Response Recruitment Maximise Recruitment Strategy

How to Maximise Your Recruitment Strategy

Highlighting the hidden costs of recruitmentResponse Recruitment Maximise Recruitment Strategy

There are plenty of misconceptions about what really makes up the cost of recruitment. But what about the hidden problems that create the real costs of finding and retaining talented candidates? These are aspects that, unlike perceived causes of costly hiring, are less obvious and on the surface, but which actually lead to long-term issues with recruitment – and with the overall performance of an organisation.

Hidden cost 1:

Lack of skills – wrong specification: this is a massive hidden cost to recruiting companies. Hidden away right at the top of the recruitment funnel, it is the stage that can result in a decision to recruit the wrong person and bring the wrong set of skills into an organisation. Added to this is the issue of creating a job spec that fails to address the actual needs of an organisation. These problems create a long-term drain on both the financial and other resources for a business.

Hidden cost 2:

Management of the process – Time: The time taken to advertise, recruit and select a candidate is a significant hidden cost. Yet, hidden away within a company’s recruitment process, this process successfully takes up time across all levels of HR, at a high cost to an organisation. But more importantly, the time of of the business manager ends up being drained on interviewing second rate rate candidates. Management of the process covers more than just the obvious recruitment activities. It also involves the issues around responding to unforeseen problems and also fire fighting dealing with staff attrition and inappropriately recruited employees.

Hidden cost 3:

Not gaining the reach required to maximise success: Success in this context is the recruitment of a candidate who combines skills, competency and an approach that matches the ethos of an organisation. Yet a limited reach in publicising a job role can lead to the selection of a candidate who does not provide this essential mix. This hidden problem comes right at the initial stage of the recruitment funnel. The opportunity to reach potential candidates in both the active and the hidden passive jobs market is huge – and the cost of overlooking this is also huge. Settling for second best will end up having a detrimental long term cost on your business.

Turning the cost per hire obstacle into an opportunity

Maximising a recruitment strategy whilst reducing cost per hire offers a range of important benefits to your business, aside from the obvious reduction in costs.

Getting the equation right benefits both cost and quality. It can also boost the quality of an organisation in the short- and long-term. Reducing cost per hire in a strategic way can provide positives at every level of a business. So what are the specific advantages to turning the cost per hire obstacle into an opportunity?

Getting a pipeline of talent to support the business: Addressing the paradox right can help create a sustainable pipeline of talent to support the business. This means building and nurturing a long-term strategy that attracts and draws in the best available talent. This pipeline can support the progress of the business much more effectively than less strategic approaches to recruitment. With succession planning a key issue in many recruiters’ minds, developing a long-term pipeline addresses many important issues affecting businesses right now.

Accelerating growth and performance: Reducing cost per hire the right way has a whole range of advantages, alongside the obvious financial ones. Done correctly, this approach can actually boost a company’s growth and performance. It’s about the strategic versus the reactive. A recruitment approach that aims to reduce the cost of recruiting can also impact on the long-term development of a team and a business.

Getting the marketing mix that grows the pipeline and your brand: Addressing the hidden costs of recruitment can reap major rewards. It’s an approach that not only grows your talent pipeline, but also your sales and marketing pipeline. Taking control of recruitment cost per hire can also mean boosting market profile.

Ever wondered what you can do to free up more time to complete strategic activities?

Download our FREE eGuide How to Achieve the Lowest Cost Per Hire to find out!

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