Cost effective recruitment strategies

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As per SHRM talent acquisition benchmark survey 2017 the average cost per hire is Rs. 25500/- pm in 2016 and it takes 42 days average time to fill open position. Cost of hiring executives cost is even more.

Cost per hire formula: Total internal+external recruiting cost/total number of hired in given time frame

Hiring is complex process, because it’s beyond the job description and competency, there are other factors associated within the process. Some critical factors need to assess individual behaviour, cultural background, beliefs and disbeliefs etc. One bad hire will cost more than hiring cost and it will also disrupt existing team moral, for this reason find right talent is critical.

This is been a major worry for employers to cut cost on hiring without sacrificing on quality of talents. 

What are the recruiting costs?  

Internal cost	External cost
Recruiter salary	Hiring agency fees
Interview cost	Job boards
Fixed cost (infrastructure)	Advertising cost
Referral bonus/incentives	Travel & relocation cost

When we think about cost reduction quality of talent comes in our mind, its challenging task to accomplish cost effective recruiting tools. Though recruiting is challenging task there are ways too.

1. Optimize your company career portal: company career site is mostly ignored and powerful tool to attract talents and represent as your employer brand. Update job openings regularly, make it mobile-friendly so that job seekers can apply directly through website, it will reduce the need to dependency on job boards and other external sites.
2. Get social via Social Media: social media tools like facbook, twitter, LinkedIn, blogs, create job seekers whatsapp groups and some other free job boards like indeed are great tolls to attract and source talent. Additionally, use these channels to showcase organisation culture and promote employer brand.  
3. Establish effective networking: Employees are company’s brand ambassadors.     Networking with current employees and stay connected with alumni’s. Share company events and progress status and job postings and offer incentives for referring quality candidates. Network with local trade association, collage, universities, professional associations.
4. Reduce turnover: cut the need for replacement in first place. Ensure that employees are respected, treated well. Invest in employee wellbeing. Introduce low cost or cost free HR initiative like work from home, flexi works, gym membership to employees remain motivated and engaged.
5. Pool of potential talents: recruitment is a continuous process. Pre qualified talents are very easy to fill when open position exist. Keep in touch with pre qualified talents for future openings also they can be point of source for candidate in similar business.    
6. Internship: giving an opportunity to young graduates to work as interns is an effective tool. Most interns are free of charge or minimum cost. There is a chance for an employer to assess for future role.

these are some basic strategies in recruitment process, there are many more available. the usefulness of these strategies are generally based on various factors like type of industry/business, strength, location, talent source etc. please write if any suggestions on this topic. 

This piece information is written for general information to my professional network; it is not a legal advice. I am not liable for any errors or omissions. For more clarification and details, you may write to me: rchougala@gmail.com