4 Way to Cut Down on Hiring Costs

Let’s be honest, making a new hire is not cheap. The time and energy you put into searching for the right candidates, interviewing them, second round of interviews, and then choosing the right candidate for you company can be costly. In fact, the average cost to make a hire is $4,000 and on average it takes 52 days to fill a position. So, how do you cut those costs and the time down? There is no magic button to press to eliminate these costs entirely however, there are a couple of tips to cutting down these hiring costs….

How can an accurate job description cut down on hiring costs? Well, let’s think about it. If you write an ad for an opening you are trying to fill and you are very general and broad in what you require, you could attract a host of people that aren’t qualified because you weren’t specific enough from the start. If you are looking for a certain number of years experience, give that exact number. Be honest with your job description but also be compelling. If there are great, unique benefits then share that. You will be able to attract the best talent while at the same time, weeding out those you don’t want. Yes, this a simple step, but it is a FREE step and it could transform your ability to find the right fit.

Many times (if not all the time), when a candidate sees your job opening, they will look you up on social media platforms. If you are active on these platforms and share day to day activities, achievements, and other parts of your company culture, then these potential candidates will already be able to see whether or not they will fit into your culture and can see themselves working there. The best part about social media: it’s FREE. Staying active and transparent on social media can go a long way to attracting awesome candidates and it doesn’t cost you a penny.

Here’s one that you may have tried in the past. Yes, you will have to set aside some of the budget for referral bonuses however, in the long run this can save you huge amounts of money. Your employees won’t recommend a bad candidate, obviously, and they know who a good fit for the culture would be because well, they are the culture. Think of all the connections your employees have and how much easier it would be to find a right cultural fit if your employees are the ones recommending these candidates. They do the searching for you saving you time, energy, and money.

Before we even get into this, yes, recruiting firms cost money. But let’s paint a picture really quickly… You spend 52 days looking for the right candidate and you go through the whole interview process and they seem like the right fit. After 6 months, you realize the employee has been a bad cultural fit and waste of time and money on your part. The cost of a bad hire could be up to $18,000… Now, recruiting firms are dedicating to finding the right fit for your specific needs, they are vastly connected, and they only get paid if they successfully place a candidate you are happy with. A recruiting firm can help ensure that you don’t waste your time and money with a bad fit that will leave after a couple months. They take a lot of the work (and stress) off your shoulders so you can focus on making sure the candidate will be the perfect fit for your company thus saving you thousands in the future…