Recruitment is an expensive process involving numerous steps. A typical process includes searching, screening, hiring, and onboarding along with training and orientation. Cost-per-hire is a measure of the average cost of hiring new talent and is an important recruiting metric. As per an industry research report of 2022, the average cost per hire is close to $4,700. However, many employers are of the opinion that the actual costs could run up to three or four times a new hire’s salary. While 30-40% of the costs are against tangible items, the rest are soft costs that include time invested by managers and department leaders.
Organisations are constantly looking for ways to reduce recruitment costs. Technology has cost-effective solutions to many challenges, so it is essential to stay up-to-date with recruitment techniques and tech tools. Searching and screening are two costly and time consuming steps. Employee attrition is another cost intensive factor. Cost reduction efforts must focus on these factors, among others.
Here are ten suggestions to minimise cost-per-hire:
Similarly, employees who leave the organisation should be maintained in the talent pipeline too. They are familiar with the organisational culture and can be great assets at a future date. They should be encouraged to reapply, except in certain circumstances. All of these steps reduce or eliminate the need to search for new candidates every time there is a requirement.
When job descriptions in advertisements are detailed and specific, the right candidates apply, making the list easier and quicker to sift through. However, being too specific can significantly narrow the talent pool.
Organisations should look to partner with the right recruitment partners for the best results. Such agencies not only have the right experience and expertise, but they are also up to date with candidate expectations and tech tools. They provide access to a pre-assessed talent pool too.
Every option listed here may not work for every organisation. It is important to weigh the pros and cons of each technique and choose those that fit the business goals and budget of the organisation. Make each step count. The efforts to minimise cost-per-hire require a bit of delicate balancing between how much an organisation is willing to spend on finding top talent and the limiting the cost of recruitment.
Careernet’s Digital Hiring Solutions gives clients access to a pre-assessed talent pool and a platform driven by the right technology to source, assess, interview, and onboard candidates across industries.
Write to us at firstname.lastname@example.org for more information.
Please note that Careernet does not practice charging a placement fee from any job seeker across profiles. Word of caution to the fraudulent news and information, if anyone demands any kind of charges from you, in the name of Careernet Consulting.