Like every other aspect of our industry, recruitment costs need to be justified. There are many different methods and ways of finding the right people for the job in a short amount of time. The issue is the cost of some of those methods. Below are sites that may help you to justify the investment in the all important areas of attracting talent.
Making the best use of referral programs
Referrals are a great way to recruit: candidates are more qualified, they stay at your company longer, adapt to the company culture more quickly, take less time to find, the list goes on and on. It’s estimated that 10 to 25 per cent of new hires come through employee referrals, which is why companies should improve their referral programs in order to “generate 50-75 per cent of your hires with a minimal investment,” writes the author of this article. It outlines the barriers to successful referral programs and ways to improve a program’s effectiveness.
Are resume scanners worth the investment?
One of the more popular ways to cut down on the time it takes to recruit has been the use of resume-scanning programs. Electronic resume scanning software can pick out keywords and phrases, and gives the HR department access to an electronic database of all resumes, instead of rooting through the boxes in the storage room. More importantly, it can cut down on your recruitment time — some say by more than 50 per cent — which saves you money.
Who are you really hiring at the top?
“Companies often don’t screen executive-level applicants. They should. High echelon crooks and cons can cost your company a fortune. But there are ways to safeguard a firm from liars and cheats at the top.” This is how the folks at Workforce begin addressing the issue of screening top-level people. The article explains why an investment in a quality screening process for any level can be well worth the money. The higher the salary, the more money you can potentially throw out the window if screening is not done properly.
Maximizing ROI for job fairs
The feeling I used to get when attending a job fair was that of herded cattle. Everyone stood in a line, ropes separated one group from another and you waited your turn to hand your resume to an unhappy looking recruiter who judged you in 12 seconds (all I needed was a bell around my neck). If done properly, a job fair can provide a healthy return on investment, rather than an exercise in cattle prodding. This article from the Recruiters Café describes how to best use your company’s time and investment at an recruiting event (no branding iron needed).
Capturing turnover costs
“Quantifying turnover will help garner upper management support for HR strategies. In the past, HR was not as credible when it said, ‘Here’s what I feel,’ or ‘Here’s what I think.’ You ought to be able to back up any good business decision with data and figures.” This sums up one of the most important challenges facing HR. By using the data in this article, readers can make the case not only for recruitment and staffing expenditures, but for any strategic alliance within the organization. The article points out hard numbers when it comes to turnover and recruitment costs, but also leads you through the process to do it for your own company.
Budgeting for effectiveness and accountability in recruiting
Written from the viewpoint of someone who recruits doctors, this article gives basic and easy to understand calculations of cost-per-hire, as well as ways to improve costs. That’s something people at the executive level always like to hear. “Reducing the per physician recruitment costs over the long term was not just about cutting expenditures. We spent money (when) it helped make our recruitment effort more successful,” explains one manager of recruitment.
Scott Stratten is a speaker, trainer and the creator of WorkYourLife.com. He can be reached at Scott@WorkYourLife.com or (905) 844-2818.