How To Reduce Your Hiring Budget

Every new employee who joins the company will modify the talent pool.  But while hiring new people you also have to keep your budget in check.

There are two types of hiring costs- direct hiring costs which include calculating specific spending made on services or goods used to recruit employees and there is an indirect hiring cost which includes costs for activities that will affect more than one position in an organization.

Here we are going to showcase some useful tips to reduce your hiring budget.

Internal referral resources

Instead of paying to recruiting agency, ask your current employees for personal referrals.  You can also ask their friends or relatives for the position.

Plan and Unplanned Vacancies 

HR partners and managers should sit down together and decide what their planned vacancies are and how much budget should be allocated.  While for unplanned vacancies, it should be budgeted based on a running rate through the current year.

Use social sites like Linked, Facebook, Watsapp

Social network sites are the best place to reach mass employees with the very limited resource.  You can even search for a specific community like LinkedIn recruiter page, career page, etc. on social sites and post the vacancy details.

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Track the indirect expense made for recruitment

Track the amount spent after job advertisements, promotion needs, and expenditure on logistical supports during the interview, etc. This whole amount will be considered while calculating recruitment cost per person.

Online Recruitment

Recruitment online is much cheaper and effective than traditional print.  Certain websites have the capability to email directly to targeted individuals who have registered to their websites.

Managed online recruitment

This approach is a combination of email marketing, web advertising, CV searching and candidate screening to deliver to their clients a pool or relevant and targeted resumes from which to interview and hire from

Retain current staff

It is the ideal way to reduce the expenses over recruitment that comes at the regular time period.  Reduce the attrition rate and encourage the staff to hangon with you.  Before considering fresh recruit for new position in company, consider the previous employee for position who have left company with good experience or with formal training

Consider part-time recruitment

Consider hiring independent contractors to work for your businesses on a temporary basis rather than hiring a long term employee to handle various tasks. You can hire part-time employees for slow work, this will save the cost made on permanent employee

Use ATS (Applicant Tracking Software) system

ATS system or Applicant Tracking Software helps to eliminate the number of unqualified candidate’s reaching your HR or recruiter by setting up criteria that filter the applicants.

Hire Consultancy

Hiring consultancy can come handy, when hiring process is frequent in an organization. It saves a lot of time and cost spent after hiring process. The rich experience of hiring consultant always guarantees a good potential candidate.