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Not Responding to Job Applicants Can Adversely Affect a Company’s Bottom Line, Study Shows

  • Survey reveals five money-saving opportunities employers may be missing out on

TORONTO – 28 MAY 2015 – When it comes to keeping job seekers interested in a company as both candidate and customer, an employer’s application process can be its own worst enemy. A new study from shows how employers may be losing out on talent – and business – if someone has a bad experience applying for a job with their company.

The nationwide study of more than 500 workers and 400 hiring managers across industries and company size was designed to gain insight into how companies can create a better candidate experience and streamline their recruitment processes.

“Companies might not realize the impact it has on their business when they don’t respond to job candidates or fail to update them on the status of their applications,” says Mark Bania, managing director of CareerBuilder Canada. “Not only do candidates share these negative experiences on social media, but they are less likely to do business with the company in the future. So not only do employers risk losing potential customers, but they may be hurting their brand as well.”

The survey also revealed five opportunities for employers to save on recruitment costs.

Cost-Saving Opportunity: Creating a Positive Applicant Experience

Failing to respond to applicants can have a negative effect on a company’s reputation as well as its bottom line. According to the study, nearly 1 in 4 workers (23 per cent) who have a bad experience applying for a job with a company are likely to post about it online. Thirty-eight per cent are likely to stop purchasing from a company with which they have had a bad application experience, and 33 per cent are less likely to purchase from a company that didn’t respond to their job application.

Cost-Saving Opportunity: Going Mobile

Only 39 per cent of Canadian employers offer the opportunity to apply to their jobs through a mobile application, and 36 per cent of employers do not even offer the option to search for jobs on a mobile device. Yet more than half of candidates (55 per cent) expect to be able to apply a company’s job via their mobile device; of those, 33 per cent say it is a turnoff when companies to not offer a mobile apply option. Providing candidates the ability to search and apply to jobs from a mobile device is one of the easiest ways to prevent candidate drop-off (and, in effect, letting quality talent slip through the cracks).

Cost-Saving Opportunity: Embracing Big Data

Only 1 in 5 (20 per cent) Canadian employers use data intelligence to plan their recruitment strategies. Such data is essential for measuring the effectiveness of one’s recruitment marketing strategy. Without this data, employers may be unknowingly wasting money on ineffective recruitment marketing efforts.

Cost-Saving Opportunity: Recruiting Year-Round

Less than half of employers (43 per cent) continuously recruit throughout the year for positions that may open up down the line. Though employers may not realize it, recruiting for positions year-round can end up saving time and money in the long run. In a separate study from CareerBuilder1, 65 per cent of employers say recruiting year-round shortened their time to hire, and 54 per cent say it lowered their cost per hire.

Cost-Saving Opportunity: Creating a Talent Pipeline

The majority of employers (58 per cent) do not have talent pipelines; however, (much like year-round recruitment,) talent pipelining can cut down on long-term recruiting expenses. Having a pool of potential job candidates employers can tap into any time a position opens up means no more time spent waiting for applicants to trickle in and sorting through unqualified candidates. It also cuts down on costs associated with advertising, time to hire and lost production.

1 CareerBuilder survey of 2,201 American employers, completed in December 2013.

Survey Methodology

The survey was conducted among 502 employees and 402 hiring managers in Canada. The interviews were conducted online by Redshift Research in January & February 2015 using an email invitation and an online survey. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. In this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 4.4 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

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Media Contact

Mary Lorenz
+1 773-527-3613

CareerBuilder Media Contact
For all media inquiries and interview requests, contact:

Michael Erwin
(P) 773-527-3637