How To Cut Down on Recruitment Costs
Every business that has ever hired an employee (so every business), has felt the crippling costs of the hiring process. The average cost-per-hire for an organization can total to a painful £30,000, according to Oxford Economics. For companies who regularly recruit new staff; this can rack up an overwhelming bill every year. Thankfully; there are many ways a company can significantly reduce these outcomes and increase their overall business turnover.
Stop using traditional recruitment companies
This may sound harsh, but it’s true. Some Recruitment companies inflate your organizations annual spend extortionately and totally unnecessarily. Usually, they demand 20% of your new hires first salary, so, if your new employee is on an annual income of £80,000, you’ll receive a bill of £16,000, just for placing them!
There are better and much more cost-effective means for hiring new candidates, such as the use of fixed priced recruitment solutions. These are not recruitment agencies, and they only charge a minimal recruitment fee that does not increase with the salary of your new candidate.
The process of fixed priced recruitment is much more efficient than that of print job advertising. A newspaper has a shelf life of only one day, whereas an online job advert can remain online for as long as necessary. Print job advertising is also extremely expensive, and does not necessarily reach its targeted audience, meaning the majority of people who read the advert will not be relevant. It also trumps the use of internal resourcing as the job adverts are able to reach a much larger targeted audience.
Firstly, fixed priced recruitment solutions, such as ones offered at TalentSpa, takes care of the assembling of your job advert. The ability to attract candidates is dependent upon the job advert itself, so having a professional craft a highly attractive advert is essential in increasing your job application pool. Talentspa also provides their users with a shortlist of all the applicants for their job roles, saving their clients a lot of time reading through all the application paperwork but also allowing them to personally choose from the best potential employees.
This new recruitment methods is on average 70% less expensive than using a recruitment agency, and allows staff to delegate more time to their other tasks.
Another method for drastically minimize recruitment costs is to reduce the need to hire in the first place.
The annual CIPD survey analyzing staff retention in accordance with company turnover found that 75% of all organizations admitted to difficulties maintaining staff; with ¼ employees leaving their new jobs within six months.
One study investigating the economical costs of staff hire at mid-manager level where the employee was distasted and left, concluded that this can result in an overall cash loss of £132,000. £29,160 of that was accounted by the “lost productivity of the team.” This means that maintaining a stable and prospering work team will not only allow for a consistent work environment; but reduce thousands of pounds in recruitment costs.
Maintaining a committed and tight bond between company and staff is one way of reducing numerous work and financial risks. This relationship can be formed by giving your staff the platform to develop and learn new skills– resulting in a feeling of self-growth, satisfaction and achievement at work, and thereby increasing the likelihood of your staff wanting to work for you.
Investing in staff training schemes, such as the one offered by TalentSpa Training Hub will help to reduce staff turnover and ultimately reduce your company’s recruitment costs.