Learn how companies are saving 50% in direct costs to recruit talent
This article originally appeared on Medium.com.
To stay ahead of the curve, today’s leading companies are achieving significant cost reductions to secure high-demand employees using a talent marketplace before resorting to the use of a traditional recruiting agency and recruitment advertising. To stretch every dollar in their budget these firms are using the talent marketplace developed by LineHire.
Consider all the recruiting costs to better understand the cost to hire. The fixed recruiting costs typically include:
- direct recruitment staff (plus overhead)
- staff management
- technology and software
The other variable recruiting costs include:
- Job Boards & Social Media
- Recruitment Marketing & Digital Advertising
- Employer Branding
Every company needs to consider their recruitment strategy when it comes to seeking high-demand talent. Typically, the recruitment strategy includes:
- an in-house recruiting team,
- an external recruiting agency or
- a hybrid of the two.
Top industry companies actively strive to reduce direct and indirect costs related to the hiring process. Recruiting agencies still have high fees ranging from 20–30% of a new hire’s annual salary. Increasing pressure for internal recruiting teams to direct efforts to improve productivity and limit use of external resources.
Finally, to reduce recruiting advertising costs, leading companies that are actively engaged in talent recruitment post all openings on their career site, including the positions based on future trends in the market. This lowers the cost to find high-demand quality talent to limit use of external resources.
If stretching your recruiting advertising and recruitment agency budget is your goal then click here to learn how.
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- When You’ve Got to Cut Costs — Now. Harvard Business Review. May 2010
- 5 Ways to Cut Down the Cost of Recruiting. Entrepreneur.com. December 8, 2015
- Focus on Process to Reduce Your Recruiting Costs. Oracle HCM Modern HR in the Cloud. Retrieved June 6, 2017
- Where the jobs are: Hot prospects for college grads. USA Today. Hadley Malcolm & Mary Jo Webster. (October 10, 2014).Retrieved June 6, 2017