According to Bersin & Associates, U.S. companies are spending an average of $3,500 per employee to just recruit them. While finding great talent is difficult, after over twenty years in the recruiting business, I think one of the main reasons this cost is so high is because employers are taking forever to make an offer to a candidate. Think about it. You spend so much time and money trying to find the right candidate and when you do, the process of hiring that person just seems to drag on.
The time between the first interview and an offer can last over two months in some cases. Many of the companies we speak with tell us the same thing; the process is out of our hands or “this is the way we always do it”. Sound familiar?
When consulting with companies, I always try to find where the holdup takes place. I found these three problem areas:
a. Many employers have an interview process that requires setting multiple interviews with many different people. Having a candidate back for multiple interviews is a time kill.
b. Background checks take forever.
c. Company has to kick some more tires to make sure a great candidate you already interviewed is great. (HR loves when managers say, “I really like that person and they would be a great fit, but I need to see a couple more just to be sure”.)
Those all can be cleaned up pretty easy and have to be especially when recruiting top talent. But something else is happening when your hiring process is very slow; it puts your company’s profitability at risk. Human capital is the most valuable asset of any company and if you lose the best and the brightest talent on the market, your company will certainly feel the effects.
Consider these three reasons why a slow hiring process is really bad:
1. The vacant position. Your company’s business plan can’t be executed at full strength if you have openings. This is certainly obvious for sales, technology and leadership positions. But not having enough account managers, food servers or housekeepers will also disrupt your business objectives.
2. Your reputation and employment brand may suffer. Companies today are spending millions branding their employment to attract candidates. You get some great candidates but your four interview, month long process frustrates the job seeker and they go elsewhere. The usually will not have anything good to say about your process and will let others know that your company has too many hoops to jump through.
3. Long hiring processes cost a lot more money. All the resources and time you need to set up multiple interviews on multiple days cost money. Costs of waiting for more candidates by having to post more jobs or use recruiting firms because you lose out on idea candidates who drop or get swooped up by your competitor because your hiring process is too long.
With unemployment dropping, if you get a great candidate in the door that you like, get them hired fast. A trainer in my business once told me indecision is no decision. Jobseekers want to know you want them!