If you’re looking to reduce your recruitment costs, there are plenty of ways to achieve it. In many cases, a reduction in how much you spend on talent attraction will be a by-product of other business initiatives.
The proportion of brands that conduct all of their recruitment activity in-house dropped from 69% in 2013 to 58% in 2015, according to a CIPD report, but outsourcing part or all of your talent attraction efforts shouldn’t be necessary. In another report by HR Review it’s estimated that the average cost of recruiting a replacement employee is £30,000. This represents a significant business expense, especially if you’re replacing a number of employees within a relatively short space of time.
Below are 7 ways you can reduce your recruitment costs today.
1. Tap into advocacy
As well as providing free marketing, employee advocacy lends itself to talent attraction very effectively. Every one of your employees has a network that they should be happy to tap into in order to help advertise a vacancy, if they feel valued and engaged with your brand.
Employee engagement is an essential element of any successful company; continued efforts to improve wellness, collaboration and the general happiness of employees will lead to an increased level of advocacy.
— DrumUp (@drumupio) February 22, 2016
If you have 50 employees who each have 100 ‘friends’, either on or offline, then potentially you may have instant access to a talent pool of 5,000 individuals. The larger your business, the higher this number will be.
2. The good ol’ referral scheme
If advocacy isn’t working effectively enough for you, then there’s always the good old employee referral scheme.
Offering employees an incentive to source and recommend applicants for a position is a great way to reduce costs, extend your reach, improve integration into the business, reduce time to hire and reduce turnover.
Word of mouth and personal recommendations are powerful marketing tools, especially when there are rewards involved!
3. Get social
Engaging with active and passive candidates online, using social media, has become a mainstream talent attraction strategy for many brands and agencies.
The ability and willingness to communicate socially allows a brand to provide an insight into their day-to-day operations, their vision and values, and the type of employees they currently have. This transparency increases the percentage of applications from individuals who are already confident that they’ll fit the company culture and share the brand’s vision and values.
Using social channels helps to reduce your recruitment costs, improve the quality of hire and reduce turnover.
4. Implement the right tools
To effectively create, manage and be successful in any campaign, strategy or initiative, a business needs the right tools in place. This isn’t just the case for talent attraction, but also HR, IT, project management or any element of a brand that contributes to its successful day-to-day running. Streamlining, automating and ensuring compliance can all be achieved by implementing the right tools for the job and upgrading from less appropriate solutions, such as spreadsheets.
Recruitment and onboarding software will ensure that you make the entire talent attraction process as pleasant and effective as possible for both the applicant and employer.
— KINGFISHER (@KINGFISHER_ES) February 22, 2016
5. Know what you want before you advertise
Sitting down and detailing exactly what type of individual you’re looking for and what you will require from them is essential, if you want to recruit the right employee as efficiently as possible (and retain them). Mixed messages regarding requirements, either on your part as the employer or on their part as the applicant, will not only cause problems and delays, but will also have a negative effect on your employer brand.
If the role can be accomplished by a remote employee, then this increases your potential market exponentially. Many candidates will take the cost of commuting into account when considering a position, not having to commute every day and cover those costs will be seen as an attractive option.
In an article published by onrec, they state:
“Recent studies have found that the impact of commuting on the British workforce is costing increasingly staggering amounts of time AND money.
Now that the average commute to work is approximately 54 minutes, a single worker loses as much as 11 weeks a year on journeys to work and back. In terms of the unpaid time used in this state of limbo, a commuter stands to lose as much as £5,722 a year according to recruiter Randstad UK.”
Not having to commute can save nearly £6k in some instances!
If you employ someone who’s unsure as to exactly what it is they’re expected to do and achieve, then you’ll increase the chance that they’ll leave sooner rather than later.
High turnover, as a result of poorly managed hires, will increase your associated recruitment costs and consume your HR and Recruitment department’s time – time that could be better spent on proactive initiatives.
6. Pool potential talent
These are individuals that you can pool and approach in the future, should another position open up.
— Tazio (@teamtazio) January 13, 2016
Pre-qualifying applicants makes the whole process much easier, quicker and more cost efficient than sourcing from scratch. The further through the process the applicant has previously progressed, the more you already know about them.
Talent pools are also great for staying in touch and engaging with those individuals you know are interested in working for your brand, increasing the size of your network and potential advocacy.
7. Reduce the need to recruit in the first place
By treating your employees well, ensuring that they remain happy and engaged, and reducing the chance that they’ll look for alternative employment, you also reduce the need to recruit.
Not having to recruit is the best way to save on recruitment costs!
Reduce recruitment costs with CIPHR
“Had we been managing recruitment the way we were before, where 90% of our recruitment was done through agencies, our spend would have been about 70% higher than it is today. So, overall and in real terms, the cost of our recruitment has significantly reduced through implementing CIPHR.” – Surrey Satellite
Opportunities to recruit top talent are often overlooked due to inefficient workforce planning and a recruitment strategy that fails to promote candidate engagement.
With an increasingly competitive market, combined with a growing number of passive candidates not actively looking for a job, but open to considering a new opportunity, effective communication and a positive candidate experience is critical to ensure you have an edge.
CIPHR will enable you to reduce recruitment costs, simplify administration and attract quality candidates, with full visibility of your recruitment cycle.
Promote your brand, engage with a broad base of potential candidates and facilitate a streamlined, user-friendly application process.