$200 down the drain: Should businesses pay for job interviews?

It’s the job tax no one talks about – just how much it costs to be interviewed for a new role.

Research indicates that jobseekers are forking out about $100 per job search to attend interviews – a hidden cost that hits hard amid a cost-of-living crisis. One in seven jobseekers report paying more than $200 per interview.

The research, commissioned by global jobs site Indeed, reveals that going for a new job is expensive. Childcare costs, parking and incidentals, like a spot of lunch because you’re on the other side of the city after the interview, all add up alongside transport costs, purchasing new outfits, taking time away from work and seeking professional help to land a new job – like résumé writing and coaching.

Conducted by YouGov online with 1557 workers and jobseekers nationally, the research points to a growing recognition that the costs attached to interviewing are more than incidental.

These hidden costs can financially disadvantage jobseekers potentially looking for a better-paid job. This isn’t a generational problem, with the research showing the cost burden is spread across all age groups, says Indeed career expert Sally McKibbin.

“In an economy where every dollar counts, jobseekers are paying hundreds just for the chance to work,” she says. “Making them pay just to be interviewed for a new job opportunity only makes things harder.”

Nearly half of all jobseekers and employers say it’s only fair that interviewees should get paid for their time.

Previous research by Indeed found that some people are attending up to five interviews to land a job. Taking five days off work or travelling to five interviews would really blow the budget, McKibbin says.

“The fact is that people don’t have excess funds where they just don’t feel they can be spending upwards of $200 to be going to these interviews.”

Paid to be interviewed

And employers are taking notice. Nearly half say they’ve had candidates decline or refuse to attend in-person interviews, potentially due to the financial burden.

Jobseekers deserve to be fairly compensated for their time and effort, McKibbin says.

“Hiring is a two-way street. If employers want to attract diverse and capable talent, they need to be mindful of the financial barriers jobseekers face. Offering virtual options, travel stipends or simply acknowledging these costs can help level the playing field.”

With the pressure mounting, nearly half of all jobseekers and employers say it’s only fair that interviewees should get paid for their time.

Of those who believe jobseekers should be compensated, 57 per cent say interviewees should be paid between $50 and $199, with a further 21 per cent saying it should be even higher.

Employers are even more generous, suggesting a figure of $100 per interview, while one in six believe $300 or more should be paid to the jobseeker for coming in for an interview.

McKibbin says employers can level the playing field without blowing the recruitment budget. Consider offering greater flexibility, like conducting interviews outside work hours, so people don’t have to miss a day of work.

“Also, consider offering small changes like offering virtual interviews where possible, or at least be really up front about how many stages the candidate is expected to be involved in can help,” McKibbin says.

For those looking for jobs, it’s about pursuing opportunities that are really of interest to them and focusing on quality interviews for roles you really want, she says.

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