In today’s economy, businesses are always looking for ways to save money. Operational costs are one of the most significant expenses for any company. There are many costs in keeping a company functional such as rent, utilities, payroll, inventory, and marketing. Therefore, businesses are always looking for ways to reduce these costs without compromising the quality of their product or service.
An essential but expensive aspect of running a business is hiring employees. However, there are many ways you can save money on employee hiring without compromising on quality. In this article, we will explore five of these ways.
Employee Referrals
Employee referrals are one of the most cost-effective ways to find qualified candidates. Employees tend to know people who are good fits for the job, but they also cost less to hire. Employee referrals typically cost about one-fifth of what it would cost to hire someone through a staffing agency.
One of the most significant benefits of employee referrals is getting everybody on board. It’s an interactional process that brings all of your employees involved in the hiring process. By asking your employees for referrals, you’re also building a sense of ownership and responsibility within your team.
To encourage employees to refer candidates, you can offer a referral bonus. This is an incentive for employees to help you find qualified candidates. A good referral bonus is around $100 to $500.
Use Recruiting Software
There are many different types of recruiting software available on the market. This software can help you automate your hiring process and track candidates. Using recruiting software can save you time and money. It can also help you find better-qualified candidates.
Some popular recruiting software includes Greenhouse, Jobvite, and iCIMS. These recruiting software platforms offer a variety of features, such as applicant tracking, candidate sourcing, and job postings.
Use Social Media
It’s estimated that about 79% of applicants use social media to get a job. Social media is a great way to reach out to potential candidates. You can post job openings on your company’s social media accounts and use hashtags to reach a wider audience. You can also use social media to research potential candidates.
Social media is a cost-effective way to reach out to candidates. It’s also a great way to build your brand and make your company more attractive to potential employees. You can access thousands of candidates by using this free method of recruiting.
Conduct Phone Interviews
Phone interviews are a great way to screen candidates and save time and money. You can use phone interviews to weed out unqualified candidates and only bring in the most qualified candidates for an in-person interview.
When conducting a phone interview, be sure to have a list of questions prepared. This will help you stay focused and on track. Some good questions to ask include:
- What are your strengths?
- What are your weaknesses?
- Why do you want this job?
- What are your career goals?
After you’ve asked these questions, you should have a good idea of the candidate’s qualifications. Then, if you feel like the candidate is a good fit, you can schedule an in-person interview.
Use Employee Testing
Employee testing is a great way to assess a candidate’s skills and abilities. By using pre-employment testing, you can save time and money. In addition, you can use testing to screen candidates and only bring in the most qualified candidates for an interview.
There are many different types of employee tests available. Some popular tests include skills tests, aptitude tests, and personality tests. Skills tests assess a candidate’s ability to perform a specific task. Aptitude tests assess a candidate’s ability to learn new tasks. Finally, personality tests assess a candidate’s personality traits.
You can use employee testing to find the best candidates for the job. In addition, testing is a great way to save time and money during the hiring process.
Outsource the Hiring Process
This is an extra tip you should consider if the hiring process takes too many resources from your company. Hiring a staffing agency or an outside company to handle the hiring process can save you time and money.
However, staffing agencies can be expensive. It might be better to have an organization partner with your company for your staffing needs instead. A professional employer organization (PEO) can help you with hiring. A PEO can help you find qualified candidates, conduct background checks, and provide employee benefits. It’s a great option if you don’t have the time or resources to handle the hiring process independently.
You can save time and money on your next hire by following these tips. You can then reinvest the money you save to grow your business.