With unemployment being the lowest it has been in half a decade, it has become increasingly difficult for businesses to hire qualified candidates and, as a result, has increased the cost of hiring since more companies are looking for elite people. In the USA, the average cost of hiring is just over $4,700, which includes the purchase of a job board post, paying recruiters, and screening candidates’ backgrounds and references. And while these are just some of the costs that you have to pay, there are more hidden costs that start accumulating when you have a vacant position, which most businesses are either not aware of or simply just ignore.
Below we will be going over how you can implement a cost-effective recruitment strategy into your hiring model.
1. Unnecessary time and resources spent on unsuitable applicants
Going over all the candidate’s applications can be the longest part of the hiring process. Your staff spends countless hours and days manually going over who may be qualified for the job and who wouldn’t be. Sometimes during this process, it’s easy for unqualified candidates to slip through the cracks, meaning you then spend extra time interviewing them. All of this adds up to extra time, and as we all know, time is money. One way to make this easier is to use pre-screen surveys, a way for your team to automatically send thank you emails while also sending them the survey that will only take them a few minutes to complete. Anyone who fails to pass a certain threshold isn’t even considered meaning you can easily weed out any unqualified candidates.
2. Reduced productivity since you have a vacant position
When your organization has an open position, this often means that other members of your team have to pick up a workload that they wouldn’t normally do. This can lower productivity and profitability, especially if that open position is within a sales team. Being down a sales position means you are losing the profits that person would ordinarily be bringing in. Therefore it’s important to have an effective hiring process. One way of doing this is by using text messaging instead of emails or phone calls to get in contact with your candidates; as some people don’t look at their emails or even answer calls, it’s more likely that they will quickly respond to a text.
3. Spending time training new employees
So you’ve managed to hire your perfect qualified candidate. Now what? Like everyone starting a new job, it does take a little bit of time for your new hire to find their feet within the company. Having to get caught up with onboarding and all the paperwork can be time-consuming, which could bring down productivity. One way to work around this is to have your new hire do their onboarding immediately. Submitting all their required information for payrolls and tax forms digitally can help your HR team reduce the amount of work that needs to be done and their time could be better spent on handling other, more important tasks.
4. Onboarding technology can save you money
One great way to save more money during the hiring process can be to invest in onboarding technology. With a lot of people living in a digital world where interactions are almost instantaneous, using onboarding technology could help your HR team complete their processes a lot faster than having to do them manually. Being able to cut down the number of resources and time done doing this means you spend less money on your hiring process