The cost of hiring does not only include the money spent on advertising, but also the productive employees waste in interviews and travel-related expenses.
The cost of making one hire does not only include the money spent on advertising a position, but also includes the productive hours’ employees waste in interviews and travel-related expenses.
Globally, studies have found that companies spend as much as $4,129 (roughly R60 000) to make one hire and spend an average of 42 days to fill a position.
In South Africa, where salaries are typically lower, the cost is estimated to be closer to R30 000. This figure, however, differs significantly between junior and senior hires.
That is why many companies have turned to recruitment software such as one-way video interviews to save money and speed up their hiring process.
The cost of hiring one person includes:
The time senior employees sat on panels to interview potential employees.
The opportunity cost of employees who have to sit in interviews instead of focusing on their core functions and improving the company.
Advertising licence costs on platforms such as LinkedIn.
The cost of video call platforms for interviews (especially during Covid-19) such as Zoom or Microsoft teams.
The costs associated with logistics such as travel costs, booking a venue for an interview and organising food for the panellists.
How to save money - and time - during the hiring process
Wamly founder Francois de Wet said companies in South Africa, such as WeBuyCars and Momentum, are turning to one-way interview software to save themselves time and money during the hiring process.
“Where one-way video interview software has been used, companies have been found to save themselves as much as 70% of the time they would’ve spent on hiring,” De Wet says.
He says the cost associated with traditional face-to-face interviews includes travel-related costs, and logistical costs for finding a suitable venue, and refreshments if necessary.
Meanwhile, with one-way video interviews, there is no need to travel or find a suitable venue for the interview.
One-way video interview software allows companies to send candidates a link where they complete an interview, with the software prompting questions - without the panel being present.
Once the candidate completes the interview, the panel is alerted who can then rate and review the interview in their own time and separately from each other.
“Using Wamly, panels have been able to rate and review as many as 30 candidates in an hour - around the same time, it would’ve taken to complete one traditional interview,” De Wet says.