Reduce Recruitment Costs Using These 6 Methods

Employment
Alexandra Cote
April 16, 2021

Photo by Gabby K from Pexels


Whether you’re hiring the traditional way or remotely, there are several hidden recruitment costs to be aware of:

  • Recruitment professionals time and salary or payments towards a recruiting agency
  • Job boards and advertising costs
  • Referral bonuses given to current employees
  • Accounting [if outsourced]
  • Potential lawsuits

In case the recruitment process goes wrong, you can end up choosing team members who aren’t suited for your team culture. This will incur extra turnover costs every time you need to hire someone else to take over an open spot, onboard, and train them—potentially on a yearly basis. Adding it all up, you can lose an average of $14,900/new bad hire.

To help you choose the right team members, we’re going over six cost-effective recruitment strategies:

Turn to your most successful marketing channels to get the word out

Job boards aren’t your only solution when it comes to reaching out to the best talent out there. In fact, 23% of recruiters receive unqualified resumes from job board ads as anyone can apply there without having done any research of the company beforehand.

Instead, aim to get your job openings in front of people who are interested in qualifying for a potential role within your organization. Your social media channels and email newsletters are likely to be viewed by talent who’s already familiar with your brand. Same goes for your own careers page that you can also use to showcase available jobs and give an insider’s look into what life at the office [remote or not] is like.

If you’re also hosting regular events or speaking at industry conferences, you’ve hit the jackpot. It’s most likely that you’ll get access to an already trimmed-down talent pool so a mention of your openings wouldn’t hurt.

Use employee advocacy to support your employer branding plans

Another way to ensure only the right people will apply is by presenting them with your remote work culture from the start. Start publishing blog content, videos, podcasts, or host events around this to push your culture forward.

A referral scheme is currently the most effective strategy for zero cost hiring. Referrals have been named a top source of quality hires thanks to their ability to expand your list of qualified candidates. Plus, it’s a great way of motivating current employees to help with choosing their teammates.

Go global!

The most costly recruiting method is limiting your efforts to local candidates. This significantly reduces the number of professionals who can fill a role while also requiring extra spending on organizing a face-to-face meeting and later maintaining the office.

For cost-effective recruitment, expand your outreach to remote talent too. The numbers are independent to an organization but you can save an average of $22,000 by hiring full-time remote workers.

With Panther, your global hiring costs are lowered as you’ll no longer need to set up a local branch in each country. Panther also acts as an employer of record so you can automate your global payroll and compliance efforts.

Create a spreadsheet of past candidates who didn’t make the cut

Sometimes competition can get tough and you’ll have to give up on top talent because you’re not ready to take on as many hires. Having a spreadsheet of all great past candidates literally cuts your recruitment costs to zero as you’ll only have to reach out to them and see if they’re up for a new opportunity.

An alternative is to build a talent community [public or not]. This was a common practice in 2020 as companies built such communities to help talent they had to lay off with finding a new job. Here’s an example of what the Airbnb Talent Directory looks like:


Example of the Airbnb Talent Directory


Make sure the job ad aligns with the requirements of the position

If there’s one way to get only the right candidates to apply, that’s by crafting a comprehensive and fluff-free job ad. 

The first step is for recruiters to discuss the needs of the role with future managers. Noting down the real tasks a person will be in charge of is much more valuable than listing a bunch of random skills like reliability or time management — skills all employees should have.

But to be honest, these ads are rare. 

So I looked over 100 recent remote job listings and compiled these examples of not-so-standard job ads you can use as inspiration.

  • Mention your goals and objectives with this new role:
Source


  • Give the details of what the hiring process looks like so applicants can know what to expect and if they’re prepared for the time commitment:
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  • Tell applicants what they should expect within the first months at their new job:
Source


  • Provide a lot more details into what daily work life is like within your organization:
Source


  • List all potential tasks a team member will get [no matter how infrequent they could be]:
Source


  • Be clear about the benefits they’ll get if they join your team:
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Note: Make sure you’re only hiring when you truly need an extra helping hand for the long-run. For temporary projects, you can always outsource work, bring in members from existing teams with a lower workload, or...

Reskill your current team members!

Internal recruitment is quite common in both small teams and corporate environments. But reskilling your current employees is the next step to opt for if you want to keep moving forward and are stuck with a limited budget. 

While this isn’t a zero-cost method for hiring, investing in training reduces your expenses for finding and recruiting new team members. It’s also a great way of ensuring your current employees keep up with job demands and have their professional development needs catered for. 

Reducing labor hire costs remains a core priority if you want to reuse your budget for retaining and training talent. In fact, the latter two should be your core goals above all else. Keeping your current team members ensures you won’t have to go through the recruitment process and its spendings every year. 

As an added bonus, the more you keep a professional on your team, the higher the chances are for them to learn the ins-and-outs of your products and feel right at home within your team— remotely or not.

Go global with Panther
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