Every Recruiter Needs To Know These 5 Cost-Cutting Tips
April 20, 2021 by Navjot Kaur
Recruiting the right people can be time-consuming and expensive. To help you cut down on costs, here are 5 things you can do right now.
Whether your business is rapidly growing or you need to replace several people who are leaving, it can be costly to hire new workers. To save on these costs, you should implement both short-term and long-term strategies that will find you the best employees who will stay for a long period of time. To help you formulate these strategies, we've listed five ways to cut costs in the recruitment process.
1. Use a Time-Saving HR Software
To save money on the day-to-day expenses involved in hiring, consider using an HR software system to help with finding the most relevant candidates. One such software is a resume parser, which extracts the resume data and stores it in data fields. It converts unstructured data into a structured format. Moreover, it recommends potential candidates by comparing hundreds of resumes at once.
RChilli offers a resume parser and analyzes resumes in over 30 languages at breakneck speed. Compared to other solutions, RChilli offers a comprehensive package–from parsing resumes, matching resumes and jobs to enriching candidates’ details – at one of the most affordable rates in the market.
2. Introduce a Company Referral Scheme
Another tip to cut costs is to use a company referral scheme. While cash, vouchers, and other rewards to employees who refer successful candidates will increase costs in the short term, finding productive employees who stay for a year or more will save you money on hiring and retraining costs. This is primarily because your current employees will likely recommend people who they know fit the company's working culture and enjoy the job.
3. Be Clear With Your Job Description
A third way to reduce costs is to be extremely clear in your job description, as nothing wastes more money than hiring someone who will only leave within the first month. To help you make a clear-cut description of the role, know that less is more. For example, you should cut down on jargon and describe a typical day or set of activities the candidate will undertake.
Even with fewer words, make sure you are as specific as possible with what kind of skill set, education, and professional experience you want your candidate to have. If not, you may be wasting your time sifting through thousands of resumes that are just slightly off the mark of what you are looking for.
4. If You Don't Already Have a "Culture Fit" Interview, Consider Setting One Up
One strategy to limit employee turnover and save thousands in the future is to set up a small "culture fit" interview during the hiring stage. This could be as simple as having a 5-minute chat about the "soft" perks your company offers and some of the values you expect your candidate to have. Not only will this excite potential candidates, depending on what your company has to offer, but it will also explain to them what they can expect on the social side of working at your company.
While these interviews should not be used to withhold the position from good candidates, it can be a great way to prepare your new hire for the social climate of your firm. In doing so, you would be saving your time, money, and energy on hiring candidates who leave within a few months because they do not fit the culture of the firm.
5. Use Your Current Employees' Experience as a Resource to Onboard New Ones
Lastly, you should make use of your current employee's experience to help you hire potential candidates. The benefits of this are twofold. First, taking care of your current employees can hopefully limit the number of people who leave. As one study found, 64% of people said they would quit their job if they felt unappreciated— making it an important statistic to keep in mind. Getting feedback from current employees on employee satisfaction can help you enhance their experiences and time at the company.
Second, getting your employees' feedback can help you better define the role you are looking for and the culture that comes with being hired at your firm. In both instances, your current employees are a valuable resource for hiring and retaining qualified people.
Implement Cost-Cutting Tips Now To Save Thousands Later On
By implementing these cost-cutting ideas in your recruitment routine, you can save thousands of dollars later on. This is because you find qualified candidates during the recruitment process, especially if you use AI-driven software.
Guest Author: This guest post is contributed by ValueChampion, a consumer research and personal finance comparison firm that prides itself in distilling data into actionable, unbiased insights.