7 Best Strategies For Reducing The Cost Of Hire

Recruitment takes a large chunk of overall operational costs in most of the companies around the world. No new hire comes for free, and if you have to recruit 15 workers a year, imagine how quickly the cost adds up. Though spending money to hire new candidates is completely justified, you have to make sure that talent acquisition is cost-effective. 

So, as a recruiter, what strategies you can implement for reducing the cost of hire, without sacrificing the quality of talent? Let’s see!

Know What You Are Spending At Present

Before you dive into how to reduce the hiring cost, it’s worth thinking about what you are spending. Depending upon how you calculate the cost, the cost of hiring a new team member varies greatly. If you consider the onboarding period, the time the new employee takes to get into full working speed, the cost can go much higher.

Also, many organizations look at key areas, such as advertising charges, recruitment agency fees or referral fees, etc. But, you need to bear in mind that these costs will carry significantly depending upon the role you are hiring for. 

So, whether you consider hiring in-house, outsource it, or combine both, it affects the budget you put aside for recruitment.

Consider Automating The Recruitment Tasks

Automation is a great cost saver as it saves time you spend on doing different recruitment activities. By automating, you’ll spend less time doing repetitive tasks, such as interview scheduling, job posting, background checks, employee verification, etc. 

Look for recruitment software for reducing cost of hire and simplifying the process. You can automate tasks like social messaging, automated help desk messages, post-application messaging, etc. You can even use the software to screen the applications and filter the best talent. 

Measure The Results Using Analytics And Reports

Automation tools have another advantage in the recruitment process. These tools track and analyze large chunks of data created during the hiring process. Using these latest analytical technologies, you can track the effectiveness of your recruitment efforts, and do corrections where necessary. Besides, the metric-driven recruitment process helps you identify which methods are proving useful for hiring candidates. This way, they ensure the best recruitment performance with minimum resource wastage.

Boost Employee Referral Program

An employee referral program is a long-term strategy for saving money in hiring fresh candidates. Though it requires immediate expenses while related to the bonus payouts, the long-term benefits will offset this initial investment. 

The referrals only refer to those candidates who will fit the job’s requirements and the company’s work culture. If you hire such candidates, they are less likely to leave. The referrals even share your jobs on social media, helping you save a lot on advertising costs. 

Hire Qualified Candidates On The Get-Go

As a recruiter, you already know how costly hiring the replacements can be. If you aren’t careful in your selection process the first time, hiring again can be expensive. Thus, hiring good candidates for the first time is worth putting effort. By doing so, you just have to focus on how to retain them in your company. 

Build Alumni Networks Or Talent Pools

Many times, you have so many brilliant candidates for a single role. Don’t waste these contacts. You can create talent pools of people whom you can approach when positions are open in the future and Activate their Alumni Community. These pre-qualifying candidates make the process easier, quicker, and more affordable than sourcing from scratch. However, make sure that the processing of individuals’ data complies with the requirements of GDPR.

Leverage Social Media For Recruitment

Millennial is a social media savvy generation. So, it is an opportunity in disguise for the recruiters. You can use social media channels like Facebook, LinkedIn, etc. for advertising job openings, and spreading the word about your company’s vision and values. Building a company page, posting open jobs, and daily updates increase your reach. If done correctly, you don’t even need to use paid platforms for advertising your jobs.

Incorporate these cost-cutting ideas in your recruitment process. It will not only help your company save money but also create value within the recruiting function.