5 ways to reduce your cost per hire
Happily the economy is perking up, but cash-stretched employers are still keeping a tight rein on recruitment budgets. As employment starts to recover, they are increasingly seeking the services of expert recruiters who can secure talented workers to take their business forward. However, they also expect these great results at a cost-effective price. As a recruiter, you need to make sure your costs are sleek, transparent and offering value for money.
It’s not as daunting as it seems. We’ve put together 5 nifty ways that you can cut your cost per hire while getting good results and generating business…
1 . More is less
Online recruitment sites are becoming increasingly cost-effective – and consequently attracting more job adverts – by offering clients reductions for bulk advertising.
Totaljobs.com, for instance, offers savings of up to £77 per ad depending on how many are booked. So, one ad costs £149, two ads cost £99 each, three to five ads cost £89 each and so on, right up to 10 or more ads, which cost £72 each.
In short, clients make more savings if they buy more ads, so it’s a win-win situation for both sides.
2. Fixed fees
Many agencies have adopted a flat-fee model, which means employers know exactly what they will be charged, with no hidden add-ons. Naturally, this inspires a lot more confidence in these uncertain economic times and means they still benefit from the services and support of a professional recruiter.
Some agencies, particularly those that operate online and have fewer overheads, have also reduced their fees.
3. No placement, no fee
Well, who can argue with that? This self-explanatory system is loved by clients. Clearly, they can afford to be chilled about investing in the recruitment process because they only pay when they get tangible results.
It works for both sides. For the client, there’s no worry that they’re throwing good money away, while for the recruiter there’s greater incentive to ensnare the right candidates.
4. Keep tabs on also-rans
Slash advertising tariffs by keeping a database of talented candidates who narrowly miss clinching a vacancy.
Recruiters who network and who nurture relationships with candidates they have placed will know exactly who to call when a job arrives on their desk. This means they can keep costs down and steal a march on competitors.
You could also try using an e-recruiting system with a candidate relationship database. This lowers costs by marketing new jobs to candidates sourced in the past, thus eliminating the need to source a new pool of candidates for each new vacancy and reducing costs by up to half.
5. Offer CV database access
Trim costs for cost-conscious clients by giving them deals that allow them to search CVs themselves.
Totaljobs.com, for instance, charges clients £250 for access to 500 CVs a day for a week. For an extra tenner, they can get targeted CVs sent direct to their email account. As the database holds more than 3.6 million CVs from jobseekers who’ve registered in the past 18 months and with 4,000 uploading their details every day, it means there’s a rich seam of talent to choose from.