- Hiring inefficiencies are hurting small and mid-size companies, according to the 2019 BerniePortal Recruitment Report. The survey of HR leaders by the HRIS portal found hiring has been too slow for these employers, resulting in small to mid-size companies losing out on quality candidates.
- In other survey findings, most of the respondents (61%) said hiring was either their highest HR priority or one of their primary HR goals. Forty-seven percent of respondents said their time to hire is, on average, between 15 and 30 days, while 20% said their hiring time averages between 31 and 45 days and 13% said their organization takes longer than 45 days to hire.
- The report recommended that HR streamline the time-to-hire process, but findings show internal tech processes may be a challenge unto themselves; only 17% of respondents use applicant tracking software.
HR leaders recognize the need to streamline and speed up time-to-hire. But as BerniePortal Recruitment pointed out in its report, quality talent doesn't stay on the market very long, putting small and mid-size businesses at a hiring disadvantage. What's more, the tight labor market is only shortening time-to-hire, according to a 2018 study by Clutch, making for even greater pressure on smaller businesses to compete with larger companies.
Another reason for shortening time-to-hire is cost: the longer a position stays vacant, the costlier it is to fill. According to the Work Institute's 2017 Retention Report, replacing a hire can cost up to $15,000 per person for an employee with a $45,000 median annual salary. For smaller businesses, keeping up with the frantic hiring pace may mean looking to freelancers and independent contractors, according to Paychex data.
However, employers also take the risk of hiring too quickly, sacrificing candidate quality in the process. A bad hire can mean restarting the recruiting process at a higher cost. Companies can turn to technology for a solution; screening technology can select applicants more carefully, and it can thoroughly assess candidates who make it through to the interview segment of the hiring process.