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 3 Mistakes Companies Make When Trying to Save Costs on Recruitment 

Cost savings recruitment is a focus of all HR departments who want to find top talent for their companies at the lowest possible rate. Yet, without thoughtful cost-saving strategies that consider past efforts, market conditions, and current trends, some recruiters get overly exuberant in their applications of cost-saving initiatives. In this article, we will discuss the three most common mistakes companies make while trying to reduce their recruiting costs and provide an optimal solution to save hiring costs without sacrificing the quality of hire. 

Rushing the Hires 

Time to hire affects the cost of hire adversely. When recruitment is accelerated, it may lead to a 32% reduction in the cost to hire, according to Gartner. Recruiters who take these statistics into account tend to rush the hires, moving candidates in the recruitment process faster. 

Unfortunately, in most cases, talent acquisition specialists reduce recruitment costs compromising the quality of hire. As a result, recruiters hire and train someone, only to find that a candidate is not a good fit for the job. In fact, according to the U.S. Department of Labor, the average cost of a bad hire is up to 30% of the employee’s first-year salary. So companies who aim to decrease recruitment costs often end up overpaying for their recruitment mistakes. 

Spending Less Time on Sourcing

Most hiring costs do not create a budget for a new employee’s annual salary and benefits that will be paid out - it’s the up-front investment of sourcing the candidates. Given the internal consumption of resources required to source candidates, many organizations choose to reduce the amount of time and effort spent on sourcing by considering only active candidates. As a result, companies are missing out on a large talent pool of passive candidates that make up 70% of the global workforce. 

In addition, sourced candidates are more than two times as efficient as candidates who apply. Thus, in a candidate-driven market, passive recruitment must be a priority. 

Ignoring the Marketing Aspects of Recruitment

To reduce recruitment costs, some companies decide to decrease their spending on jobs and company advertising. Ignoring the importance of employer branding is never wise; while one company neglects the marketing aspect of recruitment, their competitor may be working steadily to unveil a new strategy to attract and engage top candidates. Organizations with strong brands and high employee retention are faced with finding creative ways to attract candidates as the work landscape is changing. The failure to advertise itself may eventually cost the company top candidates.

“As a recruiter, you want to have access to every possible means for identifying appropriate applicant pools, reaching prospective applicants with compelling messages and then persuading qualified candidates to consider and accept your offer of employment. You need more than just a job description, a list of benefits and an initial offer of compensation. You must be able to market your company as a preferred employer, create interest in an immediate job opening and establish a commitment to a possible long-term career path with your company.”

Mike Temkin, vice president of Shaker Recruitment Advertising & Communications

As you can see, costly hiring mistakes primarily result from good intentions to reduce recruiting costs having negative consequences. Hiring top talent is expensive, yet there are ways to reduce recruiting costs while hiring qualified candidates significantly. When it comes to HR cost cutting, implementing software is a smart solution. With effective HR tools, recruiters can automate time-consuming tasks that distract them from bigger needs.

Optimize Your Hiring Costs with Employa

Employa, an AI-driven sourcing tool, can help companies meet their recruitment needs, optimize hiring processes, and hire only the most qualified candidates at lesser cost and time. Employa does the candidate sourcing and engages with potential employees quickly and efficiently. The software’s advanced features can analyze thousands of candidates in seconds and rank them based on unique job requirements.  

Employa detects frauds and discrepancies in resumes and automatically asks potential candidates for additional information if it’s not included in their CVs. Employa can ensure that each candidate in the talent pool is considered so that the company does not miss out on top talent. Employa provides an efficient solution to the above issues by providing an effective sourcing tool that saves time and costs while finding and engaging qualified candidates.

In addition, sourced candidates are more than two times as efficient as candidates who apply. Thus, in a candidate-driven market, passive recruitment must be a priority. 

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