Design your HR 4.0 Superpower: Cost Savings
Our top to-dos this season is year-end budgeting and becoming 2023-ready. Adding doom and gloom to the list are the recession and talent shortages.?
At this time, we like to view recipes for striving, thriving, and ‘doing more with less’. We focus on what has been streaming growth - tier 1: Innovation & tier 2: Operations and lock in on performance!
This points in the direction of balancing investments and costs - a practical win! Working at two speeds: investing in sustainable HR 4.0 technology and addressing the Savings.
The next set of insights is an attempt to Design your HR 4.0 Superpower to perceive the Cost Savings & effectiveness of your HCM business case. Like how we all have that innate ability to evaluate price tags on brands & shopping discounts and quickly put an intelligent number on savings.?
As you read, try to categorise the use cases under Cost of new Talent Attraction, Productivity gain, Employee Engagement, Turnover/Retention related, and Talent management/Onboarding savings.
??Sourcing & Attracting Candidates
Multiple subscriptions to job boards and employer branding & ad cost formats for different channels, recruitment agent fees cost varies depending on the volume of vacancies, pay-per-click models, employment type, experience level, job market trends etc. The average cost for sourcing & attraction could be $500 to $10000 per hired candidate.
Save up to 40%: Embrace a single integrated sourcing interface in a way that maximises the use of your external recruitment budget. Read more about Smart Sourcing going beyond static career sites and, automating job posting & profile imports and re-engaging your passive talent.?
The bonus! You could have an effective starter for sourcing from a warm & qualified pool of candidates (cutting down the noise from different channels).?
??Screen-Search-Match Profiles
Candidate assessment costs, Validating skills, references and mandatory profile information multiplied by your benchmark and appetite to review X profiles per hire.
Save up to 35% with conversational screening using HR chatbots and an additional 60% with AI-powered candidate matching . Relying on the recruiter’s time, given the volume of candidates and skills to review per job, is an expense directly associated with your Hiring and Recruiting team’s salary, an estimated $25-$70 per hour.?
??Engage & Nurture Candidates
The cost of unfilled positions and bad hires , typically costing 30% of the employee salary is a tough dent to have in the recruitment costs.
Research conducted by EVA.ai on candidate experience with more than 125 companies across 36 industries reveals a huge potential for savings from engaging candidates and improving response times. Stats: Job application time of 17-21 minutes and 73-90 clicks; employer’s feedback and responses to candidates take at least 22-25 days.
Save up to 60%: The availability of the Recruitment team for candidate engagement activities is a time crunch. Using Chatbots to launch candidate engagement & re-engagement campaigns can automate 80% of recruitment workflows and result in 90% application completion rates with just 8-12 minutes of application process time.?
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??Employee Onboarding
The cost to attract and induct a new candidate into the organisation involves the effort of a talent manager to guide on filling out forms, sharing employee handbooks and policy information, and training. The cost of onboarding would cost an average of $4100 per hire , varying on the factors like onboarding pipeline, resources availability, in-person vs remote onboarding and so on.
Save up to 50% by offloading the onboarding execution steps to a smart chatbot that can reach out to multiple candidates with data collection forms, share training videos & assessments and track successful completion.
??Talent Mobility
Identifying and building internal talent is the best bet on talent acquisition and retention costs. Talent mobility has 22-25% greater conversion rates (3x more than external sourcing) and 4x lesser ramp-up times
Save up to 20% from external hiring costs and gain the advantage of operational continuity with internal talent (??zero onboarding costs).
?? Employee Engagement
Engagement is a checkmate for resignations, absenteeism, and performance. You could measure the engagement metrics for individual initiatives such as improving career opportunities via intelligent promotion recommendation & succession planning, reskilling programs or mobility opportunities.
Save up to 30-40% on replacement costs (typically 2x the employee’s salary) and productivity gains with the status quo
You could benchmark your efforts similarly to the various activities in your hiring and talent management cycles. If you already track your hiring and workforce metrics, dust off some data to make the best cost projections.
As you have taken an interest in learning the breakdown of savings until here, I will simplify it further for you!??
Check out this ROI calculator on EVA.ai and get a free customised report on your savings.
Feel free to chat with me about your queries or recommendations on taking control of operational costs. Talk to Ben?