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10 cost-effective recruiting tips to reduce Cost per Hire for your business

Most organizations have already started modifying their business operations, in view of COVID-19 rising in the second quarter of last year’s calendar. Hiring which is a major aspect of any business had a great negative impact with the temporary halt of a few business operations.

So, in this article, we provide employers and business owners with the 10 best recruiting tips that allow you to hire quality candidates at lower expenses to your organization. And we also provide cost-cutting measures in many departments, including talent acquisition with hiring efforts keeping alive.

How does the Cost of Recruiting Employees vary?

Each company has its own policies and budget allotments while hiring employees. Besides, the allocation of salaries for employees does vary depending on the work location. For instance, an employee hired in a metropolitan city may have a huge salary compared to a person hired in a sub-urban place, and this may be exactly for the same position/role.

Also, different components contribute to varied hiring costs which may be sometimes more or less the same. These major components while an employer’s Job Board Advertising includes recruiter salary & benefits, job advertising expenses, sign-on bonuses, employee referral payouts, employee relocation costs, and third-party recruiter fees.

Methods to reduce hiring costs

1. Automating the recruitment process

Any organization or business owner can benefit from automation in recruiting while it reduces the manual time spent doing various recruitment activities. This replicates the improvement in the productivity of recruiters.

Hence, a quick and cost-effective hire is possible with a reduction in the overall costs of recruiting. Comparatively less time will be spent doing repetitive tasks such as job posting, interview scheduling, report generation, and other recruitment activities.

2. Advertise at the right place

Cost-effective hiring, while you advertise a job at the right place, is the perfect procedure for any employer to implement.  Use data analysis that allows recruitment channels to deliver efficiency and attract the best-qualified candidates.

Companies need a strategic data analysis procedure and then invest in the job advertising budget. This will turn the advertising budget into a better programmatic way and can also reduce your cost-per-applicant by more than one-third on the whole.

3. Hiring quality candidates

You cannot afford to spend on hiring a resource, and he/she is being fired out of your office with a low-performance parameter. The screening right from the start of the hiring procedure is important. It’s always better to drop a candidate soon after the interview process or at any stage of the hiring process when the management or hiring professional is dissatisfied.

Also, a quality candidate moving out of the office in very less time than expected can become a costly duty for the employer. So, re-hiring is never a good idea when you are hiring for an important role/s.

4. Encourage employee referrals

This can be one of the most effective methods to hire candidates. Shoot out an internal email among the staff members for a new job position, and you may also offer a gift or bonus for the employees who bring in qualified candidates.

This is also a way to encourage your employees, while the company is benefitting out with a cost-effective hiring process. The management can also take advantage of fixed fee recruitment with this kind of employee referral program.

5. Implement remote interviewing

In pandemic times, it’s tough to call the job searchers to the office. However, the recruitment process has taken away with the trending way of remote interviewing. The costs of recruitment in this way are much cheaper than you invite many candidates to the office.

Even outside pandemic, the companies are now realizing it’s better to continue the same procedure of virtual interviews on Skype, Microsoft Teams, or other platforms. Except for critical resources that need to be personally interviewed, this way works out to be cost-effective.

6. Measuring results with reports

As discussed, automation tools can help to recruit easier while report generation can make the task of hiring much easier. Recruiters can easily track the effectiveness of the recruitment efforts with the data analytics tools and implement the corrections wherever necessary.

Generating reports can help reduce time to hire, pipeline tasks, and work more efficiently to reduce expenses. Lower time to hire integrates with a reduced cost per hire with a process of tracking reports and making timely decisions.

7. Internal mobility to bridge gaps

Employers need not advertise jobs or assign third parties to hire a few less-critical positions. Instead, have a quick survey to find internal employees who can fill in the gaps to cut down on recruiting costs.

This Internal mobility is much beneficial to companies during economic uncertainty, especially when hiring needs are not good enough. This can also be a kind of culture to motivate your highly-skilled and valuable employees.

8. Social networks connecting each other

Everyone has social networking accounts on one or more platforms. This can be a perfect reach-out procedure for a company to the skilled prospective employees. Social networks including LinkedIn and Facebook are great channels for recruiters to meet different people.

Also, an official page of your organization will allow job searchers to browse opportunities available at your end. Many third-party recruiting agencies charge a flat fee for recruitment to employers and use social media platforms as one of the ways to find candidates.

9. Construct a talent pool of qualified candidates

A set of qualified candidates can help any company gain profits, maybe 2-fold or 3-fold when the market reacts better. This will help save recruitment costs, with no additional resources required whatsoever, while they provide the safety barrier for your business.

Creating a pool of ambitious candidates can be a struggle for recruiters, but later can turn out to be fruitful for everyone working in the company. Also, re-engaging candidates who were previously unsuccessful will help you decrease the overall cost per hire.

10. Offer a decent salary package

A competitive salary package is a rule for any company to offer candidates while wishing to close the position at the earliest and with a high-qualified candidate. This procedure also doesn’t waste the recruiter’s time and energy in negotiations with potential candidates.

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