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How to Reduce Cost Per Hire?

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If you are running a small or medium-sized business, then you always have to deal with a budget constraint since, in the case of SMEs, there is always a lot to do but within the limited resources. In such a situation, all the SMEs have to keep looking for ways of cutting down the cost and one such area where SMEs can work to reduce the cost is hiring. 

You might not realize it but the entire hiring and recruitment process consumes a big portion of your budget and therefore, you need to come up with proper planning and ideal processes to reduce the cost per hire. To make things easier for you, we have come up with some tips that you can use for reducing the cost per hire. 

Free job boards

Most of the SMEs spend a hefty amount of their budget on posting the job ads on different job boards. Well, posting job openings on the right platform is necessary as it helps the firm to get the attention of the best candidates out there but this doesn’t mean that you have to spend a fortune on these job boards. 

There are many free job posting sites and job boards where you can post job openings for free and still hire the best candidate from the industry. When you post a job on these free job boards, you don’t only reduce the money spent on paid job boards but you are also able to minimize the overall recruiting cost. 

Employee referral program 

Another way through which you can make sure that the cost per hire is under control by building a structured employee referral program. Many companies underestimate the power of employee referral programs and this is why they are not able to hire without developing an expensive recruitment and hiring process. 

But with the help of an employee referral program, you can get referrals for  some of the best candidates and hire them without posting job openings, organizing interviews and screening resumes. But you have to make sure that your employee referral program is effective and innovative. 

Programmatic job advertisement 

You can also work along with a programmatic job advertisement company and ensure that you are keeping the marketing budget for the hiring process under control. With a programmatic job advertisement, you are able to make the most out of your recruitment budget as you buy media only from cost-effective sources.

Programmatic job advertising also helps in avoiding money spent on bot clicks and nonperforming publishers. But in order to harness these benefits, you have to scour the internet and choose the best programmatic job advertisement service providing company. 

Outsourcing 

If you are planning to keep the recruitment and hiring process in-house then get ready to burn a hole in your pocket, especially if you are running a small or medium-sized business. From publishing job openings on different platforms to paying for organizing the interview, you have to deal with a long list of expenses while dealing with in-house recruitment and hiring. 

But you can get rid of all these expenses just by outsourcing the recruitment and hiring process. There are many third-party hiring companies that work as an extended part of other companies and find the best candidate while ensuring everything stays under the budget. 

It doesn’t matter which type of business you are running or what is the size of your business, there is always a way to reduce cost per hire. And by reducing cost per hire, you can divert the expenses to other important parts of the business and that too without compromising on the quality of candidates you are hiring.