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

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

by | 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

How can RPO helps the small growing companies

How can RPO helps the small growing companies

by | Dec 16, 2022 | Blog

Now a day’s business is 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 practice.

 

 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 practice 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 Benefits of the Recruitment Process outsourcing

6 Benefits of the Recruitment Process outsourcing

by | Nov 21, 2022 | Blog

Hiring a brand new candidate is often an exhaustive process, particularly if the newer candidate is to replace an awfully productive employee. You need someone with the same skill sets and the prowess to help your company grow.

The growth and complexity of the talent market have changed the expectations of employees and employers alike. According to a survey conducted, 70% of employers say that their expectations of the value employees bring to their company are constantly growing; while a similar percentage report that employee expectations of employers are also raising.

Here are 6 benefits that a true RPO services provider can provide:

1. Quality Hiring:

 

Recruitment firms devote their resources and time to searching, sourcing, shortlisting, selecting, and finalizing candidates perfectly suitable for the client. The entire process ensures that highly talented pools of rightly fit candidates are ready for the client to search from. This pool of candidates is then presented to the client as per the requirement so the client gets the best hires.

2. Hire to meet your specific need:

 

The recruitment process has expertise in all things recruiting. Thus, they are the best option when it comes to finding a specific talent. They not only target their recruiting strategy to attract such talent but also adopt techniques to deliver within the stipulated time.

3. Access to large Job seeker’s Database:

 

The recruitment consultancies have a large database of recruiters as well as job seekers. They can provide you with the right skilled candidate in lesser time, cost, and effort.

4. Talent Pooling:

The recruitment process provides companies with the best people for the job. These candidates are pooled and actively engaged with, making a community for future hiring.

5. Enable scalable recruitment processes:

Hiring seasons are hectic and things will quickly go out of control. The recruitment process helps you build a flexible method that can scale up and down effectively as hiring demand fluctuates. Standardized processes based on best practices help you avoid nightmare scenarios of high demand and inflexible processes. For organizations that are growing rapidly, the scalability provided by RPO is critical to meet growth targets without pressure.

6. Cost Reduction Strategy:

Advertising is expensive. When a company engages with a Recruitment process provider they drastically cut back on those costs. The need to advertise in all the regular, costly outlets is eliminated. The Recruitment process firm assumes responsibility for finding the candidates. They go to them, instead of having them come to you. They have all the required resources for chasing the strongest obtainable people.

Any business is considered successful only when you make money and it can only be achieved with talented and skilled employees. So utilize the above-discussed points while hiring new talent and save both cost and time.

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Top 4 Challenges faced by recruiters while Talent Acquisition

Top 4 Challenges faced by recruiters while Talent Acquisition

by | Nov 15, 2022 | Blog, Industry Trends, Talent Acquisition

No matter how big or small your business is, if you want success, you must invest in Talent. Here is where talent acquisition strategies come into play. Talent acquisition implies the process of recognizing and developing skilled workers to satisfy your administrative needs. With appropriate long-term and short-term HR strategies, you can create a skilled and robust workforce for your firm.

After the recession in 2022, every business has undergone a massive change in its functioning. It is needless to say more challenges have evolved if you are undertaking talent acquisition. Therefore, a clear idea of the challenges and effective strategies can help you to hire the top talents.

 

Today’s Challenges For Talent Acquisition

The emerging challenges of talent acquisition involve the following issues.

 

1. Rising Need for Gig Economy

As most people have switched to remote work during the pandemic, a large number of employees are looking for more freedom in working through remote and contractual work for earning their living. Therefore, if you are an HR undertaking talent acquisition, you can easily hire the top talents by creating screening strategies that target the strengths and skills required for small work.

2. Increasing the Value of Compassion

Even though most companies have enlisted compassion in their core value, they lack it in practice. In the pandemic, most employees were jeopardized to work for longer hours, forgoing holidays, deduction of salary, and many other insensitive measures. Most people have been looking for a bit of compassion from their employers. If you want to hire talented people, you must not present yourself as an insensitive employer while building your strategies.

3. Growing Dependence on Technology

Developing technological compatibility has become a challenge to a large number of industries.  Artificial intelligence has overtaken HR jobs of sourcing, shortlisting, and selecting candidates for jobs. The best way to deal with this challenge is to supervise the growth of artificial intelligence. This does not mean you should not use the latest technologies in the recruitment process, you should. But before hiring, you must organize a live interview to judge the potential of the candidate. After all, bookish knowledge reflected with degrees does not portray an individual’s talents.

4. Employees Experience is the Top Priority

In order to hire and retain the top talents, the company must have employees who can preach about their job satisfaction. Retaining high-performing employees will demand some efforts from the company to provide benefits like health insurance, seasonal incentives, tax advantages, etc.  Moreover, happy employees will definitely attract more talent to your company as everyone does check reviews about the company on platforms like Glassdoor before taking up the job.

 

Proactive Talent Acquisition Strategies

 

Some of the proactive strategies that can definitely help your company in talent acquisition are as follows.

  • Industry forecasting: Understand where your industry is heading and cross-match the talent acquisition according to your business goals.
  • Data and marketing: Create a database or talent pool and use marketing techniques like email marketing, branding, etc. to reach out to talented or high-performing candidates. Do not forget to highlight the benefits that your company offers to the employees.
  • Retention of talent: Most companies do not utilize this effective strategy to hook and hold their talented employees. Offer attractive benefits, packages, or incentives for the high-performing employees in your company.
  • Employee branding: Branding and outreaching as recognized as the ‘go-to’ careers manager in your enterprise

Talent Acquisition professionals are a significant factor for an organization. Their actions play a vital role in the development of a business. In a situation like the COVID-19 epidemic, everything is indefinite; until a vaccine gets fully developed and execute, no one can guess what will come next. The basic strategy to grow in such an atmosphere is to pass over from reaction to pro-action by simply rediscovering, reinventing, and redefining Talent Acquisition in an exotic light.

At Pragna, Talent Acquisition strategies and the ideas built to back them are an essential part of our recruitment process. We use our analytics-backed tool to come up with new strategies and techniques to attract the right talent.  We have helped several clients to successfully execute and manage recruitment using our overnight sourcing and recruitment strategy. To know more about Pragna, do check out our website.

 

Staffing in 2023: USA Talent supply and Demand report

Staffing in 2023: USA Talent supply and Demand report

by | Nov 14, 2022 | Blog

Fewer people in the United States are actively seeking work across all industries, making hiring difficult for many staffing businesses. Experts say this trend will continue as demand outpaces candidate supply. But there are changes you can make, both small and big, to help you land the talent vital to a firm’s success.

 

Amid this remarkable demand, talent acquisition leaders are experiencing a decrease in overall applicant volume and an increase in candidates not showing up for their interviews or the first day of work. Let’s dig in further to understand the outlook for talent supply and demand.

 

2023 is shaping up to be an interesting year for talent supply and demand in the United States. The economy is expected to continue to grow, but the rate of growth is expected to slow down. This will have an effect on staffing businesses, as companies will be more cautious about hiring and will be more focused on cost-cutting measures. There will be a greater emphasis on using temporary and contract workers, as well as outsourcing. This will create a more challenging environment for staffing businesses, but those that are able to adapt and change will be well-positioned to succeed.

 

Talent Supply

 

Older employees are retiring

 

The pace of Baby Boomer (people born between 1946 and 1964) retirements has been accelerating. This issue was exacerbated by the Covid-19 pandemic. With the majority of them out of the workforce by 2030, younger generations will not necessarily have the experience or training necessary to fill many of the jobs left behind

 

Changing needs and expectations

 

It’s clear that the pandemic has forever changed the employment landscape. More workers want better work-life balance, flexibility, and the ability to work remotely. As a result, organizations that want to succeed and close the talent gap need to evolve with the times. Businesses know they have to get creative to attract and retain top talent. And the ones that do will reap the rewards.

 

Talent Demand 

 

Employers Brace for More Quits

 

While an increase in pay is the top motivator for making a job change (71%), this is not happening in a vacuum. The Great Resignation didn’t just happen because employees are looking for better pay opportunities. The pandemic brought in a complete rethink of work values and the place they occupy in workers’ personal lives.

 

Vacant Tech Positions Remain Unfilled

 

Despite the headlines about mass layoffs at tech startups, US employers have posted a record 1.6 million job openings for tech professionals so far in 2022, an increase of 40% compared to the same period last year. Positions for software developers and engineers accounted for nearly 30% of all employer tech job postings in April.

 

 

By 2030, Korn Ferry estimates that the global talent shortage could reach 85.2 million people, resulting in the loss of trillions of dollars in economic opportunity for companies. Here are a few emerging trends that are worth considering to stay ahead in the staffing business. 

 

Companies Will Be Diversifying Talent Sources:-

 

It will be harder for businesses to recruit and retain people as the employment market becomes more and more competitive. They’ll need to start looking elsewhere for talent. As a result, they will be contacting talent pools that they have not yet utilized. This includes those who do not work at the moment, those who are underemployed, and those who reside in other regions of the nation.

 

Employer Branding Will Be Critical to Face Talent Disruption:-

 

A global, always-on talent market has been produced by the globalization of employment and technology. Organizations are being forced to reconsider how they find, hire, and keep people as a result of the talent disruption. In order to deal with this talent disruption, employer branding will be essential.

 

Conclusion

 

The US talent acquisition landscape is always challenging, and it is not easy to know what trends will prevail in 2023. 

Two Takeaways: how difficult it will be to find talented workers and how employee demand will outpace supply due to the labor shortage in both the short and long term. 

Suppose you want to remain proactive and competitive in 2023. In that case, you must protect your business and implement the right talent acquisition strategies, like diversifying your sources, using technology to recruit efficiently, and outsourcing.  

 

The top 6 recruitment trends for 2023

The top 6 recruitment trends for 2023

by | Nov 4, 2022 | Ace the Interview, Blog

 

The hiring procedure is continually developing and adjusting to the workforce’s dynamic environment. In order to stay ahead of the curve, it’s important to be aware of the latest trends and developments in the recruitment industry. 

 

Here are some of the recruitment trends to look out for in the year 2023. 

 

Increased use of AI and automation 

 

As technology advances, so too does the recruitment process. Artificial intelligence (AI) and automation are increasingly being used to streamline the recruitment process. From candidate sourcing and screening to job matching and offers, AI and automation can save recruiters a lot of time and effort.  

 

There is little doubt that synthetic intelligence is playing an increasingly important role across the board in all kinds of different domains. Despite this, there are concerns about how effective or pertinent it is in other areas, like recruiting. The conclusion is that deploying AI for recruitment lacks the certain “humanness” needed to interact with potential employees. 

For this to be accomplished, the algorithms would need to be much more delicate than they are at this time. The HR department, which is in charge of all the technical aspects of the hiring process, is nonetheless making great use of AI, so keep an eye out for that.

 

 

Greater focus on diversity and inclusion

 

There is a growing recognition of the importance of diversity and inclusion in the workplace. As such, recruitment strategies are increasingly focused on attracting a diverse range of candidates. This includes candidates from underrepresented groups, such as women, minorities, and people with disabilities. 

 

 

Shift to remote work

 

The COVID-19 pandemic has accelerated the trend toward remote work. Many companies have realized that employees can be just as productive working from home as they are in an office. This has led to a shift in recruitment strategies, with more companies now advertising remote job openings. 

 

According to research, 85% of recruiters think that remote work is here to stay. The epidemic undoubtedly significantly altered the workplace. Numerous businesses have employed remote employment options as a recruitment tactic.

 

When remote work flexibility is not an option, prospective candidates—particularly those in the technology sector—stop participating in the interview process for some positions, according to HR specialists. Commuting is becoming increasingly expensive nowadays due to the cost of fuel and inflation. Remote employment helps retain existing talent as well as recruitment efforts.

 

Increase in contract and freelance work

 

There is a growing gig economy, with more people opting for contract and freelance work. This trend is likely to continue in the years to come, as more people value the flexibility and autonomy that come with this type of work. As such, recruiters need to be prepared to source and screen candidates for these types of positions. 

 

Independent contractor markets are expanding all the time. The field as a whole becomes more appealing to new people as more people become engaged and more resources are spent on figuring out how to make the region as successful and effective as possible.

 

Technology is a critical facilitator, making interactions between businesses and remote employees straightforward and practical. A company is no longer required to contact or be physically present in the same nation as, one of its full-time employees. Without a doubt, this amazing improvement will stop within the upcoming year. 

 

Greater use of social media and increased use of data 

 

Social media is playing an increasingly important role in the recruitment process. Candidates are using social media to research companies and find job openings. Recruiters are also using social media to reach out to candidates and promote open positions.

 

Recruitment processes are becoming increasingly data-driven. Recruiters are using data to identify trends and patterns, such as the skills and experience that are in high demand. This information can then be used to tailor recruitment strategies and improve the chances of attracting the best candidates. 

 

 

Greater emphasis on Employer branding 

 

Employer branding is gaining importance as the competition for top talent heats up. Candidates want to work for a firm that shares their values and where they can envision themselves creating a long-term career, not simply a job.

 

Employer branding is seen as an advantage rather than a cost by best-in-class talent firms. Employer branding aids in the recruitment, hiring, and retention of talent at a time when human resource professionals are stretched to the limit due to high turnover and record-high recruiting requirements. From attracting a bigger pool of qualified candidates and raising offer acceptance rates to create better working conditions for employees.  

 

Conclusion 

 

There will be a lot of changes in recruitment over the course of the upcoming year, and a lot for you to pay attention to as you attempt to put together your staff. To genuinely advance as a business, it is crucial that the employees at your firm be precisely who you want them to be.