Making the Most of your Recruiting Budget

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The majority of midsize businesses feel that their recruiting budget is too small, specifically for employee compensation, which on average makes up 27% of the recruiting budget.  Yet, the main reason a person leaves their job is to seek more compensation. Resources are limited for any company, but how can these businesses hire good talent without offering them competitive salaries?

The second problem in the budget is for recruitment advertising.  Most midsize businesses believe this is the second most limited resource in recruiting, which is on average 24% of the total budget.  Recruiters and HR professionals are being stretched thin when it comes to advertising and compensating candidates, and as these midsize businesses grow there will continue to be a struggle over the budget.  

What are some solutions to deal with tight recruiting budgets?

-Audit your business before going through the recruiting process.  Is it necessary to hire a new person?  Are there other areas of the business that don’t require as much funds?

-Do lots of research.  Websites like Capterra, Software Review and G2Crowd do reviews of potential software for companies and HR departments in the market for new software solutions. Products like LineHire can be a good alternative to hiring expensive recruiters.

-Regardless of your recruiting method, make sure everyone is on the same page.  You don’t want a recruiter promising more money than you can afford, or hiring people with the wrong skillset.  Hiring someone who is not a good fit and then having to find a new person is one of the most costly mistakes in recruiting, so make sure everyone involved in the recruiting process knows the ins and outs of the business.

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