Reducing Recruiting Costs: A Guide

Recruiting is an essential part of any business, but it can also be one of the most expensive.

Fortunately, there are a few ways to reduce recruiting costs without sacrificing quality.

In this guide, we’ll cover the basics of reducing recruiting costs, how to do it, best practices, and some examples.

Getting Started

The first step in reducing recruiting costs is to understand where your costs are coming from.

Take a look at your current recruiting process and identify areas where you can save money.

Consider the following:

Recruiting software and tools
Recruiting agency fees
Advertising costs
Time spent on recruiting
Costs associated with interviewing and onboarding

How To Reduce Recruiting Costs

Once you’ve identified where your costs are coming from, you can start to look for ways to reduce them.

Here are a few tips to get you started:

Optimize your job postings for keywords to attract more qualified candidates.
Use free job boards and social media to advertise your openings.
Streamline your recruiting process to reduce time spent on recruiting.
Negotiate with recruiting agencies to get the best rate.
Offer referral bonuses to encourage current employees to refer qualified candidates.
Invest in recruiting software to automate parts of the process.

Best Practices

When it comes to reducing recruiting costs, there are a few best practices to keep in mind.

Be clear and concise in your job postings to attract the right candidates.
Be open to different types of candidates, such as remote workers or freelancers.
Be flexible with your interview process to accommodate different types of candidates.
Be open to negotiating with recruiting agencies to get the best rate.
Be proactive in your recruiting efforts to ensure you’re always looking for qualified candidates.

Examples

Here are a few examples of how companies have successfully reduced their recruiting costs:

A software company switched to a remote-first hiring model, which allowed them to reduce their recruiting costs by 50%.
A retail company invested in recruiting software to automate parts of the process, which allowed them to reduce their recruiting costs by 25%.
A manufacturing company negotiated with recruiting agencies to get the best rate, which allowed them to reduce their recruiting costs by 15%.

Tools to help you recruit more effectively

Breezy HR — End-to-end recruiting software to help you attract & hire great employees with less effort
Visual CV — Create an online Resume in minutes.
Recruiter.com
VIVAHR — VIVAHR is the only Recruitment Management System on the market that provides your HR team with the tools to make them recruitment marketing experts.
Connectteam — Communicate, manage, and train your non-desk employees with Connecteam’s all-in-one company app. Easy to use, easy to customize, and easy to scale.
Turing — AI-backed Intelligent Talent Cloud helps you source, vet, match, and manage the world’s best software developers remotely.
Freshteam — Modernize your HR. Manage your hiring, onboarding, time-off, employee data, and HR workflows in one place.
Deel — Deel handles your worldwide compliance, payroll, and HR in 150+ countries, so you can fast-track global expansion.
GoHire — The best applicant tracking system to manage hiring, in less time, with less effort.
Workable — Make the right hires, faster with the world’s leading recruiting software
CloudTask — Find the best-match B2B Lead Generation Companies to fill your sales pipeline and drive revenue growth
Overpass — Transform your sales with the only platform for hiring remote sales experts, monitoring and managing your team, tracking outcomes and measuring success.
Remote.com — International payroll, benefits, taxes, and compliance for businesses, big and small.
UpStack — Hire experienced developers and expand your remote team with Upstack.