- The cost of one hire includes the advertising costs for a position as well as the productive hours employees waste 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 are turning to one-way video interview software such as Wamly to save themselves money and time.
Globally, a number of companies have turned to one-way video interview software to save themselves the time and money that they would’ve spent during the typical hiring process.
The cost of making one hire does not only include the money spent on advertising a position but also includes the productive hours employees waste in interviews and travel-related expenses.
Globally, studies have found that companies spend as much as $4,129 (roughly R60 000) to make one hire and spend an average of 42 days to fill a position.
In South Africa, where salaries are typically lower, the cost is estimated to be closer to R30 000. This figure, however, differs significantly between junior and senior hires.
The cost of hiring one person includes:
- The time senior employees sat on panels to interview potential employees.
- The opportunity cost of employees who have to sit in interviews instead of focusing on their core functions and improving the company.
- Advertising licence costs on platforms such as LinkedIn.
- The cost of video call platforms for interviews (especially during Covid-19) such as Zoom or Microsoft teams.
- The costs associated with logistics such as travel costs, booking a venue for an interview and organising food for the panellists.
- And then the cost of not having the vacancy filled
How one-way video interview software can help companies hire cheaper and faster
With one-way video interview software, the company can review as many as 30 candidates in the hour it typically takes for a face-to-face interview.
The software allows panellists to rate and review a candidate independently from the panel, reducing the role bias plays in a hire.
Additionally, one-way video interviews speed up the hiring process, reducing it from 3 months to just 2 weeks in companies that have started using the software.