The cost of hiring a single candidate is rarely calculated. If organizations study this process deeply they will realize that the costs are fairly steep.
Post on
job boards
| Time spent |
Writing ad copy
Completing 1 posting
|
1 hour
30 minutes
|
$25
$12.5
|
|
| External cost |
| Cost of job posting |
| Posting to Craigslist
Posting to Monster
Posting to CareerBuilder
|
- |
$25
$385
$419
|
|
| Overall cost |
| For one posting |
| - |
1 hour
30 minutes |
$37.5
to
$456.50
Depends on number of posting to different job portals
|
|
|
Review your applicants
| Time spent |
Preparing short list of candidates to contactAssuming just 250 responses (you may get more in most of the cases)
Recent report suggests employers spends 6 seconds to 5 minutes (generous employer) reviewing each resume |
2.5 hours
to
23.5 hours
|
$62.50
to
$587.50 |
|
| External cost |
Cost of ATS (ranges as per ATS you are using)
Large companies spend 7% of their recruiting budget on ATS.
Also, ATS system requires human review as it filters candidates on words and phrases in the resume.
|
- |
Cost of ATS or systems you are using |
|
| Overall cost |
For reviewing applicants
|
- |
$62.50
to
$587.50
+
Cost of ATS or systems you are using |
|
Pre-screen your candidates
| Time spent |
Scheduling and Phone / video screening 30 minutes each for 25 candidates
|
12.5 hours |
$312.50 |
|
| External cost |
| Cost of pre-employment testing solution like Interview Mocha |
- |
$50 for testing 25 candidates |
|
| Overall cost |
| For pre-screening candidates |
- |
$362.50 |
|
Also Read: iMocha ranked as Top Product in Candidate Screening & Assessment by Siftery
Preparing for the interview
| Time spent |
Preparing interview questions
Phone calls to 6 candidates for scheduling
|
30 minutes
45 minutes
|
$12.5
$18.75
|
|
| External cost |
|
| Overall cost |
| For preparing for the interview |
- |
$31.25 |
|
Also Read: 7 Remote Interview Tips To Remember While Appearing For Remote Interviews
Your interview method
| Time spent |
6 interviews
30 minutes per interview
|
3 hours |
$75 |
|
| External cost |
| Your office (test center operations) |
- |
Cost of test center operations |
|
| Overall cost |
| For interviews |
- |
$75
+
Cost of Test center operations
+
Potential revenue loss if hiring manager generates revenue for your company |
|
Wrapping up
| Time spent |
Final interviews call to interviewees
Miscellaneous time for other tasks
3 final interviews – 30 minutes per interview
Final interviews
Checking references
|
1 hour
30 minutes
1 hour
1 hour
30 minutes
1 hour
30 minutes
2 hours
|
$37.50
$25
$37.5
$37.5
$50
|
|
| External cost |
Your office(test center operations)
+Potential revenue loss if hiring manager generates revenue for your company |
- |
Cost of test center operations |
|
| Overall cost |
| For final interviews |
- |
$187.50
+
Cost of test center operations
+
Potential revenue loss if hiring manager generates revenue for your company |
|
Time spent
Time variable between 27 hours
to
50 hours
Total cost to hire
Cost variable between
$1,600
to
$18,000 +
Potential revenue loss if hiring manager generates revenue for your company
The human resource of every organization accomplishes many tasks with pre-assigned budgets. Hiring the right candidates is one of the most important tasks that they need to do using cost-effective techniques and tactics. So, to make a cost-effective hiring decision & avoid the risk of the bad hires, iMocha’s candidate assessment tool is the key to improve your hiring metrics.
Courtesy – gethired.com