Discovering the ROI of Hire

Hire by Google is a great option for companies that want to hire the best candidates as efficiently as possible. It's the easiest applicant tracking system for your team to adopt, because it integrates with the G Suite tools you’re already using to make the hiring process run smoothly.

Using Hire can save you money by simplifying the hiring process, helping you uncover the best candidates, and using automations to save time on tedious tasks. It lessens your dependence on outside hiring entities and allows you to use your own employees more effectively. With the hiring department freed up to focus on their core strengths rather than menial tasks, you can easily recoup the expense of an ATS, and then some, within just a few months of adoption.

The return on investment of the Hire by Google ATS can be proven in many ways, big and small. Read on to see our top seven ways Hire by Google saves your team time and money.

1. Fill positions faster

One of the most significant ways that Hire can save money is by decreasing the time-to-hire, or the amount of time between posting a newly opened position and a candidate accepting the job offer.

Unfilled positions are a liability, and your company loses money every day that a position remains empty. While it's impossible to know the true cost of a vacancy due to extenuating factors, one commonly accepted formula is:

Cost of Vacancy = (Annual revenue / # of employees) / 220 working days

Positions that are more crucial to bringing in revenue should be amplified by a factor of two to three. This should give you a rough estimate of how much an empty seat is costing your company per workday.

Vacant positions generate indirect costs as well. Because existing employees must cover the responsibilities of unfilled roles, their own work is often affected. Understaffed teams suffer from overwork, missed deadlines, and an overall lower quality of work.

Hire can help lower your time-to-hire metric by allowing you to source candidates faster and more efficiently through concentrating on targeted outreach that leverages employee referrals and your existing candidate database.

Hire makes it easy to set up an employee referral program so that the employees who already know and understand the open roles can recommend potential great hires. Referrals are a great way to decrease the amount of time you have to spend vetting candidates in the early stages of your hiring process.

Another way to decrease the time-to-fill is by building a robust candidate database. Silver-medal candidates, or candidates that were runners-up for previous positions, are a great place to start looking when new jobs open up. Laslo Bock, the former Senior Vice President of People Operations at Google, found that candidates who had interviewed for previous positions were six times as likely to get hired as new ones (Bock, Laszlo. Work Rules! ( Twelve, 2015) Hire can help create an organized, easily searchable database that will quickly become your secret hiring weapon.

2. Save money on agency costs

Hiring agencies can take on your company's hiring burden - but for a hefty price. With their niche experience in scouting candidates, they can be helpful, but most agency fees are 20% of candidate salary or more. That means potentially spending tens of thousands of dollars on a single placement. If you're hiring for multiple positions those numbers can quickly turn substantial.

There are other potential costs to using hiring agencies, apart from the overt price tag. Agencies aren't as invested in the long-term success of a new hire as you are, and they don't know your company as intimately. This could lead to ill-suited hires and a higher likelihood of employee churn down the road. Outsourcing hiring activities to an agency also gives your company less control over candidate experience and could contribute to poor-quality reviews for your company on sites like Glassdoor.

With a proprietary database of candidates that you can mine over and over again for quality talent specific to your organizational needs, Hire negates the need for agency assistance. Plus, Candidate Discovery, Hire's candidate search engine, can run powerful sweeps of this candidate database to help you easily rediscover available talent. Search by location, skill sets, education, and more without having to use complicated boolean strings. You'll have access to previous interview scores, referral data, and other useful information to help gauge candidate suitability.

3. Reduction of labor costs

The hiring process is time-consuming not just for hiring managers, but for everyone who interviews candidates, writes assessments, and makes hiring decisions. If Hire can save a company one hour a month across ten people, then it has already paid for itself.

Specifically, Hire saves time in two important and unique ways:

  • Integration with Google Calendar cuts down on the back and forth of interview scheduling. Now everyone's schedules are displayed in one place, making scheduling quick and painless.

  • Gmail integration saves time by keeping important information about a candidate within easy reach. Hire’s Gmail addon can automatically identify when you're interacting with a candidate and provide access to relevant information you might need, such as application stage or private notes. All interactions are tracked in the candidate profile for the hiring team to see, so it's easy to keep track of who communicated what last.

Together, these integrations decrease the amount of context switching your team needs to do, allowing them to save time by working in the system they’re already in. Having all the information organized in one place also makes candidate communication simpler and less time consuming for busy executives. Add to this the fact that the Hire ATS is one of the easiest systems to learn, and you’ll quickly see how Hire can reduce labor costs across your entire team.

4. Save money on staffing

Once a business grows large enough, it needs a dedicated hiring manager to organize the hiring process. Using the Hire ATS can allow your team to delay that tipping point by a year or more by streamlining your hiring process. Hire allows your team to create consistent, repeatable processes, reduce the manpower needed for time-consuming tasks like candidate communication and scheduling, and easily access important information about candidates. While the average HR manager’s salary varies from industry to industry, delaying the need for an extra position could save $45,000 a year or more.

Hire is also intuitive and easy to learn, allowing your entire team to get involved in hiring. This lightens the load of your HR team, further reducing the need for more hires. With a more efficient workflow, your HR staff will have more time to work on other, more impactful initiatives like referral programs, candidate outreach, or employee benefit research.

5. Better candidate experience

Creating a positive experience for job applicants is one of the most impactful ways your company can cut costs and drive revenue. Not only does it increase the likelihood that a candidate will accept your job offer, but it has also been shown to boost your company's reputation.

Applicants talk, and with the rise of career sites like Glassdoor and social networking in general, they can easily amplify a bad hiring experience. In a Workplace Trends study, 72% of job seekers admitted to having shared their experiences with other potential employees online, and 80% of candidates were found to be unlikely to re-apply if they perceived they had been ignored by an employer. A bad reputation could mean fewer applications from quality candidates.

It's also important to remember that candidates are often customers as well. In 2015, Virgin Media estimated that providing a poor experience for candidates cost their company $6 million a year in lost revenue as disgruntled applicants canceled their service contracts and moved to competitors. A good candidate experience helps reduce customer churn by ensuring that applicants remain customers even if they don't get the job.

Hire makes it easier than ever to personalize communication and create a stellar candidate experience by helping you cultivate a relationship with serious applicants over time. It keeps notes, records of interactions with candidates, interview feedback, and work history all in one central place, so you can be sure your team is making all your candidates feel like people, not just numbers. Using Hire, teams are able to easily leverage this information to update applicants on their progress using bulk emailing and customizable email templates. And the reporting features help you identify and take action on candidates who have been sitting in one stage too long, ensuring nobody falls through the cracks.

6. Hire the best people

Hiring the right candidate the first time can save your company a lot of money. Top performers earn more money for their employers over their lifetime, while poor performers can be a huge drain on company resources in ways that are hard to identify before it's too late. This may cause employees to leave your company prematurely, which can cost you thousands of dollars in lost revenue and recruiting costs as you work to refill the position.

If you want to hire the best talent out there, your hiring process has to be top-notch. Ninety percent of recruiters believe we are in a candidate-driven market. This means you don't just pick employees; employees pick you. The hiring process is the best chance to make a good first impression and convince top candidates that they belong at your company. Eighty-three percent of candidates say that a negative interview experience could make them change their mind about a position they were once interested in.

Hire can keep the process organized so that you can build a robust relationship with desirable candidates. It allows hiring managers and interviewers to quickly build a rapport with candidates by keeping all their relevant details in one easily accessible place. Applicant tracking ensures that nobody gets left behind and that candidates are kept informed throughout the hiring process.

Additionally, Hire’s feedback forms can be customized to facilitate structured interviewing. You can create custom hiring stages to match your organization’s structure and needs, and create unique rating scales and evaluation criteria to help grade candidates. Structured interviewing eliminates biases and helps you hire diverse and high performing employees.

7. Reduce Advertising Spend

Another significant cost of hiring is the money spent on advertising open positions to outside candidates. After all, nobody can apply for your job if they don't know about it. Fees vary, but the average ad cost on a job board is $300 for 30 days. Remember, that is $300 per position on each job board used.

Hire is integrated with major job boards like Glassdoor and Indeed so you can automatically post your open roles to the top boards. It's never been easier to run source reports, which help you identify which job boards are sending you the highest-quality candidates. With these analytics, you can optimize your spending on the most useful advertising sources and jettison the rest.

You can also reduce your reliance on recruiting via advertising, and instead concentrate on recruiting via your candidate database. The Candidate Discovery tool, makes it easy to run targeted searches that help you take advantage of great candidates who have already expressed an interest in your company.

Calculating the Value of Hire

Hire by Google doesn't just make life easier for hiring managers. Its positive effects can ripple across the company as you hire better candidates that turn into fantastic employees. It frees up time across all levels of the company and can save a substantial amount of money by streamlining the hiring process, cutting back spending on outside sources, and helping to hire quality candidates faster.