One of the most essential and often utilised criteria in the hiring and recruitment process is the “cost per hire”. It is used to determine the cost of hiring new employees, and it is the total costs of recruiting divided by the number of hires. The metric provides insights into whether or not you are getting your money’s worth from all the time, effort and expenses invested in the recruitment process. The higher the value of the Cost-per-hire, the higher the risk that hiring activity should be adjusted accordingly.
Here are some of the tips to cut the cost of each hire:
Free to Use Job Boards
Putting up job opportunities on employment sites costs much money for many businesses. But there are several free job posting services and job boards that enable firms to publish their job opportunities for free and decrease their recruitment expenditures.
Popular online job posting services provide various tools, such as resume databases and employers’ search engines, to help job seekers and employers find each other. With thousands of registered users and hundreds of thousands of jobs posted each month, these sites receive substantial traffic and exposure perfect for employers and applicants.
Referral Initiatives for Employees
Increase the speed, affordability, and quality of new hires by implementing an employee referral program. Companies that have an employee referral program get better employees faster. Why? Because they know that the people making recommendations know their skills, which helps them identify candidates who are a good fit.
On average, referred candidates have 2.5 more years of job experience than non-referred candidates. They are 7% more likely to be college-educated. Referred candidates are also less likely to be unemployed.
Maintain a Talent Pool
The cost-per-hire of a new employee may be dramatically reduced by cultivating and maintaining a pool of quality applicants that are eager to join your company. Every time you have an opening for a new position, you may choose from a large pool of qualified people. If you hire from a pool, you know the candidate will do the job.
Use Recruitment Agency
It’s not always pricey to use a recruitment agency. If you hire a recruiting firm, you may even be able to save money in the long run. Research the prices of the firm you are considering and decide how much you are willing to spend. If you would like to work with a recruiting agency, look for experience in your industry or market.
Utilise Social Media
Social media is a successful tool for attracting new staff, and it costs you nothing! Whether you have an in-house social media team or not, it is useful to invest some time posting career opportunities on Social Media sites like LinkedIn. You can also set up a recruitment account on Facebook. Recruitment advertising might sound like a daunting task, but the good news is that there are many different tools to help you. There are recruitment agencies that are experts at using LinkedIn, so you could consider working with them.
Now that you know some tips for cutting the costs of each hire ensure to utilise them properly. The results will be worth it!