How Much Do You Invest In Finding The Right Candidate?

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Have you ever wondered how much time and resources your company spends on hiring each employee? Unless you are a large corporation or a big HR consultancy, it is unlikely you have this information.

We at Vyre wanted to do this exercise ourselves. So we collected data from 5 HR consultants and sourcing firms and ran some numbers. While this is in no way a comprehensive Time and Motion study, it still gave us some great insights.

Insights

To save you from the math, I’ll first share the insights from our analysis -

1. 30 Man-hours! — It takes about 30 man-hours of your organization’s time to find a single new employee. This includes time spent by a recruiter scouring through heaps of resumes, online job sites, LinkedIn and your internal databases. This also includes time spent calling and then interviewing each candidate before making a selection.
2. 9 Recruiters — If you had to hire 100 people in 30 days it will take 9 recruiters working full-time to complete this task.
3. Rs. 1.1 crores! — That’s the annualized hiring cost if you had to ramp-up 100 new hires every month. And these are just the salaries of people involved in the hiring process. It does not include the cost of online databases that you may be using. (Our analysis uses Indian salary estimates. You can use my Google Sheet to build one for yourself in US dollars).

Time for Some Math

Now for some number crunching for all those who want to get into the details.

Assumptions

Using data we came up with some average numbers for a recruiter’s daily work schedule. These form part of our assumptions shown below -

1. Average monthly salary of a recruiter — Rs. 30,000/-
2. Average work week — 8 hours per day, 5 days a week
3. Number of resumes and profiles screened by a recruiter — 150–200 per day (average — 175)
4. Screening phone calls made by a recruiter — 55–70 per day (average — 65)
5. Interview line ups rate — 5 interviews per 30 calls (16.7%)
6. Interview drop-out rate — 40–60% (average — 50%)
7. Average number interviews conducted — 3
8. Interview-to-offer rate — 12–14% (average — 13%)
9. Offer drop-out rate — 20–30% (average — 25%)

Using these assumptions we built a Google Sheet that calculates the time taken for each hire and resources that would be required to complete a hypothetical ramp-up of 100 hires per month.

You can view the Google Sheet by clicking here.

Epilogue — Vyre Can Help Save Costs

We started Vyre with one objective in mind. How can we help recruiters hire in a way that is more efficient, cost-effective and improves the quality of hiring.

We experimented internally with various tools and methodologies. Finally, we came to the conclusion that there is no substitute to seeing the real person when making a hiring decision. That is why interviews are so important. However, this step of meeting the person comes right at the end inthe traditional hiring process after many hours have been spent going through hundreds of resumes and making screening calls.

We decided we should upend the hiring process and make “meeting the person” the first step. Therefore, Vyre asks all candidates to include a 90-second video pitch in their job application. Recruiters can rate these profiles and collaborate with the hiring team to get feedback. Finally, the recruiter can send a Digital Interview request with upto 5 pre-set questions that the candidates have to answer over video.

Therefore, by using Vyre, even before spending any time in doing screening calls, setting up interviews or spending time interviewing, a recruiter has seen the candidate atleast twice and can make a much better judgement call.

About Vyre

Vyre helps recruiters invest more time with real candidates and less with resumes.

With thousands of candidates that have uploaded their professional Video Profile, you can find the right person for the job instantly even before you pick up the phone.

Started by recruiters that have worked for top employers, Vyre is designed to enable candidates to stand-out in front of recruiters and showcase themselves.

Change the way you hire, visit our website (https://vyre.co) to get started.