Recruiters want to remain competitive amid the Great Resignation, but a slow time-to-hire is detrimental to your company's finances and team morale.
Let's walk through six ways a slow time-to-hire is hurting your organization.
💵 1. Loss of Revenue
The longer your team goes without filling in the open role, the longer your company loses revenues, misses out on top talent, and regresses in productivity. You can estimate the average revenue for a certain position (if you have those numbers) or zoom out to the entire employee population using the below:
Average Employee Model Calculation:
Step 1: (Annual Revenue / # of employees) = Average Employee Revenue
Step 2: Average Employee Revenue / 261 working days = Daily Average Employee Revenue
Step 3: Daily Average Employee Revenue x Average Days to Hire = COV or Potential Revenue Loss
⏰ 2. Cost of Overtime
While you have an open position, other employees will have to fill in the gap. This may cause your existing employees to work overtime and require you to compensate them with overtime pay. This number can certainly add up over time, resulting in overtime that's more costly than compensating a new employee.
💰 3. High Cost of Temp or Contract Work
Temporary hires and contracted workers are a great way to mend the gap of an open position, but they are also expensive. It takes time to train a new temp-hire, but with the nature of their job, you will not be able to reap the benefits of the time spent in training. The increased pay and the time spent onboarding them will add another cost to your books.
✌️ 4. Negative Impact On Employee Retention
When your existing employees are asked to take on the work of unfilled roles, it will cost you more than just the cost of overtime. This added workload can contribute to burnout, drag down employee morale, and reduce productivity. It may even increase resignations.
🤑 5. Inefficient Use of Hiring Managers’ Time
A slow hiring process could also be costing you top talent by wasting Hiring Managers’ time. While your company is trying to fill a position, recruiters spend their time searching for a candidate. Recruiters often have more tasks on their to-do lists and longer work days when hiring a candidate. Your company will have more expenses in your Recruiter’s hourly pay. As screening candidates takes up your Hiring Manager’s time, you lose some of your Manager’s effectiveness in other aspects of their job.
⚙️ 6. Long-Term Expense
While filling in the gaps of an open position can work for a short time, it can bring a lot of financial stress in the long run. The Corporate Executive Board Company found that an open position can cost $400 per day. The seemingly small impact of a long time-to-hire on your company can add up in the long run. With some calculations, you can put a price tag on how much a long hiring process costs, but it’s hard to put a number on poor employee experience and low employee retention.
How to Speed Up Your Hiring Process
Companies typically use phone interviews to find the right candidate. However, Glassdoor found that phone interviews can add anywhere from 6 to 8 days to your hiring process. Phone interviews actually require more time in the hiring process than background checks and pre-employment tests.
With Qualifi, your team can go from overworked processors to value-adding rockstars! Within the platform your team can invite hundreds of candidates to self-service audio-based interviews instead of slowly conducting phone interviews one-by-one. We save your recruiters the time of scheduling interviews and make it possible to screen every candidate at one time, helping you find top and secure talent before they accept another offer!
Stay competitive in your industry and hire the best talent. Schedule a demo today to see how Qualifi can shorten your time-to-hire and unblock your costly hiring bottleneck.