The Real Cost Of Hiring a Single Candidate

The cost of hiring a single candidate is rarely calculated. If organizations study this process deeply they will realize that the costs are fairly steep.

step_01 Post on
job boards

Time spent
Writing ad copy


Completing 1 posting

1 hour


30 minutes

$25


$12.5

External cost
Cost of job posting
Posting to Craigslist


Posting to Monster


Posting to CareerBuilder

- $25


$385


$419

Overall cost
For one posting
- 1 hour
30 minutes
$37.5
to
$456.50


Depends on number of posting to different job portals

step_02
Review your applicants

Time spent
Preparing short list of candidates to contactAssuming just 250 responses (you may get more in most of the cases)
Recent report suggests employers spends 6 seconds to 5 minutes (generous employer) reviewing each resume
2.5 hours
to
23.5 hours
$62.50
to
$587.50
External cost
Cost of ATS (ranges as per ATS you are using)
Large companies spend 7% of their recruiting budget on ATS.
Also, ATS system requires human review as it filters candidates on words and phrases in the resume.
- Cost of ATS or systems you are using
Overall cost
For reviewing applicants
- $62.50
to
$587.50
+
Cost of ATS or systems you are using

step_03
Pre-screen your candidates

Time spent
Scheduling and Phone / video screening 30 minutes each for 25 candidates
12.5 hours $312.50
External cost
Cost of pre-employment testing solution like Interview Mocha - $50 for testing 25 candidates
Overall cost
For pre-screening candidates - $362.50

step_04
Preparing for the interview

Time spent
Preparing interview questions


Phone calls to 6 candidates for scheduling

30 minutes


45 minutes

$12.5


$18.75

External cost
- - -
Overall cost
For preparing for the interview - $31.25

step_05
Your interview method

Time spent
6 interviews
30 minutes per interview
3 hours $75
External cost
Your office (test center operations) - Cost of test center operations
Overall cost
For interviews - $75
+
Cost of Test center operations
+
Potential revenue loss if hiring manager generates revenue for your company

step_06
Wrapping up

Time spent
Final interviews call to interviewees


Miscellaneous time for other tasks


3 final interviews – 30 minutes per interview


Final interviews


Checking references

1 hour
30 minutes


1 hour

 


1 hour
30 minutes


1 hour
30 minutes


2 hours

$37.50


$25

 


$37.5


$37.5


$50

External cost
Your office(test center operations)
+
Potential revenue loss if hiring manager generates revenue for your company
- Cost of test center operations
Overall cost
For final interviews - $187.50
+
Cost of test center operations
+
Potential revenue loss if hiring manager generates revenue for your company

Time spent
time Time variable between 27 hours
to
50 hours

Total cost to hire

Dollar Cost variable between

$1,600
to
$18,000
+
Potential revenue loss if hiring manager generates revenue for your company

 

Interviewmocha_logo2

Courtesy – gethired.com

Amit Mishra

I am Founder and CEO of Interview Mocha. A Startup disrupting Skill Testing Industry. I never stop Creating and Imagining. Passionate about everything I do. LinkedIn

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