Improving the ROI On Recruitment Costs
Hiring the right talent when your company needs it is a critical business function. We know you want to get it right; we also know you need to do it as efficiently as possible — and that means finding ways to improve your company’s return on recruitment costs.
In this article, we’ll show you how working with a professional recruiter can improve the ROI on recruiting costs.
Reducing Time To Fill Is the Most Critical Measure Of ROI
Each day a job remains unfilled, there is a cost. Hard costs, such as missed targets due to unfilled strategic management roles, are easier to quantify than the soft costs resulting from lowered morale and employee turnover due to not having good managers and leaders in place.
Another consideration is the cost of completing work by assigning overtime. Overtime can be extremely costly at 200% of regular wages and can result in a reduction in overall productivity — by as much as 25%.
Red Seal provides access to four full-time employees to actively market your opportunities, screening all applicants so you only see the best. The payback or ROI on using our services takes less than a month when compared to using contractors or overtime. And the benefits of hiring a top employee should last for years.
Access to Passive Candidates
The best candidates for your opening may not be actively seeking new employment. That’s why professional recruiters reach out to skilled workers rather than waiting to see who submits an application. In its 2014 global survey, LinkedIn reports that 45% of fully employed workers stated they’re open to hearing from a recruiter. These individuals will be totally missed by a recruitment campaign limited to career ads placed on corporate websites and public job boards.
The time required to complete full reference checks is often grossly underestimated. It’s not unusual to spend upwards of two hours for each one, including time spent making the initial contact, arranging a suitable time to speak, and allowing sufficient conversation time to truly get a sense for the applicant’s relationships with previous employers. Multiply this by the number of references desired for each candidate to understand the time commitment.
Informing Unsuccessful Candidates
In all the excitement of landing and onboarding the new hire, this step can get missed. Giving extra attention to candidates who were not hired is an investment in your next recruiting campaign as they’ll tell others what their experience was like.
The business impact of not handling unsuccessful candidates with care can extend beyond your employment brand. CareerBuilder reports that only 27% of candidates who interviewed for a job received an explanation of why they weren’t hired. The impact? 65% of job seekers say they are less likely to buy from a company they didn’t hear back from after an interview. And 58% of job seekers say they are less likely to buy from a company they didn’t hear back from after submitting an application.