Recruitment costs are an important metric which can vary for every industry, department, and job.
They’re the basis of any HR director in determining whether the recruitment process is succeeding or not. Often, having a high cost per hire is a good sign that changes need to happen.
In fact, they’re so important that any HR director will use recruitment costs to decide whether or not a recruitment process is successful.
Often, having a high cost per hire is a red flag that changes need to happen.
Fun Fact- The cost of recruiting software developers can cost can average $30,000 and take up to 63 days or more to fill the position. This does not include lost revenue because of the unfilled position, which leads us to the big question…
How Can You Reduce Recruitment Costs?
There are many ways you can reduce your recruitment costs, but we’re going to focus on how a better candidate pipeline will help you achieve this goal.
But first, let’s look at the numbers:
- A survey by the Society of Human Resource Management (SHRM) found the average cost per hire is $4,129. They also found that it takes an average of 42 days to fill an open position.
- Glassdoor estimates the average US employer spends about $4,000 and 24 days to hire a new employee.
- A study by NACE estimates for companies with 5,001 – 10,000 employees, it costs $3,181.87 to hire someone.
- “At a cost of nearly $4,000 on average to fill an open position, U.S. companies are spending nearly three times the amount spent on training per employee,” said Karen O’Leonard, vice president, Benchmarking & Analytics Research, Bersin by Deloitte, Deloitte Consulting LLP.
- The best candidates are off the market within 10 days
- Sourced candidates are more than two times as efficient than candidates who apply
- 41% of employers estimated a single bad hire costs $25k, and 25% put that figure at 50k or more
The numbers don’t lie. Recruiting is expensive. This is why as the HR director, you need to proactively search for ways to lower your average cost-per-hire expense.
Start reducing your average cost by outsourcing talent sourcing.
Reasons to Outsource Talent Sourcing
- Sourcing Talent is Time Consuming
Sourcing the specific talent you need takes a lot of time, even for the best HR departments. It is more cost effective to let someone handle this part of the process so it does not take your time away from the core functions of recruiting.
- Difficulty in Finding the Right Candidate
With the economy growing, there’s a lot of competition to get the best talent hired. Every time you find someone that’s a good fit to what you’re looking for, chances are high other recruiters are trying to talk to them as well.
- Department Can’t Keep Up
As the HR director you know your department’s job doesn’t end with recruiting. There are a lot of other things you must deal with as well. And for a big company that’s continuously growing, it’s hard to keep up. You end up with a bottleneck on a lot of other processes as well which leads to poor efficiency across the board.
- Not Having the Right People
Everyone has their own strengths and weaknesses, and it may be that the people in your department are not really the best at talent sourcing.
By outsourcing the talent sourcing phase of the recruitment, you can focus on interviewing people who are already prescreened. This allows you to focus on a smaller number of people which all have the necessary skills and experience. Then all that’s left to do is to interview them.
Then all that’s left to do is to interview them.
- Need to Cut Costs
Sometimes you just need to cut costs; recruiting is expensive, especially when you factor in all of the tools needed.
But outsourcing talent sourcing can help reduce your costs.
When you do this, a lot of the “in-between” of the process is no longer a problem. Simply let your talent sourcing company know what you need and they can focus on building your candidate pipeline.
Advantages of Outsourcing Talent Sourcing
- Better Hires
Want better hires? Choose a high-quality candidate sourcing service that specializes in on-demand talent sourcing such as Diverse Recruiting Experts. We focus on looking for the best candidates, screening and presenting them to you so you’ll have only the best people available vying for the job.
- Reduced Costs
One of the biggest reasons to outsource talent sourcing is to reduce costs. By having an on-demand service where you do not need to bring someone in-house, you can control your costs depending on your needs.
You will not always have to fill hundreds of vacant positions. There are times when things slow down on the recruitment front, but, when things do pick up, an on-demand sourcing service can support you without having to make big adjustments on your end.
In other words, we can increase and decrease the support we give you depending on your need.
- Improved Time to Hire
With a dedicated team to support your talent sourcing needs, the time it takes for you to interview and hire a candidate which fits what you’re looking for will drastically improve.
- Analytics and Reporting
At Diverse Recruiting Experts, we track every stage of the process. This gives us the data to what part of the process is working – and what’s not.
We can adjust and make decisions based on what the data is telling us. This will reduce the guess work and ensure that you’re making the right decisions for your business.
Next Steps to Improving Your Candidate Pipeline
Whether you have the necessary resources to do talent sourcing in-house or not, you should consider outsourcing your talent sourcing activities. It can help you in two significant ways:
- Reduce your costs, time and frustration
- Improve your candidate pipeline
Imagine sitting down to work each day with a list of prospects…each of them well qualified, with the skills, experience and even more importantly, the desire to work for your organization.
What would that mean to your bottom line?
Diverse Recruiting Experts has the solution…schedule your “no obligation” free strategy session now and get ready to say goodbye to frustration and hello to “when can you start?”