The cost of hiring can make a large dent in franchise profitability depending on the hire’s success. According to a recent CareerBuilder survey, 41% of businesses said that a bad hire cost them a minimum of $25,000 and 25% stated that it cost them as much as $50,000. Continue making bad hiring decisions, and that cost adds up.
Ninety-one percent of franchise owners have trouble recruiting skilled applicants and therefore, end up making poor hiring decisions-which eat up time and money. With the right process implemented, the amount of time and money you spend on hiring can be drastically reduced. All you need is the right strategy.
Assessing Your Costs
Before you decide where to cut spending, you’ll have to determine how much employee recruitment is actually costing your company.
Take a look at both your direct costs, like turnover, job board advertising fees and your indirect costs, like additional training or loss of business during a position vacancy. Another fee that can cause a dent in your recruitment spending is from regularly using paid job board posts. Relying solely on job boards instead of your own career site can start to rack up your recruitment bill.
Franchises can spend a substantial amount of time and waste significant amounts of money searching for the right candidate-due to the fact that they lack a consistent hiring process. The process is much quicker if the majority of your interviewees accept the job. The hiring manager should be deciding early on which candidates they’ll be offering jobs to and what exactly the offer entails.
In order to actually spend less time and money on your franchise’s hiring process, you need HR software that can help you build a better franchise team that’ll stick around for the long haul. Enter Hireology-the franchise industry’s leading hiring solution. We’ve worked with franchises of all sizes to reduce turnover by 50%, time to hire by 80%, and investment per hire by 60%.
Working with thousands of franchise locations across the country, we’ve been able to identify trends and best practices for the franchise hiring process. We wanted to share some of the interesting stats from the franchise locations that we’ve helped to see if they can help your organization.
A Snapshot of How Hireology Saves You Time & Money
Here are a few metrics showing of how Hireology helps save hundreds of franchises’ time and money this year:
The Hireology process helps franchises automatically reject over 80% of applicants before entering the candidate stage-saving significant time to focus on the right candidates. From there, our franchise clients typically hire about 9% of their candidates.
For each position opened with Hireology, we see about 46 applicants. Do you actually have the time to interview that many people? We help franchises prioritize whom to speak with so these 46 applicants turn into 10 candidates-saving hundreds of hours for each position to fill.
Benefit from Using a SmartRankª Pre-Screen Survey
Hireology recommends using pre-screen SmartRankª survey questions for all of your open franchise positions. They’re an important part of the interview process and allow HR managers to really focus on those interested in the job, as well as those who score the best.
The SmartRankª survey questions are determined by the job-specific, pre-screen statements the HR manager answers when opening the job, so it’s related and customized to each position. They’re customizable to include knockout questions, such as: weekend schedule availability, certifications, experience level, and others to eliminate unqualified applicants.
Only 60% of applicants actually take the surveys – if they don’t complete one, you’ll know that they aren’t seriously interested in the job. We see SmartRankª surveys as a great first step to understand whom to prioritize in your candidate pool. As you start hiring, Hireology gives you a numerical score to set as a benchmark for your top performers.
Time saved with Hireology SmarRankª surveys: 18,321 hours
According to The Society For Human Resource Management, the industry average time it takes to make a new hire is about 42 business days. Hireology can cut that time by in half, so it only takes your franchise 22 days to make a new hire.
Hireology projects that by the end of 2016, franchises using our SmartRankª surveys will save nearly 18,321 hours from the hiring process: over 9 years of full-time work that would be otherwise wasted on unqualified applicants!
As for saving money for your franchise, the recruiter cost savings with SmartRankª alone is approximately $200 per location versus a recruiter-all of which adds up for franchises with multiple sites. Beyond the SmartRankª survey, Hireology helps save money by streamlining the process while helping your brand avoid costly recruiter fees.
The industry average cost per new hire is about $4,129, including hard and soft costs. For Hireology franchise customers, the average cost of a new hire is $189: nearly 90% less than the industry average.
To learn more about hard and external hiring costs, click here.
Take Advantage of Your Own Career Site
Career sites are a great way to showcase your employment brand and attract better candidates. With Hireology’s Career Site Plus, we’ll create a clean employment website that lets top candidates quickly learn about your business and team. Our mobile-friendly approach means applicants can learn and apply to your positions no matter which device they’re using.
Career sites are a great way to create a stream of highly engaged and qualified candidates that seek you out proactively. Across our customers, the average career site drove only 3.2% of franchise applicants in 2016, but resulted in nearly 15% of eventual hires!
Ensure Quality of Hires
Hireology lets managers score your new hires to ensure you’re making the best possible hire for your franchise. 64 percent of franchise hires made across our network were scored as either ‘Quality’ or ‘Superior’ hires by their managers 60 days after they joined their franchise. Hireology makes sure all of your hiring costs are going towards an excellent hire to help your franchise business excel on the right path for the long run.
Hiring Smart from the Get Go
Developing a process to hire the best candidates for your positions will ultimately save your franchise time and money by avoiding costs through employee retention. This starts with the proper strategies for hiring qualified employees who will bring in more business to your franchise while being satisfied with the culture and values of your brand.
There are several ways to cut down on recruitment costs. However, by creating a loyal staff of employees and a positive work environment, you’ll keep your positions steadily filled and avoid recruitment costs overall.
Want to save your franchise time and money on your entire hiring process? Get of preview of how Hireology works for your franchise by clicking on the link below.