Human resource management specialists are responsible for a number of important decisions. Choosing the right candidate will contribute to the development and efficiency of the company, which makes the quality of the recruitment process crucial. It is worth remembering that the implementation of a complicated procedure can generate considerable costs for the company’s budget. In the following article, we will present 8 proven ways to reduce recruitment costs, without compromising the value of the acquired candidates. Let’s start!
8 tips on how to reduce recruitment costs:
- A company website
- Social media
- A good team
- A recommendation system
- Automation of activities
- Time optimization
- An in-depth job interview
- Specialists on demand
1. A company website
The official company website can be a valuable source of current job offers. Such a strategy increases the chances of cooperation among people viewing it. If your business does not have a special page where job openings are posted, it is advisable to design it, taking into account its user-friendliness and mobile compatibility. Thanks to such a solution, the HR department does not have to use external portals and bulletin boards, which optimizes the budget.
2. Social media
The potential of social media when it comes to sourcing candidates and offering vacancies is huge. According to Glassdor, 79% of job-seekers use social networking sites for this purpose. Social media are free and intuitive to use, which translates into savings. What’s more, publishing an attractive post with a job offer also means boosting your brand image and awareness. A great example is LinkedIn which gathers over 50 million businessmen and these statistics are still rising. Surveys reveal that more than 90% of recruiters acquire candidates using this tool.
3. A good team
Maintaining a regular team of experts is extremely valuable on many levels. Ceasing the cooperation means considerable costs associated with renewing the recruitment process and replacing the employee with another candidate. The Employee Benefits News platform estimated the expenses at 33% of the employee’s annual salary. Interestingly, the Work Institute’s 2017 Retention Report alarms that 75% of cases of resignation did not have to take place.
There might be even more negative effects, such as the price of traning a new employee, a decrease in motivation, errors in customer service as well as cultural and organizational aspects of the institution. Proven preventive techniques, regular satisfaction surveys and showing the interest in the employee might help to keep a close-knit team.
4. A recommendation system
Recommendation systems are also perfect for human resources managers. If a company employs practitioners, there is a good chance that the current staff knows other highly qualified people. For this purpose, special bonuses should be issued to employees who will indicate potential co-workers. Such costs are much lower than fees by professional employment agencies, and the result may turn out to be the same.
5. Automation of activities
The development of an efficient and maintenance-free mechanism in the HR department will bring long-term benefits. An investment in the right hardware and software is justified since modern technology significantly shortens and simplifies the entire recruitment process. Adequate tools will help to handle all activities and make an effective selection of submitted applications. Such solutions free up human resources that can concentrate on the implementation of fundamental issues.
6. Time optimization
The above point is inextricably connected to one more aspect, namely time optimization. A long recruitment process generates additional costs, slows down the candidate’s onboarding and use of their skills. It is critical to hire an employee who fits the needs of the organization and a specific position. This initiates a greater productivity, commitment to activities and prevents rotation. A thought-out and personalized job offer encourages employees to immediately accept the proposal and shorten the entire procedure.
7. An in-depth job interview
An interview with a potential employee is the culmination of any recruitment process, but it also affects its effectiveness and duration. A series of conversations should be carefully analyzed and designed to address all relevant issues while keeping the number of interviews to a minimum.
8. Specialists on demand
Some projects do not require a long-term cooperation. In such situations, representatives of liberal professions who focus on the execution of a specific task will work. Freelancers do not strain the recruitment budget, and there are no further costs in the end.
HR departments face a difficult challenge of making a compromise between a professional recruitment process and optimal costs. However, there are several tested tips that will help the company acquire an ideal candidate, without unnecessary interference in the budget.