Hiring is given significant focus in all firms as it impacts productivity, culture and finances in short and long term. In these tough times of Covid-19, employers are battling a war of selecting best resources in optimal cost. There is zero space for a hiring blunder as the last thing they would want is a monetary loss due to wrong hire. The U.S. department of labour says the cost of a bad hire can reach up to 30% of the employee’s first year’s earnings.
The real cost of recruitment is the candidate evaluation cost which is hidden in a subtle way. The evaluation cost is embedded in the number of quality hours spend by the hiring team/hiring manager in evaluating and assessing the candidates. Hiring manager’s productivity time is allocated on candidates through resume review, phone screens, technical evaluations and extensive on-sites, which do not make it to hire.
Typically, companies see a large ratio of applicants/evaluations/hires which is at 100:10:1 for an intermediate level candidate, whereby 100 applicants will lead to 10 evaluations which results in 1 hire. This number ranges although it’s safe to say that companies look at over 60 resumes, get on a phone call or technical screen with 10 of them and will do 5 in-person evaluations to find their next Hire.
A bad evaluation can cost huge on organisation which includes evaluation costs, orientation and training costs, infrastructure costs, termination costs; also, repeat the entire hiring process to replace the wrong hire, which includes time and expenses. As per Global HR research, 39% of business report a decrease in productivity due to bad hire. There are also hard-to-quantify costs that could be lethal to the business such as lower employee morale, customer dissatisfaction, lost customers, lost sales, reduced quality of products and low production.
38% of IT decision makers report their bad hires had inadequate technical skills and 39% of technical leaders say technical skills are hardest to assess in an interview (Research, Robert Half Technology). It also provides five tips to help hiring managers avoid costly mistakes when recruiting IT talent:
IT companies are cautious about saving time and money in evaluating candidates and simultaneously selecting the best possible fill for a given position. Streamlining technical assessments with external evaluations is one solution that most companies are positive about.
Evaluators Point is a candidate evaluation company that conducts highly structured, technical in–person assessments of the candidates on behalf of the hiring team.
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