Recruiting is an essential business activity that must be done in order to fill jobs and grow the business. Recruitment is essential to make sure that the right person or professional is provided with the right job in the firm and that there is always a pool of candidates to choose from for any given role at any given point of time. A recruiter may work both internally or externally or in some cases, exclusively for a client firm to fetch the right talent for the organisation. It is done in many ways to reduce costs, either internally by the HR team or by hiring a tech staffing agency that can work exclusively for a company by vetting the candidates in the market and maintaining a database of possible candidates.
When it comes to HR department related expenses, recruitment is one of the most expensive processes as the companies end up shelling out major amounts in conducting a preliminary search of candidates, vetting of resumes, conducting exams or tests to streamline candidates, conducting exclusive interviews etc. Even after recruiting, there are many costs attached to placing the candidates in the job, providing them training and inducting the candidate in their roles and into the system of the organisation.
Human Resource managers and Recruiters from Tech staffing agencies are the key drivers for recruitment in most companies and one of their major roles is also to reduce and optimise the costs and the process of recruitment in the organisation. Both these parties are forever looking for methods to cut down on all the additional costs that go into hiring candidates and especially if the hiring process did not succeed or the employees are not retained by the organisation. A lot of money is wasted every year when companies have high turnover and face huge losses having to go through the process again.
7 Ways to Reduce Costs in Recruitment
Below is a list of 7 of the best ways a recruiter or a company can reduce the Recruitment Costs and Optimise the hiring process in a firm:
1. Having a clear goal
Everything starts with having a clear goal – streamlining the number of vacancies, creating the job profiles for these vacancies and knowing where to look for, is the best way to start.
2. Writing Job Specs
A clear and detailed Job Spec which is either circulated in the market or posted on job sites or provided to an external agency is important to highlight the roles and requirements.
3. Vetting Candidates
A lot of excess cost can be avoided when the recruiters know how to eliminate candidates rather than looking for candidates to include or choose.
4. Using an Expert
Many HR managers rely on the technical prowess of a Technical Staffing agency to hire the best Technical talent in the market as they have a better way of sourcing and selecting candidates.
5. Optimising Tests
Conducting tests and exams to vett the candidates is an essential step but online tests and exams are easier and more cost effective.
6. Watching Turnover
One of the highest costs is attached to employee turnover and making sure the candidates are retained is the best way to cut down on these excess costs.
7. Streamlining Induction
Induction can be optimised and ways to reduce costs attached to orientation and placement of candidates in their roles can help in cutting down excess costs.