Today, recruiting is one of the most important and at the same time difficult tasks in companies: It has never been so hard to fill open positions. Both recruiters and HR managers have to keep an eye on the available budget and handle it carefully. In this article we show you 9 tips to minimize your recruiting costs!
Especially in areas where there is a shortage of skilled workers (e.g. IT and engineering), the effort and costs involved in recruiting can quickly rise. But in general it also makes sense to keep costs under control and to use the existing budget wisely. You can reduce your cost-per-hire as well as time-per-hire through various measures in order to minimize recruiting costs. The following 9 tips will help you!
1. Your Own Candidate Pipeline
Why spend time searching for candidates when you can build your own candidate pipeline? A talent pool makes it possible. You can invite interested candidates to your talent pool via your career page, job offers or at job fairs and inform them then about new job offers or information about your company in the future. This has the advantage that you build sustainable relationships with these candidates and benefit from your own pool from which you can quickly recruit new employees when required. This means for you and your budget: less effort when recruiting new employees!
2. Optimize Candidate Journey
Unfortunately, applicants and candidates repeatedly discontinue the application process. Sometimes they simply disappear from the face of the earth (ghosting). This can have many different reasons (read here) for example mistakes with which you frighten away your applicants). It can be extremely fatal if your selected candidate simply does not appear on the first working day and you have to start your recruiting process all over again. There are always costs involved if candidates cancel because you have to react and start over if necessary. To this end, it makes sense, among other things, to optimize the Candidate Journey, a person's path from being a stranger to being hired as an employee.
3. Happy Employees
This tip will also preserve your recruiting budget. With happy and satisfied employees, you can count on lower fluctuation - in other words: less open and to be filled positions and as a result lower costs. It is therefore worth taking a look at your employees and taking care of their well-being. Even with small aspects (free coffee) you can influence the satisfaction of your employees. In this article we have summarised some aspects: Read more here.
4. Employer Branding
How powerful a good employer branding can be is demonstrated by numerous companies that do not even have to advertise jobs on job portals because they receive enough applications even without them. This is because these companies are so attractive that they are the number one employer of choice and candidates always try to become employees of this company. Good employer branding does not even require a large budget. Even small measures have a big impact.
5. Time is Money
Sending numerous e-mails, organizizing documents and maintaining Excel files: Not only does this take time, it also takes a lot of nerves. Today, there are software solutions that support you in numerous tasks. For example, you can send numerous rejections with a few clicks, publish your job advertisements online on various channels or also facilitate your applicant administration. You save time, nerves and benefit from less susceptibility to mistakes. You may have to invest in such a software, but the costs you save are immense and save your budget!
6. The right Decision
You spent time, effort and money hiring a candidate and after some time it turns out, that it was not the right person for the position. To avoid this, careful selection of staff is indispensable in order to save the cost of re-recruitment. Assessment centre, right questions in the interview and continuous consultations with the specialist department are factors that can support you in this.
7. Saving Costs on Job Advertisements
Advertising and publishing job ads can quickly increase recruiting costs. There are two main things you should keep in mind to keep costs down: On the one hand you should select the right channels. It doesn't matter whether you use paid or free channels: Always check the success and compare the channels with each other. After all, there are thousands of online job boards to choose from today. On the other hand, you should carefully select the keywords of your job advertisements in order to be found by job seekers (e.g. "Marketing Specialist" or "Marketing Guru"?).
8. Identify and Utilize Improvement Potentials
It makes sense to consider and analyse the budget over the long term. Which measures were successful? Which channels worked well? How many qualitative applications were received in response to specific job advertisements? What does the cost-per-hire look like? What about the time-per-hire? Establish a continuous improvement process in which you control and adapt your decisions and methods again and again. You can read about what you can look at in detail in our e-book: Recruitment Analytics and KPIs
9. Using a Software
Luckily, there are numerous solutions available today to support you in your recruiting process. Through various tools such as Talent Pool, Analytics and Multi-Channel posting, you have the chance to minimize your recruiting costs in various ways.
Talention has all the functions you need for successful recruiting and supports you in keeping your recruiting costs low. We would be happy to show you how exactly Talention can support you in recruiting. Request a demo now!