Did you know that your hiring process could be costing you tens of thousands per year? According to a 2022 survey, employers spend an average of $4,700 per hire. Many spend two to three times the target annual salary per new position, resulting in annual costs upwards of $100,000.
Despite advancements in Applicant Tracking Software (ATS), recruiters face 75-150 resumes per position and hours of interviews. Combining informed human design with automated processes and AI tools can reduce acquisition costs and turnover rates.
For a 7-step plan to improve your hiring processes, keep reading!
Step 1: Calculate Your Current Hiring Costs
To improve your hiring process, start with a detailed spreadsheet of costs, including:
- Hard Costs: Job ads, HR software, recruitment outsourcing, and more.
- Soft Costs: Time spent, productivity losses, and the cost of bad hires.
Hard Costs vs. Soft Costs
| Hard Costs | Soft Costs |
|---|---|
| Job board postings | Time spent writing job descriptions |
| Recruitment agency fees | Resume screening (avg. 8 seconds) |
| ATS and HR software subscriptions | Interview time and admin tasks |
| Background checks | Productivity loss during hiring |
How to Calculate Costs
- Add all hard and soft costs.
- Choose a time frame (1-3 years recommended).
- Divide the total by the number of hires.
Formula:
Cost Per Hire = Total Recruitment Costs ÷ Number of Hires
Step 2: Optimize Your Candidate Screening Process
Smart screening requires more than an ATS.
Create a Screening Rubric
Include:
- Must-have qualifications
- Preferred skills and experience
- Cultural fit indicators
Automate Screening
Use AI-powered platforms to:
- Filter applications
- Analyze language skills
- Provide objective evaluations
Step 3: Simplify the Interview Process
Standardize Interview Structure
- Role-specific question banks
- Evaluation criteria and scorecards
- Clear decision-making protocols
Leverage Technology
- Scheduling tools
- Automated communications
- AI-powered analysis
Step 4: Enhance Candidate Experience
Focus on:
- Clear communication
- Respecting candidates' time
- Providing feedback
Step 5: Tailor In-Person Interviews
Incorporate:
- Skills-based assessments
- Job shadowing
- Problem-solving workshops
Step 6: Automate Your Offer Stage
Use tools like:
- DocuSign
- WorkDay + ChatGPT
- BambooHR
Step 7: Streamline Pre-Boarding and Onboarding
Leverage automation for:
- Background checks
- Onboarding schedules
- Interactive welcome materials
Conclusion
Combining automation, AI, and human oversight can improve recruitment efficiency while reducing costs.
Ready to take action?
Book a free demo to see how VireUp's AI-powered platform can streamline your hiring process!