3 Ways To Control Hiring Costs

According to SHRM, the average cost of hiring a new employee in 2019 was $4,000.

Hiring costs are the sum of your internal costs (ATS systems, referral rewards, recruiting staff, etc.) and your external costs (marketing materials, job boards, recruitment tech).

While eliminating these costs is impossible, understanding the return on your recruiting investment will help you make smart, data-driven hiring decisions. Here are a few ways to gain control over what you're spending.

1. Compare Cost-Per-Hire Across Platforms

Cost-per-hire is defined as your total hiring expenditure divided by the number of employees you hired during a given period.

Calculate the approximate cost-per-hire for each recruiting platform you use – LinkedIn, Indeed, Facebook, your company's website, and so on. Once you've determined which platforms give you the most bang for your buck, you'll know where to spend more time and money – and which platforms you can remove from your budget.

2. Streamline Training and Onboarding

Research tells us new employees reach full productivity within 8-26 weeks. Decreased productivity during this time could cost your organization between 1% and 2.5% of total revenue.

That's a pretty alarming number. But training and onboarding expenses are sometimes missed by employers when calculating hiring costs. Make sure yours is clear, concise, well documented, and regularly updated to ensure maximum efficiency.

3. Improve Your Job Advertisements

Job postings are one of the most overlooked facets of the hiring process. To attract top-quality candidates, consider the following:

• Proofread – misspellings and grammatical errors can turn off potential applicants
• Eliminate jargon and keep descriptions concise
• Keep your postings consistent across platforms
• Be transparent with job types (full-time, part-time, remote, etc.)

Need help optimizing your hiring expenditures? Contact Curis Health Management today to see what we can do for you.