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Candidate

Resentment

© TalentBoard 2015 n=27,087

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$1,584,000

$1,386,000

$1,188,000

$990,000

$792,000

$594,000

$396,000

8% 7% 6% 5% 4% 3% 2%

Customer Revenue Impact Exercise: Minimizing Candidate Resentment

Each % decrease

yields $200,000 in

annual benefit

Candidate Resentment Rate = The Candidate’s experience as an applicant generated resentment which led them to stop buying products and they shared their experience with friends and family. Estimating the cost of candidate resentment Assumptions:

1. 100% of the people that apply are customers

2. Annual hires = 5000

3. Applicants per hire = 100

4. Rejected applicants per hire = 99

5. Annual rejected applicants = 99 x 5000 = 495,000

6. Negative resonance factor = candidate tells 1 person

7. Total rejected candidate audience = 495,000 x 2 = 990,000

8. Average value of a customer = $20 per year

9. @ 8% candidate resentment rate

10. Lost customers = 8% x 990,000 = 79,200

11. Lost revenue @8% = 79,200 x $20 = $1,584,000

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Elementary Math 1. 100% of the people that apply are customers

◦ Annual hires = ___________________

◦ Applicants per hire = ___________________

◦ Rejected applicants per hire = (B – 1) __________________

◦ Annual rejected applicants = (A X C) __________________

2. Negative resonance factor = candidate tells 1 person ◦ Total rejected candidate audience = (D X 2) ________________

◦ Average value of a customer = $__________________

3. @ 8% candidate resentment rate ◦ Lost customers = (8% x E )= ___________________

◦ Lost revenue @8% = (G x F) = ______________________

4. What is the amount for 10%, 5 %, 3%?

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New Way: www.hireright.com/calculator Estimating the cost of candidate resentment

1. 100% of the people that apply are customers A. Annual hires = ___________________

B. Applicants per hire = ___________________

C. Rejected applicants per hire = (B – 1) __________________

D. Annual rejected applicants = (A X C) __________________

2. Negative resonance factor = candidate tells 1 person

E. Total rejected candidate audience = (D X 2) ________________

F. Average value of a customer = $__________________

3. @ 8% candidate resentment rate G. Lost customers = (8% x E )=

___________________

H. Lost revenue @8% = (G x F) = ______________________

4. What is the amount for 10%, 5 %, 3%?

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