The staffing industry has been hit hard by the coronavirus pandemic. Many companies have put a pause on their hiring efforts and as a result, you may be looking at ways to save money in your staffing firm.
Finding ways to operate more efficiently is going to be important over the next 12 months. So, it’s a good time to think about how you can make your hiring process more cost-effective. Below, we offer some best-practice advice for staffing agencies on how to do this.
Focus on Key Metrics
Often, making your hiring process more efficient will result in cost-savings. So, it’s important to focus on the right metrics to ensure your hiring process is running as smoothly as possible. Some of the post popular metrics include time to hire, quality of hire and of course, cost per hire.
Time to Hire
It’s highly likely that your average time to hire is probably a lot longer than usual right now. This is because many organizations are having to delay making important decisions, as well as needing to arrange more virtual interviews than normal to get to know their candidates.
However, it’s still important to figure out what your average time to hire is so you can continually review how successful your hiring practices are. After all, if it’s taking you longer than average to source great candidates then this is going to cost you more money.
Quality of Hire
The same goes for quality of hire. This is more difficult for staffing firms to measure as you won’t have access to the kind of employee data a hiring manager or HR team would. That said, you can ask clients for valuable insights to help inform it.
Alongside this, it’s also about the quality of candidates you’re shortlisting and presenting back to hiring managers. The labor market has been candidate-driven for many years, which means you may have struggled to find relevant people in the past. However, this is starting to shift now because of the ongoing pandemic, which means there should be more quality candidates entering the job market.
Cost per Hire
Cost per hire is naturally going to be a key focus point for firms moving forward. Of course, it can vary depending on the role you’re hiring for or the industry you’re hiring in. And, it’s more commonly used within corporate organizations, rather than staffing agencies. However, a huge part of making your hiring process more cost-effective is understanding what’s costing you the most money to begin with. For example, are the hiring tools you’re investing in as effective as they should be?
Invest in the Right Tools
One of the key steps towards making your hiring process more cost-effective is to ensure you’re investing in the right tools. While they come with an up-front cost, the right tools will be massively beneficial in the long run.
These might be platforms that help you source great candidates, organize your applications or manager the entire hiring process. Job boards like Resume-Library are particularly cost-effective because they hold resumes for millions of candidates and give you the opportunity to advertise your roles at a good price.
What’s more, if you’re a Haley Marketing Career Portal user, you can search through Resume-Library’s growing candidate database, directly from the software platform. Simply select Job Boards from the navigation menu, choose Resume-Library and click Search to source the best resumes.
In addition to this, more staffing firms are investing in tools which can automate certain elements of the hiring process; ultimately speeding up time to hire and making it more cost-effective.
Now, automation is by no means there to replace staffing professionals. The human element is still very much needed in the hiring process. But technology can certainly take over some of the more administrative parts of the journey.
For example, automating tasks such as resume screening and interview scheduling, or using chatbots to answer candidate queries, means you can focus on other areas where you can add value to your clients.
Again, some of these platforms may come with a hefty price tag. So, it’s about understanding which areas of your hiring process are currently costing you time and money and seeing how you can make them more efficient.
Make Your Hiring Process More Cost-Effective
Unfortunately, there’s no one-size-fits all approach to making your hiring process more cost-effective. After all, it depends on a number of factors, such as the size of your staffing firm and the roles you’re recruiting for.
However, there are steps you can take to improve efficiencies. Figuring out what metrics you want to work towards and understanding how you can improve in these areas is key. Alongside this, look at the tools you’re using and whether there’s room to invest in different ones, or to look into automation. We hope our advice gives you some food for thought and helps you in some way or another during this challenging time.