Optimizing recruitment costs effectively is the general goal that any business is aiming for but not simple and easy. In this article, Farovietnam would like to point out what businesses should and shouldn't do to effectively optimize recruitment costs.
Things which businesses should do to optimize recruitment costs
To optimize recruitment costs, businesses should follow the following guidelines:
- Calculate recruitment cost according to a consistent and uniform formula to ensure accurate and valuable data. It requires businesses to plan, set the listed costs for recruitment processes and define a certain calculation formula before implementing recruitment and with the following recruitment rounds, businesses only need to apply the same formula and only change the data to easily assess and compare with previous or subsequent recruitment rounds thereby determining its effectiveness and optimal performance.
- Calculate regular costs to help the recruitment department of businesses get an overview of its recruitment activities and capture the efficiency at the same time thereby improving the recruitment process in a timely manner.
- Conduct cost analysis by location and recruitment department to define the right costs. Take an example, the cost to recruit marketing staff will be higher than recruiting sales staff. The cost analysis by position and recruitment department will help businesses allocate recruitment costs more reasonably and economically in future recruitment rounds.
- Calculate the cost by each recruitment source to find the recruitment source with the ideal cost thereby comparing the effectiveness of each channel and eliminating or focusing more on those recruitment channels in the next recruitment.
Things businesses should avoid to optimize recruitment costs
In addition to the above, businesses should avoid some of the following bullet points to optimize recruitment costs:
- Too worried about the unexpected fluctuation of recruitment costs. Many reasons causing the unexpected increase or decrease in recruitment fees, such as the investment for new recruitment software applications, the change of the approach to human resources or the increase in the number HR staff of head of the human resources department. In addition, there are some industries or vacancies that take a long time to find suitable candidates, which also leads to unstable recruitment costs. Therefore, businesses need to remember that the recruitment budget is governed by the position and the number of jobs. When recruitment costs increase but find suitable employees or costs decrease and still recruit enough employees, that is a good sign for businesses.
- To have the most objective and comprehensive assessment, business managers should put recruitment costs in the context of recruitment time and quality. For each period, the recruitment cost will be different, so leaders need to rely on the real context to consider the affordable recruitment costs.
Always consider cost as the sole driver in recruitment campaigns, which is the mistake many businesses make. Concentrating too much on total costs will cause forgetting the original goal of that cost source and thereby lead to waste. Therefore, businesses should spend wisely and plan.
Above are the notes businesses should and shouldn't do to optimize recruitment costs. For advice and support for effective recruitment solutions, please contact Farovietnam which is one of top recruitment agencies in vietnam.