Of course, your company wants to invest in hiring the best and the brightest, but you also don’t want to throw money away either.
The following tips can help you keep a lid on your recruitment costs while not sacrificing on efficiency and quality.
Analyze Your Costs
Before setting out to ascertain what hiring functions must be eliminated or decreased, you must figure out how what the exact costs are associated with recruitment are in your company. It is crucial to consider both direct and indirect costs when evaluating recruitment costs. Direct costs can include HR labor costs, job ad fees, and onboarding costs, while indirect costs may include financial losses linked with a position being vacant, reduced morale as a result of overworked employees and other factors that are challenging to quantify.
The idea of automation in the workplace can strike fear into people’s hearts if they think technology is coming for their job. However, research regularly shows that automation is more likely to make people more productive than it is to eliminate jobs.
Automated HR software can decrease the administrative workload on things like resume screening and applicant messaging, which can provide more time for HR personnel to focus on aspects of hiring that cannot be automated. While leveraging automation doesn’t reduce costs, it does boost efficiency and maximize the resources you have in-house. There may be a minor dip in efficiency while transitioning employees to automated systems.
When you decrease time to hire, you can realize significant savings per hire. When the time to hire is reduced, it can also lead to a much better applicant experience. Well written job descriptions, video interviews, multi-stage interviews and early manager participation are all proven approaches to reducing time-to-hire.
If your company has a low employee retention rate, it can cost your organization thousands of dollars each year, and because of this, recruitment teams are increasingly being instructed to look at retention metrics. With some studies showing each lost worker can cost as much as 150 percent of their annual salary, focusing on retention can help to keep down recruitment costs on the back end.
Promote Your Employee Referral Plan
Studies regularly show an employee referral program tends to be the best recruitment channel for hiring the most skilled candidates, at the quickest pace. Those hired through employee referrals also tend to stick with a company longer than those who are not. Clearly, it is in an employer’s best interest to get the most out of their program.
Getting more out of an employee referral program can be as simple as offering employee rewards for successful hires. A CareerBuilder survey of working professionals discovered that 48 percent of respondents said cash bonuses would be added motivation to participate in their referral program.
We Can Help Your Company Keep a Lid on Its Recruitment Costs
At ZDA, we connect our clients to best-fit candidates for their open positions while helping them to keep down their recruitment costs. If your company is currently looking to get more bang for its recruitment buck, please contact our leading supply chain recruiters today.