Every business is faced with costs. Production costs. Employee compensation. Customer acquisition costs. And of course, hiring costs. Companies spend money to employ workers and in some competitive industries, these costs can be as high as the salaries the employees are going to receive.
If you want to make profit, you would of course be concerned about your cost. The following strategies would help you develop recruitment plans that would reduce your cost per hire.
You don’t have to seek out new talent when you can use someone within the company. The employee is already aware of your business and corporate culture. Hence you do not need to spend further money on getting prospective candidates. Also, you can take this idea further by asking your current employees for referrals. Your current employees can help you attract talent. This means you would need to create a right environment that would enable your employees recommend your company to others. If you get this right, you would get cost savings and a much reduced cost per hire.
Retain Your Employees and reduce Employee Turnover
Most companies spend a lot of money on recruitment and selection and new hires when they could have spent less by focusing on retaining their existing talent. Make your company a great place to work at and reward your best employees. Promote internally instead of making outside hires. These actions would help you retain your best employees and there would be a resultant decrease in your hiring costs. The improved employee morale that comes as a result of this would also translate to increased production as well as increased revenue.
Use Social Media
By now most companies are already catching in on this. Twitter and Linkedin are cost effective means of announcing vacancies. If you are still using old media or paying to distribute information about your vacancies, it is time to cut back. Use social media instead. Your accountant would be glad you did.
If you have to fire an employee after just a few months, then you would have lost a lot both in terms of the amount you spent to hire the employee and the lost time the firing would cost your business. You would also need to hire another person to take that position. In essence, you are spending two or three times what you ought to spend to hire an employee. To avoid such unnecessary spending, you should ensure that your recruitment process is top notch and that you employ only those who can do the work and who also fit in.
Hiring costs can be reduced if you take the above tips into consideration. However, the best way to reduce staffing costs for most businesses is to use a staffing agency. At Ace Employment Services, you would be able to get a serious partner that can help you in making your staffing decisions.