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 are turning to recruitment software such as Wamly to save themselves money and time.
The cost of making one hire does not only include the money spent on advertising a position, but also includes the productive hours employees wasted 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.
That is why many companies have turned to recruitment software such as Wamly to save money and to speed up their hiring process.
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.
Recruitment software – the cost of a bad hire
Aside from the cost associated with hiring one person, companies also spend thousands when they have a bad hire where they are unable to do the job – even after training – and leave the company.
This is because the traditional interview has found not to be a good indicator of the best hire for a company, with interview panellists often being biased and picking candidates who are charismatic but not necessarily the best for the job.
With one-way video interview software, the interviews of as many as 30 candidates can be reviewed in the hour a company typically takes for a face-to-face interview.
It 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 who have started using the software.
Visit Wamly’s website at www.wamly.io to find out more, or to register for a free account.