All employers face one inevitable expense at some point in time...the cost of hiring new employees.
According to Workable, “a recent survey by the Society of Human Resource Management (SHRM) found that the average cost per hire is just over $4,000.” Cost-per-hire is the average amount of money an employer spends on a new hire. Maybe $4,000 a year on hiring one employee sounds affordable to you, but do you plan to just hire one employee each year? Probably not; and if you hire five new employees this year, it will likely cost you around $20,000 or possibly even more.
Does that sound sobering? While the statistics on hiring do reveal an expensive, time-consuming process, generally, most hiring costs are still spent on traditional hiring methods such as screening resumes and giving interviews. In light of increasing hiring expenses, however, employers wondering how to hire employees for less may want to try some more cost-effective, original approaches.
Here are some best suggestions:
Build a talent community
Recruiting.com explains, “While most applicants either get hired or turned away for specific reasons, there are always a few candidates that fall into a grey area that your talent community can cover.” These can be the people you add to your “talent community,” a base of potential future employees which you can return to for the future. By building this community that you can draw on during your hiring process, you can reduce the cost of advertising for a new job, as well as the costs associated with wasted time spent interviewing applicants who may not be a good fit for a job.
Increase employee referrals
Some astounding statistics show why employee referrals may be one of the best ways to save on cost-per-hire. According to Lever.co, “One in 16 referred candidates is hired, compared with one in 22 agency candidates, one in 72 sourced candidates, and one in 152 applicants.” Not only are employee referrals a more efficient way of hiring, employees hired through referrals are also faster and less costly to hire and even stay in the position longer (thus saving employers the cost of finding a new employee for some time).
Utilize a career portal on your website
Have you ever wondered how to hire employees without the costly and time-consuming process of advertising on job boards? If you don’t have a career portal, now is the time to create one. If you do, make sure you optimize it for hiring by keeping it up-to-date and making it mobile-friendly. You can use this type of portal to encourage job seekers to apply to jobs directly through your website, so you can reduce the expenses of advertising positions on job boards and other websites.
Use a new hiring solution
Geekbidz is a newly launched hiring platform that uses Artificial Intelligence to rank job candidates’ skills and place them directly in an on-the-job interview at a job that best suits their abilities. The website notes that 75% of hiring costs these days are spent on screening resumes and giving interviews. By avoiding the costs associated with scanning resumes and evaluating candidates in interviews, Geekbidz can save employers both time and money. If you’re frustrated by high hiring costs and wondering how to hire employees for less, this is an innovative solution worth trying.
Think Less Traditional, More Original, To Save Costs While Hiring
There’s no question about it: hiring these days is expensive. While hiring one new employee may seem affordable, chances are you may need to hire multiple new employees in any given year. The costs associated with hiring, however, often have to do with the traditional hiring process involving posting on job boards, skimming resumes and giving interviews. To reduce your cost-per-hire, think outside the box: consider talent communities, employee referrals, website career portals, and AI hiring solutions. By opening your mind to non-traditional hiring approaches, you can save valuable money that can be used elsewhere to grow your business.