Finding, recruiting, and hiring a new employee can be surprisingly expensive. These costs don’t even take into account all the money you will invest in the employee after he or she is hired. The good news is that there are many ways you can control, and even reduce, all of the costs associated with finding the right new hire for your organization.
Increase Employee Referrals
Wouldn’t it be nice if you had a regular pipeline of qualified candidates you could tap into whenever there was an opening? You can create just such a pipeline by doing more to encourage employee referrals.
If you can leverage your employee’s personal networks, you will have access to a deep talent pool. Some steps you can take to increase employee referrals include:
- Asking for referrals—Many employers neglect to even ask their employees to refer qualified candidates.
- Offer bonuses—Sometimes people need a little incentive. Offering employees a bonus for referring candidates that get hired and last a set period of time (for example six months) will motivate employees to tap their networks
- Making sure morale is high—Employees are not going to risk referring a friend to a place they do not enjoy working. Making sure your employees are happy will help you get more referrals.
It is cheaper to pay referral bonuses and setup employee referral programs than it is to run full recruitment campaign. It is also a better way to find people that are a strong fit for your organization.
Improve Your Online Career Portal
It is cheaper to get applicants to apply on your website than it is to pay for listings on job boards. If you optimize your company’s online career portal you will be able to post a job on your own site and begin getting high quality applications. While there may some upfront investment, it will save you significant amounts of money on new hires for years to come.
Make sure your career page is easy to find, SEO optimized, and that your existing employees know about it.
Leverage Social Media
Social media is a great message amplifier. But, you can use it to do much more than raise brand awareness or to drive traffic to your company’s sales funnels. You can also use social media to get the word out about your job openings.
The key to leveraging social media is making sure you share a link to the job description and application. If your company’s organic reach is big enough, you can generate significant traction with a free post. But, you may get better results by running a paid ad or post boost.
Social media ads are cheap and easy to target. You can make sure a large sample of your ideal candidates sees your ad for your job opening. Using social media for recruitment is often more efficient and cheaper than other traditional recruitment techniques.
The best way to control new hire costs is to hire fewer people. It is usually much less expensive to retain an employee than it is to replace them. Retaining your best employees requires you to provide them with the support and challenges they need to grow professionally and to find personal satisfaction in their position.
Managing new hire costs works best when you use a holistic approach. If you work on creating an environment that employees love and that fosters productivity you will have less turnover, it will be easier to leverage employee referrals, and you will have more help in boosting job postings on social media.