For most organisations, recruitment can take a big slice out of your overall operational costs.
According to Oxford Economics, replacing a member of staff costs on average £30,614 per employee.
This is made up of loss of output, while a replacement employee gets started and the logistical cost of recruiting and training a new employee. Of course, the cost will vary depending on the job role.
Hiring just 10 or more workers in a year would be a massive cost for a company and 10 members of staff doesn’t even touch the surface for some organisations.
So, before you can determine areas that can be eliminated or reduced, you need to understand how much recruitment is costing your business. Costs will include turnover, HR Administration, job board fees, agency and advertising budgets, onboarding budget, processing costs and so on.
After understanding where most of your money is being spent, you can begin to streamline. Below are some of the most efficient ways to save money on recruitment without losing out on top talent.
Reduce The Time To Hire
The initial thoughts are to reduce the time to hire because when you reduce time to hire, you reduce cost per hire. To recruit faster, your hiring team need to agree sooner on the advert and description before it gets posted, getting hiring managers involved earlier. You also need to make use of technologies like video interviewing and assessment interviews. Remember, you’re not only reducing the time for your team, but also for your candidates which will, in turn, create a much nicer candidate experience.
Hire Great Candidates From The Start
Always remember quality of quantity. Hiring great employees from the start can save a lot of time in finding a replacement in the future. Look at your recruitment costs from various angles, as they don’t just come directly from associated expenses, it could be due to low productivity, resignations, rehiring and the retraining process. What gets overlooked is the importance of retaining your employees. Lower staff turnover creates lower recruitment costs. And it’s worth considering, as each lost employee can cost as much as 150% of their salary.
Automate Your Recruitment Tasks
Applicant Tracking Systems (ATS) can help you automate tasks like, post-application messaging, nurturing workflows, Interview Scheduling, SMS messaging and onboarding. You can also use an ATS to screen hundreds of applications so that you don’t have to do it manually. It will score each candidate, helping to give you a shorter list of people to invite for an interview. Having multi-job posting technology is also ideal to get your jobs posted to multiple jobs boards, including your own careers website with one click.
Have A Competitive Salary Package
Offering a competitive salary package from the start can save on hours of negotiating and re-negotiating with potential hires. To increase the chance of your original offer being accepted, add flexibility into your compensation, allowing your recruiters to get their first choice more often.
Use An Employee Referral Program
There are lots of stats to show how employee referrals can aid recruitment. Not only do they tend to be the most qualified, but they are also quicker to hire and have a better retention rate. Make use of your employees by encouraging them to be brand ambassadors for your company. It’s easy for them to share your jobs on social media to their network, helping to save a lot of money on advert costs.