a Global Talent Pool: Staff augmentation allows companies to tap into a global talent pool of skilled software engineers. By partnering with a reputable staff augmentation provider, businesses can gain access to a diverse range of talent from different regions and countries. This opens up opportunities to find specialists with the specific skills and expertise needed for their projects. Whether it's hiring Magento, React.js, PHP, Vue.js, Rust, or Kotlin developers, our staff augmentation model provides access to a wide pool of qualified professionals.
  2. Flexible Scaling of Teams: One of the key advantages of the staff augmentation model is its flexibility in scaling teams. Businesses can quickly ramp up or down their software engineering workforce based on project requirements. This eliminates the need to go through the time-consuming process of hiring and onboarding full-time employees. Whether there is a need for a short-term project or long-term collaboration, staff augmentation allows companies to adjust their team size and composition as needed, ensuring optimal resource allocation and cost efficiency.
  3. Cost Savings: Hiring and maintaining an in-house software engineering team can be expensive. There are costs associated with recruitment, onboarding, training, benefits, and infrastructure. By leveraging the staff augmentation model, businesses can significantly reduce these costs. They can avoid long-term employment contracts and focus on project-specific engagements with remote software engineers. Additionally, staff augmentation eliminates the need for investing in additional office space, equipment, and software licenses.
  4. Faster Time to Market: In today's competitive market, speed is essential. By utilizing staff augmentation, companies can accelerate their software development process and reduce time to market. They can quickly assemble a team of experienced software engineers who are well-versed in the required technologies. This enables businesses to launch their products or services faster, gaining a competitive edge and capturing market opportunities ahead of their competitors.
  5. Access to Specialized Skills and Expertise: The staff augmentation model allows companies to hire software engineers with specialized skills and expertise. Whether it's mobile app development, data analytics, machine learning, cloud engineering, or any other niche area, businesses can find professionals who possess the necessary knowledge and experience. This enables companies to tackle complex projects, leverage cutting-edge technologies, and deliver high-quality solutions to their customers.
  6. Focus on Core Competencies: By outsourcing software engineering tasks to staff augmentation providers, companies can free up their internal resources and focus on their core competencies. Instead of getting distracted by the complexities of hiring and managing a software engineering team, businesses can concentrate on strategic initiatives, product development, and customer satisfaction. This allows for better resource allocation and a more efficient utilization of in-house expertise.


In conclusion, our survey findings highlight the growing importance of training and development for job seekers. Candidates value companies that prioritize their growth and offer opportunities for continuous learning. By recognizing this trend and investing in employee development, businesses can position themselves as employers of choice, fostering a skilled and engaged workforce that drives long-term success.

Aivaras Kazilas

Aivaras Kazilas is the Co-founder of Onectus Baltics division, he's responsible for the growth and the company's structure.

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