For your organization to thrive, you must be deliberate about the quality of staff you hire. Howbeit, it is not best practice to incur unreasonably huge costs simply because you want to acquire new talents. Hence, it beckons on hiring managers to put these costs of hiring new talents in check. Before making attempts at reducing recruitment costs, it behoves you to think about what you’re spending at the moment. Furthermore, you need to be deliberate about the things you spend on. When calculating the costs you incur on recruitment, you should consider expenses like the fees charged by your recruitment agency; referral fees, and the costs of advertisements.
Generally, the cost of hiring a new talent varies depending on the role to be filled. Furthermore, it depends largely on how you choose to go about your recruitment process. If you take into account the onboarding period (the time it takes a new hire to get up to full working speed); then the average cost of replacing a single employee could be very high. But do not worry, we have compiled a couple of tips that would help reduce your cost per hire.
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Tap into advocacy
Employees are often the most credible sources on subjects like company culture and business goals. Hence, employees can serve as strong advocates – or otherwise – for their organization. An employee advocate can go a long way to generate positive exposure for their organization. Even more, employees can make recommendations about the organization to their network of friends and family. When your employees double as advocates for your organization, you may find yourself having to incur zero costs on recruitment. Getting your employees to share their experiences of your workplace – especially on social media – would help to create a positive image of your workplace.
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Introduce a referral scheme
Referral Program has now become the face of modern recruitment. Referral employees are considered to be very handy, as they usually take the least amount of time to hire. Furthermore, the cost of recruiting them is usually next to nothing. Another major advantage of recruitment via referrals is that you have someone you can hold directly accountable should things go sour with a referred employee.
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Leverage on social media
Social media is where people go to interact with friends, express their passions, shop the latest trends; and yes, seek their next job. Hence, social media avails employers the luxury of providing an insight into their day-to-day operations. Furthermore, employers are able to portray the key elements of their organization’s vision and values; and the type of people who work with them. This clarity and authenticity will help to increase the volume of applications you receive from individuals who are confident that they share your vision and values.
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Use the right tools for the job
With the technology wave of the 21st century, there are a number of tech solutions that can help to streamline your recruitment processes. One of such viable solutions that have been proven to give optimum results is OutsourceHR. OutsourceHR is an HR outsourcing solution that completely eradicates all your manual HR processes. OutsourceHR caters for the wholistic staff journey right from the point of recruitment, up until disengagement. Impressively; with OutsourceHR, you can filter applications and can invite thousands of applicants to an interview with the click of just one button. On a larger scale, OutsourceHR helps to reduce the number of staff you need in your HR department. With various modules like the recruitment module; onboarding module; leave management module; appraisal module; time management module; and resignation module; this significant tool can save your organization several millions of naira every year.
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Build talent pools and alumni networks
Whenever you run a job ad and eventually hire your ideal candidate, it is a smart thing to keep a pool of other candidates who are as well qualified but were not employed at that time. This way, you have a pool of individuals whom you can reach out to when the need warrants. Similarly, keeping an alumni network can be of immense value when you need technical mentors for niche skills. Very few things can be as valuable as being mentored on the job by someone who did well occupying that particular role within the same organization.
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Reduce the need for recruitment in the first place
The most effective way to cut hiring costs seems simple on the surface. When scratched further however, it might turn out to be a complex project on its own. Improving the way you support and engage with your existing employees would certainly help to reduce employee turnover. With fewer employees leaving your organization, there would be little or no need to hire replacements.
With these few points, I earnestly hope you have found valuable information that would help reduce the costs you incur on recruiting new staff for your organization. If however, you need further insights on how to achieve specific results within the HR department of your organization, feel free to contact us. You can be rest assured that we would leave no stone unturned in helping to optimize your results and ultimately, grow your business.
Dipo Umoru
+234 703 719 5924
Verification Consultant