Quantifiable Benefits
Agency Fees
Increasingly, both candidates and organisations value a more direct hiring model and a good recruitment platform is the way to successfully enable this. Direct hires through the corporate career portal and Employee Referral Programs alone can help large organisations achieve a reduction in agency fees by at least 20% per annum in the first 2 years.
Example:
Five middle/senior positions filled directly
Average agency fee US$ 15,000 per placement
Saving = US$ 75,000 per annum
Another area for cost saving is the avoidance of paying unnecessary agency fees. Due to the difficulty of tracking thousands of candidates, companies are occasionally paying agency fees for people that have in-fact already applied to them directly.
Example:
Two such cases per annum
Saving = US$30,000 per annum
Newspaper Advertising
Newspapers are the most expensive form of candidate sourcing second to agencies, especially major international publications. The cost effective options available with a recruitment platform can reduce or even eliminate this cost.
Example:
Average cost per advert US$ 4,000
Reduction per annum 4
Saving = US$ 16,000 per annum
Recruiter Efficiency
With a manual or semi-manual hiring process, corporate recruiters spend a significant proportion of their time on administration. This results in recruiting additional staff to meet hiring targets.
Example:
With a manual process, 2 additional team members will be required.
Average monthly cost US$ 3,500
Savings = US$ 84,000 per annum
Eliminate Hiring Mistakes
The majority of hiring mistakes happen because stressed recruiters are always running short of time. A lengthy hiring process means that by the time an offer goes out, the best candidate has already found employment elsewhere. Calculating the full cost is difficult, so the minimum cost can be used.
Assumptions:
Hiring mistakes occur 3 times a year
Average cost to re-recruit each person US$ 6,000
Business lost opportunity cost per person US$ 6,000
Saving = US$ 36,000 per annum
Productive Recruitment Trips
Due to the difficulty and time restraints for reviewing candidates in a manual environment, many recruitment trips do not deliver the desired results. With a smart solution, recruiters can ensure they only meet qualified candidates, increasing the chances of hiring, and reducing the number of trips and the number of people on each trip.
Example:
Two people making two unsuccessful one week trips per year
Expenses per trip US$ 6,000
Cost of time per trip US$ 4,000
Saving = US$ 20,000 per annum
Potential Annual Saving
If all the above were true, the annual saving would be US$261,000 and
even 50% of this amount is significant. For a company 10 times the
size, the potential saving is anywhere between US$1.3M and US$2.6M!
This may be enough to provide a good ROI, but of course the much of the real benefit is in the opportunity cost.
