The ROI of Video Interviewing
- The average company spends $500 per day that a position remains vacant
- Hiring a new employee costs an average of $4,129 – a cost that jumps to around 30% of their first-year salary if that employee is a bad fit
- Companies stand to lose as many as 89% of potential candidates due to prolonged screening processes
- 80% of employee turnover can be attributed to mistakes in the hiring process
- 57% of companies have a dedicated team member to schedule interviews because 2/3 of the hiring process is spent solely interviewing
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The cost of hiring a new employee
Hiring a new employee costs an average of $4,129 – and that’s if the hire works out. In the case that an employee ends up being a bad fit, the cost jumps up to around 30% of the employee’s first-year salary.
80% of employee turnover can be attributed to mistakes in the hiring process. With HR tech, like video interviewing software, the likelihood of those bad hires decreases. For starters, hiring pros have more time to screen and interview candidates. Beyond that, with no geographic or time barriers, there’s endless sourcing opportunity. Video interviews are also more convenient than in-person meetings for candidates, resulting in higher engagement.Think about it — if a passive candidate is invited to interview in an office, it’s probably an automatic no. But, a 15-20 minute video call from the comfort of wherever they are at the moment? The chances that you get the candidate’s attention – and time – just skyrocketed.Let’s cover some of the other ways video interviewing software is a great ROI.
Provide the scheduling flexibility needed to make great hires
On average, recruiters spend two-thirds of the hiring process screening candidates and scheduling. Video interviews, specifically one-way interviews, provide the flexibility that hiring teams need to make great hires. No longer confined to business hours or personal schedules, the once-tedious screening process becomes quick and simple for both candidates and recruiters.
When Extraco Banks wanted to reduce time spent interviewing, they replaced their hour-long pre-screening phone call with interview on demand. As a result, they saved $817 per candidate.For curiosity’s sake, let’s consider the average corporate job opening – it receives 250 resumes. Realistically around 25% of those candidates are actually screened or interviewed – that’s $51,062 in savings per position.
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Create consistent processes
An inconsistent process will generate inconsistent results – every member of your team (no matter how large) should be on the same page throughout the hiring process. Video interviews and their recordings help teams develop and maintain a universal standard of criteria.They also give hiring pros an opportunity to build deeper connections with candidates than a paper resume or phone call could, improving candidate engagement and allowing for better-informed decision making – companies stand to lose as many as 89% of potential candidates due to prolonged screening processes.Bealls Inc. needed a way to improve the consistency and effectiveness of its interview processes. The challenge? The organization spans 500 stores with 14,500 employees nationwide. Using the interview on demand tool, Bealls standardized it’s processes across the board – resulting in a 56 day reduction in time-to-fill.
Make higher quality hires
A bad hire costs around 30% of an employee’s first year salary. Video interviewing software helps ensure that you’re placing a great fit from day one by serving as a centralized hub for hiring pros. Every candidate has a comprehensive profile made up of resumes, interview recordings, recruiter feedback, progress updates, and more. This way, every internal touchpoint can get a holistic view of a candidate before signing any paperwork.The recruiters at National Heritage Academies were constantly booked with phone interviews, leaving them with no time to actually evaluate or discuss candidates. They turned to video interviewing software, specifically one-way video interviews, as their solution. Once equipped with the right tools, recruiters saved more than 750 recruiting hours that year, reporting stronger connections with candidates thanks to a more efficient internal communication system.
Calculate your ROI with interviewstream
There are countless ways that we can help you:
- Save time
- Lower costs
- Hire better candidates
To calculate your company’s complete ROI, one of our experts will help you figure out where our platform will help you most. Simply click here to schedule a meeting and let’s crunch the numbers together.
interviewstream is an industry leading recruiting software company that helps you reach your top candidates more effectively. Our customers have completed over 3 million interviews using interview builder, interview on demand, interview scheduler, interview connect, and interview prep and we’d love to help you as well. Talk to an expert today to learn how to get started.