4 ways to reduce your recruitment costs
A recent Monster survey reports the average cost per hire in the UK is up to £4,500. With HR professionals busier than ever, it’s no surprise that many companies are turning to recruitment agents as a first resort and paying a 10-20% fee.
Whilst inflation is driving up costs across your business, here are some tips to keep you in your Finance Director’s good books and bring your recruitment costs right down.
1. Referral Scheme
Introduce a great referral scheme. A great source of new talent can be your colleagues networks, most of them will have at worked at at least one other employer and likely to know a handful of people they think are great and would love to work with again.
There are three great elements to referrals:
- The referrer will only put forward candidates they genuinely think are good enough to work with you, they feel a sense of responsibility for who they recommend, which means better candidates
- Rewarding the referrer is a lot cheaper than the average agency fee
- They will have a good feel for the culture from the referrer
Although they don’t have to cost the earth you will need to incentivise staff to put people forward, giving extra holiday days, retail vouchers or cash can all work well.
If the referral scheme accounts for your current employees immediate network then getting them to share roles on LinkedIn should start to open up their wider networks and social reach.
LinkedIn is the biggest professional network in the world and they allow you to advertise a vacancy for free. You can pay for sponsorship, but this can start to add up. Getting the hiring team to all share on their personal feeds is a much better way of getting the ad in front of relevant people quickly.
The downside of LinkedIn is you will normally get more mail from recruiters than candidates, but for a free advert this can be a price worth paying.
3. Job Boards
Although there is a lot of talk of the job boards dying they are still very effective. The major boards have millions of active job seekers, Indeed, Totaljobs, Jobsite and CV Library all have c.20m users – while Monster and CareerBuilder have over 2m users each week.
They charge upwards of £150 (you can get some discounts for first purchases) with the exception of Indeed who run a pay per click model. They tend to work particularly well for more generic roles such as Business Development, Customer Service or Administrators that operate across multiple industries.
The key to success on a job board is the advert, remember to write it from the applicants perspective, what is important to them, not a job description which can often be a list of all the tasks they will be doing. Maximise keywords that describe the role broadly and then sell the specific benefits of working for your great business.
Specialist Job Boards
The major boards don’t always perform as well for niche roles, this is where more specified boards come into play.
GAAPweb for technical finance roles, CW Jobs for IT roles or PM Jobs for HR roles can give you access to candidate pools not looking on the main boards. These are generally more expensive than the mainstream boards £500+ but still a more affordable option than a recruitment agency.
Diversity & Inclusion Boards
There has been a trend over the last couple of years for a growing number of boards making sure under represented groups are better represented in the workplace. And for good reason, a recent McKinsey study has shown more diverse companies outperform by more than 35% over the last 10 years.
Investing in Women, Diverse Jobs Matter, LGBT Jobs and Evenbreak are our favourite boards. Using these boards gives confidence to candidates that you have a culture that is accepting and open. By using Evenbreak you have a workplace equipped for disabled candidates or Investing in Women that you are willing to be flexible for busy mums around childcare (assuming you are these things of course!).
4. Content Out-reach
The final strategy here is definitely a longer term play, it won’t always help fill immediate vacancies, but can really help build a pipeline of candidates that want to work with you.
Create content by using the subject matter experts in your organisation, interview the Buying Director on what they’re working on, or the CTO on how they learnt to code. Video the interviews and put snippets out on your social platforms. Candidates can see how great people are within your business and get a feel for your culture.
Or lean on other people’s audiences, find what podcasts your ideal candidates are listening to and see if that Director or CTO can appear on the podcast and be interviewed. The audience is already listening and the editing, recording and production is all outsourced to the host. There are thousands of podcasts out there, and you don’t have to aim for the big ones, you want a small niche audience of great relevant candidates.
Hopefully this has been helpful and gives you a better idea of how you can start to reduce your recruitment spend.
Here at Get Staffed we give you a number of advertising packages that can get you on multiple job boards starting at just £199 – plus a great FREE ATS to help store candidates in one place, we will help optimise those adverts to increase visibility to candidates and a helpful account manager will always be on hand.
Want to speak to one of the team?