Recruitment is one of the essential functions of a human resource manager. It is also a crucial function that is connected to a company’s survival. In many traditional companies, employees are the lifeline of company operations. Without them, the company can’t function and can’t do its daily tasks. That would mean that the company would be hemorrhaging cash, which would lead to the company’s eventual downfall. This is why many companies worldwide spend millions on recruitment.
An average company would spend about $4,000 per hire. It would take at least 43 days before this particular new hire could fill the missing position. By this time, you would have lost $33,000 in productivity value, spiking the spending to a staggering $37,000 for this singular recruitment cycle. But this varies between companies, and what you lose in your recruitment process doesn’t really mean that it would be the same for companies worldwide.
However, regardless of the cost, there is one thing that is true for all companies: they want to make their recruitment processes more efficient. Because by making the recruitment process more efficient, the less likely they would lose money. Here are some ways to improve the recruitment process in your company.
Consider Your Cost-Per-Hire
First, you must look into how much your company would spend in recruiting a singular employee. By knowing this benchmark, you can settle on a budget and remove unnecessary spending on the recruit.
As stated earlier, the average company would spend about $4,000 on a new hire. That’s a lot of money if you think about it. However, this varies between companies. To find out your cost-per-hire, you can add the total internal and external cost of hiring a new employee and then divide it with your total number of hires. If you are below the $4,000 mark, then you’re recruiting efficiently.
However, if you’re over that amount, then some changes have to be made. Consider reviewing your external and internal costs in hiring someone. Look for where you might be spending too much money on and then adjust that by either removing or balancing the amount.
Knowing how much it costs your company to hire a single employee is an essential benchmark for recruitment. With it, you are armed with the knowledge of knowing when you are overspending on a single recruit. You can then make the necessary adjustment when this happens.
Testing and Assessment
Testing and assessment is an essential process in recruiting. However, it is a process that many companies mostly overlook.
Recruiters would spend countless hours interviewing many potential recruits in their company. That’s a lot of time spent on something that can be reduced by doing testing. Testing is a crucial part of the recruitment process. It identifies if an employee is a good fit for your company.
Many modern companies spend thousands of dollars on testing and assessment. They implement a personality test for employment or even sometimes intelligence quotient (IQ) tests. By doing this, they can efficiently identify which employee is meant for the company without interviewing them.
By having tests prepared in your company, you can reduce the time spent by recruiters interviewing each potential candidate. You can still use interviews for exceptional cases, but not for every potential employee.
Consistency is a crucial factor in your recruitment process. You must standardize how you recruit employees into the company to a certain degree. Without consistency, the recruitment process would be inefficient, and you might hire unfit employees into your company.
The recruitment process relies on the principle of consistency. This means that each part of the process must deliver results that are reliable and valid. You can know if your recruitment process is consistent when you compare the results of the process and what employees you come up with as new hires. If they don’t function with your desired cost-per-hire or take too long to contribute to their company, your recruitment process wasn’t consistent.
You should consider increasing your recruitment process’s consistency by doing tests on your recruiters once in a while. You can also interview them regarding the recruitment process. Watch them while they do it, or maybe implement new strategies into the process. This ensures that the recruitment process in your company is up-to-date with modern standards.
Here are some ways you can improve the recruitment process in your company. Choosing the right employee is essential to your company’s success. Sometimes, you might forget about this and hire some random employee. Hiring the right employee can help you save money in the long run, improve your company’s growth and increase production value.