Also, 52% of respondents cited difficulty finding qualified candidates as a major problem. Many businesses receive a high volume of applications but struggle to find candidates who meet their specific requirements, leading to delays.

One respondent noted, “We get a high volume of applications, but very few actually meet the job’s requirements. It’s incredibly time-consuming to sift through so many unqualified candidates.” This bottleneck in the hiring process slows down operations and forces companies to either lower their standards or continue the lengthy search for the right fit.

Many business owners also expressed frustration over the amount of time it takes to hire the right candidate. Lengthy interview processes, coupled with inefficient screening methods, prevent companies from filling roles quickly. On average, businesses report it taking 30 days to fill key roles, which slows down operations and impacts growth.

A hiring manager remarked, “We’re reactive in our hiring, often waiting until there’s an urgent need. By then, we’re scrambling to find someone quickly, which affects the quality of our hires.”

When it comes to cost per hire, 62% of businesses reported spending between $1,000 and $5,000 per hire. Annually, businesses estimate losing an average of $36,000 over the past year due to turnover. The high cost of recruitment, especially in high turnover environments, underscores the need for cost-effective solutions.

Diving deeper, we find that employers reported reduced time to hire (35%) and improved retention rates (38%) as two of the biggest benefits. By engaging candidates early and ensuring a better fit for the company culture, proactive hiring leads to stronger, more enduring hires.

By focusing on proactive hiring practices such as building a talent pool and maintaining candidate relationships, businesses can attract higher-quality candidates who align with their values and goals. This approach results in a more stable, cohesive team.

High turnover is costly, as it requires investment in re-hiring and retraining. By focusing on cultural fit and long-term retention through proactive hiring, businesses can reduce these expenses. According to our survey, over one-third of companies with a strategic approach saved anywhere from $10,000-$49,999 in turnover-related costs annually.

Companies that shifted to proactive hiring saved an average of 13% on recruitment costs. How? Strategic hiring reduces the need for constant recruiting and onboarding, freeing up resources for growth and development.

Diving deeper into resource limitations, 33% of businesses cited budget constraints as a barrier to adopting a proactive hiring approach. Smaller companies, especially, may struggle with the initial cost of new hiring tools or systems, which can be a significant deterrent.

Resource limitation breakdown

As one respondent shared, “We want to attract top talent, but we simply don’t have the budget to compete with larger companies.” Limited funds not only affect the ability to attract candidates but also impact the resources available for implementing strategic hiring practices.

Even with the right budget, respondents indicated that time constraints (34%) and inadequate tools (14%) prevented them from investing in long-term hiring strategies.

There is a strong interest in leveraging technology to save time and improve hiring accuracy, especially among businesses that feel overwhelmed by manual processes.

Even with these challenges, scalable solutions like Wizehire’s hiring platform enable businesses to make incremental but strategic changes to their hiring practices. By investing in tools that streamline the hiring process and build long-term candidate relationships, companies can make proactive hiring accessible, regardless of budget or time constraints.