According to the Society for Human Resource Management (SHRM), the average cost per hire in the US is $4129. Sounds like crazy money, right? Now imagine they’re not a good fit and two months later you’re shelling out all over again. The accounting department won’t be too happy about that, will they? So how do we go about reducing that figure to something that Linda in accounts won’t balk at? Well, first you will have to find out how much is costing you to hire new staff. Our post about how to calculate your cost per hire can assist on that, or simply download bellow our free calculator.
Once you know this information, you can work this 7 tips into your recruitment processes and we’re quite sure it will help you bring down your cost per hire.
1. Target the right candidates
Less is more.
Having hundreds or even thousands of applicants for a position might sound like a success, but someone is going to have to sort through them. And that takes time, and as we all know, time is money.
In many instances, having such a massive response to a job listing is a clear indication that your ad needs work. Perhaps it’s too generic, or the job description isn’t detailed enough, either way, it would seem that you’re wasting your budget on marketing that’s not specific enough.
Give as much detail as possible in your job listing and make sure that the requirements for the position are clear and easy to understand. This helps you cut down on the number of irrelevant applications coming in.
2. Step up your inbound marketing
Sometimes a company builds up such a good brand image that it needs to spend very little on recruitment marketing once a position is available. In fact, if the company does it right, candidates will be on the lookout for even the slightest inkling that they’re hiring. And the creation of this positive brand image is largely done through the constant creation of high value (and socially responsible) content on the company website and social media profiles.
This content should accurately reflect the company’s core values and moral stance while also speaking directly to the kind of candidate you want to attract. It should extol the virtues of the company while also being humble, a fine line to tread but when it works, it really works.
And while social media posts are a great way to build a buzz and some brand awareness, it’s your website content that has the longer shelf life. So spend time ensuring that it’s well crafted.
3. Make the most of social media
The vast majority of candidates (79% in 2016 to be exact) use social media in their job search. This means that your job posting on that very nice but expensive jobs board might not be getting quite as many hits as it would have a few years ago.
If the company has already built a significant social media following and cultivated a positive brand image, then all it takes is a well-placed social media post to pull in some of those passive candidates.
However, it’s more likely that you’ll have to invest in some paid ads. But with such specific ad targeting at your fingertips, you can make sure that your ad goes out to only the particular type of candidate you want to hire. Another easy way to cut down on those irrelevant candidates we mentioned earlier.
4. Never underestimate the power of LinkedIn
For a time, LinkedIn looked to be on the wane, with memes and viral videos giving it an air of social rather than professional networking. But in recent months the platform has once again become a veritable goldmine for the savvy recruiter with professionals eschewing the meme life.
It is now, once again, not only a good resource for sourcing candidates through searching for keywords in their profile but also the ideal platform for creating a network (read as talent pool) of potential candidates.
And with 71% of employees admitting that they are at least open to new opportunities, you’ll find that professionals on the network are quite open to connecting if there is a potential career move involved.
5. Use your employees
Now, we don’t just mean by having them share the company social media posts (although that is a great help). Your employees are your biggest and most effective brand ambassadors when it comes to attracting candidates, so use them.
Encourage your employees to expand their network and build relationships with other professionals in the industry. By doing so, they are creating a passive candidate talent pool that you can tap into once any position becomes available.
And just to be sure that they get involved in your hunt for new talent, introduce an employee referral bonus. If you can potentially fill a position before you have even had the chance to put an ad out, your cost per hire will be practically nothing.
6. Outsource or automate processes
Now before you say it, yes, outsourcing does cost money, but it also saves time and ensures that the task is carried out properly. Taking certain processes off-site will allow you to accelerate your time to hire therefore reducing your cost per hire.
Automation also involves investment but, as with outsourcing, the advantages (time saved) make it cost effective.
Outsourcing and automating your processes also allows you to focus your energies on the tasks that you are good at and manage your team more efficiently. Like we said earlier, time is money after all.
7. Keep unsuccessful candidates in mind
In any recruitment campaign, there are the also-rans. The candidates that didn’t quite make it but that were certainly good enough to get to the final round of interviews. Perhaps they weren’t the ideal match for the position, or maybe a superstar candidate outshone them all. Either way, these candidates are in your talent pool so let them know that you still have them in mind for future positions should anything come up.
Nurturing your runner-up candidates and keeping in touch with those in your talent pool will make your life much easier when it’s time to call them in for an interview. And in building such a positive and trusting relationship with your candidates, they may be inclined to refer their friends and colleagues if they are unavailable or uninterested in the position.
Implement these changes to your processes and not only will you reduce your cost per hire but you may even find that the quality of applicants improves - it's all part of modernizing your recruitment process! And if you decide to outsource your talent sourcing make sure to check out our talent sourcing products or simply get in touch to see how vsource can help you find the right candidates in your next recruitment drive.