Automated resume and application processing (ARAP) saves companies money. How many resumes and applications are processed annually? How much does your organization spend annually on outside staffing firms?
Automated resume and application processing (ARAP) saves companies money. How many resumes and applications are processed annually? How much does your organization spend annually on outside staffing firms?
Automated resume and application processing (ARAP) saves companies money. How many resumes and applications are processed annually? How much does your organization spend annually on outside staffing firms?
Automated resume and application processing (ARAP) savings calculator
[Date] Recruiting data worksheet Hiring practices How many employees are in your organization? 20000 How many people did you hire during the last fiscal year? Exempt: 1100 Nonexempt: 350 1450 How many people do you plan to hire during this fiscal year? Exempt: 1150 Nonexempt: 450 1600 How many people do you plan to hire during the next fiscal year? Exempt: 1200 Nonexempt: 600 1800 Is your organization's cost-per-hire information broken down by position, department, and region? Yes What is your organization's hiring cycle time (in days)? 64 What variables does your organization use to measure hiring cycle time? 1. 2. 3. How many resumes are processed annually? 50000 How many applications are processed annually? 50000 What is the approximate percentage of the total resumes that your organization received from each of the following sources? Unsolicited mail 10% Recruitment advertising (in publications such as newspapers and magazines) 15% Outside staffing firms 15% Career fairs 10% Campus recruitment 15% Internet advertising/posting boards 25% Employee referrals 10% Of the resumes received by your organization, what percentage are received: In paper form (this includes fax)? 50% Through an online application? 25% Through e-mail as an attached file? 25% What is the annual turnover rate for your organization? 5% Annual staffing expenses How many FTEs in your organization are allocated to the processing of resumes and applications? 7 What is the average, fully burdened, hourly rate paid to your employees who process resumes and applications? 30 How many documents (resumes and applications) can an employee process per day? 75 How many hours per FTE are available annually to process documents? 1446 If applicable, what are your HR departments annual chargebacks to other departments for your recruitment services? $0.00 How much does your organization spend annually on outside staffing firms? Retained recruiting firms $125,000.00 Contingent recruiting firms $100,000.00 Temporary placement firms $100,000.00 Annual recruiting expensesAdvertising How much does your organization spend annually on recruitment advertising? Newspapers $50,000.00 Advertising firms $50,000.00 Internet advertising $50,000.00 Magazines and periodicals $25,000.00 How much does your organization spend annually on external job posting environments? Internet job boards $25,000.00 Paper-based bulletin boards $7,500.00 Kiosks $25,000.00 Annual recruiting expensesSpecial programs and career fairs What types of special programs do you incorporate into your organization's recruitment efforts (for example, virtual job fairs, radio promotions, special public relations activities, recruiter attendance at trade shows, and recruiter attendance at local community events)? 1. 2. 3. How many of these special programs does your organization commit to annually? 5 How much does your organization spend annually on these special programs and events? $10,000.00 If your organization recruits internationally, what are the annual costs associated with visa attainment, legal matters, expatriate-related matters, and other efforts? How many career fairs does your organization attend annually? 10 What is the average cost for attendance at these career fairs? Include costs for registration, booth space, travel, lodging, meals, and other related expenses. $10,000.00 Annual recruiting expensesCampus recruitment Is your organization actively involved in campus recruitment? Yes On how many campuses is your organization involved in recruitment? 40 What are the annual college recruitment costs? $80,000.00 How many new hires result from these efforts? 100 Does your organization have an active internship or co-op program on these campuses? No How many interns and co-op students are hired annually? 100 Do you plan to expand your organization's campus recruitment efforts to additional campuses or strengthen relations with your current campuses? Yes Annual recruiting expensesOther How much does your organization spend annually on travel, lodging, meals, and so on, associated with your recruitment efforts? This should include on-campus recruitment events, interviews, bringing candidates on-site for interviews, and other efforts. $50,000.00 How much does your organization spend annually on relocation? $100,000.00 How much does your organization spend annually on signing bonuses and other material perquisites? $100,000.00 What is your organization's annual expenditure for third-party vendor services such as background checks, credit checks, prescreening services, and surveys? $50,000.00 If your organization uses an employee referral program (ERP), what is the average payment to employees for each hire? $750.00 How many new hires result annually from your organization's employee 100 If applicable, what are the annual IT chargebacks allocated to your HR department? $0.00 Annual cost per hire $921.49 Potential savings calculations for ARAP In-house calculation Number of resumes and applications processed annually 100,000 Current number of FTEs allocated to this process in your organization 7 Fully burdened hourly rate of FTEs allocated to this process 30 Annual cost to process these documents in-house $303,660.00 Number of FTEs required to effectively meet your organization's annual document-processing needs 5.53 Current cost per document processed $3.04 Page 2 of 4 Outsourced calculation Cost per outsourced processing of each document $2.50 Annual cost of outsourcing $250,000.00 Resume-to-application ratio: Current percent ratio of resumes to applications 50% Current percent ratio of applications to resumes 50% Potential savings opportunities for ARAP Staffing expenses Percentage of customers' internal processing costs typically reduced by using ARAP solutions 25% Potential cost savings by applying customers' typical internal processing cost reduction to your organization's current document-processing costs Reduced annual costs: $227,745.00 Potential savings: $75,915.00 Annual cost for outside staffing firms $325,000.00 Potential percentage of costs reduced by incorporating outside staffing firms into ARAP 20% Reduced annual costs: $260,000.00 Potential savings: $65,000.00 Advertising Annual cost for recruitment advertising $175,000.00 Potential percentage of costs reduced by using ARAP solutions 25% Reduced annual costs: $131,250.00 Potential savings: $43,750.00 Annual costs of external job postings $57,500.00 Potential percentage of costs reduced by using ARAP solutions 20% Reduced annual costs: $46,000.00 Potential savings: $11,500.00 Special programs and career fairs Number of special recruitment programs attended annually by your organization 5 Average cost of special recruitment programs $2,000.00 Potential percentage of costs reduced by using ARAP solutions 10% Reduced annual costs: $9,000.00 Potential savings: $1,000.00 Number of career fairs attended annually by your organization 10 Average cost of career fairs $1,000.00 Potential percentage of costs reduced by using ARAP solutions 10% Reduced annual costs: $9,000.00 Potential savings: $1,000.00 Campus recruiting Annual costs of college recruitment $80,000.00 Potential percentage of costs reduced by using ARAP solutions 20% Reduced annual costs: $64,000.00 Potential savings: $16,000.00 Travel, lodging, meals, and other miscellaneous items Annual costs for travel, lodging, meals, and other miscellaneous items $50,000.00 Potential percentage of costs reduced by using certain ARAP solutions 10% Reduced annual costs: $45,000.00 Potential savings: $5,000.00 Relocation Annual relocation costs $100,000.00 Potential probability percentage of filling an opening with local candidate increased by using ARAP solutions 25% Page 3 of 4 Reduced annual costs: $75,000.00 Potential savings: $25,000.00 Signing bonuses and perquisites Annual costs of signing bonuses and other perquisites $100,000.00 Potential percentage of costs reduced by using ARAP solutions 20% Reduced annual costs: $80,000.00 Potential savings: $20,000.00 Third-party vendor services Annual costs of third-party vendor services $50,000.00 Potential percentage of costs reduced by integrating third-party vendors into 20% Reduced annual costs: $40,000.00 Potential savings: $10,000.00 Employee turnover Rate of employee turnover 5% Potential number of replacement hires reduced by using ARAP solutions 1000 Potential percentage of number of replacement hires reduced by using ARAP solutions 10% Potential savings: $92,148.97 Opportunity costs of open positions Your organization's current open-position cycle time (in days) 64 Average per-day opportunity costs 821 Reducing the time to fill vacancies by: 15% Potential savings in this fiscal year by reducing the time to fill vacancies $12,610,560.00 Potential management time savings per hire by using ARAP solutions (in hours) 2 Fully burdened hourly pay rate of managers during last fiscal year $35.00 Potential savings (based on last fiscal year's total number of hires and last fiscal year's fully burdened hourly pay rate for managers) by reducing the time to fill $537,600.00 Potential savings: $13,148,160.00 Summary of potential savings opportunity During the first year of use of ARAP solutions, your organization could realize the following savings based on your cost survey results $13,514,473.97 A breakdown of these cost savings is listed below: Savings category Potential savings Automated resume and application processing $75,915.00 Outside staffing firms $65,000.00 Recruitment advertising $43,750.00 Special recruitment programs $1,000.00 Career fairs $1,000.00 External job postings $11,500.00 College recruitment $16,000.00 Travel, lodging, meals, and other items $5,000.00 Relocation $25,000.00 Signing bonuses and perquisites $20,000.00 Third-party vendor services $10,000.00 Turnover $92,148.97 Subtotal $366,313.97 Add opportunity costs: Opportunity costs of open positions: $13,148,160.00 TOTAL OPPORTUNITY FOR SAVINGS $13,514,473.97 Page 4 of 4