It is not a breakthrough scientific discovery that the process of recruiting new candidates for a job is a very important but also very expensive thing to do. If you are dealing with the recruitment in your company, you know what we are talking about: costs of keeping a team of recruiters, advertising a job post on social networks and job portals, preparing and running job interviews, onboarding and training new employees, and so on. These are the obvious direct costs.
However, recruitment also brings you the burden of so-called opportunity costs. These are the costs you and your company should bear for choosing to do one activity instead of doing some other one, which could be much more effective and profitable for your business. For example, in the “traditional” manual pre-selection process you and your recruitment team need to go through multiple CVs and motivation letters of applicants to identify who of them is suitable for your advertised job and therefore is worth to be invited for job interview. This is a valuable but rather monotonous work that needs to be done. However, by choosing to allocate your time to do it manually yourself, you will not spend it on other potentially more intellectual, necessary, and productive activities, such as offering qualitative trainings to current employees for increasing their efficiency and effectiveness at work. Certainly, you can hire additional recruiters and trainers to do both jobs for you. But they will come as additional monthly burden on your company’s budget.
Opportunity costs are difficult to estimate and can get very high in terms of lost opportunities, clients, and profits. Still, they are outmatched by so-called “bequest costs” that an improperly done recruitment can bring. These are all the potential costs and financial losses that will come if an unsuitable candidate is hired for the job and not dealt with in time. Bequest costs can include expenses of gaining back lost clients and profits, solving internal conflicts, firing the unsuitable employee and recruiting a new one. Estimating the size and effects of these costs is practically impossible.
So, recruitment of candidates, especially if it is done inefficiently, brings the burden of direct, opportunity, and bequest costs onto your corporate budget. How can you minimize all these costs and save money on recruitment, while doing it at a desired high quality level? Here is what we learnt from our readings and personal experience.
- Outsource parts of recruitment process that do not require highly intellectual work
You and your team do not need to do everything yourself, especially if you are a startup or a medium-sized company. Things that do not require your expertise and extensive brainwork can be outsourced to specialized recruitment agencies. These can be about promoting your job posts on different job portals and social networks, running pre-selection process, doing psychometric tests, organizing assessment trials, etc. You will just receive already processed data to evaluate and make proper decisions on whom to interview and then to hire. Furthermore, specialized recruitment agencies work for several clients and have certain economy of scale in their services. So, spending a fraction of recruitment costs on outsourcing can save you a lot in opportunity costs.
- Integrate and make use of HR technology into your recruitment process
HR Tech has advanced significantly during the last years. You can have CV-processing AI, psychometric evaluation portals, game-based assessments, and other cool and effective tools working for you. They can basically replace your entire team of recruiters (and save direct costs on this at the same time), while providing highly important and well-organized data for your decision-making with little to no influence of subjectivity and human errors. And all this for a symbolic monthly subscription fee. Certainly, you can invest time, funds, and efforts in creating your own in-house HR Tech. But before doing this consider whether it is worth the opportunity costs.
- Try your best to ensure you have the most suitable candidates for your job
Like they say, it is better to invest in proper recruitment now than suffer the consequences later. So, whatever you use (team of recruiters, outsourced services, HR Tech), try your best to make sure you identify and hire the most suitable candidate for your specific job. This person is not necessary the best of the best. On the contrary, your most suitable candidate might be the one not having Oxford or Harvard education with n years of professional experience in x different companies; instead, he/she has the grit and willingness to learn and grow, as well as ready to be “polished” to fit perfectly into your company’s team, culture, and specifics of the job. To identify such “undercover stars” that can shine brightly in your company, you need to focus not only on CV and motivation letters, but also on evaluation of suitability and cultural fit of all job applicants. Truly, this is not an easy task. But, again, luckily for you there are recruitment agencies and HR Tech that can help you. Do consider investing in them and benefitting from them, as they significantly increase your chances of getting suitable candidates, who will be able to transform bequest costs into profits in the future.
What do you think about these 3 suggestions?
Do you agree with them?
If yes, why don’t you try the solution that we, ENVERACE, offer. It is the ENVERACE Pre-selection Button that transforms your job post into intelligent candidate pre-selection tool. Basically, it is HR Tech for automated candidate pre-selection process with identification of the most suitable and qualified candidates for your specific job. By using the ENVERACE Button you will be able to save on direct and opportunity costs while also increasing your chances of avoiding bequest costs of each hired candidate. Contact us now to give it a try.