Investment is not a synonym of spending money! It’s the opposite actually, we invest knowing that it’ll generate revenue later on.
It’s important to ask yourself a couple questions before investing. Is it really necessary to invest at this moment? What can you invest in?
What about Recruitment?
Every company strives to become profitable one day, therefore eliminating unnecessary expenses is a mindset adopted by all teams within the business.
Eliminating unnecessary expenses doesn’t always equivalent to letting employees go or changing the business model. It can be a strategy as simple as increasing work productivity in less time. Optimizing your team’s time means they can focus on the revenue generating projects and tasks that actually matter.
So, let’s analyze a company’s recruitment process, from the time it takes to open a position to the moment of hiring.
What some of the standard steps present in a selection process?
- Defining the candidate’s profile and position description/requirements;
- Job posting and marketing to attract the right candidates;
- Resume screening
- Candidate screening and evaluation;
- Scheduling interviews or quizzes/tests;
- Applying interviews and quizzes/tests;
- Candidate evaluation by the company’s team;
What’s the reality today?
Most companies still haven’t automated their recruiting process. Many companies for example, still receive resumes by email.
Even if the company is organized and diligent with their emails, or has a team specifically dedicated for this task, it’s still an activity that demands a lot of time. Opening the email, downloading the pdf, organizing them in folders or Google Drive, classifying each email, getting in touch with the candidates, scheduling interviews/quizzes/tests, etc…).
How do you calculate your recruiting costs?
If companies open a job position, they’ll share it in social media, job boards and invite candidates by email or with LinkedIn. How do you calculate how much time is being spent hiring a candidate for this position?
Let’s say it takes around 30 minutes to post a job and share it on social media.
So if a company received 300 resumes, but only analyzed 100, and it took only 30 seconds to evaluate one resume, you can take approximately one hour to review one third of candidates.
Of the 100, you called only 8 which took 10 minutes each. However, you only applied a test with 5 of them. All the tests lasted for about 2 hours and 30 minutes.
After reviewing the candidates and their tests, you schedule interviews with 4 of them lasting 4 hours in total.
Out of these 4 candidates, only 2 of them advance to 1 hour in-person interviews with 3 different executives. There goes 6 more hours.
Everything took about 21hrs, almost three full work days.
How much time and money does a company spend with a manual recruiting process?
Let’s say that an HR Senior Recruiter and a Director were involved in this process. The Recruiter’s salary is approximately $70k and the Directors is US$90k per year.
This means that their hourly rate is approximately $34 and $44. So in the end, the entire process costs approximately $1.638.
What changes will automation bring to my recruiting processes?
In our next post we’ll dive deeply into all the benefits of using a recruiting platform will bring you!
With Enlizt you can automate every step of your recruiting process, spending less time (and money) with administrative and manual tasks!
Use Enlizt today!