Whether your business is rapidly growing or you need to replace several people who are leaving, it can be costly to hire new workers. In fact, one study found that the average cost to hire a new employee in training fees alone is $11,000. To save on these costs, you should implement both short-term and long-term strategies that will find you the best employees who will stay for a long period of time. To help you formulate these strategies, we've listed five ways to cut costs in the recruitment process.
1. Use a Time-Saving HR Software
To save money on the day-to-day expenses involved with hiring someone, consider using an HR software system to help with finding the most relevant candidates. These software systems filter CVs for you through a variety of keywords and job descriptions. Moreover, they recommend potential candidates by comparing hundreds of resumes at once. Some HR software solutions analyze CVs in over 30 languages at breakneck speed.
Recruiting Solution Costs per Company
To help pay for these services, consider using a corporate credit card. This will help your business get rewards, like cashback, on your business's purchases. For instance, cards that give you a 1% rebate on software subscriptions can save you hundreds of dollars each year, depending on which solution you purchase.
2. Introduce a Company Referral Scheme
Another tip to cut costs is to use a company referral scheme. While cash, vouchers, and other rewards to employees who refer successful candidates will increase costs in the short term, finding productive employees who stay for a year or more will save you money on hiring fees and re-training costs. This is primarily because your current employees will likely recommend people who they know fit the company's working culture and enjoy the job.
3. Be Clear With Your Job Description
A third way to reduce costs is to be extremely clear in your job description, as nothing wastes more money than hiring someone who will only leave within the first month. To help you make a clear-cut description of the role, know that less is more. For example, you should cut down on jargon and describe a typical day or set of activities the candidate will undertake.
Even with fewer words, make sure you are as specific as possible with what kind of skillset, education, and professional experience you want your candidate to have. If not, you may be wasting your time sifting through thousands of resumes that are just slightly off the mark of what you are looking for.
4. If You Don't Already Have a "Culture Fit" Interview, Consider Setting One Up
One strategy to limit employee turnover and save thousands in the future is to set up a small "culture fit" interview during the hiring stage. This could be as simple as having a 5-minute chat about the "soft" perks your company offers and some of the values you expect your candidate to have. Not only will this excite potential candidates, depending on what your company has to offer, but it will also explain to them what they can expect on the social side of working at your company.
While these interviews should not be used to withhold the position from good candidates, it can be a great way to prepare your new hire for the social climate of your firm. In doing so, you would be saving your time, money, and energy on hiring candidates who leave within a few months because they do not fit the culture of the firm.
5. Use Your Current Employees' Experience as a Resource to Onboard New Ones
Lastly, you should make use of your current employee's experience to help you hire potential candidates. The benefits of this are twofold. First, taking care of your current employees can hopefully limit the number of people who leave. As one study found, 66% of people said they would quit their job if they felt unappreciated— making it an important statistic to keep in mind. Getting feedback from current employees on employee satisfaction can help you enhance their experiences and time at the company.
Second, getting your employees' feedback can help you better define the role you are looking for and the culture that comes with being hired at your firm. In both instances, your current employees are a valuable resource for hiring and retaining qualified people.
Implement Cost-Cutting Tips Now To Save Thousands Later On
By implementing these cost-cutting ideas in your recruitment strategy and choosing the best SME credit cards for small businesses in Singapore, you can save thousands of dollars every year. This is both because you find qualified candidates during the recruitment process, especially if you use AI-driven software, and also the candidates you do choose will hopefully stay with your company. Through this, you will find great employees to help your business grow.