Bringing down recruitment cost requires a long-term programme that needs to be backed up by a clear goal and innovation. The recruitment programme should work on the principle of reaching the prospective employee and completing the whole process of recruitment with speed. Here are 5 best practices that you can tap on to help reduce your recruitment cost.
1. Set a clear goal about your recruitment requirements.
Knowing what you want for your recruitment goals enables you to reach relevant candidates at the fastest pace. The Job Description (JD) is the first and most crucial step in the recruitment process. It needs to be prepared by a subject matter expert or the department manager. A casually prepared job details page, with either an unnecessarily long and unneeded set of requirements or an incomplete set of requirements, hinders the process. Ultimately, you may lose out on an employee who is genuinely good at the core requirement and instead appoint somebody with non-core skills.
2. Be visible to candidates on the web and partner with professional networking platforms.
Recruiters gain an edge by positioning themselves at the strategic platform where candidates, regardless of the level of work experience, visit for news related to their profiles, industry trends and new job opportunities. Using the internet to conduct interviews and tests brings down recruitment costs considerably. Candidates will also thank you for it, as they save travelling and lodging costs and time when recruitment is done online.
3. Use social media and leverage it for promoting job opportunities.
Having a good social media presence helps companies to understand employee requirements through interactions on social media pages. Prospective employees also get a feel of the company and when appointed, they are ready and enthusiastic to blend into the working ethos of the company. Twitter, LinkedIn and Facebook are great channels to reach out to active and passive job seekers, making recruitment more direct, accurate and less time-consuming..
4. Manage attrition and retirement.
The Oil and Energy industry is among the top 8 industries with the highest turnover rates. The most effective way to bring down recruitment costs is to always engage your existing workforce and prepare for attrition. There are various reasons why employees walk away from an organisation. According to a LinkedIn survey in 2015, 45% of professionals leave their jobs because of a lack of opportunities and 41% do so because of dissatisfaction with their senior leadership. A big chunk of recruitment costs comprises of filling vacancies as a result of attrition. Attrition, when managed with the right approach, can drastically reduce recruitment costs.
Another strategic move in the recruitment process is to plan in advance for upcoming retirements. Replacement for retired employees is completely different from regular recruitment. Because any retired employee, with valuable years of experience, leaves a much bigger set of shoes to fill in, recruitment for his/her replacement needs advanced planning in consultation with the retiring employee. An urgent notification for such a vacancy does not lead to immediate results.
5. Referrals always matter.
Word of mouth is a powerful marketing tool in a decision-making scenario like recruitment and career advancements. Referred candidates come with minimum recruitment costs and a great possibility of being long-term employees. They also feel more confident and assured when somebody known to them is already working for the company.
To effectively acquire quality talent in any industry, an organisation needs to find the right balance between technology and people analytics. Further one needs to optimise their recruitment processes, to deliver an engaging candidate experience, yet keep the overall talent acquisition costs low.
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Headline crude prices for the week beginning 10 February 2020 – Brent: US$53/b; WTI: US$49/b
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