The cost of screening candidates by phone or two way video can vary widely depending on several factors, including the industry, the role being filled, the geographic location, and the specific processes used by the company. Here’s a breakdown of some of the key cost components involved in phone screening:
1. Recruiter Time
Recruiters spend a significant amount of time on two-way screening. The cost can be estimated by considering the recruiter’s hourly wage or salary. For example:
- Hourly Wage: If a recruiter earns $40 per hour and spends 30 minutes per phone screen, the cost per screen is approximately $20. Then you have the phone tag and organising times, Lets add another 15 minutes. Total = 45 minutes ($30)
- Annual Salary: For a recruiter with an annual salary of $80,000 (which breaks down to about $40 per hour).
2. Example Calculation
The total cost also depends on the number of candidates being screened.
Let’s assume a mid-sized company with two recruiters who each conduct 10 screens per day, 20 days per month. Each screen takes 45 minutes which includes costs associated with screening candidates (Admin, emailing, scheduling etc.).
- Screening 200 (Per month) candidates at $30 per screen results in a total cost of $6,000.
- Screening 2400 (Year) candidates at $30 per screen results in a total cost of $72,000.
3. Technology and Infrastructure
Using recruitment software or Applicant Tracking Systems (ATS) to manage two way screening processes incurs further costs which we have not included:
- Software Licenses: MO Teams, Zoom, ATS’s, CRM etc.
- Phone Charges: If international candidates are being screened, international call charges might apply, though many companies use VoIP services to reduce these costs.
4. Training and Overhead
Recruiter training and other overhead costs should also be factored in:
- Training: Costs associated with training recruiters to effectively conduct phone screens.
- Overhead: Office space, utilities, and administrative support contribute to the overall cost.
5. Opportunity Cost
Time spent on two way screening could be used for other recruitment activities, such as sourcing candidates, conducting in-depth interviews, or strategic planning. This opportunity cost can be harder to quantify but is significant.
6. Effectiveness and Efficiency
The efficiency of the screening process impacts cost:
- Streamlined Process: A well-structured screening process like FaceCruit video prescreening software can reduce time to screen upto 80%, therefore saving 80% of overall costs. Also all candidates will have a fair and non-bias interview process.
- Redundant Screening: Inefficient processes can lead to multiple screenings of the same candidate, increasing costs.
Conclusion
While the exact cost can vary, estimating the dollar cost of phone screening involves considering recruiter wages, the volume of candidates, technology, overhead, and process efficiency. For a more precise calculation tailored to a specific company, detailed data on these factors would be needed. However the cost savings using tools video interviewing software like FaceCruit are a more cost affective and accurate way of screening candidates.