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Lowering the Cost of Hiring Without Sacrificing Quality

Nov 05 , 2015

Hiring costs can be lowered using various techniques, even recruiting services.

There are many costs involved in hiring employees. Fees paid to list the job in various places and recruiting fees are the most obvious costs, but there can also be travel fees, salaries paid to the interview team for time spent interviewing, and even social media fees and salaried time paid to those who maintain social media pages can all be a part of the total cost to hire a new employee. There is also HR time spent setting up the new hire in the system.

Lowering these costs can be a worthy goal if your company hires frequently. For instance, instead of paying to list your job openings in various newspapers, you could post them online only, such as on your website, social media sites, and no-charge job boards. Most people now job search online, especially in the IT field, so it's unlikely you will miss out on many candidates by skipping print-only listing methods.

Another way to reduce cost per hire is to use automation to streamline processes that take a lot of time. Time is money because anything that takes time will cost the company money in employees' salaries.

Using Automation to Streamline Processes

One process that can be easily streamlined is building a list of people who want to get updates about future job listings. You can set up an RSS feed from your website to which applicants can subscribe, and a pool of applicants will get notified each time a new job opening is posted on your site.

Another process that you can streamline is that of screening candidates that apply for these openings. An applicant tracking system will screen applicants automatically, saving hiring managers time by forwarding only applicants who meet the requirements of the position.

After screening your applicants automatically, you can conduct interviews with the most promising candidates.

Does Not Using a Recruiter Save Money?

Some companies think that it will save them money to conduct the entire hiring process in-house, but using a recruiter may well be more cost-effective than doing everything yourselves. Think about how many hours it takes to post job openings on multiple job sites, screen candidates the applicant tracking system lets through, interview candidates through several rounds, and make the job offer.

And if that all seems manageable, it can take significant additional time to build a talent pipeline on social media through daily posts and interactions. When you consider all the services recruiters provide, including the ability to find candidates that aren't actively looking for a new job opportunity, it may not be worthwhile to try to "save" money on recruiting services. Recruiters can even handle ongoing needs like applicant screening and initial interviews, as well as preparing candidates for their interviews by providing background information about your company and the open position.

GDH Consulting offers recruiting services that can potentially lower your cost per hire compared to your employees spending their valuable time on the initial steps of the process.