Direct Sourcing Saves You the Cost of Bad Hires  - Hrtech cube

It’s expensive for employers to have a job open for too long. CareerBuilder estimates that employers lose more than $14,000 on average for every job that stays vacant for three months or longer, and this cost can be upwards of $25,000 for more advanced positions. This can often lead to a sense of impatience as a human-powered hiring process drags on, leading to snap decisions fueled by human bias.  

Hiring the wrong person for the role is even more expensive, however. According to hiring expert Dr. Bradford Smart, the estimated cost of a mis-hired worker can be anywhere from 5 to 27 times the amount of the person’s actual pay. This number depends on their role and responsibility level, and the cost of recruiting them using traditional third-party sourcing–which, according to the Society for Human Resource Management (SHRM) can cost up to 3 to 4 times that person’s salary on paper.  

Direct sourcing eliminates much of the cost of bad hires by automating the process, and delivering to you qualified, interested candidates quickly and efficiently. Directly sourcing from a talent marketplace – one that matches candidates based on the information you have given about your desired skills and qualifications, more so than subjective criteria like “cultural fit” or whether they went to the same college as your hiring manager – makes it much more likely that you’ll find a good fit.  

One final note: your employees and managers are probably not afraid of using AI in the hiring process as you might think. According to the Pew Research Center, nearly half of American workers trust AI to do a better job than humans when evaluating all job applicants equally.  

Change is hard and it can be intimidating to think about adding direct sourcing to your hiring strategy. But based on my experience, I can confirm the time is now to make the leap into AI-powered direct sourcing, especially if you are trying to streamline your operations in a constantly changing economy. It’s easier to weather economic headwinds while still hiring quality talent if you eliminate a lot of the cost and bias of human recruiters. 

Read more @ https://hrtechcube.com/how-ai-powered-direct-sourcing-increases-productivity-better-hires/