How to effectively reduce recruitment cost?

Panel of corporate personnel officers
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Information, Recruitment Tips Nov 16, 2016 0

Recruiting qualified job applicants for a company is no easy feat. Many employers even have designated recruiters, whose whole job is to find the best and brightest talent. However, without the proper budget, recruiting employees can cost companies quite a bit.

According to a survey from the International Public Management Association for Human Resources, around 30 percent of companies spend between $1,000 and $3,000 per hire and 15 percent spend $5,000 to $7,000. When employers need to replace 10 or more workers in a year, those costs can quickly add up.  Companies that are looking to reduce their recruiting costs may want to take the following suggestions into consideration.

1. Leverage recruitment technology When it comes to finding and sorting through candidates, one of the easiest ways to cut costs is to invest in recruitment technology. Most employers greatly benefit from a recruiting solution that electronically manages candidate flow and comes equipped with decision-making tools like talent assessments.  Tools like these can help human resource professionals and in-house recruiters sort through job applicants and quickly identify the best people to advance. Using electronic technology can help reduce the paperwork involved in the hiring process as well, which may save the company time and resources.

2. Use industry-specific postings Many companies post their open positions on big-name job boards like Indeed or Monster, and while this may reel in a large quantity of applicants, it will not necessarily attract the most qualified individuals. This leaves HR employees sorting through lots of resumes to find the best individuals to interview. Instead of aiming for quantity, employers should focus on attracting quality applicants by using industry-specific job boards.  Recruiters can research websites that cater to their specific industry. Even if these sites charge membership fees for employers that want to post jobs, the cost might be worth it in the long run if the postings quickly attract qualified talent. Another way that many companies find the best candidates is by leveraging social media sites. Individuals who follow a company on LinkedIn or Facebook are more likely to understand the corporate culture and mission than job seekers who stumble across the business on a big-name job board

3. Consolidate the process More often than not, long recruiting and hiring processes end up costing companies more money. When there are multiple rounds of interviews, hiring managers and other decision makers are giving up their valuable time to meet with candidates. Try to consolidate this process wherever possible to reduce costs. This might mean holding group interviews and scheduling back-to-back meetings on the same day. Companies will likely save money if they can get candidates in the door, interview the applicants and make a decision within a few weeks instead of a few months.

4. Take steps to reduce turnover While cutting back costs in the recruitment process is helpful, companies can also save money on hiring if they simply reduce the number of workers being hired. Employers may want to consider the steps they can take to reduce employee turnover and indirectly save on recruiting.  One way that businesses can keep their workers satisfied is to regularly review compensation and benefits packages to make sure they are fair and meeting employees’ needs. A positive work environment can also go a long way toward retaining employees. People want to feel like they are valued in their workplaces, so company-wide awards and bonuses can be an effective method to reduce turnover. Finally, engaged workers are usually happy workers, so employers may want to consider how they can get employees excited about the company and their positions.

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