One of the things that drives up the cost of doing business is having a high turnover rate. Whenever a company loses an employ before they have been with the business for six months, money is lost on the training the individual received. Because of things like this, HR software has become extremely important to keeping profit margins up.
That this into consideration, it is interpreting to learn that, according to a recent survey conducted at the 2008 Taleo World User’s Conference, 72 percent of applicant tracking systems users are unaware of the costs of on-boarding for their highest-turnover positions.
In addition to this, 43 percent said that they are not in the practice of tracking or reporting on 120-day turnover rates. Since this is the time period where losing an employ will cost the company the most money, employers are obviously not using their applicant tracking systems to the best of their abilities.
According to Shaker Consulting Group, most businesses spend $10,000 to $15,000 for each new employee they hire for an entry-level position. If the company in question losses 10 new workers in 4 months time, then it has lost approximately $100,000.
Another 86 percent of participants reported that they are not asking applicants about the experience they had while applying to their company through the Internet. This means that very few businesses have an idea of how effective their online recruiting methods are working.
Those who participated in the survey were asked to only respond in regards to their applicant tracking and 120-day turnover rates. Of these individuals 94 percent said that they do not currently include a multi-media job preview as part of the experience they create for job seekers.
All of these things considered, it is not shocking that 43 percent of respondents said that their online recruitment efforts have yet to generate a candidate experience positive enough to create referrals for them to draw from.
This survey goes to prove that, through accurately utilizing HR software company’s stand to save a great deal of money and learn better hiring techniques. Both of these things can benefit any business, especially during a time when the economy is unstable and budgets are somewhat smaller than usual.