The cost of a new staff member can be eye-watering. A study by Oxford Economics revealed that replacing a member of staff can cost upwards of £30,000 per employee. This includes advertising for the job, bonuses, office equipment, training and other HR and recruitment costs.
Whether you choose to source candidates yourself using social media and jobsites or enlist the help of a recruitment agency, it’s clear that finding a new recruit is certainly not cheap.
Modern HR software can enable recruitment professionals to simplify their processes and save a significant amount of time and money when sourcing new recruits.
In this article, you’ll find just a few of the ways in which HR software can cut your recruitment costs.
Reduce time to hire
Research by Glassdoor has found that the average time to hire in the UK is around 27.9 days. Regardless of the role you’re hiring for, the time it takes to source, interview and select candidates is critical. A lengthy recruitment process not only increases the overall cost of your hiring, but it could also cause you to lose top candidates who may become disinterested if your process is drawn out.
From the moment a requisition is raised through to a job offer being accepted, HR software can streamline and speed up the entire experience for both your recruitment team and the candidate in question.
Requisition approval is automated, candidates can be automatically ranked and screened, while a comprehensive database of candidates allows you to search for suitable applicants actively.
What’s more, software can remove most of the tedious tasks associated with recruiting, such as filling out paperwork and forms. Recruitment software can speed up the entire process and reduce the time taken to complete these repetitive tasks for each candidate.
Better cost management
HR software provides a clear insight into all costs associated with recruitment in your business. It provides an easy way to compile all the costs of your talent acquisition and makes it easy to report on the cost of each candidate.
Using HR software can also help to better plan your recruitment strategies and forecast headcount requirements for the future. Attrition reports and trends in headcount can be used to effectively plan ahead and ensure you have the right people, with the right skills in your business.
Armed with this knowledge, it makes it easier for HR professionals and their counterparts in finance to identify and make cost savings.
While costs such as advertising, agency fees and expenses are relatively simple to identify and reduce, hidden costs such as postage, photocopying and other HR resources are also minimised as HR software will enable you to send important letters and documents to candidates via email which can be signed electronically, too.
Candidates today are used to technology that simplifies many processes and they have come to expect the same when they’re looking for a job. As recruitment becomes more mobile and social, businesses should endeavour to streamline and improve interactions with potential hires where possible.
With HR software, recruitment processes become simpler and more informative for both you and your candidates. After all, the first encounter with your business lays the foundation for an employee’s loyalty. Ensuring that your recruitment process delivers a positive experience from the get-go will help to build trust, passion and ultimately, reduce churn.
HR software can also help you to you effectively analyse and reduce the employee churn in your business. Using this data to understand any trends or patterns in your leavers can help to identify the reasons why they are leaving and begin to make changes to reduce attrition in the future.