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6 Ways To Reduce Your Recruitment Costs
HR departments have two big headaches: recruiting the right person for the job, and the enormous cost of recruiting the right person for the job.
With advancements in recruitment technology, it’s now possible to address these two challenges much more effectively and save yourself a stash of money in the process. Let’s look at what’s eating into your budget and how to reduce recruitment costs.
The high cost of recruiting
Traditional recruitment agencies charge 10% - 15% of annual salary on placement. Now imagine the cost if the person is a bad fit and leaves as soon as their contract allows them - and you have to engage the agency to do it all over again.
That is not to say that taking recruiting in-house is any less expensive. A team that manages advertising, assessments, screening, background checks, employee referrals, and government compliance costs comes at a high cost.
Reduce your costs with these effective measures
With the tips below, you can make your recruiting process more efficient and effective, and you can save money too!
1. Leverage tech
Using technology for recruitment – for sourcing, screening, assessments, and candidate engagement - is a great option. And, because just about everyone has a phone in their pocket, recruiting tech which is mobile friendly will help you get the job done even more effectively. For broader reach and simplified talent engagement, use txthr, a multi-channel chatbot that automates referral, recruitment and other HR processes via accessible channels like Whatsapp, Facebook Messenger, mobile web and SMS.
2. Auto-track your applicants
Invest in a robust applicant tracking system (ATS) such as Neptune to collect, store, search, sort, rank and track CVs received from job channels. As a recruitment CRM, Neptune provides a rich history of each candidate’s engagement. It also includes robust compliance management and provides deep insight into your recruitment process with a broad selection of dashboards and reports. Lastly, it interfaces bi-directionally with your existing tech stack and preferred services for seamless end-to-end process management.
3. Use targeted talent sourcing channels
Spreading your recruitment efforts across job boards and job aggregators, social media and Google search will elicit a big response. You can either adopt a ‘spray and pray’ approach or put your job in front of the right target audience using sourcing channels mapped to your talent-specific requirements. Using an ATS to efficiently screen the response received will save you and your team time, and money.
4. Build talent pipelines
Building and nurturing pipelines of pre-qualified talent is a great strategy to reduce agency reliance and improve recruitment turn-around-times. Tech solutions like Neptune can help you automate talent identification, categorisation, and alerting.
5. Invest in referral programmes
Employee referral programmes are cost-effective recruiting strategies and often the fastest way to find external talent that is a good fit for your organisation. Research shows employee-referred new hires tend to perform better and to stay longer. Use txtrefer, a referral chatbot to automate employee talent referrals.
6. Build your brand - positively
Harvard Business Review looked at how a company's reputation as a place to work really matters when it comes to hiring. It found a bad reputation - concerns about job security, dysfunctional teams, and poor leadership - cost a company at least 10% more per hire because it’s harder to recruit top talent. Make sure your business is a place people want to work at, communicating ‘why’ clearly via your organisation’s careers website.
The Bottom Line
Time is money. Information is value. At graylink our digital talent solutions address slow, inefficient, and costly recruitment processes, helping our customers recruit the right talent, quickly, compliantly, and for less.
By using proven tech you’ll ensure an efficient and compliant recruiting process geared towards reducing costs, irrespective of scale. Speak to us to find out how.