Streamlining Recruitment Costs: 5 Efficient Techniques

Attracting great talent to your company isn’t cheap. Between headhunters, fancy job boards, advertising costs, and endless interviews, hiring costs can quickly eat into your budget.

Since the average cost per hire in the US is around $4,700, it only makes sense that you look for ways to streamline your hiring process and reduce costs. Luckily, there are some clever tactics you can use to achieve this without compromising the quality of the settings.

In this post, we present five strategic ways to reduce hiring costs in your company. We discuss key strategies such as internal referrals, social media hiring, employee retention, and so on.

Are you ready? Then let’s get going!

1.Use internal recommendations

Your employees are your best brand ambassadors, so why not leverage their networks? Internal referrals not only save you money on external advertising, but they also increase the chances of finding applicants who are a good fit for the company culture.

To make your employee referral program more effective, you need to make sure your employees know how it works. Provide clear guidelines on how to recommend someone. Determine what qualifications the recommended candidates must have and what steps follow a recommendation, e.g. to whom the recommended candidates should be forwarded.

Reward your employees for referring qualified applicants. These can range from cash rewards to additional vacation days, recognition or cheers. Make sure that the referral program is always remembered by regularly informing about it in company meetings, emails or internal newsletters - especially when there is a new position to be filled.

Emphasize feedback by letting employees know the status of their recommendations. If a recommended candidate is not selected, provide an explanation. Did the candidate not meet certain criteria? You should communicate this to your employees. Don't leave them in the dark. This way, they will be encouraged to participate in future referral programs and will know what to look for.

2.Use social media platforms

Skip the expensive job boards and take advantage of social media platforms like LinkedIn, X and even Facebook groups. A report by CareerArc shows that 86% of job seekers use social media to search for and apply for relevant jobs.

Because it's all about targeting the right groups for your specific needs, it's important that you choose the right social platforms. You don't have to be present everywhere. For example, LinkedIn is the best choice if you want to fill professional positions. Instagram is ideal if you're looking for more creative work like graphic design or photography. X (formerly Twitter) if you're looking for more technical experts. And TikTok if you're looking for a younger workforce.

Using social platforms isn't just about posting job openings and hoping the right candidate finds you. Instead, you should consciously present your company as a brand that people would like to work with.

Use your social profiles to showcase your company culture. Publish content that reflects your company values and showcases your work environment. You can also get willing employees to talk about the positive experiences they've had working with you. Not only is this an effective way to get likes and other types of engagement, but it can also help you attract potential applicants.

You should also use high-quality images and videos to create an attractive social media profile. Keep your online community engaged by responding to comments or direct messages - especially if they ask questions about the jobs you've posted. This way, you will leave a warm and welcoming impression on potential applicants.

Encourage your employees to share the job advertisements you distribute. This allows you to extend the reach to individuals in their networks, which proves to be very effective as personal connections have a huge impact on job postings.

3.Implement employee retention strategies

If your employees love their work, they are more likely to stay. This means you don't have to constantly hire new employees and can save costs in the long term. Investing in employee retention strategies can also help you expand your internal talent pool for future hiring. You can easily promote your current employees to higher roles and hire new employees for lower positions. This way you can ensure that you have trustworthy employees in more sensitive areas.

So how can you create a work environment that encourages your employees to stay? Put the satisfaction and well-being of your employees first.

First, make sure your employees are paid appropriately for their work. According to a Pew Research Center report, low pay is one of the top reasons why 63 percent of workers leave their jobs. Other reasons for termination include a lack of opportunities for advancement and a lack of flexibility.

Ideally, you should conduct a regular review and adjust salaries to reflect current industry standards and cost of living. Additionally, offer development opportunities for your employees by conducting mentoring or training programs.

You can also allow flexible work arrangements to meet the different needs of employees and create a work-life balance. Consider the possibility of telecommuting, flexible work schedules, or even shortened workdays, especially if your employees have proven effective over time.

It's also important to recognize your employees' efforts and reward them with the right recognition program. Overall, you want to create an environment where your employees feel valued and needed.

4.Invest in ATS software

Applicant Tracking Systems (ATS) software helps streamline the application process. ATS tools like IceHrm, is designed to filter resumes according to specific criteria and automate communication with applicants. They save valuable time and resources and allow you to focus on the most suitable applicants.

When choosing ATS software, you should carefully assess your needs and the volume of settings you want to make in the long term. Choose a platform that can handle your growth. Pay attention to important features such as ease of use, reporting capabilities, and customer support.

Here's how you can effectively use ATS for your hiring process:

• Use ATS to customize your hiring process. Personalize processes like screening, interviews, candidate assessments, and onboarding.
• Automate routine tasks like screening applications, scheduling interviews, and onboarding new hires.
• Set up the ATS to automatically publish your job advertisements. These offers can be published on your career website or social platforms once the integration is done properly. Make sure you optimize these job postings by using relevant keywords and job descriptions.

To make the job easier, you can use a generative AI platform like Writer to create a detailed job description. All you need is a clear prompt about the role you want to fill and the AI tool will create a draft that you can edit and upload to your ATS software.

Finally, you can track the effectiveness of your hiring process by paying attention to details like time to hire, cost per hire, quality of applicants, and so on. Then you will have some key insights to improve your strategy if necessary.

5.Improve your company's career portal

Your company's careers page is your virtual frontline for attracting new talent. Make sure it appropriately reflects your employer’s brand. Here are some ways you can make sure this career portal stands out.

Highlight your company culture, your vision and your mission. This way potential employees can get to know you. You can also include positive testimonials from current and past employees. This is a form of social proof that shows potential employees what it's like to work for you.

Also make sure that your job advertisements are clear and concise. Add enough details and let prospects know exactly what you're looking for. For example, qualifications, level of experience of the applicant or special skills you need.

You can also answer some frequently asked questions that potential employees may have. It's a good idea to let candidates know what your typical recruiting process is like so they know what to expect. Make sure it's easy to apply for jobs through your career portal. If applicants need to upload files, it should be seamless.

Finally, use a clear call to action that encourages candidates to apply for the jobs that interest them. Beautify your site with high-quality designs. Add pictures of your workspaces or other photos that complement your written content. Make sure the site is easy to navigate and responsive so it is accessible on mobile devices.

Finally

The cost of recruiting employees can quickly add up and eat into your company's overall budget. That's why it's important to look for ways to reduce recruiting costs without compromising on the quality of your new employees.

Today we shared five effective strategies for reducing hiring costs. These include: leveraging internal referrals, leveraging social media, employee retention strategies, using ATS software, and improving your company's career portal.

These techniques will not only reduce hiring costs but also improve the overall efficiency of your hiring process. So feel free to use them. Good luck!

Reduce hiring costs with these savvy strategies, ensuring efficiency and quality in your recruitment process. Harness the power of tools like IceHrm for optimal results.