Since recruitment process is a must in every company, managers unavoidably are faced with the issue of the cost reduction. Understanding and identifying weak points in the process will help to map out areas where introducing noticeable savings is possible and avoid missing out on the most talented (and therefore most wanted) potential employees.
1) Expenses regarding listing open work positions
Let’s face it: placing advertisement either in press or on a well-running website entails some costs and these are covered by none the other but the employer. While partnering up with recruitment agency can cut these expenses, applying success fee* mechanism guarantees a complete cost reduction. The other way of introducing savings is to combine marketing with the ongoing recruitment procedures, and support it with the employer branding, allowing for a high add response from the corporate website.
2) Staff’s precious time
The employee responsible for either inducting the new staff member into company’s environment or heading the recruitment process is inevitably less efficient in his normal work tasks. Another cost burden on the company is the necessity to cover up the training related expenses, including the costs of training materials and fees for employing a person specializing in conducting psychological and knowledge tests, unless one of the staff is trained to do so. When employing a recruitment specialist, it is advisable to determine whether the full-time employment is necessary. If the company has less than significant amount of active recruitment processes, hiring an agency specializing in executive search and direct search methods is more cost effective. Back-office procedures, such as browsing through job applications or checking references, also require high expenditures. Again, partnering up with the executive search agency is a solution to low level costs. The team of hired specialists, for a stationary fee, will do a reference check on a group of candidates or conduct an environmental interview.
3) The lead-in
A newly employed person needs time to accommodate to the new work environment and trends. The transition stage can impact his skills and as such, he is less cost-effective, since the added value decreases relative to the employment expenses. The transition phase eventually comes to an end, but the time needed to achieve greater added value is an individual matter, varying from person to person. Having this in mind, as early as the recruitment stage, it is necessary to cut off any person who may find the target company’s environment challenging. Candidates whose profiles match target’s corporate culture, are far more likely to accommodate quickly and issue free.
Cost reduction requires, above all, a plan. A well-designed one helps to further the effectiveness of the ongoing processes and, at the same time, reduce the company’s expenses. The outsourcing offered by the specialist agencies, dealing with, amongst other matters, executive search, frequently allows for a quicker recruitment and a lesser number of people directly engaged in the process.
*Success fee – a form of remuneration for a successful recruitment process, paid only after the candidate has been hired.
References:
Griffin, R.W. Podstawy zarządzania organizacjami. Warszawa: PWN, 2005.
Kostera M. Zarządzanie personelem. Warszawa: Polskie Wydawnictwo Ekonomiczne, 1997.
Zarządzanie zasobami ludzkimi. Tworzenie kapitału ludzkiego organizacji. Eds. H. Króla i A. Ludwiczyński. Warszawa: PWN, 2006.
http://www.hrk.pl/en/home/slowniki/slownik_hr/success_fee.aspx
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