---
title: How Much Time Founders Waste Hiring Manually [40 Hours A Month]
description: Discover how inefficient hiring processes cost startup founders 40 hours per month, impacting growth and success. Learn how hiring software can save time, improve team quality, and streamline the process.
image: https://gohire.io/hubfs/time-founders-waste.webp
---

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# How Much Time Founders Waste Hiring Manually [40 Hours A Month]

Discover how inefficient hiring processes cost startup founders 40 hours per month, impacting growth and success. Learn how hiring software can save time, improve team quality, and streamline the process.

[![Chris Smith](https://gohire.io/hubfs/chris.jpg) ](https://gohire.io/blog/author/chris-smith)

By [Chris Smith](https://gohire.io/blog/author/chris-smith)

[** ](http://www.facebook.com/sharer/sharer.php?u=https://gohire.io/blog/how-much-time-founders-waste-hiring-manually) [** ](https://twitter.com/intent/tweet?url=https://gohire.io/blog/how-much-time-founders-waste-hiring-manually&text=How%20Much%20Time%20Founders%20Waste%20Hiring%20Manually%20[40%20Hours%20A%20Month])

Contents ![](https://gohire.io/hubfs/down-arrow.png)

In today's fast-paced business environment, time is of the essence for startup founders. 

With limited resources and a need to scale quickly, wasting time on inefficient processes can be detrimental to the success of a new company. One area where many founders often lose valuable time is during the hiring process. 

This article will delve into the time wasted by founders who need to utilise hiring software, discuss how this inefficiency can impact a startup's growth and success, and provide deeper insights into the benefits of using such software.

## The Importance of Efficient Hiring

Hiring the right team is crucial for any startup, as it directly impacts the company's culture, productivity, and long-term success. 

However, the hiring process can be time-consuming and complex, especially for founders juggling multiple roles and responsibilities. 

By using something other than hiring software, founders are missing out on valuable tools that can streamline and automate various aspects of the process, saving time and money. 

Moreover, hiring software can enhance the overall quality of hires, enabling startups to build high-performing teams that drive innovation and growth.

Some compelling statistics demonstrate the importance of efficient hiring:

- On average, it takes 36 days to fill a job opening, with manual processes eating up a significant portion of that time (SHRM).
- A bad hire can cost a company as much as 30% of the employee's first-year earnings (U.S. Department of Labor).
- Companies that use hiring software reduce their time-to-fill by 27% and cost-per-hire by 20% (Capterra).
- 75% of hiring and talent managers report that hiring software has improved their hiring process (Capterra).

## How Much Time Founders Waste Hiring

On average, a founder spends around 25% of their workweek on hiring-related tasks, many of which could be automated (Harvard Business Review).

Assuming a 40-hour workweek, that's 10 hours per week spent on manual hiring tasks. Over a month (4 weeks), this would amount to approximately 40 hours spent on managing hiring manually.

This number can vary depending on the number of open positions and the founder's involvement in the hiring process.

Here's where the time is lost...

**Sourcing Candidates**

Manually searching for qualified candidates on job boards, social media platforms, and professional networks is a time-consuming and labour-intensive task. 

Hiring software can automate this process, utilising advanced algorithms and artificial intelligence to match candidates with relevant job openings, helping founders cast a wider net and find the best talent quickly.

**📈 Stat:** Founders spend an average of 1-2 hours per day on manual candidate sourcing. Additionally, 52% of talent acquisition leaders report that identifying the right candidates from a large applicant pool is their biggest challenge (LinkedIn).

**Screening Resumes**

Founders often spend countless hours sifting through resumes to identify potential hires. 

Hiring software can quickly scan resumes for specific keywords, qualifications, and experience, allowing founders to focus on more suitable candidates. 

Additionally, this technology can help reduce unconscious biases in the screening process by providing a more objective evaluation of candidates.

**📈 Stat:** Manual resume screening takes approximately 23 hours per job opening, with a 88% chance of overlooking a qualified candidate (Ideal). Plus, 26% of recruiters believe that resume screening is the most time-consuming part of their job.

**Scheduling Interviews**

Coordinating interview schedules between the founder, the hiring team, and the candidates can be a logistical nightmare, especially when dealing with different time zones and busy calendars.

Hiring software can simplify this by integrating with calendars, automating scheduling, sending reminders, and handling rescheduling requests, reducing the likelihood of miscommunication and ensuring a seamless interview experience for all parties involved.

**📈 Stat:** On average, it takes 4.5 hours to schedule a single interview (Yello). And 69% of job seekers consider the interview scheduling process to be the most frustrating part of their job search (Glassdoor).

**Tracking Applicants**

Keeping track of applicant information, interview notes, and hiring decisions can be challenging and time-consuming, mainly when dealing with many candidates. 

Hiring software centralises this information in an easy-to-use dashboard, making it easily accessible, searchable, and shareable among the hiring team, promoting better collaboration and decision-making.

**📈 Stat:** Founders spend 25% of their workweek on hiring-related tasks, many of which could be automated (HBR). Also, 86% of recruiters report that using an Applicant Tracking System (ATS) has significantly improved their hiring efficiency (Capterra).

**Compliance and Reporting**

Ensuring compliance with employment laws and generating necessary reports can be tedious and complex, opening the door to potential legal issues. 

Hiring software can assist with these tasks by providing templates for compliant job descriptions, automating background checks, and generating customisable reports to help founders stay on top of their hiring process and maintain compliance.

## The Impact Of Founders Hiring On Startups

The time founders waste on manual hiring processes can have significant consequences for their startups:

**Slowed Growth**

A lengthy and inefficient hiring process can delay the onboarding of new team members, ultimately slowing down the company's growth and development. 

This can lead to missed opportunities in a competitive market and hinder the startup's ability to scale effectively.

**📈 Stat:** Startups taking over 3 months to fill a key position can lose up to $14,000 per unfilled role (ERE Media).

**Opportunity Cost**

Time spent on manual hiring tasks is time not spent on more strategic activities, such as developing new products or services, securing funding, building partnerships, or improving internal processes. 

This opportunity cost can negatively impact the overall success of the startup.

**📈 Stat:** Founders' time spent on manual hiring tasks is worth an average of $1,000 per hour when considering the opportunity cost (HBR).

**Reduced Quality of Hires**

By not leveraging hiring software, founders may overlook potentially strong candidates, leading to less optimal hiring decisions and negatively impacting the quality of the team. 

A subpar team can result in decreased productivity, poor collaboration, and a lack of innovation, hindering a startup's ability to thrive in a competitive market.

**📈 Stat:** Startups using manual hiring processes have a 50% chance of making a bad hire, leading to increased turnover and lost productivity (Gallup).

**Founder Burnout**

The time-consuming nature of traditional hiring processes can add to the already overwhelming workload of founders, increasing the risk of burnout and negatively affecting the overall well-being of the leadership team. 

This can lead to poor decision-making, strained relationships within the company, and, ultimately, the startup's failure.

**📈 Stat:** 72% of entrepreneurs experience burnout, with time-consuming tasks like hiring contributing significantly to this issue (Harvard Business Review).

**Increased Costs**

More efficient hiring processes are needed to save time and increase startup costs. A longer time-to-hire can result in lost productivity and the need for additional resources to manage the process, such as hiring external recruiters or investing in other job advertisements.

**📈 Stat:** A protracted hiring process can increase costs by up to 20%, due to lost productivity and additional recruiting expenses (Capterra).

## Let's wrap up how much time founders waste hiring people

Not utilising hiring software, startup founders save valuable time on inefficient processes that could be better spent growing and scaling their businesses. 

By implementing a hiring software solution, founders can streamline the hiring process, reduce the time spent on manual tasks, and ensure they build the best possible team to drive their startups forward. 

The benefits of using hiring software extend beyond time-saving measures – it can also improve the quality of hires, enhance collaboration within the hiring team, and help maintain compliance with employment laws. 

Adopting hiring software can give startups a competitive edge, helping them succeed in today's fast-paced business landscape.

[![recruiters guide to ats sidebar](https://gohire.io/hs-fs/hubfs/recruiters%20guide%20to%20ats%20sidebar.webp?width=400&height=585&name=recruiters%20guide%20to%20ats%20sidebar.webp) ](https://gohire.io/blog/recruiters-guide-to-applicant-tracking-systems)

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[or request a demo](https://gohire.io/demo-request)

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