Your Talent Gap is Your Profit Gap. Here’s How to Fix It.
Sep 20, 2019 7:42:35 PM
In today’s fast-moving recruitment industry, your business’ hiring process can make or break your bottom line. However, because recruitment is usually left to an internal HR team or third-party staffing firm, it’s not usually high-up on the list of priorities for CEOs to think about — but recruiting impacts a business’ profits more than most C-Suite executives may realize.
nfortunately, because many companies are still manually recruiting talent, this process is painfully slow: On average, the recruiting process takes 23.7 days. The most recent data showed long-lasting vacancies in health services (49 days), finance (42 days), government (36 days), education (35 days) and information technology (32 days).
So, how do these long time-to-fill processes correlate with profits? There are actually a few different ways. Let’s take a hospital in need of nurses, for example. If you’re in desperate need of a new nurse, but are stuck in a 49-day recruiting process, this means you can’t serve additional beds in your hospital — a major loss of everyday profits for that time period. Meanwhile, the inability to hire a new nurse fast enough means your other nurses are working more hours to pick up the slack, which means you’re paying more in overtime costs. Not only are you losing money through OT pay, but you’re also causing your current employees to burn out much faster — which can lead to higher turnover rates. The re-hiring process will start all over again, putting you right back where you started, which isn’t cheap: The re-hiring of just one nurse can cost $56,000, and re-hiring a doctor can cost up to $600,000.
Not a pretty picture for a business’ wallet, right? However, this can easily change if you simply introduce AI tools into your recruiting process. Here are just a few of the many ways that AI tools can transform your recruiting efforts and save your enterprise up to millions of dollars:
Automate workflows and reduce tedious tasks: Using web-based recruitment software combines the latest in Artificial Intelligence (AI), Machine Learning, automation and chatbot capabilities to eliminate the most time-intensive parts of the recruitment process. By creating smoother workflows and allowing recruiters to engage with candidates more, time-to-fill ratios can be reduced and help you attract top talent faster. In fact, for one hospital that worked with XOR’s AI recruitment platform, they were able to decrease the time of their hiring process by 33% and save 75% of their talent acquisition team’s time spent on repetitive tasks!
Improve your company’s reputation for potential hires: One of the worst things that can happen in today’s recruiting environment is the impact of negative reviews from job candidates on popular job posting sites. If your HR team is so busy that they’re creating slow hiring processes and are unable to properly follow up with candidates, chances are your company will receive negative reviews online and deter top talent from applying to your open positions. But by incorporating AI tools like recruitment chatbots and automation capabilities, you can increase candidate satisfaction, trust, and attraction to your brand by up to 99.3%. This means you can attract the best talent around, and when combined with predictive analytics tools, help your business’ bottom line through reduced turnover rates.
Reduce bias and increase diversity: Everyone knows that diversity in the workplace is more important than ever. Unfortunately, manual recruiting processes leave a lot of room for unconscious biases to take effect and make not-so-diverse hires. Luckily, you can train AI chatbots to be 100% unbiased and therefore bring you qualified, diverse candidates without letting human bias taint candidate pre-screenings.
No matter your industry, all of these factors can contribute significantly to your business’ bottom line by decreasing your profit gap. By implementing AI recruitment software into your business, you’ll see thousands — or even millions — of dollars in ROI and saved costs, all from seemingly simple actions like reducing time-to-fill, reducing hiring bias, and automating recruiter workflows. These small differences in hiring processes will make a much bigger impact on your profits than you might anticipate. Schedule a consultation with XOR today to see how much you might save by using AI in your recruitment efforts!