Elaine Orler & Chris Hoyt - The Cost of Candidate Resentment vs. Improving Candidate Experience
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Transcript of Elaine Orler & Chris Hoyt - The Cost of Candidate Resentment vs. Improving Candidate Experience
© TalentBoard 2015
$1,584,000
$1,386,000
$1,188,000
$990,000
$792,000
$594,000
$396,000
8% 7% 6% 5% 4% 3% 2%
Customer Revenue Impact Exercise: Minimizing Candidate Resentment
Each % decrease
yields $200,000 in
annual benefit
Candidate Resentment Rate = The Candidate’s experience as an applicant generated resentment which led them to stop buying products and they shared their experience with friends and family. Estimating the cost of candidate resentment Assumptions:
1. 100% of the people that apply are customers
2. Annual hires = 5000
3. Applicants per hire = 100
4. Rejected applicants per hire = 99
5. Annual rejected applicants = 99 x 5000 = 495,000
6. Negative resonance factor = candidate tells 1 person
7. Total rejected candidate audience = 495,000 x 2 = 990,000
8. Average value of a customer = $20 per year
9. @ 8% candidate resentment rate
10. Lost customers = 8% x 990,000 = 79,200
11. Lost revenue @8% = 79,200 x $20 = $1,584,000
© TalentBoard 2015
Elementary Math 1. 100% of the people that apply are customers
◦ Annual hires = ___________________
◦ Applicants per hire = ___________________
◦ Rejected applicants per hire = (B – 1) __________________
◦ Annual rejected applicants = (A X C) __________________
2. Negative resonance factor = candidate tells 1 person ◦ Total rejected candidate audience = (D X 2) ________________
◦ Average value of a customer = $__________________
3. @ 8% candidate resentment rate ◦ Lost customers = (8% x E )= ___________________
◦ Lost revenue @8% = (G x F) = ______________________
4. What is the amount for 10%, 5 %, 3%?
© TalentBoard 2015
New Way: www.hireright.com/calculator Estimating the cost of candidate resentment
1. 100% of the people that apply are customers A. Annual hires = ___________________
B. Applicants per hire = ___________________
C. Rejected applicants per hire = (B – 1) __________________
D. Annual rejected applicants = (A X C) __________________
2. Negative resonance factor = candidate tells 1 person
E. Total rejected candidate audience = (D X 2) ________________
F. Average value of a customer = $__________________
3. @ 8% candidate resentment rate G. Lost customers = (8% x E )=
___________________
H. Lost revenue @8% = (G x F) = ______________________
4. What is the amount for 10%, 5 %, 3%?