What if interviews came with a price tag?

Have you ever walked out of an interview feeling like you've invested valuable time into an

endeavor that yielded little to no return? Have you ever pondered the opportunity cost of those

precious hours spent preparing and attending interviews? As someone who has witnessed

friends and family members navigate the job market, I've come to realize the significant toll that

the traditional hiring process takes on both job seekers and providers alike.

Let's embark on a thought experiment drawn from an unlikely analogy—the world of booking

flight tickets. Both airlines and passengers invest considerable time and effort in preparation and

fulfillment. Passengers expect clear communication regarding departure times, gate numbers,

seat assignments, and other amenities, while airlines anticipate punctuality and courteous

behavior from passengers. But what happens when these expectations aren't met? This is

where the concept of Compensation via Cancellation Charges, Delay Charges, Damage

Charges, among others, come into play.

Cancellation Charges

The financial repercussions of last-minute cancellations or offer retractions can be staggering.

A small-scale survey conducted by speaking to more than a dozen of jobseekers and

interviewers provided insightful perspectives from both, representing varied backgrounds

including Media, Architecture, Insurance, and IT.

Approximately 66.7% of job seekers believed in compensating for completing long-form assignments, with 41.7% preferring monetary compensation and 25% finding non-monetary compensation acceptable, including Company Goodies. Another perspective was provided by

Vatsal Mehta, Delivery Manager at Abaqus highlighted how the assignments he submitted while

interviewing with companies where he didn’t end up getting the job had qualitative data related

to his experience of the niche industry and techno-functional details along with the unique

design of the PowerPoint presentation which can be reused easily. Due to this he feels that the

assignment should always be an intellectual property of the interviewee and should be

safeguarded with a proper copyright or relevant contract, if not compensated for.

On the other hand, Sahil Aggarwal, Talent Systems & Management at Lowe’s India suggests that companies should not pay candidates for completing assignments as part of the interview process. The argument is twofold: first, the assignments do not directly contribute to the organization's business objectives as they are not actual problems to be worked upon by the organization. It is just a mock scenario, so there's no direct monetary value. Second, offering compensation, such as a voucher, may not significantly impact genuine applicants' motivation. Additionally, with the advent of Generative AI, the effectiveness of take-home assignments is now under question.

Ketan Kashliwal, currently Senior Consultant at Deloitte (US Office of India) highlighted how

during his last job where he was part of the Hiring Team and gave approximately 2 hours a day

during peak hiring season felt it impacted client delivery timelines. Hiring Managers are

themselves seniors of the team who have assignments which are critical, and their per hour cost

to the company is high. So, wastage of these hours is another expense to the company, as the

same hour could have been used to get something better done.

In today's world where hiring has gone global and candidates are no longer just concentrated in a single metro city like Bengaluru or Gurgaon or Pune, good talent can be found in a person who is miles away from the HQ. In a remote setup, it becomes essential to have at least one 1-on-1 meet with the team to build mutual confidence. These are added expenses, especially for small growing teams, in terms of travel, accommodation, and food costs. All of these go down the drain when the

candidate turns down the offer or, worse, ghosts the company.

Delay Charges

In India, the average length of the hiring process is approximately 29 days, according to a study by Naukri.com.

That's nearly a month of uncertainty, waiting to hear back from potential employers, all while expenses continue to accumulate. Each day spent in this limbo represents an opportunity cost, as candidates could be utilizing their skills and talents elsewhere. For instance, Sr. Manager - Talent and Learning Management, who has conducted more than 100 interviews, suggested that putting a bounty on assignment completion could increase submissions by around 25%. Conversely, Sr Manager People Success, who has had to defer job offers, believes it's part of hiring talent in competitive markets. Despite differing opinions, there was consensus on the need for measures to incentivize both parties, ensuring a more equitable and efficient hiring system benefiting job seekers and employers alike.

Sahil Aggarwal Talent Systems & Management at Lowe’s India suggests that the compensation should be based solely on the opportunity cost rather than the time and effort put in by the candidate. This is because calculating compensation based on time and effort can be subjective and contentious, while opportunity cost can be more objectively determined based on factors like

previous salary, offered salary, average job search duration, or a combination thereof.

In theory it looks like, by introducing the concept of compensation charges for cancellation and

delay in the hiring process, we can revolutionize the way employers and job seekers engage

with each other. This shift towards accountability and fairness not only ensures that both parties

are invested in the process but also mitigates the wastage of time, resources, and opportunity

costs. Moreover, implementing these charges will help filter out individuals who are not

genuinely committed to the job, separating those playing the "who outbids whom" game from

those genuinely seeking employment opportunities. Additionally, these measures will hold HR

teams accountable, ensuring that they treat interviewees with the respect and professionalism

they deserve, rather than viewing the hiring process as a one-sided transaction.

As Benjamin Franklin famously said,

"Time is money, and we cannot afford to waste either."