3 Strategies to Effectively Reduce Your Recruitment Costs

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The invisible battle for the right candidate has always been a huge undertaking among companies. The cost involved in employing the right talent is tremendous, and of course, depends on the companies and their strategies. As managers, your constant concern is - “Is there a way that I can down the cost?” Quite understandable, as it impacts the productivity and bottom-line of the business. But the good news is, if you want to accomplish this, you can overcome the challenges.  

 

Ways To Reduce Cost On Recruitment

 

Firstly, to let you know the emergence in coming up with the strategies, here’s the pictorial representation of the cost involved in hires. 

 

 

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If this is the cost-per-hire, then think of the cost incurred in a year and so on. We will present you with “3+2” ways for reducing the cost of recruitments. 

 

What are the 3+2 ways? 

 

I have developed “3 strategies and 2 tips” that can boost your recruitment process and reduce costs without compromising on the quality of hire. 

 

We will begin with the strategies. The following have proved to be the most effective approaches for quality hiring while reducing recruitment costs. 

 

1. Stay Equipped With The Right Recruitment Automation Tools

 

Automating the tasks in recruiting is considered to be one of the significant ways of reducing costs. If you are one of those who value time and agree with the concept time equals money,” then enabling automation in your recruitments saves you double the cost. But if you are yet to figure out the reason, “why and how,” consider the following benefits.

  • Seamlessly accomplishes repetitive tasks. 
  • Enables a smooth flow of work.
  • Drastically reduce the hours spent on repetitive tasks.
  • Protects the candidate’s data.
  • Boosts the productivity of recruiting team. 
  • Positively impact the business’s bottom line.
  • It helps you stay in trend as digitalization is a demand these days.

It is crucial to ensure that you are well-equipped with the right tools to experience these benefits in your organization. A good recruitment team equipped with high-quality tools is a great combo to enhance and attain a perfect process and ultimately achieve recruitment goals

 

No doubt you may be concerned about the cost involved in implementing the automated solution. But the advantage here is the better outcomes it provides not just for the present but also for the future. The cost spent on the right technologies will pay off in terms of both efficiency and time. Therefore, it is absolutely right to say that - one of the best strategies to reduce the cost is the automation of the recruitment process.   

 

2. Establish Or Redesign Your Company’s ERP 

 

Imagine you wish to buy a mobile phone. You ask for recommendations and advice from your trusted friends or relatives. You search reviews on the internet to check out if the mobile phone is of good quality. So, why not do the same for employees, who play a critical and vital role in your organization’s growth?

 

Hence the second highly relied-on strategy for a cost-effective recruitment process is to enhance the “Employee Referral Program.” Under this program, often referred to as ERP, you can ask your existing employees to refer excellent and suitable candidates. The benefits of ERP are - 

  • Employee referral programs enhance the quality of recruiting.
  • The employees refer the candidates who fit into the listed roles and responsibilities.
  • The chances of the referred employee staying longer in the organization is much higher.
  • Adapting the organization’s culture wouldn’t be too tricky for the candidate as the referee would have conveyed or would convey it. 
  • Contributes to the organization’s better employee relationship management and team spirit.

Similar to the previous strategy, you might find the initial costs involved in ERP too, but still, in the longer run, you can be sure of quality hiring relatively in less time. Therefore, it is high time that your organization has a proper ERP strategy. If you already have one, analyze it to determine if a redesign of the strategy may be necessary.

 

3. Take Advantage Of Social Media - The Genuine Hub Of The Right Candidates  

 

Once David Alston rightly said, “Social media is not just a media, but the key here is to listen, engage and build.” Social media indeed has laid a robust platform not just for socially building the community but also a vast opportunity for businesses to explore, experience, and establish themselves among the general public. When the medium is used correctly, you can express the best of your business’s authenticity to every opportunity.

 

It is quite impossible to overlook that today’s millennial candidates you are looking to hire are tech-savvy. The right place to connect and identify the right talent is on social media platforms. 70% of the recruiting managers say that they have successfully hired through social media. And the best part of this is, it is absolutely free of cost [unless you wish to go employ paid offers.] 

 

If such a great opportunity is put in front of you, why not take advantage of these social platforms for your organization’s recruitment? The following are the benefits of creating your recruitment strategy using social media-

  • Free of cost. All you need to spend is a little time posting the job openings.
  • Increases the volume of the candidate’s applications. 
  • It helps you create talent pools for your future reference.
  • Provides an opportunity to create your company’s brand. 

The provision of proof and facts appeal much more than mere words. Here are the statistics that are sure to help you understand the importance of implementing this strategy.

 

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The 2 Tips

 

We are familiar with the saying that “every problem has a solution,” but then how many of us would want to realize that “every problem has a cause?” Unless you look into the problem and solve it, you can not prevent its recurrence. The same goes for recruitment. The re-hiring cost is comparatively more than the hiring cost, as it costs about eight month’s salary for re-hiring.

 

 

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The human resource department’s very reason to hire throughout the year is either termination or resignation. “How?” Consider the two practical tips and experience the difference when implemented.

 

Tip 1 - Improve The Quality Of Hiring, To Reduce Hiring & Its Costs

 

When proper screening activities and the candidate’s judgment are correct, there would hardly arise any need for termination. Therefore, just as a precaution is better than cure, ensure that the candidate you select is the right fit for the role. Go for the necessary background check and verify all the details well in advance. All these improve the quality of your hiring and thus reduces the need for re-hiring.

 

Tip 2 - Take Necessary Steps For Employee Retention

 

Employees would hardly think of leaving the organization if they are well-engaged. However, engagement strategies are to be redesigned and implemented to retain the employees. Thus, instead of spending the amount on re-hiring, it is advisable to spend on employee engagement programs to ensure employee retention. If you gain the employees’ loyalty, there is no need to hire again, so isn’t money well spent.

 

Conclusion

 

Implementing the right strategies to reduce hiring costs cannot be overlooked or postponed, as they are essential. It is significant to realize that the impact is not just on the cost but also on your business’s productivity and bottom line. Therefore, take up the suitable measures, implement at the proper levels, and follow up for a better experience and overall business improvement.

 

DH offers on-site & virtual solutions to help your organization create a workplace culture that not only retains top talent but attracts new talent. 

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About the Author

Meet Vara

Meet Vara is an experienced Product Marketer at FactoHR, having expertise in creating various ideas for creative writing. He is passionate about researching and exploring blogs and checking out the latest trends and replicating his expertise in crafting exclusive content. His approach and readiness towards writing quality content are exceptional.

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