Many employers continue to struggle to attract and hire qualified candidates.
There are many different issues at play, but one thing is certain; a bad hire can cost a company an average of 240,000! – based on a study by Link Humans that was shared by SHRM.org
The astronomical costs are a result of many different factors. Here is what the SHRM report cited:
Calculating the Cost of a Bad Hire
The cost of recruiting, hiring, and onboarding a new employee can be as much as $240,000, according to Jörgen Sundberg, CEO of Link Humans, an employer branding agency in London. There are extra costs incurred when that person turns out to be a poor fit, not the least of which may involve finding a replacement. Brandon Hall Group, a human capital research, and analyst firm based in Delray Beach, Fla., identified several variables that go into calculating the cost to replace a bad hire. They include:
- Recruitment advertising fees and staff time.
- Relocation and training fees for replacement hires.
- The negative impact on team performance.
- The disruption to incomplete projects.
- Lost customers.
- Outplacement services.
- Weakened employer brand.
- Litigation fees.
While this number may surprise you if you own a company or are responsible for hiring, you know that any bad hire is a drain on your budget and often can have consequences on morale for the entire organization.
To compound the problem, a tight labor market often forces recruiters to make hasty hiring decisions. A warm seat is better than an empty seat is the mentality, and you hope to be able to train up the new hire into a good fit.
Another study by CareerBuilder points out that hiring managers can be so desperate to hire, they overlook glaring issues and offer the job anyway. It’s not always the candidate’s fault or the candidate trying to cheat on the application; it is often a poorly trained recruiter not asking all the right questions in a rush.
So, how do hiring managers attract more qualified candidates?
Expanding the talent pool leads to more resumes and the likelihood of interviewing more qualified candidates. When you have a larger selection, there’s a much better chance that you will find the best candidate for the position.
The traditional route of posting an opening on job boards and in-person job fairs seems to deliver the same job seekers. Companies finding success have begun to incorporate virtual hiring events and have introduced “Virtual Interview Days”, to the hiring strategy.
These virtual interview days have been a game-changer. They have revealed the pent-up frustration of qualified job candidates that apply for jobs and never hear back from the employer. All of them agree it’s better to get a ‘no’ than a no-answer. This frustration has reduced the number of job-seekers willing to send applications to job openings they believe they’ll never hear back. Instead, they seek the more secure referral or networking route, where they know they’ll be heard and will also hear back.
That’s precisely why Virtual Interview Days are so powerful. Candidates that apply realize they will at least get an opportunity to chat with the recruiter. On the Premier Virtual hiring event platform, If that chat goes well, the recruiter can invite the candidate into a video interview. This pre-screening process gives the recruiter an excellent opportunity to see if the candidate is a good match and if a formal interview needs to be scheduled. Of course, if the fit is right, the recruiter can make a job offer on the spot so that the candidate does not go back into the search and potentially lose the candidate to another job offer.
Dana Morrison, the Teacher Recruitment Manager at the East Baton Rouge Parish School System, has experienced virtual interview days’ most significant success. After just one week, they made five new hires and are very happy with the people they are attracting. The strategy has proven so successful; they are running a virtual interview day every Tuesday in October from 1 pm-3 pm. Candidates can now plan around those days and times, get their profiles ready, and recruiters can meet them virtually.
Premier Virtual, a future-focused hiring event platform, recognized this potential and offers this ‘virtual hiring room’ as a stand-alone option for innovative companies that prefer this option to career fairs or hiring events. By incorporating the link of a Virtual Interview Day to your job posting, not only do you receive the resumes of interested candidates, you get to chat with them and see them during the virtual interview day. Plus, the virtual hiring room is open 24/7, so candidates can stop in anytime, learn more about the company, and submit their resumes anytime for the recruiter to follow up.
It’s what Premier virtual has said all along, ‘Hiring Happens Here’.
If you are interested in learning more about your own 24/7 virtual hiring room or how you can host a virtual interview day, please schedule a free demo at www.PremierVirtual.com.