The C-Suite Guide to Successful Hiring Teams - Part 1: How To Keep Your Hiring Teams Under Budget
Welcome to “The C-Suite Guide to Successful Hiring Teams,” a three-part series crafted specifically for executive leaders trying to keep pace with the challenges of overseeing multiple hiring teams or HR department processes.
In this three-part series, we will show you how to cut costs, increase speed to hire (reduce time to fill), and make your hiring teams more productive. At the end of this series, we’ll even provide you with a guide to help you evaluate your hiring teams’ successes and pain points.
In this first article, we’ll focus on innovative strategies to keep your talent acquisition costs to a minimum while maintaining the integrity and quality of your hiring process. Let’s dive in.
Streamline Your Recruitment Processes
To effectively minimize expenses, it’s crucial to streamline recruitment processes.
"Organizations that automate recruitment tasks save an average of $14 per hour in administrative costs"
According to the Society for Human Resource Management (SHRM), organizations that automate recruitment tasks save an average of $14 per hour in administrative costs. When you do the math, improving the efficiency of 10 full-time employees over a year can return $291,200 in talent acquisition cost savings.
Knowing an investment might yield you almost $300,000 of cost savings for every 10 full-time employees, consider tools that help alleviate your recruiting teams from having to manually score applicants, copy & paste duplicate emails over and over again, or transfer data from applications to spreadsheets or an ATS; these are all tasks that can be automated with the right recruiting software investment.
Leverage Data & Analytics
Using data & analytics can optimize your ongoing spend on recruitment campaigns and job boards, allowing you to more quickly refine sourcing strategies and acquire talent more efficiently. LinkedIn’s Global Recruiting Trends report highlights that data-driven organizations see up to a 30% improvement in outcomes, which includes lower cost per hire and higher quality of hires.
"We don’t know what our cost per hire is"
On the topic of cost per hire, when the team here at Leadline evaluates client fit for our solution, we often inquire about their ‘pre-Leadline’ cost per hire. Typical answers to that question are: “Too much” (but don’t have a specific answer), “We don’t know what our cost per hire is” and even “What is cost per hire?”. How can your company operate efficiently if your HR department doesn’t have the data it needs to determine accurate talent acquisition costs? Here’s what to do:
Identify a course of action based on the results. Are you seeing a clear business case for trying a new job board? Is there a particular part of your process creating log jams? What you do with your insights is equally essential as the data itself.
If you aren’t sure whether your teams have the necessary data and information, consider getting a free cost-savings analysis.
Foster Internal Talent Development
Promoting from within also curtails direct hiring expenses because it allows organizations to leverage existing employees already familiar with the company culture and operational processes. This means less onboarding resources and training time than external hires.
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"Internal hires can cost up to 18% less than external hires and yield a higher return on investment"
Furthermore, employees who see clear pathways for advancement within their organization are more likely to be engaged and committed. This heightened engagement typically translates into higher productivity and longer tenure, reducing turnover rates and the associated costs of recruiting and training new staff. According to insights from SHRM, internal hires can cost up to 18% less than external hires and yield a higher return on investment over time due to these factors.
Invest in Employer Branding
Let’s clarify: employer branding isn’t just a logo, font, and color palette. Employer branding is a strategic approach that allows companies to stand out in the job market and shape their image as an attractive workplace. It’s a method for organizations to draw in, keep, and motivate top talent while building their credibility as employers.
"Companies with robust employer branding see up to a 50% reduction in cost per hire and a 28% decrease in organizational turnover"
As an executive captaining the hiring ship, enhancing your company’s employer brand should be a higher priority than you think, as it is often one of the first of many touchpoints in the candidate experience.
A strong employer brand can significantly reduce recruitment costs by attracting candidates organically, thus decreasing the need for paid advertising. Companies with robust employer branding see up to a 50% reduction in cost per hire and a 28% decrease in organizational turnover1.
Questions to consider:
If you answered ‘No’ or ‘Not sure’ to any of the above questions, consider investing in a tool that delivers a recruiting experience instead of just presenting a basic solicitation for work. In a world where talent is scarce, you convince candidates to want to work for you and not your competitor.
Stay tuned for Part 2: “Executive Tips—How To Increase Your Company’s Speed To Hire”, where we’ll explore practical strategies to streamline your hiring timeline.
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Free Cost-Savings Analysis
See how much Leadline can save your company by requesting a free analysis of your recruiting operations.
Read the original article & sources here.