A cost in business which is always under examination is the cost of recruiting. And in the context of recruiting, one the biggest loss an organization faces is on-boarding a poor performer. With such variability in the performance of newly-minted employee, it should be reiterated that hiring a professional is not like simply buying a laptop. Direct and indirect costs associated with hiring have to be incurred a second time in the case of replacing failed hire. This unfortunate situation is the largest cost to both that hire and the mismatched organization.
A poor performer will cost money month after month for any company irrespective of its business vertical through inefficiency and unrealized potential. CFOs of modern business age will have to ask the question themselves: “Are we meticulously following the right hiring process to ensure that only the best performers are hired?” A massive cost for business organizations without a full-fledged recruiting department is that cost of management time. If recruiting managers are spending more time than specialists, then it is undoubtedly an unacceptable waste of resources. Managers shouldn’t be distracted from leading their department from the front and being productive in their workplace. The Right people, the right hiring process, and the right performers will pave the way towards cost effective recruiting.
The monetary aspect of recruiting is mainly related to sourcing – this includes newspaper advertisement, job advertisement, and job fairs. Direct cash outlays are considered the final set of costs in recruiting and it is difficult to give them a proper evaluation from the perspective of receiving value for money spent. Time spent implementing a poor recruiting strategy will place a cost burden on recruiting staff members and is oft-cited as thoroughly unproductive. Effective third party service providers in recruiting will have the expertise, a well defined recruitment strategy, and the necessary investment in technology. Never underestimate the benefits that utilizing a third party recruiting agency can bring to the table, equipped with an effective modern applicant tracking system – a tested, well-oiled engine.
When a third party recruiting firm can provide top quality candidates, a significant amount of savings can be realized. In many cases, visible costs are not even in the top one or two important costs as far as recruiting is concerned, however, veteran recruitment managers know that cost effective recruitment strategy needs a well-balanced, albeit fairly-abstract, combination of time, creativity and decision making. A judicious balancing of money and time can automatically lead to cost effective recruitment strategies in the contemporary business world.
Courage in the context of cost effective recruiting refers to the ability to make an informed decision in the absence of necessary information and taking that decision to its winning conclusion. Streamlining and continually reviewing recruitment process is an inevitable aspect of cost-effective recruiting. For obvious reasons, internal recruitment has emerged as the most apparent cost-effective form of recruiting today. Referrals, social media, self selection, job fairs, industry conferences and internships are golden opportunities that can be converted into cost effective recruiting. Many companies in IT field will offer referral bonuses in the form of cash compensation if a new hire is recommended by a colleague. Twitter, Facebook and LinkedIn are gold-mines of opportunities for a recruiter well versed in social media tactics. With the myriad options and facets to a more-perfect recruitment strategy, a skillful manager will work critically to use and expand the resources at his or her disposal.
Author : Rupali Raghavan