13 Tips for Cost-Efficient Hiring Without Losing Quality Candidates

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Hiring the right person is essential for many reasons, not the least of which is saving your company money. According to a September 2018 report on the website Small Biz Trends, it can cost as much as $7,645 for every new recruit.

This figure includes all functions dealing with sourcing and recruiting job candidates, as well as training new employees. That is a lot of money to spend on an employee who might quit or be let go in the first months due to not being a good match. Fortunately, you can implement some of the tips below to help avoid this common problem.

Tips for Smarter Hiring

While not all of these tips will apply to your company, you should find enough useful information here to improve hiring right away.

1. Test first and then interview

Many companies reverse this process and then spend valuable time and resources interviewing unqualified people. By sending each candidate an online skills test they can complete at home, it enables you to create a smaller pool of interview candidates. Even better, you know the people you’re taking the time to interview have proven themselves to at least have the minimum qualifications necessary for the job.

2. Consider hiring freelancers where appropriate

If certain tasks don’t require someone to be in the office full-time to complete, consider hiring freelancers instead. This saves your company significant money on paying benefits and you only pay for the tasks performed. If the person doesn’t work out, it’s easier to end a freelancing relationship than that of a full-time employee.

3. Use a wider range of recruitment tools

Some companies rely on job boards alone only to find out they’re expensive to maintain and don’t produce the highest quality of candidate. Finding the best people requires branching out to new sources such as advertising on your social media accounts. Be sure to evaluate how well each source produces each month and then divert more resources towards it in the future.

4. Identify and reach out to passive candidates

Consider that the best person for your job opening may currently work for someone else and may not even be searching for a new job. However, that doesn’t mean they haven’t listed their resume online or that they would pass up a better opportunity. Spending time each day sourcing sites like LinkedIn can provide you with a large number of passive candidates.

5. Implement a better employee referral program

People who already work for your company often know others who would make excellent employees as well. If your company doesn’t yet have an employee referral program, now is the time to start one. It’s also a good idea to periodically review the existing program to determine if it offers enough incentive to current employees and if it is clear enough for them to understand how and when they receive the bonus.

6. Request employees to write a review on Glassdoor

People look to online reviews to help them decide everything from which vacuum cleaner to buy to which job offer to accept. With this in mind, put out regular communications to current employees to share their experience about working for your company. This also gives your company the opportunity to address any negative patterns that emerge from the reviews.

7. Consider soft skills equally

A prospect may have impeccable references and just the right work experience yet still make a poor fit. You need to ensure that every candidate has the so-called soft skills for the position such as the ability to collaborate, accept constructive criticism, and lead the team when necessary. Several online companies offer psychological profiling to help identify these traits before you make a job offer.

8. Create a realistic job description

The hiring process can be a lot like dating in that each party only wants their most positive qualities to show. Unfortunately, this can cause you to hire someone who is entirely wrong for the job. While your job description should list necessary skills, make it a point to include pain points as well. These are the most pressing problems the prospective employee would deal with on the job.

9. Use behavioral interviewing strategies

You may have heard the expression that the best indicator of future behavior is past behavior. This is perhaps nowhere more evident than on the job. Behavioral interviewing goes beyond asking about skills to probe candidates to describe how they handled specific work situations in the past. Their responses give you a good idea what to expect if you make a job offer.

10. Ensure your company has a strong social media presence

Besides Glassdoor and LinkedIn, prospective employees go to social media platforms such as Facebook, Twitter, and Instagram to get a better idea of what your company is all about. Someone from your company should update these accounts regularly with videos, employee profiles, industry information, and other content to help give your business a better online personality compared to the competition.

11. Treat candidates like you would treat customers

The Internet has given both customers and job seekers greater leverage than ever. They simply need to write a few sentences about their experience for anyone to see on a review site. Even if you don’t extend an offer to a candidate, you don’t want your company to end up with a poor review if possible. Always be polite and professional in every interaction.

12. Create a mobile friendly application process

People spend more time searching for information and completing tasks on their smartphone than they do their laptop or desktop computer. Why not make it as easy as possible for them to apply to your company by allowing them to do so using their phone? The bonus is you may just find an employee with especially strong technical skills.

13. Demonstrate that the company appreciates excellent employees

Everyone enjoys feeling appreciated, so let job candidates know that people who perform well at your company get recognized for it. Some ideas include writing a spotlight article about the Employee of the Month and including information about recognition and benefits for high-performing employees in your personal communication.

Although these above tips are a lot of information to process, they really only scratch the surface when it comes to improving hiring. If you try something and it doesn’t work for your company, simply move on or consider researching more possibilities.