COST SAVINGS CASE STUDIES

The Employment Center can generate substantial cost savings by eliminating the need for personnel to screen resumes and applications for qualifications. Consider the following case studies as examples:

Case Study 1

An employer has an opening for a programmer. A recruiter is assigned to review applications and resumes. The recruiter’s annual salary is $35,000.00. The annual salary for the programmer is $60,000.00. Following is a calculation of the recruiting costs for this position with and without the Employment Center:

Recruiting Costs Not Using the Employment Center
Advertising Costs:
Monster $130.00
Hire.com $110.00
Paper $200.00
Total $440.00

Recruiter Costs:

Time allocated to application/resume review:
Recruiter has three job openings averaging 60 days to fill, and spends 50% of time reviewing applications/resumes:
(50%X60/3)X(35,000/12/21) = 1388.88

Time allocated to candidate qualification:

Recruiter has three job openings averaging 60 days to fill, and spends 50% of time qualifying candidates:
(50%X60/3)X(35,000/12/21) = 1388.88

Opportunity Costs:

Productivity lost while job is open 60 days
Programmer analyst salary/work days open
60,000/12/21X60 = $14,285

Total cost for this hire: $17,501.00

Recruiting Costs Using the Employment Center

Utilization of Employment Center reduces recruiter time to screen applications and resumes by 25%, saving $694.00 on this hire alone. By decreasing the time-to-hire by the typical 40%, another cost savings of $5,713.00 may be realized.

Case Study 2

In analyzing the use of the Employment Center by one nationwide employer for a ten-month period of time, some very interesting facts were derived:

During this period of time:

Approximately 34,500 job seekers were processed by the employer’s web-based applicant screening system.

Of the 34,500 job seekers, 24,182 were screened out effectively and efficiently by the pre-screen questions to determine minimum qualifications (and the records maintained and housed in the event of future potential need).

Approximately 10,000+ qualified job applicants remained, and the system ranked these based on their answers to the pre-screen questions yielding approximately 50% that were chosen for further consideration.

In summary, 34,500 job seekers were screened. Approximately 5,000 of the 34,500 were the most qualified applicants and their data files were collected automatically, requiring no screening by HR personnel. The employer saved almost 2,000 hours of HR department time by utilizing the Employment Center to automatically screen 34,500 job seekers to obtain 5,000 qualified applicants.

Case Study 3

The Employment Center includes optional New Hire Tax Credit Processing. Tax credits recovered for employers that hire eligible employees can be as much as $8,500.00 each with the typical credit averaging $1,300.00 per eligible employee hired. These credits represent a dollar for dollar credit against the employer’s income taxes payable and their recovery can quickly pay for the use of the Employment Center.

These case studies show that the nominal investment in the Employment Center can be quickly recovered in costs savings and tax credits. The typical savings represent a return on investment measured in months rather than years as is the case with competing systems.