Hiring costs are the sum of your internal costs (referral rewards, recruiting staff,  ATS, HRIS system, etc.) and your external costs (job boards, marketing, agency cost, etc.). Sometimes referred to as recruiting costs, they can quickly spiral out of control.

Understanding this metric and your cost-per-hire (total hiring costs divided by employees hired in a period) is key to saving money and making bright recruiting decisions.

While every dollar of your company’s hiring spending might seem worth and a no-brainer on paper, here are three ways to control costs.

Cost per Hire (CPH)

Your company’s open positions are more than likely shared across some combination of job boards, social media, and your website. Do the work to calculate an approximate cost-per-hire for each platform.

Use this new understanding to adjust your budget accordingly. Don’t pour money into a platform that isn’t working as efficiently for you – you should be getting the full bang for your buck.

You need to collect data for each of your hires and understand where your hirable candidates are coming from to know where your company should pour more resources in and reduce your spending.  Essentially, where are you getting your best candidates?

Here are some other key areas to help reduce cost:

Digitize Paperwork

Streamline Onboarding and Training

Revamp Your Job Ads