Ever wondered how much it cost an organization to hire a candidate, except for the remuneration paid to the latter? Cost per hire (CPH) is an important metric to consider in any recruitment strategy, as it provides a measure of the effectiveness and efficiency of your hiring process. By reducing CPH, companies can cut down on costs associated with recruiting, making it easier for them to attract top-notch talent while staying within their budgets.
Here are the top 5 ways to reduce cost per hire in your recruitment strategy:
- Use free and low-cost job boards – One of the quickest and most effective ways to reduce CPH is by leveraging free or low-cost job boards to post open positions. This will allow you to reach a larger, more diverse talent pool without spending too much on advertising fees
- Automate the recruitment process by using applicant tracking systems (ATS) – By utilizing ATS, you can streamline and automate a variety of recruitment processes such as screening applicants, scheduling interviews, and sending offer letters. This will reduce manual labor and save time that would usually be spent on administrative tasks
- Utilize social media – With billions of users, social media has become an invaluable tool for recruiters and employers to connect with passive job seekers as well as active ones. Besides its cost-effectiveness, it also allows you to target specific types of candidates based on their interests, experience, and other criteria
- Focus on employer branding – Employer branding is an essential component of any successful recruitment strategy. By creating a strong, positive reputation in the job market, you can attract more qualified candidates who are likely to accept your offers without having to negotiate for higher salaries
- Develop a referral program – Referrals are an excellent way to reduce CPH because they cost much less than traditional recruitment methods. Plus, the candidates referred via the referral program by existing employees are often more engaged and tend to stay longer in their jobs
By following these tips, you can lower your CPH and still attract top-notch talent. Keep in mind that reducing cost per hire is an ongoing process and requires continuous optimization. As you apply the above tips, keep measuring your CPH to ensure that you are achieving the desired results.