When times are good, trimming recruitment budgets becomes an ongoing project. When times are testing, however, it’s a necessity. In both good and bad times recruiting continues, whether it is increasing headcount during the good times or replacement hiring during periods of economic slowdown. By employing creative recruiting strategies you can reduce your recruitment costs while generating maximum returns on your investment.
Here we show you 5 – arguably different – ways to help you to reduce your recruitment costs.
Use social media
Much has been said about the influence that social media – or ‘social recruiting’ – has as a part of the recruitment process, and justifiably too. But how exactly does the use of social media sites such as LinkedIn and Twitter actually save employers money? First, social media sites give your advertising a global reach, so if you are looking to recruit a senior ERP consultant on a six-month contract, for example, you are not geographically restricted in terms of candidate reach. Second, social media significantly reduces the number of man-hours spent searching for suitable candidates. Third, social media erodes employer reliance on recruitment agencies, who typically charge between 15 – 20% in commission fees. And the fourth reason is that social media can not only support, but also build your brand as an employer of choice through improved communications and greater engagement with candidates via online communities and forums who are ‘on’ the market and ‘in’ the market.
One area that has consistently remained costly, both from a time and financial outlay perspective is the interview process itself, and this has sparked a rise in the use of video – both two-way and one-way – interviewing among employers with Sonru from ireland making a real splash in the UK (http://www.sonru.com/ ) According to the Aberdeen Group, a market research firm, the number of companies using video as part of the hiring process jumped from 10% in 2010 to 42% in 2011 for several reasons: Shorter time-to-hire process; reduces costs; convenience; provides employers with access to a global talent pool; ensures consistency of questions; and shorter interviews. (http://www.aberdeen.com/Aberdeen-Library/7776/AI-video-talent-acquisition.aspx)
Create an employee referral scheme
Employee referral schemes have been around for some 30 years or more, yet there remains a number of organisations who don’t have any form of employee referral program in place despite its proven ability to reduce recruitment costs. There are a number of benefits to employers of implementing such a scheme, including: providing employers with a source of passive candidates; in the interests of safeguarding their own reputation, candidates referred by employees also tend to be of higher quality; and, the monetary bonus paid to a referring employee invariably acts as a morale booster which in turn, boosts productivity levels.
Adopt a direct recruitment model
Without question, advertising and the use of recruitment agencies represent the highest costs to employers, and this has sparked a rise in those opting to take a direct approach to their recruitment strategies. Dubbed ‘disruptive technology’, direct recruitment platforms, such as that provided by Elevate, enable employers who recruit short- to mid- term contractors with the medium by which they can reach more of their target candidate base and keep costs to a minimum. For instance, the direct model allows employers to post their advert online while the platform provider then distributes it across all job boards relevant to the advertised role. It also enables employers to search and proactively approach suitable candidates registered on the system. And if an offer of employment is made, the platform provider charges a commission fee of just 4%; thereby significantly reducing the average cost-per-hire.
Invest in the staff you already have
Could the solution to staffing needs actually be found closer to home? Sometimes the search for a quick-fix solution to your staffing needs may be misplaced. A company’s investment in training can effectively nullify both short- and long-term shortages with evidence from the UK Commission for Employment and Skills revealing that there has been a rise of more than a third in the number of higly-skilled people employed by UK Plc as a direct result of employer investment in staff training. Furthermore, reviewing your performance management strategy can also boost skill levels among employees. Manging the performance of staff is part and parcel of a manager’s job, but left unchecked for a long period of time, poorly performing workers can become a major problem and by addressing the situation early on, you can save yourself and your company both time and money.
Building the infrastructure to execute strategies that reduce cost of hire aren’t all daunting and are all achievable. Especially if you define a route to deliver them that allows the business to embrace the change and more importantly allows you to keep delivering good quality candidates whilst that change comes through.