December 2022 | Pragna Global RPO Company

How to bring down the company cost per hire, with the help of RPO

by Raghu Nandhan | Dec 28, 2022 | Blog, Offshore Recruitment

Do you know your cost per hire (CPH)?

Knowing this figure can help you make better strategic decisions and save your company money in the long run. An average employer in the USA spends $30,000 to fill a new position.

No new hire comes for free, unfortunately, but there are strategies you can use to reduce your unavoidable hiring costs.

Cost-Per-Hire (CPH) is a timely topic for Recruitment Organization, many of whom are under pressure to deliver better quality of hires with fewer resources. The amount of specialized roles that need to be filled is increasing but the applicant volume keeps decreasing as we’re on the edge of the biggest candidate shortage yet.

Good news is that by measuring the right volume of data, you can gain control over your recruitment process to develop strategies that increase the quality of your hires while saving money.

How to Reduce Cost per Hire

There are several different methods that can lead to reduction of Cost per Hire (CPH). Below is the list of strategies that you can choose from to reduce the costs.

Build a Talent Community

Often candidates are hard-to-find, are also unwilling to leave their current job, but this may change one day. As 75% of the people you want to hire aren’t looking for job change – they are passive candidates. The key here is to grab their attention and sustain it in order to build a pool of passive candidates. Building and maintaining a pipeline of interested, qualified candidates can do wonders for your cost per hire.

Digitization and automation of recruitment process

Using free online tools, professional HR technology and AI to improve recruitment process and reduce their costs is quickly becoming a new norm of your peers in the HR sector. Streaming and automating of the activities can be achieved through implementing the right tools.

What’re more, simple solutions such As., Social media is free and widely popular, so it can help you connect with more job seekers without costing you a penny. Verifying its ability to connect you with quality candidates.

To effectively leverage social media, first ensure that your social profiles share your employment story and encourage job seekers to learn more. Then use social media tools like Facebook’s Graph Search or Twitter’s search engine to start sourcing the talent you need.

Take advantage of free job boards

Posting your job ads on some of the most popular job boards is expensive these days. For example, to post a job on Monster you need to spend $375 per month. To post one job per month on Career Builder you’ll need $199. And a single post on Dice will cost you $250 per month.

What most employers don’t know though is that the two of the first three most popular job boards with the highest traffic offer employers a possibility to post their jobs for free.

You can post your job on Indeed, LinkedIn which is visited by 200 million unique visitors each month.

There are many other free job boards you can take advantage of to reduce your cost-per-hire. One of them is Jora, Angel List, Flex Jobs, where you can post your jobs by filling in a short form (no registration required).

Launch a Corporate Career Site

Because a career site can advertise your jobs and employment brand 24/7, it allows you to reach substantially more candidates for a very reasonable cost. Career sites have also been one of the top internal sources of hire for several years in a row—proving that they can attract quality candidates. In other words, a career site can help you find the right candidates faster and more affordably.

As a result, you can spend less money on more expensive recruiting tactics like job advertisements or career fairs. If you already have a career site and it isn’t generating this outcome for you, request a free career site evaluation so you can get the results you want.

As you test out these recruiting tools, remember that every company is unique and the results that these tools produce vary. But if you measure and track each tool’s effectiveness, you can learn which ones are the most cost-effective for your organization. In return, you will reduce your cost per hire while still hiring some of the best job seekers out there.

Create Referral Programs

The average cost-per-hire is $4,129 according to SHRM data, and the average time-to-fill is about 42 days. Your employees already understand the kind of work ethic and attitude it takes to succeed in your workforce.

By engaging your already-employed talent to refer friends, family, classmates, and colleagues, you can reduce hiring costs and time while sourcing from a ready talent pool.

If you want to bring down costs even more, you can get creative with your referral incentives instead of the typical practice of offering a bonus. Providing special recognition, discounts, prize drawings, and non-cash rewards such as a free parking spot or extra PTO can also motivate employees to make referrals.

Employee referrals are a critical tool for finding new hires. In a 2015 Silk Road study, employee referrals produced more hires than any other source studied. The best part is that you don’t need to invest in an expensive employee referral program to get more referrals.

By strengthening your employment brand, your employees will encourage others to apply without even being paid to do so. For more details and tips, read The Secret Strategy for Increasing Employee Referrals.

Reduce the need to recruit in the first place

The final way to cut hiring costs seems simple on the surface, but might turn out to be a complex project; improving the way you support and engage with your existing employees should help to reduce turnover, so there’ll be less need to hire replacements for staff that leave.

Refining your recruitment processes will also help to improve the quality of your hire, which again should lead to higher staff retention rates

Conclusion:

It’s clear that outsourcing recruitment offers various opportunities for bringing down costs associated with different aspects of human resources management. Choosing to rely on the expertise of an external provider, organizations can efficiently manage their recruitment resources and further optimize their processes.

As a Customized RPO leaders in the recruitment industry, We at Pragna were able to help organizations considerably bring down the Cost-per-hire. We calculate these costs on the basis of hiring history and optimize recruitment processes to render our clients more efficient and less wasteful.

If you’re looking into RPO Solution, please get in touch with us

Recruiting during this New Crisis: How to deal with layoffs?

by admin | Dec 26, 2022 | Ace the Interview

Introduction

Recently, it seems like layoffs are the only topic making headlines in tech news.

Any HR professional may find the word “layoff” frightening. It implies that a portion of your personnel will leave your organization.

As an HR professional, it is crucial that you make sure you are equipped to deal with a mass layoff and keep your surviving staff.

How crises affect Hiring

When there is a crisis, employment doesn’t necessarily halt; in fact, for some organizations, it actually increases. While others struggle, your firm may grow when a crisis sparks a spike in demand or offers a special opportunity for your goods or services.

Or perhaps a crisis affected your company, but it is currently in a recovery phase. For instance, you might have weathered the storm and be prepared to employ after layoffs, or you might have changed the focus of your company and require personnel to support the change.

Whatever the state of your business, a crisis won’t necessarily alter the foundations of the employment procedure. Instead, hiring managers’ and job candidates’ mindsets frequently change during a crisis.

Hiring managers pay close attention to how a new worker will advance the company in the future.

In light of all that happened during the crisis, their objective is to find the person who best exemplifies the needed set of abilities and will contribute the greatest value to an organization.

Here are three practical suggestions to help you stand out from the competition when hiring top tech talent while considering recruitment in the middle of layoffs.

Now let’s get started.

Techniques to Find and Hire Top Talent During Layoffs

Reorient the attention from the value offered to the numbers.

Most computer job seekers already anticipate the substantial compensation that the bulk of IT roles have to offer while hunting for employment.

These typically cost six digits or more. So they are unaffected by a flashy salary.

However, candidates nowadays are less likely to accept a job offer based solely on the promise of competitive pay, especially given that the current labor shortage provides them ample room to demand better terms from a position.

Nowadays, skilled job seekers can prefer to work for companies that put their employees first, provide stability, and value dedication and loyalty. They are less susceptible to being enchanted by famous people and lavish wage offers.

To stand out in the crowded employment market, this is precisely what you need to promote in your job postings. Instead of just stating the numbers on the paycheck, your job postings need to be more sympathetic and address this request.

A fancy salary may appear appealing at first, but it won’t matter if the employee is always concerned about being fired. Stronger incentives include long-term growth and a sense of employment security.

Therefore, if your client has anything to give that can be valuable to prospects, be sure to emphasize it in your job adverts much beyond income.

By doing this, you’ll have a much higher chance of attracting top individuals who are looking for companies prepared to invest in their futures rather than the other way around.

Try a novel and creative approach

It’s time to abandon antiquated and ineffective hiring procedures. For instance, a prestigious school or previous employers aren’t always the best gauges of a candidate’s abilities and success.

It is no longer acceptable to judge someone’s aptitude based on which of the top 20 universities they attended. Graduates of coding boot camps and participants in apprenticeship programs are currently performing remarkably well on the job market.

An engineer who can produce high-quality code right away is a valuable asset, and it would be a mistake to reject someone based solely on their educational background.

The tech sector in particular has made diversity hiring a prominent topic, and many businesses are vying to hire a more diverse workforce.

Recognizing that exceptional applicants will come from a variety of backgrounds and experiences is crucial if the goal is to attract them in order to develop a successful team, which requires a blend of these qualities.

So stop excluding the best candidates by concentrating on what has previously produced results.

Keep in mind that, while recruiting during layoffs, you need candidates more than they need you.

The labor market has seen a significant transition in the last few years, giving employees a competitive advantage.

Since your client’s competitors will gladly snag them if you don’t, you must keep in mind that you need great prospects more than they need you given the current economic scenario.

Your hiring procedures should reflect this insight. You need to approach candidates with vigor and aggression.

It’s crucial to demonstrate why your client’s company is the best location for prospects to work and how their corporate culture places an emphasis on the welfare of employees.

Keep in mind that giving candidates a positive experience is of the utmost significance. Your ability to maintain candidates’ interest and engagement will make all the difference.

These sound tactics might assist you in transforming what at first appears to be a significant negative into a fantastic chance to hire top people. What other effects do you anticipate these layoffs will have on hiring in the near future? Tell us in the comments section below.

Prioritize staff retention

Don’t overlook your current employees as you search to fill open positions. It seems obvious that keeping employees engaged in the face of a pandemic that is always changing must be a top priority, but many companies have had trouble finding out how to accomplish it.

According to the 2021 Paychex Pulse of HR Survey, there has been a more than 50% decline in employee engagement over the past year. Since employee engagement and the tendency to stay with a firm tend to be correlated, this worries many HR professionals.

Respondents to the poll reported that they are using strategies including training and development, conducting job satisfaction surveys, giving remote work options where practical, and offering financial incentives to address this difficulty. These methods could really assist you in retaining the excellent talent you already have.

Additionally, employers’ responses to the pandemic (such as whether they implemented health and safety policies at work or provided remote work choices for qualified candidates, etc.) convey a clear message to potential new workers about the kind of company they could be working for. It’s crucial to look out for your employees and show them that you care about them now and in the future.

Conclusion

Hiring in a crisis is all about understanding job candidate attitudes and being adaptable and receptive to input to change your recruitment strategy, rather than completely overhauling commonly used recruiting tools and processes.

Recruiters need to invest more time in understanding a potential candidate’s needs and motivations, addressing any particular worries or issues they may have, and persuading others of your capacity to provide stability and security. This is in addition to selling them on your organization and position.

How can RPO helps the small growing companies

by Raghu Nandhan | Dec 16, 2022 | Blog

Now a day’s business is all about all about cutting costs and effectively using labour in the most basic corporate operations. Concerning recruiting tactics, a lot of developing firms struggle. Due to the fierce competition you face from big businesses, it might be difficult to locate the best people you need to propel your company forward. Your disadvantage will persist if you don’t know your brand well.

Regardless of their size, the majority of firms have moved their hiring processes online. Here is a detailed explanation of how an RPO solution will assist you address all your problems if your existing talent acquisition approach is having problems.

increased hiring quality

One of the key benefits of working with an RPO provider is this. RPOs are made to draw in, find, screen out, and hire qualified applicants for every post. They provide you with the top personnel on the market thanks to their experience in technology, employment marketing, and recruiting process design. RPO providers have a significant influence on new hire performance and retention.

Cost cutting

Every day a position is unfilled costs the organization money. Additionally, a poor employee might leave you with a financial hole. Quickly filling vacant positions improves productivity. Long-term, an RPO saves businesses a significant sum of money.

They specialize in leveraging upscale job boards and other recruiting tools, such as an applicant tracking system (ATS), which makes it simpler to follow prospects during the hiring process. Three measures are used to assess an RPO’s performance: hiring quality, hiring cost, and hiring time.

Scale up and Down

RPO models are adaptable and may be scaled up or down based on your hiring requirements. Whether you’re growing your workforce by adding a new department or contracting, RPO is set up to adjust to any changing circumstance without sacrificing quality. Additionally, you only pay for what you receive, absolving others of the burden.

A stronger employer brand

Employer branding is expensive and requires ongoing work. RPO services have a significant influence on establishing a company’s employer brand. They provide a high calibre applicant experience throughout the whole recruiting process. Instead of the applicants making an attempt to come to you, they approach them. They have the skills to paint a picture of your company as a desirable place to work, drawing in potential employees and making them want to work for you. Employer branding expenses as well as the necessity for direct advertising are significantly reduced by RPO solutions.

Maintaining Compliance with Regulations

Being in the growth period and observing every activity independently might be challenging and appear unattainable. Non-compliant employment procedures may include some hazards that are unavoidable. Partners from RPO may protect you against such hazards.

They are knowledgeable with current laws and keep up with any new amendments. They understand how to manage various legal obligations and are well-versed in local and international labour laws and regulations. They can assist you in putting low-risk, compliance-focused personnel hiring techniques into practise.

Conclusion
It might be difficult at first to select a perfect fit RPO solution that comprehends and can match your company’s trajectory of values, beliefs, and hiring ambitions. However, after you get over the first problem stage, the long- and short-term advantages may be substantial.

You get to benefit from having professional advice at all phases of the recruiting cycle while yet maintaining control. An RPO uses a comprehensive method to put into practise successful recruitment techniques.

The entire process, including developing, sourcing, screening, onboarding, and candidate retention, is covered by it. It harmonises recruiting procedures, reducing problems with compliance. As a result, you will save money, shorten the hiring process, and increase your pool of talent.

The Actual difference between Sourcing and recruiting

by admin | Dec 16, 2022 | Ace the Interview

Is there a difference between recruitment and sourcing?

In the past, the term “recruiting” was used to refer to the whole hiring process. In more recent years, sourcing and recruitment have been divided into two more distinct disciplines in a number of firms.

Recruiting

Simplest terms, recruiting refers to the process of filling open positions with Selected Organizations.

For the number of companies, this is the point where the sourcing gives the recruiter the qualified applicant. The hiring manager and candidates are guided by the recruiter as they go through the screening, selection, and hiring process. This include talks over the phone, gatherings, and interviews.

There are two types of recruiters:

in-house recruiters who are paid employees of the employing firm and third-party or agency recruiters who are employed by a company that does recruitment on the client company’s behalf.

The recruiter often takes care of administrative tasks including advertising vacancies, organising interviews, making official job offers, etc. The recruiter’s responsibility is to see the process through to completion and ensure that the corporate post is really filled. In some circumstances, the recruiter also aids in the on-boarding process.

Sourcing / Researching

Sourcing or research is one of the early steps of the recruiting process.

Candidates who are qualified for the current job vacancies are found by researchers. A source’s main responsibility is to carry out in-depth research within the field and prepare a list of the top applicants for a certain post.

To carry out their task, researchers use job boards, specialist websites, professional social networks like LinkedIn, social media recruitment, rival employee research, and Google resume searches.

Why the confusion, then?

The allied profession of sourcing is still relatively young. Teams that specialise in talent acquisition add new components to the process as they develop, which increases complexity while also improving results. It is now possible to establish, engage, and value prospects thanks to specialised technology.

It gets harder for one individual to grasp them all when these technologies are included into the recruiting process, which promotes the “sources recruiter” expertise.

Since many individuals are unfamiliar with this new specialty, they mistakenly refer to everyone active in hiring new employees as a recruiter. Even though the two positions are mutually beneficial, they are not interchangeable.

What will be the impact of AI on staffing and recruitment in 2023

by admin | Dec 15, 2022 | Ace the Interview

Introduction

Across all industries, automation usage is booming. The COVID-19 epidemic has accelerated the move to digital, which is changing key business operations through the growing use of automation and AI. With fewer individuals available for jobs and more open positions, the hiring environment is more competitive than ever. The emergence of recruitment automation has had a significant influence on the industry.

In order to find top talent as fast as possible, time-constrained recruiters and HR teams are turning to automation, which is expected to continue beyond 2022. Automation is the top trend influencing how hiring managers and talent professionals make decisions, according to a LinkedIn poll on talent trends.

Applicant tracking systems and recruitment CRMs are growing more and more popular because they enable recruiting teams to locate the best candidates much more quickly, fill positions more quickly, and enhance corporate brand perception. Recruiters are increasingly seeking methods to cut down on manual labor so they have more time for important activities like cultivating relationships.

Which hiring procedures are becoming automated?

The enormous amount of applicant data and administrative procedures that need to be handled by recruiters and hiring managers sometimes overwhelm them. Today, the phases of the hiring process that are no longer useful to perform manually can be replaced by digital tools, software, and automated technologies.

Automation is used to efficiently handle tasks including creating and keeping candidate files, contacting candidates, setting up interviews, creating and posting job advertisements, and assessing resumes.

Automation enables recruiters to collect applicant data, manage and expand talent pools, follow candidates, and assess the whole hiring procedure. The availability of data reporting and analytics tracking allows data-influenced decisions to be made more quickly and with higher hiring quality.

Automation benefits everyone, not just recruiters. Additionally, automation greatly shortens the recruiting process for candidates, which enhances their hiring experience.

In what ways will automation impact recruitment in 2023?

Automation use will only increase as a result of ongoing technological advancements and the recruiting industry’s growing understanding of its many advantages. In the recruiting industry, automation will have the following four significant effects by 2023:

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Evaluation of Candidates

Particularly for highly skilled or senior-level roles, evaluating individuals only on the basis of their applications and resumes may not be adequate. Throughout the year, automated skill assessment systems will become more common, which will improve the evaluation procedure.

Using automated skill testing, recruiters may assess and comprehend potential candidates more thoroughly and witness the prospects’ talents in action. In contrast to merely reviewing a resume individually, it helps recruiters save time and money while also delivering more accurate and objective findings.

he best thing is that there is no manual labor for recruiters to do; instead, the evaluation tool automatically provides results, and you may design pre-made questionnaires in accordance with your needs.

Arranging interviews automatically

In 2023, recruiters will be searching for methods to increase efficiency due to an increase in job openings and a drop in talent pools, and automated interview scheduling will be a key concern. In order to allow applicants to arrange interviews at their desired time and promptly update the recruiter’s and candidate’s calendars,

recruiters can supply them with open time slots by automating the interview scheduling process. This means there won’t be any more time-wasting phone calls or emails back and forth attempting to find a time that works for everyone.

Additionally, recruiters may automate confirmations and follow-up messages to maintain constant contact with the prospect with the least amount of work, keeping both the candidate and recruiter satisfied. By automating these stages, recruiting may be completed more quickly while retaining top talent and producing employees of higher caliber.

To stay competitive, recruiters will increasingly turn to automated scheduling to eliminate administrative procedures that provide little value.

Automated Sourcing

One of the most time-consuming jobs for any recruiter is finding and sourcing outstanding talent. It’s important to get this stage right since bad hiring costs time and money. The US Department of Labor estimates that the average cost of a bad hire is around 30% of the employee’s first-year wages.

Automated sourcing has already revolutionized the recruiting industry and is predicted to continue doing so in 2023. There are various ways to find candidates using automated sourcing technologies; they include social networking tools, applicant rediscovery software, sourcing chatbots, and even AI-powered candidate screenings.

Forbes estimates that finding applicants for a single post takes recruiters about a third of their workweek (or around 13 hours). Fortunately, automation offers effective solutions to update and expedite the recruiting process.

Elimination of unconscious bias

Regardless of industry, diversity and inclusion have continually been hot topics for recruiting companies in recent years. Unconscious prejudice can influence how we evaluate candidates and conduct interviews, regardless of their gender, age, race, religion, or sexual orientation. As a result, the workforce experiences a decline in innovation and originality.

Many companies have tried to develop a recruiting procedure that is impartial and fair, and they are realizing that automation may hold the key to facilitating an inclusive and impartial hiring procedure in 2023. 61% of talent acquisition professionals think recruitment automation may lessen unconscious bias, according to a recent HubSpot survey.

Conclusion

The hiring and staffing sector is always changing. In 2023, automation will continue to change the recruiting industry, and it will soon rule the administrative, time-consuming tasks that, when done manually, add little value to either the recruiter or the candidate.

It is obvious that adopting automation is essential for recruiters to stay relevant to the modern candidate. Having modern technology at a company is a key consideration when choosing a workplace. Automation must be given top priority by recruiters if they want to draw in the finest candidates in today’s market and shorten the hiring process, giving them more time to cultivate connections with candidates.

Pragna has been a very vocal advocate of utilizing AI for years now and helping its customers to engage and grow. In the latest newsletter read through the prediction for 2023 here.

Firms will anticipate that their employment and recruitment partners will follow suit as they continue to automate their processes to make them more efficient. Using candidate monitoring and CRM systems, recruiters may work as efficiently as possible for both themselves and their clients.