According to these statistics made from this ICMS recruiting report, 78% of employees say that the overall candidate experience they receive is a direct indicator of how a company values its people. This conception among employees leaves you with the tough job of creating an engaging candidate experience characterized by transparency, communication, and honesty. However, what other benefits arise from creating an efficient recruitment process? In this part 1 of a 3 part series, we’ll discuss how an efficient recruiting process brings the advantages of profitability.
Profitability: HIring Quickly
SHRM states that the longer it takes to fill a vacant position, the more the cost-per-hire increases. Currently, the average time to fill a position is approximately 37 days depending on the career field, which can cost a company up to $1500 per job position, but again, these numbers increase with time. So how can spicing up your recruitment process save your company money? An efficient recruiting process, one that is favorably automated, scalable and strategic, has higher chances of matching, qualifying and hiring candidates in less time than a recruiting process that is missing one of these elements.
How do you know if your recruitment process is efficient enough to be saving your company money? Ask yourself these following questions:
- Are you taking more than one month to fill for an open position?
- Do you work manually with excel?
- Does your recruitment process include reading every single resumé?
If your answer is yes for any of these questions, your recruiting process might not be as efficient as you need it to be and your company is most likely receiving the blow financially. With an automated recruiting platform you are able to organize and filter through job applications more efficiently using shortcuts such as A.I, hiring candidates in ultimately less time.
Profitability: Qualifying Efficiently
Unfortunately, hiring an unqualified candidate who could leave the company under their one year anniversary is a move that can cost your business a lot of money. Besides the typical recruiting and hiring costs listed above, a bad hire has additional costs that add up. Approximately 41% of companies believe that a bad hire can cost up to $25,000 and 25% of companies say that a bad hire in the last year has cost them at least $50,000. So how does an efficient recruiting process prevent companies from hiring unqualified candidates?
- Candidates can be evaluated by untraditional methods such as online assessment tests or pre-interview videos, decreasing the chances of hiring unqualified job seekers.
- By adding extra information and resources in the application process about your company, you can educate candidates and consequently filter out those who do not believe they are the right fit.
Keeping your recruitment process engaging and intricate doesn’t only help you find qualified candidates, but it’s proven to improve your employee retention. In other words, the more complex and strategic the application process is, the more time employees will stay with the company and the less money your company will lose from bad hires.
Profitability: Saving Time, Saving Money!
An extra underlying advantage of an efficient recruiting process that ultimately brings profits to your company, is that it gives your team extra hours in the day to work aptly. A manual process with no specific recruiting flow to follow ultimately takes away hours in the workday with minuscule tasks (such as organizing candidate lists, reading through resumés, creating follow up tasks, phone screens etc.). This time could be otherwise used for specific and vital projects that allow you to spend energy on potential employees rather than unqualified candidates.
To wrap up Part 1…
The first step to creating an efficient recruiting process is to understand the benefits that it could potentially bring to your company and how it could positively impact your team. In this part 1, we briefly went over how an efficient recruiting process brings profitability to your company. In the next part we’ll understand the second benefit which is of employee engagement – so stay tuned!