Many factors go into decision making when it comes to recruiting new talent. Leadership has to consider the business needs, company culture, and, of course, the budget. For budgeting purposes, hiring companies have to be aware of their cost per hire and how it affects the bottom line.
Cost per hire measures the total average cost of hiring new talent. We have a cost per hire template made. Just plug in your numbers to calculate.
It is calculated by adding all expenses of hiring new employees and dividing them by the number of new hires. This cost includes any internal and external expenses the company incurred during recruitment in addition to job advertising, software use, and relocation expenses.
Companies are often looking for ways to reduce their cost per hire, but it can feel challenging to do so without negatively impacting the quality of candidates they attract. According to LinkedIn, the average cost per hire, 2020, was $4,000. With that said, we’ve got some simple tips that can help your business reduce its cost per hire without sacrificing top talent.
When posting a new position, you want to be clear and specific about the role's expectations without narrowing your applicant pool too much. It can be daunting for candidates who only see required years of experience or education levels rather than necessary skills and a clear explanation of what the role might entail.
It's essential to include relevant details like job-specific responsibilities, training, and benefits in the job description to give potential candidates the full picture of what your company is offering and, ultimately, what your team is looking for. By doing so, you'll begin to attract the right kind of candidates who are legitimately interested in your company culture and the position.
Operating a business throughout a global pandemic has taught companies worldwide to adapt and change more quickly than they ever anticipated. A significant part of that change lies in the hiring process. Now is the prime time to take advantage of virtual interviews. A trend that emerged from COVID-10, is that virtual interviews have become the new norm (Source).
There are various virtual interview options, from a live Zoom call with a member of your team to a one-way virtual interview where candidates can record themselves answering questions you’ve selected.
Benefits of virtual interviews are reduced costs per hire by eliminating travel costs you might typically incur when making arrangements for an in-person interview.
Increasing efficiency in the hiring process can reduce your cost per hire and ensure you bring in high-quality applicants when you need them. When the hiring process is drawn out over several weeks or months, you're likely increasing your expenses by paying for a recruitment software, job posting advertisements, and other resources.
The longer a job sits empty, the more you'll spend in waiting to fill it.
The most efficient way to avoid high internal expenses during recruitment and reduce the cost per hire is to hire a third-party staffing service. Staffing agency experts have the tools, experience, and applicant pools to find the best candidates for your positions without exhausting your internal resources.
At Advantis Global, we pride ourselves on our ability to deliver top talent within 14 days. We want to help you reach your goals by hiring the best candidate on the market with our staffing expertise.