May 8, 2024
Did you know that the average cost per hire for companies in the United States is around $4,000? With businesses facing increasing pressure to reduce recruitment costs while maintaining quality talent, finding effective strategies to cut costs has become more important than ever.
If you are a business looking to save money on hiring new employees, you're not alone! Fortunately, there are several simple strategies you can implement to achieve this goal. Let's explore some effective tips that can help you simplify your hiring process and cut down on expenses.
But first, what is Cost-Per-Hire?
Cost-per-hire (CPH) is a never-ending concern for Talent Acquisition (TA) professionals facing the challenge of securing top talent with limited resources. With the demand for specialized roles on the rise and applicant volumes constantly going down, the pressure is on to optimize recruitment strategies used by companies.
To calculate your Cost Per Hire, you must first understand your current CPH. This metric comprises both external and internal recruiting costs excluding the salary of the new hire, and varies based on your hiring volumes.
How to reduce Cost Per Hire?
1. Use up-to date Technology: Invest in recruitment software like Frankie to automate repetitive tasks, streamline workflows, and improve efficiency. With features such as applicant tracking, resume parsing, and interview scheduling, technology can significantly reduce the time and resources spent on hiring.
2. Optimize Job Advertising: Focus your job postings on platforms where your target candidates are most likely to be active. This could include niche job boards, social media channels, and professional networking sites. By targeting your advertising efforts, you can reach qualified candidates more effectively and reduce unnecessary spending on broad-reaching platforms.
3. Employee Referral Programs: Encourage your existing employees to refer qualified candidates for open positions. Employee referrals are often a cost-effective way to attract top talent, as they typically result in higher-quality hires and lower recruitment costs compared to traditional methods.
4. Simplify the Interview Process: Simplify and standardize your interview process to make it more efficient and effective. Use technology to conduct virtual interviews, minimize travel expenses, and reduce the time spent coordinating schedules.
5. Negotiate with Vendors: Negotiate with recruitment agencies, job boards, and other vendors to secure the best possible rates. Consider combining your vendor relationships and using your purchasing power to negotiate discounts or volume pricing.
How can Frankie help?
With Frankie's advanced features and user-friendly interface, reducing your cost per hire has never been easier. With automation tools like applicant tracking, resume parsing, and interview scheduling, Frankie simplifies repetitive tasks and improves efficiency, allowing you to focus on finding the perfect candidates for your organization. Plus, with customizable templates, unlimited users, and one affordable price, Frankie offers unmatched value for businesses of all sizes.
What else?
Automating Repetitive Tasks: Frankie's automation capabilities simplify repetitive tasks such as resume screening and initial candidate contact, saving recruiters valuable time and resources.
Time Savings: By making use of AI-powered sourcing tools, recruiters can reduce position-fill time by up to 50%. This translates to fewer days to fill positions, resulting in significant cost savings per hire.
Reduced Cost Per Hire: AI-driven recruitment systems like Frankie have also been found to decrease cost per hire by up to 70%, according to a study by Deloitte & Touche LLP. This reduction is connected to increased efficiency, less time spent on manual tasks, and increased matching of candidates.
By implementing these strategies, you can effectively reduce your cost per hire while still attracting top talent to your organization. With the right approach and tools in place, you can achieve significant cost savings and improve your overall recruitment process.