Onboarding candidates in IT/ITES based or similar organizations has been a complex, time taking, and costly process. Any organization will prefer to build talent pool or hire candidates that are best suitable for their project and contribute significantly towards the project and organizational growth.
If we look at the overall process, it has been manual with high level of involvement required from HR department, technical/team leads, line manager to whom the prospective candidate will report to. Moreover, companies outsource this activity to recruiting organizations which can provide better candidates with short turn around time. However, this is not as simple as it sounds with high volume of aspirants eyeing for the position.
Based on reports from XpertHR, Forbes & Deloitte:
It generally takes employers on an average of six weeks to fill a vacancy.
The typical cost involved in filling most types of vacancy ranges from $2000 to $3,700.
Firms receive an average of 89 applications for each professional position.
Length of the recruitment process leads to loss of potential hires in ~31% of the companies.
Ever increasing cost of training for interviewers for conducting interviews.
And these are just the tip of the problematic iceberg that every organization faces these days. According to a study conducted by global human resource consultancy CareerBuilder, organizations are impacted globally at a high rate due to bad hire.
27% of US employers reported that a single bad hire costs them more than $50,000 and this cost is fairly consistent with other countries too as an indirect expense due to bad hire.
“When you add up missed sales opportunities, strained client and employee relations, potential legal issues and resources to hire and train candidates, the cost can be considerable,” said CareerBuilder CEO Matt Ferguson.
“Employers are taking longer to extend offers post-recession as they assess whether a candidate really is the best fit for the job and their company culture,” he added.
It’s completely fair to say that the archaic recruitment process needs overhaul by leveraging technology as a platform to redefine the process and add incremental value addressing key pain points of majority of the organizations. Performance based hiring and pre-hire assessment is transforming this overall process for good.