From the moment a vacancy in your organization goes live, the costs accumulate. While recruitment teams aim to move swiftly to minimize losses, it may not always run smoothly due to various 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 organizational 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 organization. A Glassdoor review from 2017 reported that unfulfilled jobs advertised online were estimated at $272 billion.
How much is an unfilled position costing your organization?
There is a simple formula to determine how much your organization 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 organization, you can assess just how quickly the opening needs to be filled to put your recruitment team, and the overall organization, in a healthier position.
However, you can’t overlook that other recruitment department tasks, and deadlines looming for hiring managers don’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 to help locate top talent faster reduces competitive risk and 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 organization.
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 essential ROI metrics for Video Interviewing should be assessed? Our webinar, 10 Tips in 10 Minutes: Measuring Video Interviewing ROI throughout the Recruitment Process, holds many insights on crucial ROI metrics.
This article was created by Sonru Video Interviewing and included contributions and research gathered from Sonru clients and candidates between 2011 to 2020.