6 Tips to save money on every new hire

August 24, 2022

save money when hiring

When hiring new employees, the costs can quickly add up. First, there is the cost of job postings, followed by the time managers spend reviewing resumes, interviewing and negotiating offers. All of this before the overhead of training a new employee.

No company wants to go through the expense of hiring just to have the person leave and go through the process all over again.

While hiring the right person isn’t always an exact science, there are time-tested methods that you can use to find a good fit. They will help you save money, time and resources.

There is a strong need to make the right hire the first time around. These tips will help you do just that.

1. Promote from within

You already have great people working for you. They have an excellent track record, and you know they are the right cultural fit for your company. So why are you hiring instead of promoting from within?

Look at the skills your employees already have. Notice if they have any gaps or areas of weaknesses. Then bridge those gaps. All they may need is a training course or some mentoring before they are ready to take on a new challenge.

You’ll find that paying for training courses will actually save money in the long term.

By doing this, you will start creating a promotion culture that all your employees can clearly observe happening. It motivates everyone to do their best, knowing there are future opportunities.

You also save money as your employees don’t need to look outside your organisation for career advancement.

2. Employee referrals

When a position becomes available, ask your employees to refer anyone they think will be a good fit. As they already work with you, they can accurately explain what the company is like to anyone they know.

It is also doubtful an employee will ever want to work with someone they dislike. If you make the hire, you get a new employee interested in your company and get along with the staff you already have.

You can also reach out to your network for referrals. Look for people in your industry that are knowledgeable in their field. Reach out privately to see if they are interested in a new role or if they know someone who is.

A simple conversation while networking gets the ball rolling, and you save money on advertising a position.

3. Accurate and specific job descriptions

Qualified candidates don’t apply for roles that have vague job descriptions. They want to apply for a clearly defined position where they know what will be expected of them.

Be as straight forward as possible. Make sure any candidate understands precisely what you are looking for before they come in for an interview.

Lastly, don’t lie or omit details on any job description. It is a costly mistake that won’t save money but will cause you to lose out on great hires.

4. Keep salaries competitive

Start by knowing the competitive market average in your region for the position you are hiring for. Know that if you are not offering at least that, your pool of interested candidates will decrease.

State the salary range on any job posted or advertised. Save money by no longer wasting time in unsuccessful interviews. You only want to interview people interested in every aspect of the role, including the financial side.

You don’t want to get through 3 rounds of interviews before you blindside a candidate with salary details.

5. Consider contract staff

You will always need permanent staff, but it isn’t always necessary for every project. Specific jobs can much easily be outsourced than others. Consider bringing contract workers on for short-term projects.

A recruiter will be able to help you bring on qualified candidates when these situations arise. You will save money on payroll, as payment for all hours worked will be managed through your agency. You also mitigate the risk associated with wrong hires.

6. Get an expert’s help for permanent hires

Recruitment agencies can free up time by overseeing all aspects of your hiring and staffing. The more you work with your agency, the better they will understand your needs.

They can assist with every stage of interviewing and negotiations. It is a great partnership that is built over time.

Ready to save money on your next hire?

Our experienced recruitment consultants work with you to fully understand your requirements and determine the core skills, qualifications, attributes and behaviours that are required for your open role.

If you are looking to fill open roles with qualified candidates who are a good fit and will be long-term assets in your company, connect with one of us today!

Let’s work together to make your company the success it should be while we help you save money on your new hires.

This post was written by: Charlotte Bosley-Plumb, Content Marketing Coordinator