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
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
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! (https://www.amazon.com/Work-Rules-Insights-Inside-Transform/dp/1455554790).
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.
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
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
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
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
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
percent of candidates say that a negative interview experience
could make them change their mind about a position they were once
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
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
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
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
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.