From the moment a vacancy in your organisation goes live, the costs begin to accumulate. While recruitment teams aim to move swiftly to minimise losses, it may not always run smoothly due to a range of factors, such as the hiring managers’ need to shift focus back to their daily tasks.
However, elongating the hiring process and leaving the position unfilled means that new efficiencies remain locked and organisational growth is hindered. The less urgency displayed to fill the vacancy leads to it being pushed further down the priority list and heightens costs for the organisation. In fact, a Glassdoor review from 2017 reported that unfulfilled jobs advertised online was estimated at $272 billion.
How much is an unfilled position costing your organisation?
A simple formula can be used to estimate how much your organisation is losing on open vacancies:
(Annual profits / # of employees) / 220 working days. Take this figure and multiply it by the average number of days to hire to get the full estimate.
Where do you go from here?
Once you calculate how much an unfilled position is costing your organisation, you can assess just how quickly the opening needs to be filled in order to put your recruitment team, and the overall organisation, in a healthier position.
It can’t be overlooked, however, that other tasks for the recruitment department and deadlines looming for hiring managers doesn’t offer the best opportunity for success when seeking a new hire. To add fuel to the fire, candidates may often become restless within a slow-moving recruitment process, and lengthy waiting times can often result in candidates opting out of their application, looking elsewhere, and leading your recruitment team back to square one. It comes as no surprise that this results in further revenue loss.
So, what can you do to avoid this game of cat and mouse? Implementing the correct recruitment solution is essential when, quite literally, time is money! Seeking out top employees should be at the top of the list in today’s increasingly competitive recruitment market. Having a solution at hand to help locate top talent faster not only reduces competitive risk, but also allows you to bring candidates through the process quicker, filling the position with the most suitable candidate and simultaneously saving time and money for the organisation.
It’s no big news that one thing Video Interviewing is renowned for is allowing recruiters access to the best talent faster, all while having an incredible effect on your bottom line. But what other important ROI metrics for Video Interviewing should be assessed? Our webinar, 10 Tips in 10 Minutes: Measuring Video Interviewing ROI throughout the Recruitment Process, holds a multitude of insights on key ROI metrics. You can watch it here.