Savings From An Unlikely Place
November 4, 2009
Spectrum Driver Recruiters is helping US fleets return major dollars to their bottom line by targeting a major expense that most often goes overlooked and under accounted for.
While “non-hire” recruiting costs may seem like an unlikely place to look for cost saving opportunities, many managers believe that, by eliminating the costs associated with the people they don’t hire, they have found a hidden treasure, capable of returning considerable dollars to their bottom lines. Spectrum Driver Recruiters, a specialist provider of Recruitment Process Outsourcing (RPO) to the transportation industry, is seeing an upsurge in business due to the struggling economy. Spectrum reports that the increase in demand for outsourced driver-recruiting comes from the heightened need for large fleets to find ways to cut costs and streamline operations.
Major fleets that have normally had difficulty recruiting enough drivers to effectively sustain fleet operations are now seeing an increasing number of driver applicants. While that increase in traffic has been an enormous benefit to those fleets from the standpoint of selection, it has also required more resources to manage. “No one could have guessed eighteen months ago, that a shift towards a surplus of drivers in the market could result in anything other than a reduction in driver recruiting expenditures’, says Ken Walker, Spectrum Driver Recruiters. “However, savvy fleet managers, are noting that the influx of inquiries is putting an increasing strain on the resources needed to manage the flow of interested candidates, most of whom are not qualified and are never hired.”
Human resource experts refer to this unusable segment of candidate flow as “non-hire traffic” and report that though it is the most significant portion of the total recruiting expenditure, it is rarely recognized or quantified. Typically only costs directly associated with filling a position, such as advertising, are captured when quantifying recruiting costs. Industry experts report that on average, non-hire screening costs account for 95-97% of the entire recruiting expenditure. With this in mind, many innovative fleets are now targeting the elimination of non-hire screening through outsourcing as an opportunity to add dollars back to their businesses.
One of the most significant benefits of outsourcing some portion of the driver-recruiting function is that in most outsourced driver-recruiting relationships the recruiting vendor absorbs the cost of the non-hire screening element and delivers only hirable candidates who have been screened in accordance with the fleet’s normal standards. Many driver-recruitment outsourcing providers, such as Spectrum Driver Recruiters, even offer a savings guarantee that ensures that the engagement delivers the promised return.