In the sea of several job portals today, choosing the right tool for advertising a job is crucial, of course having popular portals like Indeed and LinkedIn may be the way to go to focus on volume applications but every good experienced recruiter will tell you how they usually filter 80% of resume right away in the first round of shortlisting. The thing most people don’t realize in HR is that recruiting has a huge cost involved and to give you a brief idea of the costs most people don’t consider I will give a small sneak peek here:
● Every employee in your organization has an hourly cost.
○ Recruiter/HR who gets 60K annually working 40 hours costs you 28.85 hourly
○ A manager who does the first round of interviews getting 80K annually working
40 hours costs you 38.50 hourly
○ A senior partner who signs off on the final interview earning say 100,000
working 40 hours costs you 48.00 hourly
● A recruitment cycle roughly takes at least 4-5 hours a week for the HR = $721.25
● Coordinating interviews for say 5 candidates in 2 weeks takes about 3 hours on
alternative days roughly at least = $519.30
● A manager interviewing and coordinating notes takes about 7 hours a week out of his
actual work with 0 link to revenue = $269.50
● A senior partner who interviews at least 2 finalists =$144
● Paperwork takes about 1 hour for both HR and signing partner = $765
● Coordinating training with direct manager = 1 hour from recruiter 2 hours from manager
= $105.50
● Training of the employee by HR will be one day with recruiter = $230.80
● Training within the department taking 2-3 hours of associates time who might be
earning 55K annually costing you 26.40 hourly for at least 1 month = roughly 22
working days =$1,742.40
Nowadays you have to pay to keep your job posting promoted on Indeed/ LinkedIn costing you another $700 going up to even $1,000 That’s a rough conservative total of $4,497.75 (excluding job advertising costs) Sometimes because of the quality of candidates, you have to do the same cycle in another 2
months. That’s a whole lot of money that is not linked to any of the revenue output streams but because small businesses don’t plan out these costs, oftentimes due to time constraints they end up settling with low-quality candidates resulting in spending a lot more than they ever had a budget for. With a rise in industry-specific job portals like WORKASIO for security services, 86 NETWORK for hospitality, etc. you reduce this cost by a significant number due to their specific features like:
● Employee profile with ratings from employers,
● The employees who use these sites are industry experts who are proactive as
demonstrated by their research in finding and using these specific sites.
● Employers who use these sites have an employer profile that has user-able reviews for a
true reflection of their company culture, and
● Better quality candidates due to exclusive use by industry-specific employers and
candidates.
● No more resumes from people who have no experience in the field and blindly apply for jobs. Tracking enabled recruitment to keep track of your applications and follow-up. Just by the sheer filtration of rating-enabled candidates specific to your jobs a recruiter who usually spends 4-5 hours filtering candidates will now be done in 2 hours and quality candidates with references checks and ratings will allow you to minimize bad hires and waste training resources that don’t show any results. Steve Jobs says in the documentary – Steve Jobs: The Man in the Machine: “I consider the most important job of someone like myself as recruiting.” Efficient recruiting and using the right tools can help you not only save costs but change the future of your company. As the job market becomes more competitive it is important to be strategic and choose the right tools for specific results instead of following the trends and choosing familiar portals for generic results.
Written by
Anam Arabi
HR Consultant, Toronto