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How to reduce your company’s cost-per-hire (CPH)

 

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Considering the high cost of recruiting and hiring top quality talent in the financial services industry, most companies are looking for ways to streamline their efforts. So, how DO companies reduce their overall cost to hire? That’s the $64,000 question. Many experts feel that the Cost-per-Hire metric, while important, is not the only factor to consider.

 

In fact, research by Bersin by Deloitte shows companies which spend more on a cost-per-hire basis actually have overall lower recruiting costs.

 

1. Never underestimate culture fit

How well a candidate will fit into a company’s environment can be just as important as their experience. Cultural fit is an important facet of employee retention and engagement, and top companies like Google use it to their advantage.

Taking into account an applicant’s personality and whether his or her attitude will mesh with the existing company climate (in addition to his or her skillset) can prevent your company from incurring the costs of replacing an employee who may quit or be fired shortly after starting. According to the Society for Human Resource Management (SHRM) in the US, turnover due to poor culture fit can cost an organization between 50-60% of the person’s annual salary.

 

2. Use inbound recruiting

Inbound recruiting applies the principles of inbound marketing to improve the efficiency and cost-effectiveness of a company’s talent acquisition efforts. The idea of inbound marketing is to attract strangers to a company’s website, convert those visitors into leads, close leads into customers and delight their customers so they want to become brand ambassadors. Thinking of candidates as leads in need of nurturing means recruiters can use many of the same best inbound marketing practices.

The process of inbound recruiting would look something like this:

  • Attract job candidates (Attract)
  • Convert these candidates into interviewees (Engage)
  • Close the deal with an offer of employment (Hire)
  • Delight employees so they become brand ambassadors (Delight)

Recruitment marketing graphic

 

Inbound recruiting allows employers to attract the talent who best fits their culture and current needs, which, in turn, can decrease turnover.

 

3. Create talent briefs

A talent brief is an executive-level overview of the talent acquisition strategies of your business. It should be updated annually or biannually and include the following:

  • Strategic Initiatives
  • Industry Landscape
  • Recruiting Metrics
  • Difficult-to-Fill Positions

Talent briefs provide an at-a-glance synopsis of your recruiting strategy that can be used to guide your talent acquisition efforts and make them more effective.

Investing more in talent acquisition strategies – such as assessing cultural fit, implementing inbound recruiting, and creating talent briefs – results in a higher quality of hire, reduces turnover significantly and, as a result, actually lowers the cost-per-hire and cost of recruiting overall.

Want to know more? Check out out blog on the true cost of recruiting.

 

Interested in learning more about reducing your hiring costs? Contact us for more information.reduce_costs_sm

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