Recruiting costs continue to climb, making it crucial to set aside a healthy budget in your recruiting plan for 2023. According to recent data from the Society for Human Resource Management (SHRM), the average cost per hire is around $4,700 and that number is only going to increase. If you don’t have enough money for recruiting, you’ll be unable to attract and bring in top talent to help your business flourish.
When trying to increase your budget, you’ll need to ensure leadership within your organization is on board. If you want to advocate for a higher recruiting budget to enact more effective recruiting plans, you should consider taking the following steps.
Figure Out How Many Employees You’ll Hire
One of the first things to consider is the number of people you plan on hiring, which will largely influence your budget. Hiring managers can discuss how many employees they expect to hire in the near future. They may also talk about new potential job roles that require employees along with any employees who are likely to leave or retire soon.
Also, consider the different roles that you’ll need to fill and the specific skills each recruit will need. You may require external recruiting if you’re unable to fill these roles internally.
When determining how many people your organization will hire, it will help to put together a spreadsheet that includes all roles and corresponding departments. Additionally, try to figure out what the turnover rate is for every role based on existing data.
Consider All Expenses
There are many expenses that factor into recruitment. Understanding all of these can help you calculate the budget you’ll need for full life cycle recruiting. Some of these costs could include the following:
Recruiting sources such as ads and job boards come with various costs. Consider the cost of each platform and job posting.
External Recruiting Firms
If you need to outsource recruiting, like hiring a recruiter to supplement your internal recruiting teams, you’ll need to account for these costs.
You may need to consider the costs associated with different types of assessments, including various tests that help you choose the right candidate for a particular role. If you buy or plan on buying assessments, figure out how much they would cost to utilize.
Strategic Recruiting Partners
You might work with various partners to recruit more employees, including affiliates and educational institutions.
One of the best assets to have for recruiting is a well-designed careers page, which will come with certain costs to design and develop. Whether you put these pages together in-house, or outsource them to another professional, these will also require a set budget.
To attract new talent, your company will likely host or attend certain events, such as career fairs and expositions.
These are some of the many potential expenses to consider. Taking the time to review all of these expenses can help paint a complete picture of the ideal budget.
Account for Unexpected Costs
Unplanned costs should factor into your recruiting budget, as you never know when something might come up that you didn’t expect. For example, you might need to channel more funds into optimizing the recruiting process if you’re not getting enough applicants. You may also wind up facing stiff competition and lose applicants to competitors after you’ve spent time and money carrying them through the hiring process. Recruiting trends may also change, forcing you to adapt to these changes by revamping your full-cycle recruiting process.
In the event of any unexpected challenge, you should have a plan and budget in place to help you solve it.
Think About Technology Adoption
To help automate the recruiting process, you’ll want to adopt different types of technology. This could include a wide range of software that helps you attract top talent, streamline the application and interview process, and analyze recruiting KPIs to measure the results of your efforts, among other tasks. For instance, you might use video conferencing software to facilitate virtual reviews that maximize convenience for applicants.
In addition to procuring any new software, you may also need to upgrade existing technologies to ensure they perform at their best. This could involve connecting with vendors to confirm you’re using the latest versions and features.
Identify Opportunities to Save
After calculating your budget, look for any potential opportunities to save money. For instance, you may discover ways to reduce the time it takes to hire a new employee, or you may find some of the tools you use to be inefficient or even unnecessary.
Technology can help save time and money in the long run. You can use the aforementioned video conferencing solution to make the interview process faster, which will cut down on the total amount of time it takes to hire. Additionally, scheduling software can establish clear communication between you and prospective hires when scheduling interviews. Other software can also make it easier to find the right candidates for individual roles, ensuring you aren’t wasting time and resources on the wrong people.
Another effective means of saving money is to integrate an employee referral program, which can further improve the recruiting process. Employees can find people who are right for a given role and also feel as though they’re shaping their workspace. This would translate to even more reduced costs and increased retention, which is critical in times like the Great Resignation. Referral programs also enable businesses to save as much as $7,500 per new hire.
If you can find enough ways to reduce the amount of money you spend on recruitment, this will help make your budget far more manageable.
Supercharge Your Recruiting Plan with Comeet
If you want to get the most out of your recruiting plan and budget, Comeet offers a dependable solution to optimize the recruiting and hiring processes. Our platform can scale based on your company’s unique needs, whether you need us for startup recruiting or optimizing processes for a more established brand.
Schedule a demo today to find out what Comeet can do for you.