For an organisation to be successful it’s crucial to find the right talent. However, the process of hiring new employees comes with its own set of challenges, especially when considering the costs involved. From advertising job positions to conducting time-consuming interviews, each step in the recruitment journey has a price tag attached to it. Today, we delve into the question that plagues many employers: “How much does it cost to hire one person in South Africa?”
- The cost of one hire includes the advertising costs for a position as well as the productive hours employees wasted in interviews.
- Globally the cost of one hire has been found to be roughly R60 000 and closer to R30 000 locally.
- That is why many companies turn to recruitment software such as Wamly to save money and time.
How much does it cost to hire one person in South Africa?
Optimising the hiring process is essential for companies to save money and enhance efficiency. The expenses involved in making one hire go beyond mere advertising costs; they also encompass productive hours lost during interviews and travel-related expenditures.
Studies conducted globally have shown that companies can spend up to $4,129 (approximately R60,000) to fill a single position, and the entire process can take an average of 42 days. In South Africa, where salary levels are generally lower, the estimated cost comes closer to R30,000. However, it’s important to note that this figure varies significantly depending on whether it’s a junior or senior hire.
To address these challenges, forward-thinking companies are increasingly turning to recruitment software like Wamly, a one-way video interview software. By doing so, they not only save costs but also streamline the hiring process effectively.
Key components contributing to the cost of hiring include:
- Time invested by senior employees on interview panels.
- The opportunity cost of employees who could be using their time for their core functions and enhancing the company’s performance.
- Advertising license fees on platforms like LinkedIn.
- Expenses related to video call platforms used for remote interviews, especially during the Covid-19 pandemic, such as Zoom or Microsoft Teams.
- Various logistical expenses like travel costs, venue bookings for interviews, and arrangements for food during panel discussions.
By leveraging advanced recruitment software, companies can cut down on these costs and accelerate their hiring process. Embracing innovative solutions helps businesses optimise their resources, ensuring a more efficient and cost-effective approach to talent acquisition.
Recruitment software – the cost of a bad hire
The conventional hiring process can be a costly and time-consuming endeavour for companies. The initial cost of hiring includes expenses related to advertising the job, screening applicants, and conducting interviews. However, even after investing in training, some hires may not be able to perform their roles effectively and eventually leave the company. This not only results in wasted resources but also disrupts the workflow and may lead to additional expenses to find replacements.
One of the key issues with the traditional interview process is that it is susceptible to biases from interview panelists. These biases can lead to the selection of candidates based on superficial qualities like charisma rather than a thorough evaluation of their skills and suitability for the role. This can result in the company hiring someone who might not be the best fit for the position, leading to performance issues and potential turnover.
To address these challenges, one-way video interview software has emerged as an innovative solution. This technology allows companies to conduct video interviews with candidates who record their responses to preset interview questions at their convenience. The recorded interviews can then be reviewed by hiring managers and panelists, providing them with insights into the candidates’ abilities, communication skills, and suitability for the role.
The benefits of using one-way video interviews are significant. First and foremost, it allows companies to efficiently review a large number of candidates’ interviews in a short amount of time. Instead of scheduling and conducting individual face-to-face interviews with each candidate, which can be time-consuming and logistically challenging, the one-way video interview process enables the review of up to 30 candidates’ responses in just one hour. This streamlines the initial screening process and helps identify potential top candidates more efficiently.
Another major advantage of this approach is its potential to reduce bias in the hiring process. Since each candidate’s responses are recorded and independently reviewed by multiple panelists, the risk of bias based on appearance, accent, or other personal characteristics is minimised. This promotes a fairer evaluation of candidates based on their qualifications, skills, and responses to the interview questions.
Furthermore, the integration of one-way video interviews into the recruitment procedures can significantly expedite the hiring process. Traditional hiring processes often involve multiple rounds of interviews, which can extend the time-to-hire to several months. With one-way video interviews, companies can streamline their evaluation and decision-making process, reducing the time-to-hire from an average of 3 months to just 2 weeks. This not only saves time for the company but also enhances the candidate experience by providing quicker feedback.
Demo Wamly’s one-way video interview software today
