Lower unemployment rates and higher candidate demand are making it more difficult to find truly skilled candidates. This decrease in supply and increase in demand is also driving recruitment costs much higher.
While costs continue to rise, there are several things that employers can do to help try to contain total cost-per-hire. Here are some tips:
Streamline the process.
Review your recruiting process from start to finish. Look for areas of redundancy and delay. One of the most common issues we find is that the time to fill positions is extremely high because of drawn out internal processes. When the hiring process extends, top candidates are often hired by others. Companies then either have to settle for the runner up, or begin the recruiting process all over. This can really increase overall recruiting costs not to mention add additional burden and strain on the rest of the company as the position continues to go unfilled.
Analyze recruiting tools.
Albert Einstein once defined insanity as “doing the same thing over and over again and expecting different results.” But when it comes to hiring, many companies consistently use the same recruiting tools that failed to get great results in the past–just because that’s how they have always hired! Before recruiting for your next position, take a close look at where your best hires have come from. Identify recruiting tools and tactics that haven’t worked in the past and stop using them! We see many companies throw money away on ads, job postings and other tools that haven’t worked for them (or anyone else) in the past.
Consider working with a recruiting firm.
On the surface, recruiting firm fees might seem higher, but when you analyze the hard and soft costs of recruiting, you might be surprised. When working with a recruiting firm to fill a direct hire position, you’ll only pay for a candidate that you actually hire. Many recruiting firms will also incur the advertising expense, screening costs, background checks, etc. Not to mention, you’re internal team and resources won’t have to deal with the initial screening of unqualified candidates.
Staffing and recruiting firms also have the benefit of economies of scale. They are continually recruiting using advanced technology, multiple sourcing channels and a team of specialists that focus solely on identifying talent.
While initial recruiting costs can be high, the cost of making a bad hire can be catastrophic! You may want to consider looking at a temp-to-hire model that allows you to evaluate potential candidates on a temporary basis. You can assess their skills on the job and also ensure a good cultural fit within your organization.
Looking to reduce your cost-per-hire?
Whether interested in adding a full-time hire to your team or considering temp-to-hire or contract staff, PrideStaff can help. As a leading recruiting firm in Richmond, we offer a variety of employment options to help streamline both cost and time-to-hire. Contact us today to learn more.