Slow hiring is hurting your company’s chance to succeed

Slow hiring and unfilled positions are damaging your company’s chance to succeed in a post-recession, hyper-competitive market. What is the actual impact of these unfilled roles on the company’s morale and the direct and indirect financial implications is a question for every CEO to mull over.
On an average, businesses lose more than $14,000 for every position that remains vacant for three months or longer. A study by CareerBuilder® revealed that 1 in 6 companies lose $25,000 or more when a position remains open for three months or more . The larger economic cost of unfilled roles in the US in 2015, was calculated at a staggering $ 160 billion annually. While these statistics are worrisome, companies need to realize that the war for talent is ongoing in good times as well as in the challenging economic times.
Smart candidates are quick to leave an opportunity if the interview process is deemed to be too cumbersome or protracted. To put it simply, you’re more likely to lose your top applicants due to a slow and pedantic hiring process. This also means that you’ll have to select from the remaining candidates that may result in less than desirable performance for your organization.

Why do you need to hire faster?

When we say that you need to hire fast, doesn’t mean that you hire recklessly. But it is important to determine if your hiring process is too slow and what can be done to change it.
According to the DHI hiring Indicators, the average time to hire is around 28 days. This is an unparalleled high for recruiters and you have an opportunity to beat it. When you spot a good candidate, it is important to retain the candidate’s interest in your company because you’re not the only employer that candidate is considering.
At this point, it is interesting to note that approximately 10% of the top candidates are hired within 15 days. Going by that number, if you don’t accelerate your hiring process, you’re likely to lose the high potential candidates who are proactive and driven by the probable growth in their career.

Slow hiring process impacts overall performance

When your key positions lie vacant for 3 months or longer because of a slow hiring process, it will impact your company’s performance and productivity, especially for revenue generating roles such as in Sales and Marketing. Your existing employees get overworked, which leads to a low morale and in turn, low productivity.
According to a survey conducted in 2014, 60% of employers are concerned about the costs associated with delays in filling vacant positions, with 1 in 4 asserting that they have experienced revenue loss as a consequence. Almost 41% of employers reported lower morale amongst their employees due to increased workload, 34% reported delays in delivery times and 30% stated they experienced declines in customer service.

Are you taking too much time to hire?

A Glassdoor survey conducted in 25 countries revealed that companies seemingly have substantial control over the length of their interview processes. A simple regression analysis shows that about 14.7% of the difference in hiring delays around the world is due to a company’s internal decision-making factors rather than the external ones.
So, the question here arises – how long is too long? According to available stats, about 32% of candidates stated that a hiring process lasting over 21 days is considered too long.

Final musings

Hiring is one of the most important decisions a company has to make. Most companies lengthen the interview process to avoid the risk of making a mistake or in a mistaken belief that hiring slowly will help them net the best candidate. But they often end up losing the top candidates in the process and have to start from the scratch.
The key takeaway from our analysis here is that employers should seek to strike a balance between carefully screening candidates and filling the open positions as fast as possible. A few questions need serious considerations like, are the extra layers of interviews actually helping them in selecting better candidates? Or are they simply delaying the hiring process? Eventually, companies must be prepared with a recruitment strategy that is both thorough and nimble.

http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?ed=12%2F31%2F2014&id=pr807&sd=3%2F6%2F2014
http://dhihiringindicators.com/
https://www.ere.net/the-top-12-reasons-why-slow-hiring-severely-damages-recruiting-and-business-results/
http://careerbuildercommunications.com/skillsgapstudy2014/
https://www.glassdoor.com/research/time-to-hire-in-25-countries/