Estimated Savingsfor Video Screening and Interviewing on Cost-Per-Hire

Most surveys put the average cost per hire in the $5K to $7K range depending on location, type of position and company size. On campus recruiting, job fairs, and lots of other costs are factored in, so it can be difficult to come up with a one-size-fits-all number for one event, so instead we will try to assess just the savings. Below is a list of metrics used in identifying the cost per hire, with the columns on the right being the potential savings that could be achieved by using video screening and interviewing. The scenario assumptions are below:

Assumptions and calculations:

  1. Management cost is $65/hr. ($1.083/min) and Administrative cost is $35/hr. ($.583/min).
  2. The pre-screening process still uses direct phone contact to a field of 20 candidates, but they have passed through online knock-out filtering saving 10 minutes of phone time each for a total of 200 minutes.At $.583 per minute, that would represent $117.
  3. Interview scheduling time is reduced by 5 minutes per candidate because it is done online vs. over the telephone. That accounts for a savings of 50 minutes which at $.583/min is $29.
  4. Interviewing happens in three stages.
  5. Stage 1 - Administrative or HR interviewing takes place online. Each interview is 15 minutes shorter representing a total time savings of 150 minutes for 10 interviews. For the Admin/HR level, that represents $87. Interviews are saved for future reference and review by management.
  6. Stage 2 – Management interviews occur online saving 15 minutes each, but management is only interviewing a short list of 6 candidates rather than 10 because of the video interviews. The savings would be 15 minutes times 6 interviews or 90 minutes. Plus, having 4 lesser interviews would be 4 times 45 minutes each or for 180 minutes, so the total saved would be 90 + 190 or 270 minutes.
  7. Stage 3 - Final interviews are face-to-face to a field of 3 instead of 5.
  8. At least one site visit is saved by using video screening.

Video Screening & InterviewingSavings

Internal costs Time (min) $

Managementand Administration

Sourcing

Pre-Screening(1)200 117

Scheduling (2) 50 29

Interviewing

Stage 1 Admin/HR (4.a.)200 117

Stage 2 Mgt. (4.b.)200217

Stage 3 Final (4.c.) 9097

Background & ref. check

Final Selection120130

Offer extension, acceptance

Print and online materials

Overhead, facilities and technology

Subtotal707

External costs (actual)

Advertising, online search, post, referral fees

Job fairs

Travel, lodging, meals and related

Materials, supplies

Interview costs

Travel, lodging meals and related800

Pre-employment testing, validation

Relocation

Total estimated savings835 minutes $1507

So in this scenario, video screening and interviewing represents ~25% decrease in the cost per hire. It seems clear that the use of video has lots of advantages and probably reduces the Time-To-Fill as well.