HR ProfessionalsSmart Recruiters

What Are The Hidden Costs In Hiring?

By February 11, 2020December 7th, 2020No Comments

❝Emails do not delay decision making, People do❞ 

In our work with several CHROs, HR heads and Talent Acquisition teams, we often hear that their company has adopted this ATS or that HRMS system and hoping that there will be major change in outcomes. Unfortunately, just like emails, with the use of ATS while the process becomes structured and next step in workflow become predictable, delays or efforts in hiring remain substantial.

The reason is that ATS and HRMS systems automate the hiring steps without uplifting quality of decisions being taken by humans in each of those steps. The so-called analytics in these systems is limited to how fast or slow the process is running not necessarily how effectively it is running. This kind of analytics is also limited in scope to create “alerts, haste and urgency” and woefully short in advising how to do things differently.

It need not be repeated that without hiring at the speed of business, the objectives of Organization and CEO will be stymied, and performance delayed. Lets us understand current flow of hiring event and budget allocation.

The new hire is always budgeted as salary cost with the team where she is going to report and work. The talent acquisition team is given a budget for performing job marketing, sourcing and converting a prospect to a joinee. However, the effort spent on Shortlisting, Phone Screening and Interviewing which are usually done by Hiring team and reporting manager/ peers is seldom budgeted in the “Total cost of Hiring”.

The hiring team and reporting manager/ peers play good Samaritans believing that when they have to find a replacement or hire people for growth they owe and must perform tasks of several hours/ weeks of phone screening or interviews whether 2/3rd of those interviews prove to be rejections or not !!

Turbohire believes that at the current salary levels of peers and reporting managers, this is humongous yet invisible cost to the organization with attendant opportunity cost of their time on achieving their KRAs and KPIs and fructifying organization objectives.

One of the objectives of Turbohire is to sensitize organizations on this invisible cost and reduce it to minimum.