How to reduce recruiting costs when hiring new employees?

It is a common observation that the largest chunk of the budget of any business is spent on their operational cost. Imagine how the sack of cost will rise when you will add 10 new employees to your company in a year.

That is why; you need to calculate the actual recruiting cost of your company so that you can later eliminate or reduce it.

Unfortunately, you never get a new hire without spending money. However, it is necessary to reduce the recruitment cost and to work on time to hire. It significantly depends on how you are spending it. The cost needs to be calculated.

Most of the companies only calculate hiring fees, referral fees and advertisement cost but you need to take account of how these costs differ depending on the type of role you are recruiting for.

The cost of the recruitment varies from company to company and region to region. Apart from this, there are many other factors that influence the cost of recruitment like advertising expenses, recruiter salary and bonuses, employee relocation cost, sign-on bonuses etc.

Whether you are sourcing candidates on your own, hiring a pro or employing fractional recruiting, there are 7 techniques that can reduce the overall cost of recruitment process.

Tap into advocacy: How do you choose a restaurant or finalise a holiday destination; you look up reviews online or ask you near and dear ones. Job seekers take the same kind of approach. They ask their trusted colleagues, peers or friends about the impression of employer. They consult their social media network on Linkedin and Facebook and check reviews on Glassdoor and scoop to check with the image of the company.

Encourage your staff about sharing their work experiences on social media platforms if make them feel happy and satisfied at work. It will help you create a good image of your company. That is how; the powerful and inexpensive tool of advocacy can make a change in your recruitment strategy.

Introduce a referral scheme: A referral scheme means that you will set aside a fixed-budget to pay to the employee who refers a new employee to your company. It is a kind of thank you bonus which is provided to current employees for introducing new employees to the organization. This system can be cost-effective in long-term. Employees will only refer people; they already know and are aware of their skills and commitment levels. They are aware of your company culture and know who can fit in the role or not.

Take advantage of social media: It is good for employers being willing to communicate at social levels. It will provide candidates with insight into your world. They will know about your work ethics and culture in your company. This transparency and authenticity will inspire them to believe in your visions.

All it needs is some time spent at the right platforms. Putting together right messages and right campaigns will initiate your interaction with your followers. Rather than reaching to every platform, choose some specified ones to target your audience group.

Use the right tools for your job: Recruitment is all about the tools you use. If you do not have right tools by your side, your cost-effective structure would be hampered. Invest in Robust application tracking system. It will help you to streamline your process. Make sure that all your technology is pulling your organization in the same direction. Money invested in right direction is always paid-off. Moreover, using tools for recruitment purposes will make your life stress-free.

Create a clear and compelling job advertisement: The job advert you create and stumble it on your website, social media platforms and other places is the first introduction of your website to the job seekers. This is a crucial experience and it has to be impressive.

If you want to look out for an efficient candidate, your advert should be well-written without any spelling or grammatical errors. It needs to be compelling, optimized for search and clearly outlining the key requirements and responsibilities of the job.

Make sure to put on genuine responsibilities only. Mentioning “degree required” can make you lose on some potential candidates. Also, make sure to mention the working hours whether your opening is part-time or full time.

These are the small tweaks that won’t cost you a fortune but, it will surely transform your recruitment structure.