• The average cost of recruitment in the US is around $4,700.

• Poorly designed recruitment processes result in a lack of quality candidates and longer time-to-hire.

• A comprehensive job description is necessary to attract suitable candidates.

• Streamline the recruitment process and create a positive candidate experience to reduce costs.

• Automation tools, online interviews, and revenue generation tracking software can help with efficient recruiting.

Inefficient recruitment takes time and can hurt your business's bottom line. A poorly-designed recruitment process can result in a lack of quality candidates, a longer time-to-hire, and undesirable candidate experiences. Thus, it's essential to understand why your recruitment process may be inefficient. Here's a look into the average cost of recruitment, why yours is costing you so much money, and how technology can help you.

Average Cost of Recruitment in The U.S.

Currently, the average cost of hire is around $4,700. So, for example, a company that needs to replace ten employees at $4,700 each would have to spend nearly $50,000 for the entire recruitment process. That's a lot of money! But what is it precisely that makes up the cost of hiring?

The average hire cost includes job board postings, applicant tracking systems (ATS), background checks, drug screenings, travel expenses for face-to-face interviews, and other recruitment-related costs. But why is your recruitment costing you more? Here are some reasons why:

Lack of Clear Job Description

A comprehensive job description is critical to your recruitment efforts. It forms the foundation for attracting the right candidates and helps set expectations about the role's functions and responsibilities. Not only will you attract the wrong applicants without a clear job description, but it can also result in an extensive recruitment process and wasted time.

To avoid this, ensure a clear and concise job description before advertising the position. This will ensure that the job details communicated with potential applicants are accurate and invite only the relevant candidates.

The Recruitment Process is Too Long

If your recruitment process is too long, you will likely lose quality candidates to your competition. The most desirable candidates receive multiple job offers in a competitive job market. Waiting too long to make an offer or having too many unnecessary steps in your recruitment process could cost you your preferred candidate.

To avoid this, review your recruitment process and streamline it. One way to do this is to limit the number of people involved in the process, reduce the number of interviews, and only include the necessary steps.

Candidate Experience is Poor

An excellent candidate experience is crucial to your recruitment process's success. It would be best to provide candidates with a clear understanding of the recruitment process, its length, and the timeline. A poor candidate experience can hurt your reputation, and you may lose the candidate's interest even after investing time and resources in the recruitment process.

To remedy this, provide timely feedback on the recruitment process, maintain good communication, and keep the candidate updated on what's happening.

Gut Feeling

Gut feeling is indeed essential in any business decision; however, this should not be your sole basis for a recruitment decision. Many factors, such as unconscious biases and unrealistic expectations, can cloud your judgment when hiring a candidate.

To avoid this, create a set of criteria that you can use to evaluate candidates objectively. This criterion should include the essential skills, qualifications, and experience needed for the job and use this as a guide to select the candidates.

Use Technology to Your Advantage

Technology has simplified recruitment efforts and can make the recruitment process more efficient. Here are some technologies that can help you with your recruitment process:

Automating Recruitment Processes

Certain software can do some recruitment processes for you. A free online recruitment software works by automatically screening resumes and vetting candidates to save you time. This software can also suggest the best-suited candidates for each job based on their skills, qualifications, and experience.

Online Interviews

Video conferencing tools are made available to conduct interviews with candidates remotely. This way, you can interview multiple candidates quickly and efficiently without traveling or meeting them in person.

Revenue Generation Tracking Software

This software can help monitor the cost of recruitment against revenue generated from new hires. With this, you can assess whether your recruitment process is efficient or needs improvement.

As you can see, many factors contribute to an inefficient recruitment process. Investing in technology such as automation tools, online interviews, and revenue generation tracking software can help you to streamline your recruitment process and get the best candidates for each job. This will ensure you recruit efficiently and effectively while saving time and money.