Over 7 million people change their jobs annually in the UK . The pressure caused by job market fluidity on recruitment teams has arguably never been higher, especially considering that this total only accounts for successful applicants. The number of combined applications annually is likely to be many times this amount.
The cost total cost of bad hires to UK employers per week, based on average earnings, is estimated to cost a staggering £402 million.
Recruitment will remain critical for organisational growth and strategic development in the years to come. Yet surprisingly, the UK Recruitment and Employment Confederation claim employers often underestimate the financial repercussions of poor recruitment processes. Lost productivity, increased staff turnover and wasted training expenditure all combine to hit your bottom line.
What is recruitment technology?
A digital software solution in recruitment technology automates your entire process. Store data on candidates and track their progress from application right through to job offer acceptance.
Overall it is a streamlining solution for recruitment teams and hiring managers. Implementation at a time of increased complexities in recruitment and a rise of digital applications through platforms like LinkedIn, means businesses are more suited to satisfy quality demands.
Stop viewing the effectiveness of your recruitment and onboarding as untraceable metrics. Shed light on wasted expenditure and process shortcomings.
One of the most notable returns on business investment into a recruitment software solutions are the metrics and management information supported by most platforms. Even from the earliest stages of implementation, businesses see tangible savings from assessing key factors within their processes.
Understanding which recruitment sources are effective, the costs of hiring at different levels and analysis of potential trends in future retention and performance is key for any business looking to streamline cost in their overall operations.
The ability to analyse time to hire, quality of hire, cost of hire, first year attrition, applicants per opening and offer acceptance ratio instantly and on multiple devices is giving businesses more visibility than has ever been seen traditionally.
Implementation of a data driven strategy in recruitment allows business to reduce hiring cost, improve the speed of hiring and match recruitment capacity to demand. Similarly with reduced cost and oversight your organisation can also develop a clear business strategy for expenditure or targeting of specific demographics, while effectively measuring success or failure of new strategy implementation.
Increase staff performance and ensure recruitment has minimal negative impact on output from your organisation.
In a report conducted by the Recruitment and Employment Confederation, one in eight HR decision makers admits bad hiring decisions within their organisation. A poor hire at mid-level management can cost a business up to £132,000, but also is highly likely directly affect the performance of the firm itself.
To replace a bad hire, a company will not just face the direct costs associated with a replacement. Management time will be lost, as well as business productivity and the satisfaction or morale of your existing team will likely be damaged.
Investment in a recruitment software solution allows your team to reduce workload while maximising their efficiency. For example in optimising and automating much of the new hire process, generally you can assume a 30% reduction in recruitment administration workload. Your HR team can dedicate more time and resource to your existing employees and reduce the financial costs of staff attrition.
You can also reasonably assume that managers will gain 20% of the time dedicated to a recruitment process with an ability to review and process applications online. At the same time with a changing focus of your recruitment team from administrative support, they are now able to assist hiring managers to make better decisions.
Not only does recruitment software minimise and optimise previously time-consuming elements of the hiring process, but it also means you can focus more time on getting the right candidate for your business.
Think of your external brand image. What does your attrition rate say about your organisation? Are you putting candidates off with an outdated recruitment process?
Your recruitment process should be given as much attention as any department with external focus within your business. Marketing, communications and PR. Recruitment is no different from these functions in that it will be a source of interaction for not only potential employees, but brand ambassadors, customers and the market itself.
Consider your hiring process to be a part of your brand. It is estimated that a strong and clear brand will reduce employee turnover by 28% and cost per hire by 50%, simplify the process and get the market to come to you .
Reports show that up to 88% of job seekers are more likely to buy themselves from organisations where they found recruitment to be a positive experience (regardless of applicant success) . Moreover, half of this percentage would promote their experience to social connections.
A considerably large part of the modern candidate experience is based on digital integration and simplicity. While your communications, speed and interviewing style will always come under scrutiny, CareerBuilder found that up to 60% of job seekers give up on an application process because of length or complexity .
Not only does recruitment software streamline your own operations and optimise your existing staff resources. But it provides a positive and simple experience for your perspective applicants, while ensuring you get essential data and information.
Through strategic investment, you ensure that you are not losing the top candidates through poor experience and that you strengthen your overall brand image. A positive experience is likely to be shared by job candidates. Potentially saving you future costs on having to advertise your open roles, candidates may seek out the experience you provide and come to you.
You also increase the likelihood of winning more business, in a digital age, your brand is more visible than ever. Stand out from your competitors with a recruitment process that shows the best of your operations and reduce your staff attrition by getting the right candidates first time.