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17 Ways To Reduce Recruitment Costs

17 Ways to Reduce Recruitment Costs

All companies are wanting to reduce costs, especially with recruitment, whilst still attracting the top candidates, so here is a list of 17 ways which you can reduce your costs.

Contingency Recruiters

  1. Don’t use a contingency based recruitment agency! With agencies charging between 10-20% of salary, even for junior roles, can easily spend £1500 as a minimum!
  2. If you do have to use a contingency based agency, work with one who specialises in your industry, resulting in higher quality candidates for you. The top recruiters use their networks, which can be an invaluable resource.

Fixed Cost Recruiters

  1. Fixed cost recruiters provide a similar service to contingency recruiters, but for a fixed cost. A process they are likely to follow will be: advertise the job online, screen and telephone interview candidates, and pass a short list of candidates to you to conduct face to face interviews. Remember though, that you will still have to pay the fixed cost recruiter, even if you don’t recruit, so might not be best for hard to fill roles.
  2. Fixed cost recruiters might also search through CV databases for you, contact candidates on your behalf.

Job Sites

5 leading job sites

  1. A lot of companies will go and advertise directly with one job site (such as Monster, TotalJobs, CVLibary). Each site allows you to reach thousands of job seekers, for a relatively low cost.
  2. Job board/job site resellers allow you to advertise on a wide range of sites over just one for a low cost (typically under £200, which will likely be cheaper than advertising directly with two of the leading job sites mentioned above)

Reduce interview time

  1. Use video interviews which allow you to quickly get an impression of your candidates, allowing you to quickly reduce the number of candidates, hence the amount of time you spend interviewing.
  2. Telephone interviews can tell you a lot of information about a candidate, and can be as quick as 5 minutes, compared to a 30min+ interview, greatly reducing your time, and hence costs.

CV databases

  1. Search for potential employees using CV databases, such as Reed or Total jobs. You can then contact candidates directly. This is part of the service which fixed cost recruiters might be providing as well.

Social Media

hiring-people-linkedin

  1. Use social media (LinkedIn in particular). You can find and contact potential employees on LinkedIn, with no cost to you.
  2. Advertise your job on your social media pages, reaching your audience for free.

Applicant Tracking Systems (ATS)

  1. Use and Applicant tracking system helps you keep track of all of your applications in one central database, allowing you to easily review historic applications.
  2. Applicant tracking systems also allow separate recruiting teams to review applications.
  3. An ATS can help you stay compliant with relevant legal areas, which can easily lead to costly damages.

Employees

  1. Make use of your current employees contacts from employee advocacy. Engaging your employees with who will be their future colleagues can greatly improve employee happiness.
  2. Improve employee retention. If your employees aren’t leaving, part of your recruitment costs will be reduced!
  3. Run a referral scheme, and pay your staff to referrer candidates to your company.
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