by Raghu Nandhan | Jan 11, 2021 | Blog, Industry Trends, Talent Acquisition
When recruiting employees, every company analyzes the cost per hire. It not only involves the salary of the candidate but also the expenses associated with the use of internal resources used during the hiring process. As a hiring manager, you are responsible for the cost of hiring, and it can be a challenging job to reduce the cost of hiring while recruiting high volume talents.
Here are a few tips and tricks every hiring manager can utilize to increase their efficiency to reduce cost per hire and also save some time and effort.
Offer a clear Job Description
When you are advertising for a vacancy, most candidates read the Job Description to get a clear understanding of the responsibilities or tasks he/she needs to handle for a job. Suppose you are providing a clear job description with full disclosure of eligibility criteria, expected experience level, hours of employment, type of job (remote or in-office). In that case, you screen away candidates right away who do not have the required criteria. On the other hand, a job description containing details of training, additional benefits to the job and portrays the employer brand image has the higher chances of attracting the top tier talents.
Use of Atomization and AI
Instead of running through thousands of applicants, every candidate, use suitable recruiting software to screen qualified candidates with suitable parameters. 78% of employers have said that recruitment technology makes finding great talent easier than ever.
Moreover, it helps to speed up the hiring process, thereby reducing the cost per hire. Using artificial intelligence also ensures that the criteria of the candidate align with your business goals. Consequently, it is a great way to avoid bad hires and undergo the rehiring process.
Make use of Telephonic and Virtual interview
The cost per hire also depends on travel costs. You can cut off the travel cost by conducting the telephonic and virtual interview. After the onset of the pandemic, most hiring processes have been undertaken through virtual interview.
The telephonic and virtual interview helps you to analyze the candidate, and the two-way communication ensures a better understanding of each other’s expectations and requirement, facilitating the screening of candidates. Moreover, you can save time, energy and hassle of travel and yet select the most suitable candidate.
Reduce the Hiring time
One of the best ways to reduce cost per hire is to move the entire hiring process quickly. If you are undertaking or dragging long hiring process, you are increasing the cost of hiring by increasing the expense of recruitment technology, administrative cost, perhaps travel cost, and other internal resources. The longer the hiring process drags, the higher the cost per hire rises.
Moreover, in this cut-throat competition of talent acquisition, you may lose a high performing candidate if you delay the final announcement. The best way to reduce the hiring time is by setting deadlines or closing date for every step of the hiring process.
Appoint a Staffing agency
If you are looking for a way to hire talents without exhausting your company’s internal resources, the wisest decision is to outsource it to some reliable staffing agency. There are several staffing agencies that are expertise in recruiting talent for their client’s firm within a given period.
By hiring a staffing agency, you can reduce cost per hire by not hampering the productivity of internal resources as well as minimize the productivity loss due to the open position. Pragna Solutions is one of the leading companies that can offer you excellent outsource recruitment solution so that you can acquire talents and also save time and effort.
The Bottom Line
Hiring the right candidate within a short time frame can be challenging but not impossible. These tips and tricks of reducing cost per hire can save you from rendering the cost of bad hires and rehiring. Reports and analytics of cost per hire help you realize the strengths and weaknesses of your hiring strategy. Therefore, you must monitor your cost per hire to develop the most effective hiring strategy.
Pragna Solutions lends you a helping hand to acquire top-tier talents without undertaking the headache of the hiring process. Our expert consultants are experienced HRs who can pick out the best candidates for your business from the target pool to fulfil your business requirements and move you one more step towards your success.
Do visit Pragna Technologies website for more blogs on Recruitment, Hiring and other related topics.
by Raghu Nandhan | Mar 5, 2020 | Blog, Talent Acquisition
The recruitment budget is an extensive gauge of costs that will be brought about while driving hiring activities consistently and is basic to take care of the considerable number of expenses related to making an enlistment technique, engaging and recruiting talent, and retaining them once they are employed.
Building a budget includes a few stages, many of which can get skipped when individuals are entrusted with attempting to make a budget too rapidly or have little research to control them.
Without a well-planned recruitment budget, you always run the risk of overspending and ruining your entire hiring plan for the year. Likewise, it very well may be hard to follow all the costs that were brought about in hiring a candidate.
Here are the 6 steps to effectively manage your recruitment budget.
Track your time and expenses
It is conceivable to have a recruitment process that is quality-oriented, fast, and cost-effective. But achieving this for your business requires equalization, and it requires an evaluation of your present circumstance. Your budget will work better for you on the off chance that you realize to what extent it regularly take for your organization to hire someone. Also, this incorporates observing key recruitment metrics in your hiring.
Cost-per-hire is one of the most important and most commonly used hiring and recruiting metrics. This metrics measures how much it costs your company to hire new employees and also it catches the aggregate sum of amount in finding and hiring your ideal job candidate.
Here is the formula of cost per hire
Get Leadership Onboard
On the off chance that you would prefer not to be stuck right now, you must be aware of how you approach the administration with your budget proposal and how you approach putting forth the business defense if your subsidizing needs have expanded.
With the economy gradually rebounding, it’s hopeful that more CEOs and business leaders will be available to expand their recruiting spend for attempting new technologies and strategies that improve recruiting effectiveness and draw in the top ability to their positions. To improve your chances of accessing more resources to ease your burden, endeavor to show leadership the estimation of a vigorous enrolling recruiting budget.
Evaluate Your Past Results
Take a look at what number of new-contracts you got and which channels were generally helpful for drawing in them just as which positions you filled the greater part of such as executive, entry-level, management, or administrative. Ideally, execution surveys for your recruiting team were directed, so you’ll additionally need to benchmark which ones were best in their job and why.
See who was average, the best, and the worst, and whose presentation improved by the most significant margin and why. This will assist you with uncovering what has been working and what hasn’t on your recruiting team and figure out who should be promoted, who may require extra improvement in their job, and who should perhaps be let go or moved into another role.
Hire great candidates the first time
Thousands of dollars per year can be drained from your budget with low staff retention rates. On the off chance that you hire great employees on the get-go, you can spare a ton of time in finding a substitution later on and just focus around how you can hold them. With the cost of each lost employee scheduled running as high as 150% of annual salary, expanding on maintenance can help with containing recruitment costs.
Estimate your recruiting technology costs
The traditional recruitment process hasn’t become unimportant, however, it has earned some inventive and dynamic rivalry from tech-driven, mobile-first solutions. Tech tools must always support and enhance humans to positively impact the candidate experience, or else they risk damaging the employer brand you’ve worked so hard to create.
Investing in decent recruiting tools that help you sift through unsuitable applications which are very expensive, so don’t pass up the best hires by discarding this expense from your spending limit. Make a list of the considerable number of tools you’re utilizing. When figuring in their costs, take into consideration the pricing models.
Decide your annual recruitment plan for new hires
Quality of hire is essentially the value a new hire contributes to the company’s overall success. A recruitment plan outlines your strategy for finding, screening and hiring new employees and makes the hiring procedure smoother and act as a qualifying guideline for candidates. This causes businesses to guarantee that they are hiring individuals with the qualifications and skills needed to do the job.
Here are a few important Components for Recruitment Plans
- Identifying job openings
- Deciding how the job(s) will be filled.
- Choosing the type of candidates that should be targeted.
- Joining with the target group.
- Meeting with the applicants
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