A study by Oxford Economic revealed it costs over £30K to replace employees. Recruitment fees, loss of labour and the time it takes to train a new starter, are just a few costly factors. But there are ways you can reduce costs before you start recruiting. Here are some strategies for reducing recruitment costs.
Have a careers page
One of the best ways of reducing recruitment costs is by having a careers page.
Creating a careers page means it's completely under your control and it's also free. As it's becoming the norm for businesses to host their own vacancies on their website, there are more potential candidates looking at businesses they want to work for and checking what vacancies they have available.
Another benefit of having a careers page is people who are interested in working for you can navigate your site and get a better understanding of your company's values. This should help you receive better quality candidates because more people will only apply if they relate to your company, compared to a job search website where most people will apply for any job relevant to their skills.
Update your careers page regularly and you will see more people returning to see if you have any jobs available. If you receive high interest, you may not have to approach a recruitment agency.
Share vacancies on social media
Once you've created your own careers page, it means it's so much easier to share on social media.
Social media can be used to promote your business AND recruit new employees. Sharing your latest vacancies on Facebook, Twitter, LinkedIn and Google+ will increase the chance of them being seen and they will likely be shared to relevant people. As it's free to post and share on social media, it doesn't cost anything to post your vacancies.
On Twitter, you can use popular industry hashtags to get your vacancies seen by the right people. Your employees can also share your social posts to their own followings, to increase the number of people who will see them.
More and more companies are using LinkedIn to find prospective candidates. If your ideal candidates use LinkedIn regularly then it can be a valuable resource to use. Update your LinkedIn company profile and join relevant groups to give your vacancies the best exposure.
One of the biggest benefits of using social media for recruitment is, you're advertising vacancies in front of people who may not be looking for a job at the moment but they have the exact skills you're looking for. These people may be intrigued by the opportunities you offer and you will receive higher quality candidates to interview.
Encourage employees to share (and promote)
One of the best (and free) ways to advertise job vacancies is to get your employees to share them. It's very likely they will be in contact with people who have similar skills that you're looking for. Employees who love your business are the best kind of promoters because not only will they share your vacancy, they will encourage people to apply.
Get job spec and email templates ready
If you're recruiting on a regular basis, create templates for job ads and emails. Creating a brand new job specification every time a vacancy appears is incredibly time consuming. Have templates prepared that outline how you will set out your ad. You will find that many of your ads require the same or similar information. So, when it comes around to hiring again, all you have to do is tweak your job specifications and get them online.
You should also create email templates too as these will help you save time in the future. Writing the same email inviting candidates to an interview shouldn't take you a couple of hours. Email templates are a great shortcut.
Build a talent pool you can use
Building a talent pool is a popular method for HR managers who want to reduce recruiting costs. Having a pool of contacts you can refer to when a new vacancy appears, means you can sidestep having to use recruitment agencies and interviewing dozens of candidates. In a talent pool you could have three or four candidates you've met before and you're certain they're excellent for the job.
Make sure you keep any CVs you think are perfect for your company so you can approach them when the right job turns up.
Create a list of reliable recruitment companies
There are many businesses who return to the same recruitment agency despite knowing they don't always provide the best CVs. Yes, it takes time to find new recruiters and build good connections but using the same recruitment team who provide candidates that don't meet your needs will eat more into your budget.
Take some time to do research and find recruitment agencies that are best suited to finding the type of candidates you need. There are many agencies out there and each with their own specialisms. Don't just work with a generic agency, work with a company that understands the type of candidates you're looking for so you get the best for your money.
Use talent acquisition software
Using a talent acquisition software can help reduce recruiting costs at every step of the hiring process. Recruiting for a new employee can take months to complete because there are so many steps involved. Talent acquisition tools and software are designed to reduce the time it takes to find your perfect candidate, and along with reducing time, it also reduces costs.
Optimize, is an all-in-one talent acquisition software which has everything you need when hiring. It gives you full control over your company's recruitment, you can choose which recruitment agencies you want to work with, create your own talent pool, use applicant tracking and much more. Having a recruitment software in place from the beginning will help reduce your future hiring costs.
Want FREE tips on how to reduce the time to hire? We've got plenty in our FREE guide...
Download our free for actionable tips you can introduce into your hiring process to reduce costs and save time.