What are some strategies for HR teams that can help them reduce costs per hire?
With new jobs being created every day, recruiters are out on the search for prospective candidates. With hundreds of candidates being interviewed every day, employers end up spending a lot of time and money on recruiting. Cutting down on these costs can help a company save up on a lot of resources, which would otherwise be used up in carrying out processes that can be automated. Minimizing cost per hire is a target yet to be achieved by a lot of recruiters. Although the recruitment costs vary from company to company and region to region, the different components that contribute to the hiring costs are more or less the same. These components include job advertising expenses, recruiter salary & benefits, employee relocation costs, sign-on bonuses, employee referral payouts, third-party recruiter fees amongst others. This blog tells you all that you need to know about cost-effective hiring.
With the pandemic hitting all companies across the globe, founders of companies have had to take a lot of decisions with respect to cutting down costs and minimizing budgets. In such a situation, if the cost per hire increases drastically, it can prove to be a drawback for companies. Now as recruiters switch over to cost-effective techniques, there arises challenges of which tools and techniques to use to be able to achieve the finest results and significantly have a reduction in cost per hire.
Let us discover some ways how that can be achieved and all that you need to know about cost-effective hiring.
Increase employee referrals
Employee referrals are a critical tool for finding new hires. In a 2015 SilkRoad study, employee referrals produced more hires than any other source studied. The best part is that you don’t need to invest in an expensive employee referral program to get more referrals. By strengthening the employee brand, your employees will encourage others to apply without even being paid to do so.
Extensive use of social media
The most popular platforms these days are various social media sites, that are free and easy to use. Posting jobs on these platforms seldom cost anything to the recruiters and are very popular among job seekers. To effectively leverage social media, first ensure that your social profiles share your employment story and encourage job seekers to learn more. Then use social media tools like Facebook’s graph search or Twitter’s search engine to start sourcing the talent you need. Additionally, using these channels to source talent allows you to attract higher-quality candidates because followers of your brand’s profiles are likely to already have an interest in your industry and a firm grasp on your company culture.
Digital interviewing and communications
Digital interviewing allows recruiters to screen candidates anywhere, at any time. Having the right video interviewing software helps reduce expenses like travel while also reducing time-to-hire rates. This eliminates the cost of conducting physical interviews and helps to maintain effective communication with prospective candidates.
Launch a career site
Because a career site can advertise your jobs and employment brand 24/7, it allows you to reach substantially more candidates for a very reasonable cost. Career sites have also been one of the top internal sources of hire for several years in a row — proving that they can attract quality candidates. In other words, a career site can help you find the right candidates faster and more affordably. As a result, you can spend less money on more expensive recruiting tactics like job advertisements or career fairs, leading to cost-effective hiring.
Usage of right tools like ATS with GDPR compliance
If you don’t have the right tools at your disposal, your ability to hire cost-effectively will be hampered from the start. Invest in a robust applicant tracking system (ATS) to streamline your process, reduce duplication of work and data entry, protect candidate data, and better comply with the requirements of the GDPR. You can also choose to integrate your ATS with other software that will help you hire even more effectively, such as HRIS, psychometric testing and profiling tools, and background checking apps.
Focus on internal mobility
The final way to cut hiring costs seems simple on the surface, but might turn out to be a complex project; improving the way you support and engage with your existing employees should help to reduce turnover, so there’ll be less need to hire replacements for staff who leave. It is much easier and cheaper to hire internally — which is why having an internal mobility program is a great way to cut down on recruiting costs. Internal mobility, or the movement of your employees to new, internal opportunities in your organization, proves very beneficial in many ways — especially during times of economic uncertainty when your hiring needs are likely fluctuating.
Following these very few yet efficient ways for cost-effective hiring, every recruiter can reduce the cost per hire and engage in savings. With technology advancing, it is important that HR teams and employers know about cost-effective hiring also switch over to cheaper and efficient alternatives and make use of more technological equipment. This improves the effectiveness and efficiency of the hiring process and results in a better recruit.
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