HR, HR & Employment, Recruitment

5 Ways to Save Costs of Recruitment

Business Advice | 19 April 2023 | 1 year ago

There are a lot of costs to think about as a business and many of these fly under the radar, until you are face to face with them. One of these is the cost of recruitment, which many business owners forget about until it’s time to take on new staff. Whether it’s because your business is growing and you need people to help with growing demands, or you are replacing someone who has moved onto another role, the cost of recruitment is something to think about. Though you won’t want to break the bank, recruitment isn’t something to scrimp and save on. If you want to ensure that you are hiring top talent, you need to put money into the hiring process. Of course, this doesn’t mean that there aren’t a handful of ways to cut the costs of recruitment. Below, we have listed five of the most effective ways to save costs on recruitment.

Negotiate with Agencies

There are a lot of recruitment agencies to choose from, and these are teams of experts who are dedicated to helping you find the best candidates for your business. For a lot of businesses, this is the ideal way of recruiting, but it does come at a cost. Using a recruitment agency is more expensive than doing things yourself, but the benefits usually outweigh this. Instead of spending your own time trying to find the right candidates, you can hand everything over to a group of professionals. You can sit back, relax and wait for talent candidates to be sent your way. Thankfully, a lot of recruitment agencies are happy to negotiate with you.

Recruitment agencies want to keep your business, so, if you have a long working relationship or you give them a high volume of roles, negotiate a discount and see what they can offer. A lot of agencies charge based on a percentage of the salary being offered to the candidate, but many are happy to lower this if you continue to use them. For example, instead of charging a fee of 30%, they might lower it to 20% if you have more than one role to fill. If you are recruiting a lot of people, this cost saving quickly adds up. 

Look to LinkedIn

LinkedIn has changed the recruitment process in a big way, as it gives you direct access to some of the top talent in your industry. Instead of spending money on a lengthy recruitment process, browse LinkedIn and see if any suitable candidates are looking for work. Messaging candidates directly on LinkedIn can be a great way to make a personal connection, and it lets you pre-screen their CV and experience before taking things any further. You have access to their experience, expertise and skills, and you can then decide whether they are likely to fit the bill. If they do, you can send a message and provide information about the job, and ask them to apply. This only takes a minute or two, and it’s completely free.

Use Free Job Boards

There are a range of free job boards that will cut the cost of recruitment in a big way. They allow you to place job advertisements for free, manage applications and contact candidates. Indeed and Glassdoor are both popular, and you might even find some that are specific to your industry. A lot of job hunters start their search on free job boards, and it’s a great way to get your job advertisement out there to the masses. Though free job boards will not promote your jobs as widely as some paid options, it’s a low cost and simple way of putting your job advertisement out there for all to see. One of the downsides of using free job boards is the sheer number of unsuitable applications you might have to shift through, but the low cost element of this type of recruiting usually makes it a worthwhile task. 

Use Your Business Network

A lot of people forget to utilise their business network when they are hiring, even though it’s a fantastic way to cut the cost. Put the word out among your business connections, and see if anyone has a candidate to recommend. Let them know what you are looking for and the role you are filling, and you might find that someone has a perfect candidate for you to consider, or you might find one in your existing network. There is no knowing who is about to start a job search, and your employee benefits might be enough to entice them away from their current employer. You can also ask your current employees to refer a candidate in return for an incentive. They might have worked with someone who is ideal for the job, or they might know a friend who is looking to change careers.

Recruit Interns

While it’s not always a viable option, bringing in interns lets you save on labour costs and recruitment costs, at the same time as providing valuable work experience to those looking to get their foot in the door. This only tends to work if you are recruiting for an entry level role, as interns are unlikely to have the experience needed to successfully fill a more senior position. It’s not uncommon for businesses to take on interns, and then offer them paid work in the future once they have proven themselves. If you already have interns working for you, consider if any of them are ideal for the role that you want to fill. This is a cost effective and simple way of recruiting, as you already know that the candidate has the skills that you’re looking for. It’s a simple transition with minimal administration; you might not even need to conduct an interview.

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