12 Smart Ways to Lower Recruitment Costs
Welcome to Recruiter Q&A, where we pose employment-related questions to the experts and share their answers!
Today’s Question: What is a good way to cut the costs of recruiting ?
The answers below are provided by Young Entrepreneur Council (YEC), an invite-only organization of the world’s most successful young entrepreneurs. YEC members represent nearly every industry, generate billions of dollars in revenue each year, and have created tens of thousands of jobs.
For many businesses, recruitment chips away a huge chunk of their overall operational costs.
First, determine how much recruitment is actually costing your company. Next, consider automating some of your recruiting tasks to get some of that money back. There are software options available that can help you automate time-consuming tasks like social media, FAQs, post-application messaging, etc.
— Blair Thomas, eMerchantBroker
Instead of spending money on job ads and spending a ton of time interviewing many unknown candidates, create an employee referral program. Employee referrals typically bring in candidates who are more qualified and more loyal. Plus, an employee referral plan will get the whole team involved; team members can spread the word about the new position to their friends and connections.
— Stephanie Wells, Formidable Forms
Most companies only reward employee referrals if they lead to a hire and after a probationary period. Generally, employees give up if they don’t get a win after a while. We like to incentivize the activity of referring itself, which means fast responses to referrals, frequent contests, and encouraging all passive referrals. Essentially, we convert all team members into recruiters.
— Brian Samson, Bali Staffing
Use contractors when it makes sense, and vet them while they’re on the job. When a new workforce need arises, you will already have several high-quality candidates in house, decreasing the amount of time you spend putting up ads and the commissions you pay out to recruiting agencies.
— Yaniv Masjedi, Nextiva
Sometimes the main issue is that it simply takes way too long to make a hire happen. When you spend too much time managing the administrative aspects of the hiring process instead of actively interviewing and making decisions, it drains a lot of resources.
— Nicole Munoz, Nicole Munoz Consulting, Inc.
Our company is deeply involved with the local community. Our employees make it a point to participate in multiple groups that are relevant to their core disciplines. Being active in these groups allows us to stay top of mind for talent who may be looking for new opportunities.
— Dalip Jaggi, Devise Interactive
Premium job boards allow high-quality employees and employers to connect. This method works well because a majority of people who use premium job boards are there based on a referral or contribution, which helps build their credibility. You do have to remember that no filtering process is perfect, so be mindful of scammers and con artists who might make it through the cracks.
— Syed Balkhi, WPBeginner
The right job ad should act as a filter to turn away unqualified candidates and welcome those who are the right fit. Outline the key requirements and responsibilities you expect from your candidate, as well as behavioral qualities you seek. Use industry-specific keywords so the right people find your post.
— Thomas Griffin, OptinMonster
Have you considered using social media to find your next employee? It’s becoming a very common way for candidates to find and apply for jobs. Facebook has job board groups that are wildly popular, while Twitter posts asking for writers, developers, and designers are increasingly prevalent. People want new ways to recruit talent, and social is a good place to start.
— Jared Atchison, WPForms
Our application process features multiple questions designed to determine whether a candidate is a good fit for our company. We run every test through our system, and those that raise any red flags usually get rejected before the candidate’s first interview. This process saves us time and money while allowing us to focus on candidates who are most likely qualified for the position.
— Blair Williams, MemberPress
Use a personality test to find out which applicants are the best matches for the position you are trying to fill. Some personality tests, such as the Caliper Profile, even specifically measure how a candidate’s personality traits correlate with performance in a specific role.
— Shu Saito, Godai
Making your company more attractive to potential employees can reduce your recruitment costs. In today’s market, simply paying a high salary is not enough to recruit and maintain top talent. Companies need to think outside the box and offer cost-effective benefits that appeal to candidates, such as daily free meals, child care, and monthly team outings.
— Matthew Podolsky, Florida Law Advisers, PA