1. Cost Per Hire (CPH) is too expensive.
According to the Wall Street Journal, the average cost per hire for retail and hospitality is upwards of $3,000. That figure may seem outrageous at first glance, but the soaring cost makes sense when you consider that behind each new member of the payroll there’s a heavy operation rife with time sinks. Finding good hires means advertising, back-and-forth communications, lag times around scheduling and confirming, pre-screening and post-screening, and more.
Let’s face it: hiring is a pain. The process is full of independently moving parts, including external costs—third party recruiters, vendors and software providers—as well as the internal costs that come from taking time off your real job in order to suffer through the nebulous task of pulling great candidates from out of thin air. That’s a lot of frustration with no room for error, especially when you consider that one hiring misstep can mean thousands in missed sales or poor Yelp reviews.
2. Time To Hire (TTH) is too long.
Companies are taking longer than ever to hire. Last year the figure rose to 25 working days per vacant position, a 13-year high for the figure. Counting weekends, you’re looking at an average of over a month to make a hire. No wonder employers are increasingly finding themselves in the untenable position of waiting weeks to make a hire for a position that needs filling in days.
Every day that goes by without the needed hire can mean hundreds in actual dollar losses. High Time To Hire is a problem without a quick fix because it is in large part grounded in the weak economy. The gist of it is that a lack of confidence in the economy leads to pickier hiring processes, which ultimately results in endless, intensified employee screenings that drag on for more weeks than businesses can afford.
3. Small and Medium-Sized Businesses (SMBs) bear the brunt of the problem.
A study named Dice concludes that the average U.S. Cost Per Hire is $3,479. But that figure tells just part of the story. Large companies with 10,000 or more employees have far more internal resources to absorb the onslaught of hiring costs. Their Cost Per Hire is just $1,949—significantly lower than the national average.
That means that Small and Medium-Sized Businesses are carrying more than their fair share of hiring dysfunctions. SMBs live and die based on the leanness of their operations, and their hiring processes are as fatty as it gets. Without streamlined hiring, SMBs are in danger of buckling under the weight of hiring that costs too much and takes too long.
4. Too much noise, not enough signal.
The goal of hiring is to find good candidates. The way to find good candidates is to screen them. Therefore, good hiring requires good screening. So why do so many companies lean on job boards to find quality candidates? Job boards are like cars that don’t start. The framework is there, but the engine simply doesn’t go.
Ask any business owner about his experience using a job board like Craigslist and you’re likely to hear a familiar tale that goes something like this: the resumes pour in, then scheduling and confirming takes weeks of wasted time, before finally on interview day nobody shows up except for a couple of unqualified candidates, and they quit weeks after they’re hired. It’s a nightmare.
5. And then you have to do it all over again.
Stop wasting your time with bad hiring processes! There’s a better way. We can help you eliminate no-shows, drive down your employee turnover, and spare yourself the pain of a broken hiring process.
It’s Hiring 2.0. Liveli sources, filters, and screens job seekers so you can focus on running your business. Just tell Liveli what positions you need filled and we’ll send qualified, eager, pre-screened candidates to knock on your door. Contact us to get started today!