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
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
by Raghu Nandhan | May 2, 2022 | Offshore recruiter, Offshore Recruitment, Recruitment Technology, rpo
A seasoned HR professional understands how difficult it is to compete for talent while remaining efficient. Whether you need seasonal workers, have recurring projects that require expert personnel, or can’t keep up with a large in-house recruitment team, you’ll need to hire more individuals at some point.
It’s time to think about outsourcing your recruitment process if you want to improve the whole recruitment process and manage your talent acquisition needs more efficiently (RPO). Many businesses are unfamiliar with the notion of RPO.
So, what precisely is RPO and what are its advantages?
In simple words, RPO is when a company outsources all or part of its permanent recruitment to a third party. Access to the best personnel in the market is critical for competitive advantage and business performance.
When deciding on a product or service, one of the first questions to ask is, “How will this help my company?” Choosing the right RPO provider, one that understands company culture, beliefs, and hiring goals can pay off tremendously in the long and short run.
RPO (recruitment process outsourcing) has a lot of advantages. This is true whether you plan to outsource the entire recruitment process or just a portion of it.
The top six advantages of RPO have been discovered and they include:
1.Increased Participation of Stakeholders: By meeting pre-agreed SLAs, RPO improves hiring manager and senior leadership involvement. High levels of HR satisfaction are a result of the quality of hiring and the effectiveness of the recruitment process, which can only be beneficial for productivity. RPO essentially frees up the client to focus on their core business.
2.Reducing Expenditure: Many businesses end up spending a significant amount of money on recruitment firms. They also spend a lot of money on online job boards, which are frequently underutilized for a variety of reasons. These indirect expenses are not visible, yet they have a negative impact on the organization’s annual turnover.
RPO is the greatest solution for businesses looking to hire top personnel in a methodical and cost-effective manner. It can assist in cost reduction by supporting three corporate goals:
- a. Creating effective and dependable hiring procedures
- Developing a proactive sourcing strategy
- Consistently focusing on high-quality hires.
3.Automation and tools are accessible
There are a number of tools on the market that can be used to evaluate the effectiveness of a company’s recruiting and hiring operations. To find active talent in the market, RPO providers use the most up-to-date technology and search tools. Their purchasing power can also help you create integrated solutions, saving you time and money.
4.Reduces the requirement for advertising
It can be expensive to advertise. When a company works with an RPO provider, those costs are drastically reduced. There is no longer a need to advertise. The RPO provider is in charge of locating the finest candidates. Instead of candidates seeking you out, they reach out to you. They are highly resourceful when it comes to tracking down the missing people.
5.Subject Matter Experts’ advice
Recruiting and onboarding the people you need to expand your business takes time, effort, and skill. Seasonal demands or new initiatives may necessitate a large number of hires in a short period of time. It’s never easy to deal with such situations. Recruiting is an RPO’s key competency. They can take care of your recruiting and hiring needs right away, without you having to worry or panic.
6.Putting a stop to vacancy time
The average time it takes to fill a vacancy has a negative impact on the company’s performance. A crucial component of an RPO model could be the ability to fill vacancies in fewer hours. Developing and implementing better talent recruitment tactics can significantly reduce the time it takes to fill a position.
RPO service providers like Pragna are skilled and prepared to balance hiring speed with quality to provide the best results every time.
To summarize, recruitment process outsourcing (RPO) is worth considering if you need to respond to changing hiring needs or are looking for innovative approaches to optimize talent procedures which is what we at Pragna specialize in. It can be stressful to have an urgent hiring need. Understaffing can result in costly effects such as revenue loss, poor production, and low employee morale. We can help you deal with expected spikes in demand and provide you with the best talent when you need it.
by Raghu Nandhan | May 13, 2021 | Blog, Industry Trends, Offshore Recruitment
RPO solutions is a new concept to many companies. An experienced HR fully understands the struggle of competing for talent while being efficient. Whether you need seasonal workers, have recrudescing projects requiring skilled people, or cannot maintain a big in-house recruitment team, at some point, you may need to hire more employees. If you want to refine the whole recruitment processes and efficiently manage your talent acquisition needs, it is time to consider Recruitment Process Outsourcing (RPO). So what RPO is exactly and what are its benefits?
In simple words RPO is when an organization moves all or part of its permanent recruitment to an external provider. Competitive advantage and business results depend on access to the greatest talent within the market. While selecting any product or service, one of the main cogitation is always ‘how is this going to aid my company?’ Choosing a RPO provider that best fits for them, one that understands their culture, values and hiring goals, can benefits both long and short term enormously.
The benefits of recruitment process outsourcing (RPO) are remarkable. This holds true whether you’re planning to outsource complete recruitment cycle, or only a part of it. We’ve identified the top 5 benefits of RPO. They include
Advice from subject matter experts for RPO Solutions
Recruiting and on boarding the folks to grow your business requires consistent efforts, time and skill. Seasonal demands or new projects can generate urgent and high volume hiring needs. Facing with such situations is always challenging. An RPO’s core expertise is recruiting. They can right away address your recruiting and hiring desires without you worrying or panicking.
Scaling down expenses for Recruitment Process Outsourcing
Many organizations land up paying big quantity of money on recruitment agencies. They also tend to spend a huge amount on online job boards which are often underutilized due to various reasons. These indirect costs are invisible but adversely affect the annual turnover of the organization.
RPO is the best key for companies wanting great talent in a systematic and profitable way. It can help reduce costs by supporting three business objectives:
1. Developing efficient and robust recruitment processes
2. Creating proactive sourcing blue print
3. Focusing on the quality hires every time.
Access to automation and tools
There are a various tools available in the market to track down the effectiveness of a company’s recruiting and hiring processes. RPO solution providers utilize the most updated technology and search tools to discover active talent in the market. Their buying potential can also enable you to induce integrated solutions, saving you both assets and resources.
Minimizes the Need for Advertising
Advertising can be costly. When a company engrosses with an RPO provider they radically cut back on those costs. The need to advertise is eliminated. The RPO provider assumes responsibility for finding the best talent. They reach out to candidates, instead of them coming in search of you. They are quite resourceful in tracking the out individuals.
The average time take to fill a vacant position, adversely impact the organization’s performance. Filling vacancies in lessened hours could be a key feature of a RPO model. Developing and driving superior talent attraction strategies can result in significant reductions in the time a role is filled. The RPO solutions service providers are adroit and equipped at balancing the hiring pace with quality to ensure the right outcome every time.
To summarize whether you need to respond to hiring in flux, or are exploring new ways to improve talent processes, recruitment process outsourcing (RPO) is worth considering. Urgent hiring needs can be stressful. Organizations can be understaffed which results in costly consequences, like revenue loss, lower production and low staff morale. An RPO solutions can manage inevitable peaks and it gives you access to the best talent when you need it.
by Raghu Nandhan | May 17, 2019 | Blog, Offshore Recruitment
Ask any business owner, they’ve uttered those words at some stage and fully expect to say them again. Running a business can be a total rollercoaster and one of the hardest decisions a business owner needs to make is when and how to add to their team.
It won’t come as a shock to hear that the first sign you’re ready to outsource something from your to-do list is when you are ALWAYS busy. This is the perfect time to introduce a personal assistant or business manager. This type of work is perfectly suited for offshore recruiting in the form of a virtual assistant (VA).
Not doing the stuff you enjoy doing for offshore recruiting
There are times when all business owners find themselves wearing more hats than they should be. They know that they need help managing their business but don’t know where to start with finding help.
When someone starts a business they don’t realize that they’ll need to do more than providing the core business function that they think they’re great at. They’ll also need to be the marketing, sales, finance and HR departments.
When you’re wearing too many hats it’s easy to get disenchanted and feel like your business is more labor than love.
Costs getting out of control
Spiraling costs leading to a lack of profitability is the most common reason that businesses fail.
Employees can account for 70-80% of a business’s fixed costs. So, for a business in a financial crisis, downsizing their number of local employees can offer relief. But that’s not how Magnetic Alliance like to approach this subject because it’s better to address cost problems before they get out of control.
Bookkeeping, payroll, and data management are services every business requires that can be easily outsourced. Business owners often keep these functions in-house or, worse, do them after hours at the last minute. Because they’re procedural in nature and repeated often they’re easy functions to outsource, especially if it’s not a full-time job.
You don’t know where your next client is coming from
It’s no secret that if you don’t market your business you’ll find it hard to attract new customers. There are many options available to business owners in terms of how they market their business. Consequently, many business owners fall into the traps of inconsistency, ad hoc, and DIY.
Understanding how and where you’ll find your next client is critical for predictability and long-term growth.
Your business should have a well-developed marketing strategy that can be implemented with measurable results. You should also have a marketing budget that relates directly to your business income goals. If one or both of these things are missing then it’s time to look for outside help.
Customer satisfaction is starting to suffer
No business wants to experience a decline in customer satisfaction. For a business running at, or over, capacity customer satisfaction can take a sharp decline if you don’t have great systems in place. Emails slip through the cracks and calls go unanswered.
Delegation and automation can come to the rescue when you find yourself unable to keep up with all the work for offshore recruiting service. Amongst other things, a VA can help you out with inbox management, meaning you only have to personally reply to things that need your attention. A VA can also help out with calendar management and act as a gatekeeper for business-related calls.
Your business is transitioning from local to global and you need to be accessible 24/7
Whether you’re transitioning from local to global or just want to maintain best practice the reality is we live in a 24/7 world where people expect quick answers.
Whether you’re providing a product or a service there is little stopping you from making it available worldwide. However, 24/7 communication is critical to your success.
Obviously, you can’t be available in every time zone but a global support team can be. Staff can be hired to work night shift handling customer service inquiries in different time zones. Offshore recruiting is a perfect solution for companies who are building an international presence.
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by Raghu Nandhan | Dec 11, 2018 | Blog, Offshore Recruitment
Is outsourcing HR the best solution for your business, or should you move HR in-house? Do you have an answer to the above question if Yes then thumbs up, if No then continue reading to find out more about the two options.
HR workers manage a wide level of responsibility based on the needs of the organisation. They manage the hiring processes of recruiting and interviewing potential employees, as well as orientation and training of workers. They also manage the relationship between employee and employer, as well as completing payroll and managing benefits. HR professionals work with the leadership team to implement policy changes and to best coordinate the wider administrative functions and duties of a business. Hiring and training new employees is one of the most expensive parts of the business cycle.
One of the best ways to determine whether your business should outsource the HR department or keep it in-house starts with taking a look at the size of your company. This will give you an idea of the services and manpower needed to run HR. Next, review the pros and cons of both options by taking a deeper look into what you may gain or lose through the process. Last, research the stories of other businesses similar in size to your own and find out how outsourcing or in-house HR has worked for them.
When you first start your business, your priority is to hire people who are integral to building the product and growing the company to fill the roles that move the bottom line and grow the business. At some point, a business grows big enough that it needs people to take care of the back office operations of the company. You need someone responsible for coordinating interviews, sending offer letters, managing benefits administration, and much more.
Figure out what stage of growth your business is in:
If you’re running a new business it can be easy to believe you can do it all yourself. There are only a few people in your company. Between managing benefits, equity, salaries, time off, writing employee documents, hiring, firing, onboarding, and everything else that is going on, where will the time come to talk to investors, build the product, or do significant business development? At this stage, you should outsource most of your human resources function. Your focus should be on the people who are coming in and out, not whether they are getting their pay check on time.
You’ve raised a much larger round and you are going to be scaling your business much faster, maybe growing from 50 employees all the way up to 100-500 employees. Recruiting is probably a massive priority as you grow and you might be running into new issues when it comes to expansion and compliance.
At this point, you need a back office time. For starters, you need to have someone on board who is able to handle strategic HR projects that are meant to make the company better. These include initiatives to keep employees healthy, to ensure that they are acquiring new skills that make them more useful. These requirements are better filled in-house, since they are so specific to your company.
But there’s still a role for outsourcing. While you might feel an itch to bring everything in-house, payroll experts are costly and normally unnecessary. There’s also no need to bring basic compliance in-house. Outsourcing this or getting software to do it will save you money and time that will allow your busy HR department to focus on hiring and strategic projects.
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Bottom of Form
These types of companies are not too dissimilar to medium-stage companies. The difference here is that many larger companies bring many HR functions back in-house because they consider it a competitive advantage. But even for large companies, many of the administrative HR tasks can remain outsourced. Why bog down your in-house HR team?
Keep your HR department focused on finding quality talent, tackling strategic projects, and being the liaison to the rest of your team. Allow outsourced HR and payroll providers to handle the rest.
Apart from these few other factors can also be considered before coming to a conclusion:
- What level of HR expertise/skills do you need?
When hiring a in house HR person you are getting only the skill set they bring. When using an HR firm with multiple consultants, you have access to all of the skill sets employed at the firm.
This is a key question. If you determine that you would like to hire a HR Manager with 5-10 years of experience, this is where the cost of outsourcing to an HR firm makes more sense because the cost will be a fraction of hiring an internal HR Manager.
- What are the employee-related goals for your business?
Do you want to become an “employer of choice” with a goal of attracting top talent? Do you want to create career paths for employees? Focus on employee retention? Using an outsourced HR firm with the experience of doing this type of work regularly, can help you achieve these goals more quickly. Additionally, it will provide you with some ideas you may not have thought about due to the consultants varied experiences.
- Do you need your HR person onsite every day?
With 100 plus employees, having HR onsite every day makes sense.
- How much time do you have to supervise an HR person?
Entrepreneurs rarely have time to effectively supervise. And supervising a skill set like HR, that they often know nothing about, makes it even more difficult. Working with an outside HR firm gives Leadership peace of mind knowing that skilled professionals are in place who will work proactively, advice and collaborate, versus look for frequent direction. With an outside HR firm true supervision is minimal.
- Do you want an HR professional who can provide objective advice and guidance?
When hiring someone in-house, they may not be as forthcoming with feedback that does not agree with “the boss”. The internal HR person wants to remain employed and because of this may be reluctant to share feedback that could be perceived as “not being a team-player.” An experienced HR consultant understands that one of the roles they play is to be a trusted advisor and look at situations objectively while sharing ideas and feedback that will improve the client’s workplace, support their goals and culture while also mitigating risk.
HR is an important department. But many businesses sometimes forget this. Or they forget that the people doing it are qualified to do more than monotonous tasks. Outsourcing human resources and introducing new changes within the company can be both eventful and fruitful and worth the risk taken. Finding the right consultant not only gives you a sense of satisfaction but also will reward you and your company in the long term and will provide you with long lasting benefits. Try to hire a professional that truly understand the sentiments of the company and its motives and values.
I hope this article inspired you to investigate what works best for you, your organisation and most importantly, your employees – because they are your business’s most important resources.
If you found this helpful then don’t forget to share it with your friends and colleagues.
What business functions have you considered outsourcing? Tell us in the comments section below.
Pragna provides a wide range of Recruiting and HR solutions for businesses of all sizes. Click here to discuss your HR/Recruiting needs with us.
by Raghu Nandhan | Aug 10, 2018 | Blog, Offshore Recruitment, Talent Acquisition
As you probably are aware, Outsourcing is a regularly developing industry.
Outsourcing has witnessed a massive boom over the past decades. Outsourcing has revolutionized the way business is done in almost all sectors.
Outsourcing has significant importance to not only businesses that choose to engage in said activities, but also to the citizens of any country with involvement in outsourcing. Businesses now face a growing array of factors influencing outsourcing and it is imperative that they understand the nuances of outsourcing so that they may readily adapt to a rapidly changing global economy.
While there has been a constant growth in this sector, there have also been several new trends, which have emerged and stayed for the betterment of outsourcing.
Emerging of New Technologies
Emerging technologies such as cloud computing, social media, software and automation are being used by BPOs to reduce costs and accelerate growth.
New technologies that have emerged over the past few years including robotic process automation (RPA). RPA with its cost savings, speed and efficiency is slowly making its way into all industries and all types of business processes. Bring on the new era of AI which has taken over RPO (Recruiting process outsourcing). This will have a major impact on how BPOs operate and lead to jobs losses.
Focus on Social Media
Companies now realize that social media is a game changer. It provides an unprecedented wealth of consumer data and feedback that can enhance a company’s ability to analyze upcoming trends and to innovate. Instead of call centers, companies now want to invest in real-time customer engagement that will allow them to gain first-hand product insights and turn issues into new products or solutions that will address future problems.
Use of Cloud Technology
The cloud technology is likely to become the path for the outsourcing. With more usage of cloud technology businesses are working efficiently. Also, it will give further impetus to these firms to deliver innovative products and services to customers depending on the latest market trends.
Higher Efficiency and Competence
The outsourcing industry is now edging towards automating process utilizing the latest software and other computer programs in the process. These technical tools will shorten the tech support to enable services and also resolve consumers’ problems on time.
Companies are adopting online services, social media marketing, email promotion, and mobile marketing greatly.