Focus on Process to Reduce Your Recruiting Costs

In good times, trimming opetational costs is an ongoing goal. In tough rimes, it's a necessity. In both good times and bad, recruiting occurs. Growth increases headcount in good times and opportunistic or replacement hiring happens in a slow business cycle.

Creative recruiting strategies in tandem with the latest technology developments provide the opportunity to reduce recruiting costs while powering exceptional business results.

Target Direct Cost Savings

Total recruiting process expenses are the combined sum of external costs and internal labor costs. Most organizations can impact recruiting expenses with direct cost savings. While additional savings on indirect costs can be realized from process improvement and efficiency gains, there are direct cost savings and benefits readily available in three broad areas: sourcing, assessments, and green recruiting.

Sourcing: Reduce Agency Costs

Agency search firm fees can cost an organization up to 35 percent of a new employee's annual base salary. These fees typically come from the hiring department budget and may not be visible to HR. The use of internal mobility programs, referrals, candidate pipelines, and corporate career websites can reduce or eliminate agency spend.