Top 5 ways to cut your recruitment costs

By Eazyhire Team
In Tips for YOU
Aug 26th, 2014
Recruitment cost

Recruitment cost

High recruitment cost is one of the main recruitment challenges in today’s world, in addition to reducing hiring pain and time. Efficient hiring calls for the art of cherry picking the right talent without an increase in recruitment costs. Talent acquisition teams must aim to adopt innovative recruitment strategies to both reduce hiring costs as well as recruit efficiently.

Here are some ways to cut your recruitment costs:

  1. Hire via social media: Hiring via social media has become the most preferred mode of hiring. This is not just because it is quick and effective, but also because you save on costs. Saving costs is of paramount importance in the case of talent acquisition for a start up. Social media recruitment helps in reaching a wide audience which also helps in reducing cost per hire. Solutions like the LinkedIn hiring solution and Facebook are getting increasingly popular, which increases the case for using them as hiring solutions. This online crowd assessed hiring solution for employers is an effective way to cut recruitment costs.
  2. Use employee referral programmes: Employee referral programmes can help you leverage your employees’ connections to recruit the best candidate. Referral programmes are fast, efficient and yield good results. Existing employees know the company culture, working requirements and other factors well and will refer only candidates they think will suit the job. If you can add a monetary compensation, this may produce better results. Care should be taken that the referral bonus is lower than recruitment costs. Also, it is necessary to make your job requirements clear to your employees at the beginning.
  3. Evaluate internal recruitment opportunities: Sometimes, you can find that your own employees can be promoted or shifted to the job. This will not only help in cutting costs, but will also boost motivation levels of the promoted employee. However, be careful when you decide on internal recruitment opportunities. Talent acquisition teams should be absolutely certain that the concerned employee is suited for the job. Care should also be taken that other employees at the same level are not de-motivated.
  4. Look at reducing attrition rate: Good recruitment practices not only focus on theart of cherry picking the right talent, but also look at it from a long term perspective of reducing attrition levels. Attrition is expensive and can cause a huge dent in your overall recruitment budget. So remember to look at hiring as a recruitment relationship. This also means you should adopt sophisticated means of hiring like using soft skills assessments and ask behaviour based questions. Low attrition directly translates to low recruitment costs.
  5. Use a recruitment service provider: recruitment service provider or amanpower consultant may look expensive at the first instance due to their charges. However, if you look at it from a long term perspective, this works out to be cheaper. You can get well assessed CVs at a low cost. You are also able to use their experience and proficiency in hiring the best talent. As challenges and opportunities for recruitment evolve, it becomes important to use new methods of hiring to cut costs and improve the quality of candidates.

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