This is a story about how our hiring software—Toggl Hire—helps us save money.
Staff turnover is the biggest financial waste in many companies, however very few discuss the true extended costs and the multiple ways that it impacts the business.
Some studies (such as CAP) suggest that the total cost of losing an employee can range from tens of thousands of dollars up to 213% of annual salary for highly educated executive positions. For example, the cost to replace a $100k CEO is $213,000.
There are several steps that can be taken to keep strong employees engaged and happy at the company. But in order to lower turnover rates, it’s also important for businesses to ensure that they are hiring the best candidates for the job, individuals who have the needed skill set and will be more likely to stay and grow with the company for an extended period.
How can you know that the candidates applying have the skills you need in the position?
Testing before you buy
Pre-employment skills testing is gaining popularity fast as it increases accuracy, reduces costs, and speeds up time to hire. And recent research across industries also shows that these tests are good predictors of performance.
We have been using “test-first” approach for years now and we are not looking back, because screening actual job-related skills before reviewing resumes or conducting interviews enables our managers to make rational decisions that are based on objective variables.
The hidden costs of screening
Screening résumés is a long and tedious process. Many expensive mistakes can be made here in wasting too much time for wrong candidates.
Here’s a breakdown of the savings from using Toggl Hire for filling just one position, if average staff time is worth $40/hr to your company.
More reasons to adopt pre-employment assessments:
- Lowes application barrier
- Engages greater number of candidates
- Gives a fair shot to all candidates
Toggl has had more than 40,000 applicants over the last years and out of them we have hired 50+ talented people —with only one person to oversee them all.
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