Why Hire Students?
Companies spend lots of money on getting the very best hires. Even an employee making minimum wage ends up costing a significant amount of cash when we account for sourcing, training, equipment and benefits. Another factor that contributes to this cost is the fact that most employees don’t reach their peak in productivity until they have been on the job for at least a half year. Overall companies spent over $5,000 per hire on average, with a median hiring cost of $2,096, meaning that companies have a large discrepancy in the amount they spend to find talent.
So what does all of this mean for college students being hired today? Companies are hesitant to spend their cash on a hire that might not be qualified for a position. This is likely contributing to the statistic that over half of recent college graduates are either unemployed or working in a position that doesn’t require a college degree. This number is especially disparaging when you compare it to the 4.2% unemployment rate of older college graduates who entered the workforce at a better time.
So if college students don’t have the experience to prove they will function in the workplace and hires are so costly, why take the risk? There are a few factors that can make taking a chance on younger or inexperienced talent worth a shot. Firstly, 92% of new college hires stay for over a year. That number tapers off only slightly to 69% after five years, meaning long term stability can be found with a successful college hire.
The risk vs. reward scenario associated with hiring students comes from comparing their lack of experience with the potential longevity of their term of employment. If only there was a way to assess the capability of a college student before taking the risk of hiring them…This is exactly where MindSumo comes in. Companies can create a sourcing challenge to discover if the type of hire they are looking to make is out there, and follow through with an assessment challenge to determine who will be the most capable in the role they seek to fill. When you factor in that the cost of creating a MindSumo Challenge is considerably less than the average cost per hire, using the platform is a no brainer.
(All statistics from NACE 2011 Recruiting Benchmarks survey and The Associated Press)