Every hire matters at an emerging tech startup, but that doesn’t mean the hiring process needs to be months-long. Speeding up the hiring process is better for everyone involved.
Startups necessarily want to be deliberate when hiring. After all, in a smaller organization, every single person matters more, and you can ill afford to make mistakes. Then, you see horror stories from candidates like this one:
“Oleg, I had 7 rounds of interviews. They just called me, and said they want me to come back one last time. The trouble is they did this every time, after 3rd and 4th, etc. – “we need you to come back one last time”. Many questions have been asked multiple times by different people. Obviously, they do not coordinate. Every interview started with them reading my resume again. I am applying for a project manager position, not a CEO of the company. I just told the recruiter that I will not be coming, and that if they want to hire talent, they should stop grilling and start selling. Can you share this for me, please?” Mr. X
“These number of rounds of interviews indicates: 1) Indecision by the “decision makers”, and lack of organisation skills 2) Disrespect for candidates’ time who, I might add, do not get paid for their time and travel 3) Waste of their own people’s time who have other things to do than to ask the same questions over and over again. People who need 8 rounds of interviews should not be in hiring positions.” – Oleg Vishnepolsky, Global CTO at DailyMail Online
How will your startup ensure you are spending enough time to determine the right candidate for the job but not so much time you turn off the most valuable prospects?
Slow Hiring Turns Off Candidates
The job market is competitive, thanks in part to historically low unemployment rates. Finding qualified candidates can be a struggle. What’s more, a startup isn’t the right fit for every candidate, and many times, the best candidates need incentives to risk the move to a small tech company. Given the conditions of the market, slow hiring is a counterintuitive practice that can hurt every aspect of your business.
Multiple rounds of (often) redundant interviews can reveal a lot about an employer. As Mr. Vishnepolsky points out, it can signal disorganization, indecision, and disregard for efficiency (it is not efficient to misuse time on multiple interviews that ask overlapping questions). Multiple interview rounds may signal to a prospective employee that there’s a lack of process at your organization.
Waiting too long to hire a candidate can affect more than just filling an open job position. Data suggests that a lengthy hiring process discourages qualified candidates who often have multiple job opportunities, leading to a smaller hiring pool of mostly lower-quality candidates. You waste your startup’s valuable revenue when job positions stay open too long, often leading to negative perceptions on the part of a hiring manager and potential candidates.
How much does it cost when a tech position goes unfilled?
Contrary to what some may think, it’s not actually cheaper to leave a position unfilled. Salary and benefits may cost your startup far less than the business impact that a vacant position has (in the form of lost revenue). Need to motivate others to hasten the hiring process? Try these calculations that measure the true cost of open jobs at your tech company (as well as turnover).
Key Performance Indicators for Your Hiring Process
The best way to optimize your hiring process is to track recruiting metrics. This process can help you see how much you spend to fill job roles, measure the effectiveness of certain recruiting strategies, and evaluate the length of your hiring process (among many other benefits).
Start with the following recruitment metrics:
- Quality of hire
- Cost per hire
- Recruiting yield metrics
- Time to fill
- Source of hire
- Offer acceptance rate
- New hire turnover
Workable suggests setting KPIs once you’ve determined the right recruitment metrics for your startup. In particular, they recommend you utilize “Interviews to offer” and “Interviews per hire” as KPIs to determine recruiting efficiency. So far, Workable has tracked that days-to-hire can average 15 for IT/ Design positions, and up to 26 for Finance/Accounting jobs.
Average Days to Recruit Highly Skilled Workers
Quick Hiring Resources
Our archives serve as a great resource for technology startups as they develop their hiring process. If you need help or would prefer to outsource your hiring process, reach out to Growthwright – we’d love to help you!
Writing a Job Post
Elad Gil, who sold his startup to Twitter, writes that as startups grow, creating a scalable process for recruiting and onboarding employees is vital. This includes writing out actual job descriptions, which are the basis for job postings that are used online.
BizJournal recently reported that reducing the time to hire is a top priority, as surveys indicate that most (60%) of new hires find a job within two months while 43% are offered a position in less than two weeks after starting their job search. Shortening the hiring process is a priority, even for companies that report quick hiring periods, according to HR Dive.
This process isn’t without risk. And, because startups are reported to have some of the fastest hire rates and highest turnover rates, it might be a good idea to work with a professional HR recruiter who can avoid the downsides of a fast job cycle.
Growthwright is a business technology services provider and part of the Powered Health portfolio. Learn more about Growthwright and the services we offer to technology startups by clicking on the button below.
Bridgette is the Director of Human Resources at Growthwright, with 12+ years of experience in all areas of Human Resources including: Benefit Administration, Employee Relations, Performance Appraisals and Compensation Management, New Hire Orientation and Onboarding and Recruiting.
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