Budgeting for Hiring Managers’ Time

Introduction

Hiring Managers’ Time is one of the most underestimated costs in the recruitment process. While organisations budget for recruiter salaries, job board fees, and agency costs, the silent drain remains the cumulative hours hiring managers spend on screening, interviews, and coordination—hours diverted from their primary, revenue-driving work.

This blog dives deep into why budgeting for Hiring Managers’ Time matters, how to quantify it, strategies to optimise it, and how leveraging talent solutions like Riemote can make a tangible difference to your bottom line.

Why Hiring Managers’ Time Deserves a Budget Line

1. The True Opportunity Cost

Hiring managers are often senior engineers, product leads, or functional heads. Their time invested in hiring is crucial for culture fit and technical assessment, but:

• Each hour spent interviewing is an hour not spent on product development, customer success, or strategic growth work.
• For a mid-senior manager earning ~$150,000 annually, 1 hour costs ~$72 (fully loaded cost). Multiply this by 20–30 hours per hire, and it quickly becomes a significant hidden cost.

2. Impact on Productivity

Beyond financials, frequent interview cycles can:

• Break focus time, delaying project milestones.
• Cause burnout if not efficiently scheduled.
• Lead to rushed decisions when pipeline management is poor.

3. Budget Accountability

Modern finance and HR leaders are increasingly being asked to:

• Show holistic cost per hire (including time costs).
• Justify return on recruitment investments.
• Optimise internal processes to unlock productivity.

Source: Harvard Business Review states that structured hiring processes with clear time budgets reduce average hiring timelines by 20-25%.

How to Calculate the Cost of Hiring Managers’ Time

A Practical Framework

Use this formula for each open role:

Hiring Manager Hourly Cost x Estimated Hours Spent per Hire

Breakdown:

1. Calculate hourly cost:
   • Annual salary + benefits + overhead / 2080 (working hours per year).
2. Estimate hours spent per hire:
   • Job scoping meetings: ~2 hours
   • Resume screening: ~3-5 hours
   • Interviews (phone + onsite): ~8-12 hours
   • Feedback and decision meetings: ~2-4 hours
   • Offer and negotiation: ~1-2 hours

Example Calculation:

Multiply by the number of hires per year, and this becomes a significant budget component.

Strategies to Optimise Hiring Managers’ Time

1. Implement Structured Interview Processes

• Use calibrated scorecards to reduce decision time.
• Schedule batch interviews to maximise focus days.
• Train panel interviewers to improve consistency.

2. Use Talent Screeners and AI Pre-Assessments

• Integrate technical screening tools for first-round filtering.
• Leverage pre-recorded video questions for culture screening.

This reduces unqualified candidate interviews by up to 40% (SHRM Research).

3. Delegate Effectively

• Empower senior ICs or team leads to own early-stage technical interviews, freeing hiring managers for final decisions only.
• Centralise candidate coordination through recruiting operations or external partners.

4. Partner with Talent Solutions like Riemote

Riemote’s global talent model not only fills critical roles with pre-vetted remote talent but also:

• Handles first-line sourcing, screening, and technical assessments.
• Reduces Hiring Managers’ Time spent by 50–60% per hire.
• Integrates seamlessly with your ATS and team processes.

👉 Explore how Riemote can streamline your recruitment and unlock productivity at www.riemote.com.

Building a Hiring Managers’ Time Budget into Your Annual Plan

Key Steps

1. Calculate historical time spent per role type.
2. Set clear targets for reduced time through process optimisation or vendor partnerships.
3. Include time cost as a line item in Cost Per Hire metrics for board reporting.
4. Review quarterly to identify bottlenecks and track savings.

Conclusion

Hiring Managers’ Time is a hidden yet critical component of recruitment ROI. Organisations that measure, budget, and optimise it not only achieve faster hires but also unlock productivity across engineering, product, and business teams.

To maximise your team’s impact while hiring top talent globally, explore Riemote’s managed talent solutions at www.riemote.com.

FAQ: Hiring Managers’ Time

1. Why should I budget for Hiring Managers’ Time in recruitment?

Budgeting for Hiring Managers’ Time ensures you account for the true cost of hiring, including opportunity costs that affect productivity and business outcomes.

2. How can I reduce Hiring Managers’ Time spent per hire?

You can reduce it by implementing structured interview processes, using AI screening tools, and partnering with talent solutions like Riemote.

3. Does Riemote help in saving Hiring Managers’ Time?

Yes, Riemote pre-screens candidates and manages coordination, reducing Hiring Managers’ Time spent on each hire by 50–60%.

4. What is the average cost of Hiring Managers’ Time per hire?

It varies by role, but typically ranges from $1,000 to $2,500 when accounting for scoping, screening, interviews, and decision-making time.

5. Is Hiring Managers’ Time included in Cost Per Hire metrics?

Most companies overlook it, but incorporating Hiring Managers’ Time provides a more accurate and strategic Cost Per Hire metric.