Your business has a tangible, calculable reason to make your hiring more efficient. Let’s look at how hiring software can save you money.
The National Association of Colleges and Employers calculated the average cost of hiring an entry-level position to range between $5,700 and $8,900. Turnover is worse,
…it generally costs 2-3 times the average salary of the person leaving the job to replace them.
If you want to calculate a personalized cost-per-hire, use this formula created by SHRM:
For now though, let’s take simple point between NACE’s average costs.
Numbers (and reasons) to count
So how does the cost of hiring software stack up against the average cost of a new employee?
- You still need time.
- You still need someone to perform the hiring.
However, you can save a tremendous amount of money by streamlining the hiring process.
We’ll say an average job costs $8,000. Your company is growing quickly, so you have 10 jobs to fill, that’s going to take $80,000 right out of your pocket, before you see any production.
You can’t eliminate on-boarding costs, or the resource-based costs of adding new employees. However, you can save money by reducing internal costs, in the form of time-to-hire.
Recruiters average $67,000 a year in the US
Spread across 12 months, recruiters cost you $5,583.33 every month! Good recruitment is worth its weight in gold, but what if you shortened the process?
An industry-leading hiring software costs $199 per month for 10 jobs. Instead of 10 jobs taking you 6 months to fill (with qualified talent) maybe it would take you 5 (probably less). You just saved $4,588.
If you save your recruiter just a few hours each month, the system pays for itself. We’ve seen customers save 25%, 50% and even more when switching from email to hiring software, so “a few hours” is a reasonable estimate.
HR professionals average $45,000 a year in the US.
Instead months spent on recruiters and daily HR activities pushed aside for hiring purposes, imagine how much money you could save by making hiring more efficient.
HR professionals would be able to shift their focus away from searching their inboxes and back to their functions of keeping business moving smoothly. Every thing and every task is related in a business, and happy employees equal employees who are likely to stick around. This leads to less turnover and further-diminished hiring costs.
What if, instead of two annual salaries, you only need one (as long as that one is armed with the right software)?
Are you ready to see how much money you can save?
We built an ROI calculator to help busy professionals like you see exactly what you can save with the right tools. Take a second and learn:
- the number of hours you’ll save
- the number of dollars saved
- your ROI
- your payback period
Is there anything you’d like to add? This is a subject we’re excited to explore deeper, so share your opinion with thousands of readers! Just leave a comment below or express your mind on Facebook, Twitter or LinkedIn.