When hiring new employees, the role of HR is much greater than choosing the right candidates. It is also essential to act to reduce the cost of recruitment, since this process, if done wrong, can be very costly for the organization.
But how to be efficient in selecting professionals using as few resources as possible? To help you in this mission, we explain in this article everything you need to know to reduce the cost of recruitment. Interested? Stay with us!
How important is recruitment and selection to the business?
Recruitment and selection of candidates is one of the most important HR tasks. In the end, without a good group of professionals, the company does not work. They are the ones on the front line producing, relating to customers and bringing new ideas to make the company more and more innovative.
So having motivated employees style=”font-weight: 400;”>, engaged and trained is the key to stand out in the market and overcome the competition. And bringing these professionals to work in the company is not easy: it depends on a strategic recruitment process, very well planned by HR and the leaders.
What are the costs of recruitment and selection for companies?
When it comes to reducing recruitment costs, many entrepreneurs and HR professionals do not consider the process expenses as a whole. Most think only of the amounts paid to advertise vacancies on recruitment sites and to fundraise on social networks.
Yes, these are important expenses, but in fact they represent only part of the real cost. It is necessary to go further and observe the resources moved at each stage of the selection. So you can have an exact idea of the size of the expenses. Check out some of them below.
To hire a new employee, HR needs to designate a part of the team especially for this task, which takes time – and as they say, time is money.
While dedicating yourself to looking for good candidates, filtering resumes and conduct interviews, the professional could be developing measures to make people management more strategic, for example, which would represent a huge competitive advantage for the business.
The higher the frequency of carrying out new selection processes, the less time HR will have to act strategically. In this sense, the mobilization of the team represents an important cost to be considered in this process.
In addition, HR employees are not always sufficient to conduct the selection. To hire directors C-Level, for example, it may be necessary to call a consultancy or a headhunter, which further increases the cost of recruitment.
Use of physical space
THE physical space used throughout the selection process also represents a cost, since the rooms and equipment are also resources of the company. In this case, they are busy doing interviews and dynamics, while they could be used for training and alignment meetings.
In addition, there are direct costs, such as electricity, air conditioning and coffee break (for long dynamics with multiple candidates). They may seem like small expenses, but these costs, if replicated several times a year, make a big difference in budget.
Loss of productivity
One of the main recruitment costs that many people do not see is the loss of productivity.
As long as the new employee is not hired, the team he will serve on remains with one less person. With this, the team is overloaded, needing to redistribute tasks and sacrifice some deliveries or the quality of them, which causes a great financial impact for the company.
As much as everyone tries to hold on to the tips, only the presence of the new professional in the team can make everything return to its roots. And even after hiring, it it still takes a while, as the person will need time to go through the necessary training and adapt to the new company.
One of HR’s main missions is to maintain the turnover rate low, that is, reduce the employee turnover. The reasoning is simple: if there are many dismissals (spontaneous or not), more selection processes will need to be carried out and the cost of recruitment will be higher.
Being efficient is the best way to avoid this problem. Hiring correctly, HR ensures that the new employee has the right technical and behavioral characteristics for the position, avoiding that he needs to be fired or ask for the accounts for not having adapted.
>> Do you want to know more about selection processes? Check out this other blog post Recruitment and selection: what it is, processes and techniques <
What are the solutions to reduce the cost of recruitment?
Now that you know more about companies’ recruitment costs, it’s time to learn the solutions to reduce them. As stated earlier, this requires a lot of planning, but it also involves an intelligent use of technology. Learn more below.
The first step in reducing the cost of recruitment is to plan everything that will happen in the process before you even open the vacancy. Make a list with all steps and dates selection, including:
- on which channels the vacancy will be advertised;
- on what dates will the company receive the candidates;
- who will do the interviews or group dynamics;
- which tests will be applied;
- what will be the criteria for evaluating candidates;
- when the final decision will be made;
- on what date the new employee will start his activities.
Having all of this well organized increases the chances of getting the assessment right and making an adequate contract, reducing the risk of turnover.
Set the desired profile
HR must also meet with department leaders and align expectations regarding the desired candidate profile. Knowing what you want is the best way to avoid mistakes, which is essential to escape from bad hires and reduce the cost of recruitment.
Be clear about what behaviors and skills the professional must have to meet 100% of the job’s expectations. Thus, the person in charge of choosing candidates will know exactly which of them is most suitable for the position.
Prioritize internal selection
Make a internal selection it is an excellent way to reduce the cost of recruitment. Before looking for professionals in the job market, make sure that there is no one already within the organization who is interested and fits the position.
Thus, no ad fees on vacancy sites and searches on social networks. The evaluation process is simpler and the vacancy is closed more quickly, preventing the team from being absent for a long time.
In addition, the learning process is accelerated, since the “new” employee is a person who already knows the company’s day-to-day activities.
Another positive effect of this practice is the increased motivation of the employee. Selection processes are usually an opportunity to promote someone with a good performance or give a chance to someone who wants to change areas. When this occurs, the employee feels grateful and is even more likely to do his best.
Know where to advertise
After defining the profile of the vacancy, choose carefully where it will be disclosed. To attract the right professionals, it is necessary to announce the opportunity in channels in which it is present.
Looking for an intern? Sites for vacancies and advertisements on university murals can be effective. Need a new executive director? In this case, you will need to do an active search, selecting names on LinkedIn and having a headhunter to do the first approach.
It all depends on the profile It’s from level desired professional. Choosing the right channel is halfway to making a successful contract.
Each employee of your company has a rich network of contacts that can and should be activated when looking for new professionals. Request directions it is a great way to find great candidates for the selection process in order to reduce the cost of recruitment.
To do this, inform employees about the vacancy and ask if they want to recommend someone. Indicators are already used to values and company culture, knowing exactly which colleagues or acquaintances can best fit the organization.
But remember: being nominated does not mean that the candidate is automatically hired or that he will have preference. It is just an HR mechanism to find potential employees more quickly.
Recommended candidates should participate in all interviews and tests like any other, ensuring that recruitment is successful. transparent and fair.
Use technological tools
Until recently, the selection processes worked like this: HR announced the vacancy, received the resumes printed or by email, and analyzed them one by one to decide who would move on to the next phases.
With technological tools that we have today, this is inconceivable. Now, job posting platforms and HR systems rely on algorithms that do the first screening of resumes by keyword, saving recruiters from that manual work.
That alone represents a huge saving of time and money, but the advances do not stop there. There is also software for data analysis, which cross information obtained throughout the process and contribute to more accurate decision-making.
In addition, resources such as social networks, online tests and video calls have arrived to make life even easier for companies when hiring, as we will see below.
Use social media
Making good use of social media is another effective way to speed up the selection of candidates and reduce the cost of recruitment.
At the LinkedIn, the largest professional social network in the world, it is possible to find good professionals from any area of activity with ease and free of charge. The site also has paid tools for recruiters, able to further optimize the search.
It is a low cost investment which can bring a huge return in terms of speed and success of the selection processes.
Personal social networks, such as Facebook, can also help a lot in HR decisions. Through them, it is possible to analyze the interests and behavior of the candidates, collecting data to build a complete profile of the professional and assess whether or not he is the best choice for the company.
In short, these sites speed up the search and help you get to know the professional better even before interviewing them, being great tools to reduce the cost of recruitment.
Take tests and interviews online
You online tests and interviews is increasingly common in selection processes. And it is not for nothing: these tools are a great request to make the initial stages more dynamic, in addition to reducing the cost of recruitment significantly.
It is undeniable time saving distance steps provide. For example, imagine that you need to interview six candidates in the first phase of a selection. If the conversations are in person, you would probably need to make an appointment with each other on different days, due to all the logistics involved.
On the other hand, if the interviews are online, all three can be conducted on the same day, saving both company time and candidates’ time.
The same occurs with the application of behavioral tests and technicians. Instead of making the candidate move and occupy the physical space of the office, it is very practical to simply send the proofs over the internet and allow the person to take them at home.
With the quality of the recruitment platforms and video call software that we have today, adopting this practice is the ideal way to spend less time and resources on recruitment and selection.
Now that you know how to reduce the cost of recruiting, it’s time to put what you’ve learned into practice at your company. Remember: it is all about planning the selection process and making good use of technological tools. With this, you will be able to hire great professionals in a much faster and cheaper way.
Did you like it? Tell us in the comments what you do to reduce the cost of recruiting at your company. We are available to answer any questions you may have on the subject!