Written by Kimberley Startup | March 12, 2014
A recent report carried out by Oxford Economics revealed that replacing an employee incurs costs as high as £30,614. This cost was determined by two key factors:
1. The cost of lost output while a replacement employee gets up to speed
2. The logistical cost of recruiting and absorbing a new worker
Several factors play a part in influencing the cost incurred whilst an employee gets up to speed in their new role. These range from induction processes, training schemes and the new employee’s knowledge of the industry.
The costs incurred by the logistics of recruiting and absorbing new staff members are heavily determined by fees incurred directly recruiting a new member of staff. These include the cost of advertising your recruitment, recruitment agency fees and management time spent interviewing candidates.
As a HR professional, you will, no doubt, be aware of the increasing need to reduce your cost-per-hire; but that with stretched workloads, finding new ways to reduce spend on staff recruitment can seem like an impossible task.
With this in mind, Webrecruit shares with you our 3 ways to reduce your cost-per-hire this year:
1. Telephone screening
The time output associated with arranging and securing interview slots with your potential candidates is a lengthy task alone,; but combine this with the time spent conducting interviews, and suddenly you have identified a key factor driving up your cost-per-hire.
A lot can be said for telephone interviewing a candidate, whether you handle this internally or look to your recruitment agency to undertake this task on your behalf, you can potentially save a lot of time and resources spent meeting with candidates who may not have the necessary requirements for your vacancy.
2. Report and assess
By assessing your actions to date you can pull out any flaws in your existing staff recruitment processes and identify which resources are working for you. Look to regularly audit your current processes and track your successes, identifying metrics and realistic targets. By undertaking this task you may discover that one of your current recruitment methods is returning no results for you, in which case you can look to eliminate it and focus resources on those that do.
3. Using the right resources
It can be tempting to focus on multiple resources in your staff recruitment processes, but by focusing on the right resources from the outset you will be starting in a strong position.
Consider the type of employee you require and the likely resources they would use to look for their next job. If you are looking for niche skills sets, could advertising your recruitment internationally benefit you?
Are you looking for a staff recruitment specialist who can reduce your cost-per-hire? Request a brochure today to read more on the solutions Webrecruit offer that saved our clients save over £3 million last year alone.