The last quarter of the year is the time for many companies to plan their recruitment budget for the next year. The recent economic crisis has forced many companies to cut and optimize costs. How to budget effectively? What to invest in and what to give up? In the post, you will learn what to pay attention to when planning your 2024 budget and how to optimize recruitment costs.
Budget and needs analysis
The recruitment budget is made up of several components: salaries of HR staff, the cost of advertisements posted on job board platforms, ATS, participation in Job Fairs or other industry events, services of external recruitment agencies, or employer branding. When planning the budget, it is also important to talk to department managers and learn about their recruitment, training or business needs.
In order to optimize costs, it will be a good idea to analyze which activities affected the company’s real profits and paid off, and which could be exchanged for cheaper or other types, and which could or should be abandoned. There are several ways to do this, change the ATS system, drop the Job Fair, change the job board to another tool or service, or review the contract with the recruitment agency. It is good to look for options that allow flexibility.
With the prolonged economic crisis, it is necessary to look for savings, as well as flexible solutions that can be adapted to the rapidly changing market situation and the structure and limitations of the budget. In the recruitment industry today, there are collaborative models to optimize resources and manage costs.
How to optimize recruitment?
Each source of candidate sourcing has its pros and cons. When analyzing the budget, it is worthwhile to analyze them and choose for your organization the most effective forms tailored to your company’s needs and capabilities and the current labor market situation.
Job Board
Today, most companies use job board portals as a source of candidate runoff. It’s a relatively low-cost solution with a broad reach, but it reaches candidates only actively looking for work, and most applications are of low quality because candidates are mismatched to both the offer and the company culture.
Recruitment Agency
The service provides high quality applications worked on by experienced recruiters in the industry and access to passive candidates, but it is a higher cost solution that a company cannot always afford. Such cooperation allows to shorten the process of recruiting employees and its costs, for which, of course, you have to pay, but in many cases it can prove to be a much cheaper solution than conducting recruitment by a company.
Talent Pooling App
It is a service between a job portal and a recruitment agency, combining their advantages and eliminating their disadvantages. The tool provides a low cost and wide reach, offering access to both active and passive candidates belonging to recruiters’ databases, ensuring high quality applications and matched candidates through referrals.
For more on how the Talent Pooling App works, visit the dedicated page:
Budgeting for recruitment
Economic uncertainty and rising inflation are causing employers to optimize costs. Rapid changes in the labor market and the changing needs of customers indicate the importance of flexibility and managing a company’s resources in a way that is sustainable and ensures business continuity. If you are wondering how to optimize your recruitment budget and which solutions will work best for your organization, schedule a free consultation.
Contact us: https://talentplace.com/contact/
