Non-income generating tasks, like hiring, can take up to 40% of valuable working hours. Here is a complete breakdown of the total costs of the hiring process.As a small business owner, did you know you can spend about 40% of your working hours on non-income generating tasks, like hiring? If we breakdown the hours it takes to find and hire a successful employee, business owners could spend about 38 hours just on hiring. That's 38 hours you could have spent on making money for your business. And without an in-house HR team, hiring can be difficult. You don't want to waste time on a bad hire.
It might seem like an easy task. Just post your job on a job site, like Indeed, and the resumes will start coming in. Then, you just do some interviews and you find the right person. Unfortunately, it's not that easy. You need a well-planned job description with lots of details to attract quality candidates to your job opening. But that's not always enough. Over 70% of the current workforce are considered passive candidates, meaning they are not looking for a new job, but they're open to the right job opportunity. To reach those candidates, you need to do heavy searching in many different areas. No business owner wants to spend 14 or more hours searching for candidates. However, that’s typically how hiring experts are finding the right person for the job.
Once you start receiving resumes, it will take some time to sort out the unqualified candidates. Depending on the amount of applications received, expect to spend about 6 hours reviewing resumes.
You definitely want to take the time to pre-screen candidates with a short phone interview because it will save you time in the process. In-person interviews tend to take longer than a phone interview and if you can screen some candidates out it will save you time. However, it will still cost about 4 hours, again depending on the number of candidates you plan to contact.
Phew. Now you've found your top 4 or 5 candidates and the interviews are scheduled. It's time to prep for your interviews. Being prepared for interviews is a great way to ensure your thorough and gives you confidence you're going to hire the right person for your job. Expect to spend about 8 hours on interviewing your top candidates to give some background on your company, ask your in-depth questions, and allow the candidates to ask their questions.
You've now narrowed it down to 2 or 3 candidates. Time for the final interviews to ask any final questions that may have come up after your other interviews and to do the reference checks. After you extended an offer and finished up the final negotiations, you’ve spent about 3 hours on the final steps. Hiring is a long process, but it needs to be to ensure you have a good hire the first time. Check out the complete breakdown below.
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