Did you know that the average cost-per-hire across industries surpasses $4,000? In fact, according to a benchmark report from SHRM, the number even grazes the $15,000 mark when it comes to executive hires. There’s no doubt about it, finding and hiring qualified candidates isn’t cheap. From the setup, maintenance and eventual redesign of your careers page all the way to in-house salaries, without forgetting employer branding efforts and career fairs, recruitment expenses can easily add up.
Clearly, talent acquisition is not cheap, but it does not have to break the bank either. What you need in order to reduce your overall recruitment spending is a well-conceived plan of action tailored to your specific requirements and goals. In order to help you develop a cost-efficient strategy, we’ve come up with the 3 best research-based tips that will enable you to maximize your recruitment ROI without sacrificing quality:
Interviewing multiple candidates simultaneously is a tactic frequently used by businesses.
• Faster & more economical
Bringing all or a few of the applicants into a meeting at the same time allows the interviewers to meet a large pool of candidates in a short amount of time. As such, it takes less time and is likely cheaper than conducting multiple one-on-one interviews. It also ensures that everyone is getting the exact same information in the same tone and method of delivery.
• Detect different skills
Recruiters can ask questions which are applicable for all interviewees at once, essentially eliminating first impression biases. They can easily compare answers and demeanors, and they can observe interactions within the group to easily identify profiles and detect different skills.
• Candidates stand out
Group interviews also benefit the candidates. Indeed, this is an opportunity for them to stand out among the group and to meet others who are interested in the field, which can help them better assess their strengths and weaknesses and gain knowledge of the job market.
• Great for entry-level jobs
While group interviews are great for businesses with large numbers of entry-level jobs to fill, they might not be the best option when looking for a high-level employee, as they are not ideal for deep discussions nor do they allow the interviewee to disclose confidential information, due to their inherent open nature.
• Interviewer skills
However, interviewers need to be extra sharp in this group setting, as they are expected to carefully observe and collect information about multiple candidates all at once. Tact, acuity and strong management skills are thus required of the person or people conducting the interview.
An employee referral program is a method by which employees share their company’s job vacancies in their own networks and provide recommendations for candidates who apply in exchange for a bonus.
• Lower cost-per-hire
The benefits for both recruiters and candidates are numerous. First of all, employee referral programs have been shown to reduce both time to hire and cost per hire, which, if you are reading this article, is something you are interested in.
• Higher retention rates
What’s more, drawing potential future employees from your existing staff’s network tends to increase retention rates as well as quality of hires. Having a functioning employee referral programs is your best weapon against high turnovers rates, which are never fun and can drain your resources.
• Safe bet for cultural fit
The network can act as a first filter to meet people who share company values. And for the new employee, joining an acquaintance’s company can mean lower stress levels and a higher likelihood of fitting in.
• Faster training & onboarding
Due to their familiarity with the company, referred candidates tend to be trained and onboarded faster than hires from other sources, which is a win-win for both parties involved and a relief for your budget.
• A useful tool among others
Overall, many employers praise the benefits of employee referral programs. Certainly, such programs are not all-encompassing, as aiming for diversity of source and picking personnel from different networks is also profitable.
Once your job post is up and running on your careers page, you can seek the help of a specialized platform to redirect qualified candidates to you.
• Free advertising
A free platform is convenient primarily because it lets you advertise your jobs without spending a penny. As such, by choosing a free platform, you can have more leeway when it comes to expenses and you can choose to allocate funds wherever you find they are most needed.
• High exposure
The benefits of a free platform are numerous. Getting noticed by qualified applicants without having to reach out to them is a major plus. Also, new prospective candidates finding out about your company through the platform helps your brand recognition efforts and boosts your exposure.
• Free indexing
Furthermore, the jobs currently featured on your website’s career page might already be indexed by the platform, which means you don’t have to manually post them. And who doesn't love free advertising?
• Platform suggestions
Over time, you can build relationships with the platform staff and benefit from their educated suggestions and expert opinions, which they have formed through years of experience in finding solutions for all kinds of recruitment needs.
To summarize, interviewing several candidates at once, having a strong employee referral program and posting your jobs on a free platform are three easy ways for recruiters to save time, effort and money. Also, it can be a good idea to document the hiring process as you go along. This will allow you to notice any mistakes or areas that need improvement and will increase future efficiency.
Following these 3 useful budgeting tips and keeping track of your recruitment data can enrich your hiring strategy and reduce your average cost per hire as well as other expenses. For further reading on cost-efficient hiring techniques, make sure to check out our tips on how to spend your recruitment budget efficiently.