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On Trend: Video Interviewing to Reduce Time and Cost of Hiring Process

If you’re frustrated over how time-consuming and costly it is to recruit talent to fill your vacant positions, you’re not alone. One way to take the pain out of your company’s hiring process, and ensure you’re attracting ideal candidates from the start, is through the use of video interviewing.

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In late 2012, The Office Team asked more than 500 companies with 20 or more staff if they were using video interviewing. At that time, 63 percent of hiring managers indicated they were conducting interviews by video, a 14 percent increase from 2011. If that trend continues, we can expect that at least 70 percent of these companies will be conducting video interviews by the end of this year.

At this time, there are several great firms currently providing video interviewing services. Enterforce recently adopted this technology with much success, and the benefits for both employers and candidates are numerous and significant.

First, let’s take a look at how video interviewing works. There are two types of video interviews – one-way and two-way. One-way interviews allow the employer to create a series of questions and provide them to candidates. The candidates then record their video answers and submit them back to the employer. Two-way or live interviews connect an employer and candidate face-to-face via webcam.

Expediting the Time to Hire

According to UndercoverRecruiter.com, traditional hiring methods take an average of 45 days. This includes the time it takes to receive and review a candidate’s online application, conduct phone interviews, conduct final interviews and finally make the offer. However, video interviewing companies indicate that leveraging video interviewing technology can reduce the time to hire by as much as two weeks.

For example, in the initial stages of reviewing candidates, a typical phone interview takes approximately 30 minutes, yet most employers know if a candidate is a good fit for their organization in 90 seconds. When you take this into consideration, one-way interviews are ideal to make this phase of the hiring process more efficient.

Two-way interviews are a great alternative to in-person second interviews, because they offer the ability to interact meaningfully with candidates in a virtual setting. Video interviewing companies typically utilize a cloud platform, so the interviews take place and are stored in your web browser. They also offer services such as recording and sharing capabilities, allowing all hiring decision makers to weigh in on candidates at their convenience.

Reducing the Cost of the Hiring Process

The average cost associated with the hiring process is estimated to be anywhere from $1,500-$5,000 per hire, according to UndercoverRecruiter.com. In some instances, the cost to replace employees can be up to four times their annual salary, and one in four companies indicate that employee turnover has cost them over $50,000.

Once employers get to the final interview phase in the hiring process, the costs for travel, meals, lodging and more for candidates who fly in from out of town for an in-person interview can add up quickly. Utilizing two-way or live interviews during this phase can save as much as 67% in travel costs when compared to more conventional recruitment techniques.

Of course, video interviews should never replace a final in-person meeting, demonstrating that when travel is called for, both parties are serious about moving forward.

Boosting the Candidate Experience

Many companies struggle to attract and retain the right talent because their candidate experience is lackluster, or it is so slow that they lose the best candidates to other companies that act more quickly to get to the offer stage and land the candidate. From the candidate perspective, video interviewing not only speeds up the hiring process, it is also respectful of their time while acknowledging their commitments outside of the recruiting process.

Additionally, most video interviewing companies offer the ability to integrate your company’s branding into their platform, which is important if your company is focused on employer branding to attract, engage and retain talented candidates and employees.

While some companies seem hesitant to adopt this new technology, if you’re looking for ways to save time, reduce costs and improve your candidate experience, we strongly recommend integrating video interviewing into your hiring process.