Avoid unnecessary paperwork
One of the more hidden costs of hiring comes from the time it takes to sift through paperwork or reach out to applicants to have them complete additional forms. This lost time can be gained back through the use of software or technology built to handle such tasks. Consider doing online video interviews to streamline the hiring process for both you and your applicants. Before getting to that point, though, you could also create a more extensive phone screening process that involves a script or set of questions from the recruiter. Just be sure the answers to these questions are recorded and not used during the interview as well, as this is both tedious for the applicant and a waste of time for your business. An additional way to cut back on costs is to go paperless. As appealing as it is to have an applicant’s resume in your hand as you speak to them, it is also costing you money. Think about how many applicants you interview and multiply that by however many resumes and forms you require them to fill out. Try using an applicant tracking system that automatically uploads their information in an easy-to-view application.
Create a referral program
When conducting a recruitment metrics study in early 2021, hiring software company CareerPlug found, “one of the best sources of high-quality applicants for employers in all industries surveyed is referrals.” After analyzing over 12,000 companies and more than 10 million applicants, the company discovered that 16.7% of applicants from referrals went on to become new hires compared to just 1.3% from job boards. These statistics come from a personal connection that someone has with their job. If they are excited about their position, they are more likely to come off as genuine and get another person excited about the possibility of working for the same company. There is a cost when creating an employee referral program, which typically is in the form of cash bonuses after an individual has been hired and works for the company for a set period of time. But if you are entrusting a talented employee to find like-minded people to work for your business, the benefit far outweighs the cost.
Reduce employee turnover
One of the most effective, but sometimes the most difficult, ways to cut hiring and recruitment costs is to eliminate the need for new hires altogether. Employee retention is a key factor in how a team works day to day and how your company’s culture is perceived. If employees are continuously leaving for other opportunities, it is time to ask yourself why this is happening. Be sure to show appreciation for your associates in ways they actually enjoy. Ask them how they like to be praised, whether it is publicly or in a one-on-one setting. Beyond that, offer your team more opportunities within the company. Provide them with continuous training so they can improve their skills, or consider creating a position for an individual who has developed a more specialized role.
Recruiting individuals for your business is an arduous task that requires nuance. By considering these tips, you could be well on your way to finding your ideal candidate and save some money along the way.