The staffing industry is facing some tough challenges. Competition for great talent is at an all-time high, while employee satisfaction and loyalty is historically low. Here are some statistics to consider (courtesy of Gallup and Staffing Industry Sales Benchmark Report):
- Just 12 percent of employees agree that their company does a good job onboarding new employees.
- Only 9 percent of candidates think that staffing industry tech use is ahead of the times.
- Roughly 67 percent of staffing firms reported missed revenue opportunities as the biggest negative impact caused by lagging in technology.
- Only 15 percent of temporary workers are redeployed.
Let’s face it, if you want to compete for great talent, the experience needs to change.
This is probably nothing new. Most would say that they know the candidate experience is not where it needs to be and that they wish it could be better. We know we need to be engaging candidates to consistently place, retain and redeploy great talent. But, we also know recruiters and back office personnel are busy and many don’t want to make an emotional investment into this part of their job.
Unless, that is, we start talking in terms of lost revenue—especially within verticals with tight margins, like light industrial. Because when the candidate experience suffers, so does your bottom line.
The hiring process can be drawn as a funnel, like the sales process.
In a typical online hiring scenario, the new applicant enters the top of the funnel when they land on the employer’s job site or online application. As the hiring process continues, an applicant will either progress to the next stage, or drop out of the process. The further down the funnel the applicant gets, the more expensive it is for them to drop off.
Let’s break down a typical scenario including expected time spent, and possible drop off:
- Job site visitors that do not complete their application (0 minutes)
- Potential loss: Missed leads – visitors that do not convert to applicants
- Time to do a phone screen and schedule an in-person/video interview (15-20 minutes)
- Potential loss: Interview no shows or reschedules
- Time to prepare for and execute the interview (15-75 minutes)
- Potential loss: Incomplete onboarding
- Time to submit and place the candidate (?? hours?)
- Potential loss: Declined offer
- Potential loss: Assignment no-show
- Time invested in the candidate (??)
- Potential loss: Incomplete assignment
Now, let’s see how it all adds up. As a simple example, let’s say we have 10 interview no-shows in one week. With 15–20 minutes spent screening and scheduling those people, that is 150–200 minutes lost. If it took 3 hours to get those 10 people scheduled and you are paying that person is $15 per hour, you’ve spent $45 for nothing. This is almost $5 per interview. If you add in time spent by the recruiter preparing for and waiting for the interview, it gets even more expensive.
As we get further from step 1 in the hiring process, it is more expensive to lose people. This is why it’s so important to maintain constant and ongoing engagement from day 1.
You can calculate based on your own metrics to see the lost revenue from each of these failure points. Not only are your recruiters doing more work to fill the same positions, but gone is the valuable feedback and the potential referrals that could help recover some of these missed opportunities.
Add engagement, not cost.
A focus on engagement instantly drives a deeper focus on retention, redeployment and referrals. So, let’s change the perception of the industry amongst top talent that wants to work with you, promote you and tell their friends about you. Let’s help you create those emotional attachments and 1:1 relationships with talent that makes you co-invested in their success.
It can be done, but it takes a company that understands the hiring process and has created a perfect blend of automation and personalization to give you the competitive edge. Now, is the time to raise the bar in the staffing industry. We’ll give you the roadmap to make it happen.