Recruitment is an expensive endeavor. The average cost per hire can range anywhere from $4000 to $6000, and for an organization recruiting for multiple positions within a year, this cost can quickly add up. While numerous factors contribute to how much you will spend on recruitment, having the ability to reduce recruitment costs is critical.
This post will explore four methods you can use to help reduce recruitment costs without sacrificing candidate quality. It is important to remember that although reducing recruitment costs is essential if it results in hiring the wrong talent, you will end up spending and losing much more.
Four Ways to Reduce Recruitment Costs Without Sacrificing Candidate Quality
Streamline Initial Contacts with Automation
Several tools, including chatbots, on the market, can help your recruiters automate repetitive tasks like resume screening, scheduling interviews, email automation, answering FAQs, and collecting information to add to your talent pipeline. Ultimately, automation will significantly reduce the time your recruiting team will spend on repetitive tasks, directly impacting productivity, allowing them to hire more candidates in the same amount of time, effectively allowing you to reduce recruitment costs.
Retain Current Employees
The easiest way to reduce recruitment costs is to reduce your turnover rate. Start by giving your current team reasons to stay with your company. If you aren’t taking care of your team, many of your current employees may be easily persuaded to leave if a better offer comes along. Take the time to ask your staff what you can do to create the ideal work environment. Even if it costs a few thousand dollars per year to provide a new benefit, it will still cost less than backfilling a role because a prior employee didn’t feel appreciated.
Develop an Employee Referral Program
Although advertising on job boards and social media channels to find potential candidates can be beneficial, it can also be a very costly way to source talent. Conversely, finding potential candidates for a specific role through employee referrals is much more cost-effective and just as practical. Ensure your employees know which positions you’re actively hiring for, and inform them on how they should connect you with potential candidates. To drive participation in the program, be sure to offer a referral bonus.
Create Concise Job Descriptions
While including questions like “Do you want a job with unlimited income potential?” in your job postings helps increase the number of applications you receive by making your posting more appealing to a broader audience. It also guarantees that a large number of those applicants will be unqualified. To attract quality candidates, start your posting with a summary of your company and ensure sure candidates know what your company does. Don’t be discouraged if you can’t find a candidate that checks off every box; instead, identify the candidates that believe in your company and can handle the core responsibilities.