With increasing automation in the recruitment process, jobs are becoming skill-based and less repetitive. Coupled with increasing competition amongst the companies to hire the best talent while maintaining profitability, recruiters are tasked with hiring talented candidates in record budgets. Cost to hire is one of the recruitment process metrics that help organizations measure their total spend associated with filling a vacancy. The cost to hire for earlier vacancies helps develop future hiring plans. The recruitment industry average cost-to-hire is around $4000. Reducing cost-to-hire requires recruiters to focus on making the recruitment process efficient to prevent any one-time high costs. Here are 3 ways to make recruitment economical by reducing the cost to hire.
5 Ways To Reduce Cost-To-Hire
A. BUILD TALENT PIPELINES IN ADVANCE
Building a strong talent pipeline with skilled and diverse candidates helps recruiters in scouting the best candidates for any new vacancy at any point in time. Recruiters should keep engaging the candidates by updating them about new opportunities and ensure that the candidate database is refreshed regularly. Some of the candidates might not be fit for a specific job role at that moment; however, can be considered for future positions.
Pre-qualifying applicants can make the whole process much easier, quicker, and more cost-efficient than sourcing from scratch. The recruiters can save on job promotion and candidate sourcing costs without compromising on the candidate quality.
B. USING RIGHT ASSESSMENT TOOLS
‘A poor workman always blames his tools’. 90% of hiring managers report finding difficulty finding and hiring the right tech talent. The right tools can help recruiters control recruitment costs by minimizing the chances of bad hires. Candidates with different experiences should be evaluated differently. Right assessment tools can help in identifying the skill sets, behavior, interest, and job-compatibility of the candidates effectively. Assessment tools help recruiters make better hiring decisions by eliminating biases.
C. BULK SCREENING – ONE WAY INTERVIEWS
Conducting bulk one-way interviews help in saving time of the organization and the candidates and is cost-effective too. One-way interviews help candidates respond to questions at a convenient time. It also allows recruiters to screen candidates at scale, thus expediting the recruitment process.
D. SOCIAL MEDIA RECRUITING
One of the most powerful tools for reducing the cost to hire is to utilize social media platforms to build brand presence and attract talent. The social media handles could be used to provide potential employees with a glimpse of day-to-day operations, values, current projects, and employees. Recruiters can motivate employees to share the job descriptions on their handles to ensure greater reach and increased volume of talented applicants.
Social media also gives a platform to share the job vacancies with targeted groups of individuals for better visibility and greater engagement. Moving beyond traditional methods of candidate sourcing enables recruiters to engage with potential candidates on multiple fronts. This approach reduces costs to hire while increasing the volume of qualified applicants.
E. INTERNAL RECRUITING & REFERRALS
An employee referral scheme is a long term strategy to build a responsive talent pipeline. While there will be immediate expenses related to bonus payouts while setting up the employee referral program, the long term benefits of hiring through referrals will be able to offset this initial investment. Internal recruiting refers to identifying the best candidate from the existing employee pool for the new vacancy.
27% of organizations are making constant efforts to build employee engagement programs to communicate future skill needs for better opportunities. According to LinkedIn report, internal recruiting improves retention by 81%, accelerates the new hire productivity by 69% and the hiring process by 63%. Thus, focusing on internal recruiting and employee referrals have a positive impact on the recruitment process.
How TurboHire As A Product Is Helping Recruiters Reduce The Cost To Hire
We all know hiring is a complicated resource-intensive process. Enters TurboHire. A new age Talent Acquisition and Discovery platform built on Artificial Intelligence. Our product can be used to hire for the duration you want and we reiterate, it’s cost-effective. Here’s how it will help you with:
- Remote assessment of technical talent
- Assess multiple tech stacks and auto-generate reports
- Assess candidate using his body language, expressions, and actions taken during the test
- In-depth video analytics
- Auto-generate smart card for each candidate
- Call only the most qualified candidates for interviews, through a pool of resumes
- Integrated with ATS smoothly
- Secured data and talent record.
It is a known fact that about 30% of the total jobs posted on job boards are repetitive jobs. TurboHire has built a retarget feature which will help the recruiters use the existing database to search for the suitable candidates if the jobs are repetitive. This has a significant cost implication as this will negate the posting of jobs and waiting for the candidate’s application. So, with a click of a button, you will get matching and eligible candidates from your old database for your new job.
The second cost improvement provided is in the Audio/Video interview provision built inside the platform, which negates the necessity for a separate video interview software and the cost associated with that.
Considering these two cost factors, the platform will provide a 72% reduction in Cost to Hire.
We, at TurboHire, believe that a quality hire saves costs on training, training time and contributes to the RoI of the role much faster. And each day, we are working towards revolutionizing the process.
Maybe you haven’t noticed any significant lags in how the hiring process moves from application to job offer. But find a single company that does not want to improve their recruiting budget. Maximizing time won’t help you much if your costs are high to gain that efficiency. If there are inefficiencies in your hiring process, wasted time and resources translate directly into a higher cost-per-hire (CPH). It also likely translates into corporate pressure on you and your team to get that cost down. This is where AI helps you. More data means more chances to streamline the process. Recruiting software can not only help you track time to hire metrics, but also help you improve every step in the process to make sure you’re getting the absolute most out of the candidates you bring in, and the information you’re putting out.