Kyrylo Kyrychenko, Senior Technical Recruiter, calculated how much it costs to hire one IT specialist, taking into account the services of a recruiter and the time spent on the search.
Kyrylo Kyrychenko, Senior Technical Recruiter, calculated how much it costs to hire one IT specialist, taking into account the services of a recruiter and the time spent on the search.
According to him, closing an IT vacancy involves the following costs:
Main recruitment costs:
Total hiring costs are $2,352–4,610 per vacancy, based on the need for one vacancy.
«Of course, in business, the need is much greater, so the performance for the period is considered,» he notes and gives calculations with an example when 21 vacancies were closed by one recruiter in six months without bonuses.
Total costs: $15,492 / 21 = $737.7 costs to close one vacancy, by one recruiter.
«And this is without taking into account internal resources, costs for HR support and onboarding,» writes Kyrylo.
If the candidate refuses at the finish line, the costs become even greater.
«You have to start the search again, another 1-2 months are lost, and costs double. The risk of counteroffers: there was a case when I launched the search for a DevOps engineer three times because candidates accepted the counteroffer before the actual registration,» the specialist notes.
He has tips on how to reduce the cost of hiring.
«The conclusion: the longer the search lasts, the more expensive it is for the company,» Kirill states.
Under his post, hiring experts and technical experts are vigorously discussing the topic, offering cheaper alternatives.
«We take and replace the recruiter with an ML model. Savings already. FANG has been doing this for a long time, half of the interviews are conducted by trained models,» notes DevOps Cloud Engineer Oleksandr B.
«Most FAANGs don’t do that. I have a lot of friends who recruit for both Meta and Amazon, and it doesn’t look like they’ll be replaced by AI yet. It would be strange to be offended and reject candidates who write ML scripts and use neural networks or just GPT to get a job at an interview, but at the same time not even allocate live people to make hiring decisions for the same companies. There are things that are automated, there is an initial screening of resumes through AI. But definitely not interviews with an ML script to get into big tech,» Tech Talent Acquisition Partner Khrystyna Lopatovska disagrees with him.
Tech recruiter Valentyna Voskoboynik offers an option on how to make hiring more effective: «1. Do not consider 3.5 vacancies per month and a closing period of 60 days as a normal hiring indicator. 2. Learn to properly calculate the cost of hiring, not only in salaries. 3. Learn to work with a personnel reserve not only in presentations and conferences.»
