Your Results at a Glance

The results you’ve received provide a snapshot of your current cost per hire. These figures help you see where you’re spending the most during your recruitment efforts and how you can improve the process.
Here’s a breakdown of the key categories:

• Direct Costs: These are the visible, often tangible costs associated with hiring, including job advertising, background checks, recruiter fees, and onboarding expenses. These are relatively easy to measure and control.
• Indirect Costs: These are the hidden costs that can be harder to calculate but are equally impactful. Indirect costs can include lost productivity, knowledge gaps left by departing employees, the time spent re-engaging with candidates, and the disruptions caused to teams while positions remain unfilled.

While indirect costs are often overlooked, they can have a substantial effect on your organization’s performance. Reducing these costs often involves refining your recruitment process and aligning better with both your team and candidate needs.

Why Your Cost per Hire Matters

High recruitment costs can directly impact your financial performance and hinder overall business growth. Key drivers of increased hiring expenses include:

• Lengthy time-to-fill
• Poor candidate alignment
• High turnover rates
• Inefficient processes

By streamlining your hiring processes, companies can reduce costs by up to 30%, all while enhancing candidate quality.

How to Reduce Your Cost per Hire

If you’re aiming to lower your cost per hire while attracting top-tier talent, the following strategies will help you optimize your recruitment efforts:

1. Refine Your Job Descriptions
   Clear, precise job descriptions attract the right candidates and improve your chances of identifying qualified applicants. By focusing on the specific skills and experiences required, you can reduce the time spent reviewing unsuitable resumes and interviewing unqualified candidates.
2. Leverage Recruitment Marketing
   Effective recruitment marketing can help you engage top talent early in the process. By promoting your employer brand and connecting with candidates before they apply, you can improve the quality of applicants and reduce the time spent sourcing talent. Tools such as social media, online advertisements, and employer branding campaigns can help attract the right audience.
3. Outsource Recruitment with RPO
   Recruitment Process Outsourcing (RPO) offers the expertise of specialized recruitment teams to streamline your hiring process. Partnering with an RPO provider such as Hire Velocity allows you to reduce the burden on your internal team, speed up the hiring process, and lower recruitment costs. With the right RPO provider, you gain access to experienced professionals, advanced tools, and a faster path to top candidates.
4. Utilize Technology to Streamline Hiring
   Implementing recruitment technologies such as an applicant tracking system (ATS) can reduce the manual tasks associated with recruitment. Automating time-consuming activities such as resume screening, interview scheduling, and candidate communication will not only save time but also improve cost efficiency.