Finding workers in a highly competitive environment is challenging. Companies struggle to fill jobs in all roles, from entry-level to executives. Matching open positions with the right talent is an ever-present concern. Organizations want to ensure they spend their money on people who will stay in the role and contribute to the company’s success.
More than ever, companies turn to recruiters to source their talent. Recruiters often have a talent pool they can pull from, recommending workers with the appropriate skill sets for open positions.
Recruiters also ease the burden of writing job descriptions and sourcing through resumes, which can be time-consuming for human resource professionals.
However, working with a recruiting firm isn’t cheap. While no one can understate the value of a recruiter’s services, companies dealing with inflation and declining revenues understandably want to cut their hiring expenses.
One of the best ways to cut hiring expenses is by setting up an employee referral program. An employee referral program allows existing employees to recommend former colleagues, friends, or family members for open roles in the organization.
When employers hire workers recommended by existing employees, the new hires tend to stay longer and be happier in their roles. They already have an existing relationship they can use to make their transition to the new workplace comfortable.
Existing employees understand the workplace environment and can recommend people they feel would be a good fit.
Employers interested in implementing an employee referral program can sweeten the deal by offering a small bonus or reward for referrals that result in a hire.
Rather than working with a third-party recruiter who often sources new employees for dozens of companies, consider hiring a contract recruiter. A contract recruiter handles specific functions, like sourcing or screening candidates. You can hire a contract recruiter to handle a single role you’re seeking to fill or several openings.
Once the contract recruiter fulfills their duties, the relationship ends. You don’t need to retain them for future openings, and you can reinstate the contract when the need arises.
Contract recruiters are much cheaper than retaining a third-party recruiter for the long term.
Many companies don’t have a well-defined hiring process in place. The lack of a hiring process is especially true of small businesses, whose hiring needs may vary from year to year.
Even if you don’t have much employee turnover, you’ll need to hire new workers at some point. To reduce your expenses for hiring new employees, it’s best to set up a fully-developed hiring process.
Organizations can create job descriptions for all their current roles so they’re available if the need arises. They can also create an interview structure, ensuring hiring managers ask the right questions before filling a position.
Some companies find that assessment testing can improve the quality of their hires. If you typically hire for highly-skilled roles, adding an assessment test can be a gateway for eliminating people who don’t have the proper knowledge to fill your open position.
An essential part of hiring is the job post for your role. Applicants typically read through each posting, looking for positions that interest them and that they qualify for. Companies that don’t use the available space to accurately describe the job and attract potential employees run the risk of fewer applicants.
Fewer applicants to a position can result in a less-qualified talent pool to draw from. Candidates who might have been a great fit within your company will look to other roles that include more information within their postings or who use creative language to draw their attention.
Look at your organization’s recent job postings and determine how compelling they are. If your postings lack excitement or fail to convey the benefits of working for the company, it’s time for a rewrite.
Whenever you post a job opening and receive multiple applications, you may have a handful of people that would be a good fit but aren’t ultimately hired.
Don’t throw their resume away just yet. If the job reopens in the future or a similar one becomes available that might be a good fit, you can reach out to past candidates. Applicants interested in working for your organization may jump at another opportunity to join.
You’ll also save on hiring costs for recruiters and job search expenses.
The higher the turnover you have within your organization, the more you’ll spend on recruiting expenses. If you constantly have workers leaving your company, it signifies a problem with the organization.
Contrary to popular opinion, most people don’t leave their jobs seeking more money. Instead, there’s something they find elsewhere that you’re not providing. Some people seek greater work flexibility, while others are looking for better opportunities for growth and development.
If you’re losing workers faster than you can hire them, get to the root of the issue. Ask employees why they are choosing to leave. If they provide honest insight, you can make adjustments within the workplace to retain your employees.
Most employees aren’t looking for a significant outlay of money to keep them there. Minor adjustments, like adding a free work-from-home day or providing a stipend for learning, may be enough to improve your retention rates.
Companies seeking to reduce their hiring expenses should understand that it’s a process that can take time. Some methods for savings can take time to implement.
If your changes don’t result in the desired outcome, consider hiring a recruiting firm. Staffing firms are excellent for entry-level and hourly workers and charge an hourly markup, while recruiting firms can assist with mid-level roles and usually charge a success or contingent fee. While, executive search firms are best for finding senior managers, like CEOs, COO, CFOs, and vice presidents and charge a retainer to start any search.
Not all staffing, recruiting, and executive search firms are the same, so be sure to check on their fees and warranties before making any decision.
At Cowen Partners, our top-ranked executive recruiters are exceptionally skilled at delivering in-demand candidates, no matter the need and across all industries. Backed by a proven executive recruiting process, we have been the partner of choice for startups, corporations, small businesses, non-profits, and more, meeting unique and critical recruitment needs across the entire C-suite, including CEOs, CFOs, COOs, CMOs, CIOs, CTOs, CHROs, VPs of sales, other VPs, directors, and several other leadership roles.
With our executive recruiters, you get senior partner-led searches, due diligence-run networking, meticulous candidate vetting, and so much more, all geared towards one goal — placing the very best talent as soon as possible, all while ensuring a seamless fit with your company culture, your big-picture objectives, and other factors. Plus, we have one of the highest candidate retention rates in the industry while consistently delivering world-class talent faster than the competition.
That’s how Cowen Partners has become a leading executive search firm nationwide, and it’s why our executive recruiters have a reputation for excellence and success.
We also invite you to continue exploring more executive recruiting insights from our team: