| > But is it less expensive than other methods of interviewing? I'm going to assume you are including the costs of firing people as part of "interviewing" after they have been hired and found to be a bad fit. I'll take a stab at this. 160k annualized per hour is about 77 dollars an hour, if we're assuming 260 work days a year and 8 hours of work a day. $77 * 4 hours of a day = $308 additional cost per interview. I'm going to assume you're already doing some panel interviews with at least 2 people, so I won't include their cost in there. And there's potential savings if we only have 3 people interviewing for the 4 hours instead of 4 or more. Let's say I am trying to hire for 20 positions, and I am willing to interview n=15 times per position. 20 hires * (15 interviews * $308 per interview) = $92400 additional cost, whether I get 0 or 16 successful hires out of this process. If we think about the cost of onboarding someone with 3 other employees who are getting paid about the same over a period of 3 months: 308 * 3 employees helping with onboarding * 65 work days * 8 hours * 10% of time spent onboarding = $48048 cost of onboarding 1 employee Let's define a bad hire as someone who contributed no value and we'll treat the salary we paid them up until the point we fired them as a sunk cost. It takes maybe 4 months (260 * 4/12 = ~87 work days) to figure out that someone should be fired if it's not super obvious? Let's say we would have normally only hired half of our target candidates (10 out 20). I'll also be conservative and say the new process reduces the number of bad hires by 10%. So assuming 1/10 of our actual hires was bad: ~87 work days * $308 per day + $48048 cost of onboarding 1 employee + ~$5000 for health benefits = $79844 cost of firing 1 person, not including the cost of other employee benefits, the effect on morale, etc. So here you're adding a cost of about $12556 dollars. I think the cost of firing someone is actually a lot higher than what I have calculated here, though I don't know what the actual figures are for that. But I feel that if candidates at least enjoy the process more (which based on this thread, it seems like a lot of people here would), then isn't that a drop in the bucket in the company's bottom line for something pretty valuable? There's obviously a lot of other intangibles at play here and we can model this all sorts of ways. Let me know if I've made some egregious error. |