The growth of the e-recruitment industry has been fuelled by the adoption of technology and internet penetration. Organizations have cut costs by almost 80% over traditional recruitment modes by moving over to the online recruitment process. Recruiting online is ideally more focused, fast paced, effective, and gives higher ROI on administrative expenses.

The costs associated with manual recruitment can become quite excessive, partly because of the candidates that are produced. One bad candidate can cost a company more than ten times that individual’s salary, and here’s why:

Recruitment Cost #1: Work Load

When a person leaves, someone has to do their job. If an employer has not yet hired another employee, they are forced to pay their current employees overtime. This as we know, costs twice as much! The manager must also stop what they are doing so that they may determine a game plan and find individuals willing to work overtime.

Recruitment Cost #2: Exit Interview

When a person leaves, someone has to stop their current job in order to conduct an exit interview. They also have to arrange for the payroll to be stopped, benefit deductions, benefit enrollments, and other administrative responsibilities. It is very time consuming!

Recruitment Cost #3: Advertisements

Lots of wasted money is invested into newspaper ads, online ads, job board site fees, and other avenues that may be pursued. Often times employers receive recruitment company offers, spam replies, temp agency replies, everything they don’t want and nothing they do.

Recruitment Cost #4: Interviewing

It takes time for an internal recruiter to review candidate’s resumes, schedule phone interviews, perform background checks and conduct a face-to-face interview. Aside from time, internal recruiters aren’t free and they aren’t cheap!

Recruitment Cost #5: Lost Productivity

Aside from not having anyone to fill a position, other individuals are forced to spend less time on their job and more time on additional tasks. Whether it is the manager, accountant, administrative staff or general employees, everyone is producing less!

Recruitment Cost #5: Training

Not only do you have to train a new employee but you have to pay them during training. Further, the individual doing the training has to stop what they are getting paid to do so that they can show the new person “the ropes.”

Recruitment Cost #6: New Hire

The new hire has to be added to payroll, registered for benefits, and added to the schedule. The company has to pay employment taxes and invest money into training. This can be very expensive!

Recruitment Cost #7: Effort

Because the new hire hasn’t been fully trained, the work that they produce won’t quite be up to par. For at least the first month, their focus is on improvements.