Attracting quality talent requires investment. It takes money to attract talent, and it takes talent to make money. However, businesses today must also deal with the realities of a struggling economy and an extremely competitive job market. Let’s take a look at five strategies for reducing your cost per hire while still finding the right person for the job.
Focus on Retention
Retaining the employees you have takes effort, but it’s worth it in terms of cutting recruitment costs (and building a strong company). Implement strategies such as promoting from within, offering incentives and rewards, indentifying and addressing flight risks, and encouraging employee feedback to keep your current workers.
Recruit Internally
Post jobs on your company website, encourage employees to suggest candidates and consider implementing a referral scheme that rewards employees for high-quality referrals. On the negative side, internal recruiting limits your exposure, which is why it should be used as part of a broader recruitment initiative rather than your only plan.
Employ Social Media Recruiting
Social media is not only an extremely cost-effective way to recruit, but also one of the most popular venues for job candidates seeking new positions. That means it’s a good fit both for you and for your target audience. Maintain an active presence on Facebook, Twitter, LinkedIn, and other social media networks by engaging with your audience and selling your company as a desirable workplace. Social media also broadens your reach by enabling your fans and followers to share job postings with their friends.
Reduce Printed Efforts
Printed job advertisements statistically provide lower return on investment than other recruiting methods. That doesn’t mean you should throw them out altogether, but it does mean you can get more bang for your buck by reducing the size of printed ads and the number of publications you advertise in. Redirect those dollars toward online efforts, a cost-effective recruiting venue that continues to surge in popularity and effectiveness.
Focus on Hiring the Right Person
If you hire the right person to start with, you won’t have to re-allocate resources toward filling that same position again in a year or two. Employing a talent agency can help you connect with a broader base of qualified candidates, especially if you’re looking for someone to fill a specialized position. Do your homework and get to know job candidates in different contexts. Following a person on Facebook and Twitter, for example, can help you read a person’s personality and communication style, filling in the gaps between resumes, interviews, and LinkedIn profiles.
Reducing your cost per hire requires a multi-pronged approach and may mean a major shift in current recruiting efforts. What strategies have you implemented to reduce costs while still finding the right person for the job?