The Sky-High Cost of Hiring: Are Your Interviews Bleeding You Dry? (And How to Fix It)
We need talent to grow, innovate, and succeed. But let's be honest, hiring is expensive. Really expensive.
While many focus on the "hard costs" of recruitment, like advertising and agency fees, the often-overlooked "soft costs" are where the real budget hemorrhage occurs. And a prime culprit? Overly long and inefficient interview processes.
According to SHRM, the average cost-per-hire is nearing $4,700. But here's the kicker: many experts estimate the total cost, including those hidden soft costs, can be three to four times the position's salary. Think about that. For a $70,000 position, you could be spending upwards of $280,000 to fill it. That's a significant investment, and it demands scrutiny.
What Makes Hiring So Expensive
One of the biggest drivers of these soft costs is the time spent by hiring managers, team members, and even executives on interviewing. We've all seen it: multiple rounds of interviews, often with overlapping questions and redundant assessments. While thoroughness is important, the current trend of 3, 4, or even 5 interviews for a single role is simply unsustainable. It pulls valuable resources away from their core responsibilities, impacting productivity and ultimately, the bottom line.
Think about the ripple effect. When your sales manager spends hours interviewing candidates instead of closing deals, what's the real cost? When your engineering team is bogged down with interview panels instead of developing new products, what's the opportunity cost? These are the hidden expenses that inflate your cost-per-hire and erode your ROI. And if your new hire doesn’t work out they may leave and start the process all over again. It’s crucial to get hiring right.
Hiring More Efficiently
So, what's the solution? It's time to rethink the traditional interview process and embrace a more data-driven approach. The key is to front-load the screening process, gathering as much relevant information as possible before candidates even reach the interview stage. This allows you to be much more selective and targeted, reducing the need for multiple rounds of interviews.
VersoJobs is helping companies learn more about candidates skills, personalities, and values to help you make informed hires. Our gamified platform allows candidates to show their thinking and skills through a series of mini case questions. You can see how they think through the kinds of problems they would face in that role on a daily basis. With this extra information, you can cut down the interview process, save money, and find qualified candidates who are likely to thrive in your work environment.
