In one way or another, the COVID-19 pandemic became a game-changer for many companies in the IT market. In the context of tech talent acquisition, the development of cost-effective recruiting strategies became even more significant concern because of cost-cutting measures, and the reduction of hiring efforts.
On the other hand, cost-cutting is the way to step up and refine their methods for recruitment agencies who specialize in finding niche talent (like CNA International IT). A kind of a challenge to get better at what you are doing.
In this article, we will look at some cost-effective recruiting tips and how they can make your hiring strategy much more effective.
But first, let’s explain why IT recruitment is expensive.
The costs of IT recruiting explained
To understand what cost-effective recruiting means in the IT segment, you need to know how the costs of IT recruitment are structured.
On the surface, the cost of IT recruiting seems pretty straightforward – it is the number of resources used to fill a specific position. However, this figure depends on several factors.
- Monetary costs;
- Time investments;
- Productivity and output losses;
- Recruitment costs of failed hires;
- Outsourcing costs.
Check out this article if you want to know more about recruiting costs.
With that out of the way, let’s look at how to make IT recruitment cost-effective?
Cost-effective Recruiting Methods
In one way or another, cost-effective recruiting revolves around the following four integral elements:
Let’s take a closer look at each of them.
1. Set the position requirements priorities right
Defining the position requirements to attract quality candidates is hard in and of itself. Setting the priorities of which of the required skills or expertise is mandatory and “would be an advantage” is an art even though it doesn’t seem so.
Why is this a problem? Just like a piece of marketing copywriting – vacant position description sells the job. To achieve its goals (i.e., find fitting candidates), it requires proper targeting. This aspect usually gets lost during the soliciting of the requirements for the position. The result – not cost-effective recruiting, also known as a “waste of time, money, and effort.”
Usually, things veer between two extremes:
- The requirements are too broad and abstract.
- Result: the company gets way too many unfit applications. It is a waste of time and effort, potential candidates probably lost in the shuffle—tremendous strain on the workflow.
- The requirements are too narrow and strict.
- Result: there are barely any applicants that can fit all of the requirements. In this case, the cost-per-hire rate will balloon beyond reason.
The balanced description attracts the right candidates and closes positions instead of dealing with too many or too little applications and looking for other solutions. But there is a catch. Just like the rest of the description, the position requirements need to tell a story. Namedropping an assorted collection of technologies, frameworks, or soft skills isn’t very helpful. Here’s how you can do it:
OpenAI job description goes straight to the point. You get very particular requirements regarding the candidate’s experience that, at the same time, describe the nature of the job. At the same time, the “you might be a good fit” mirrors the company’s values and subtly reinforces them.
2. Refine candidate screening and selection flows
Candidate screening and selection is the other sensitive part of IT recruitment that seriously affects the cost-effective recruiting workflow and cost-per-hire ratio specifically. For the most part, these operations share the same problem of too broad or too narrow approaches that result in excessive workload or lack of workload. As a result, screening and selection workflows are not as effective as they could be.
Because of that, the recruitment process takes too long, and thus it is too costly. On the other hand, it results in costly hiring mistakes that will subsequently require a replacement.
According to Gallup, replacing a “poor hire” costs from one-half to two times the position’s annual salary.
How to fix this issue? There are several ways to refine screening and selection processes:
- Pre-employment assessments – to compare the critical competencies of your candidates to find the best match;
- Situational Judgment Tests (SJT) – present candidates with a range of situations that they might experience in the job they are applying;
- Job trial days – a sort of crash test for the candidate (although it is usually unpractical for development or management positions); it is a good test a marketing specialist in action);
- Rank candidates based on job and company fit, as well as assessment performance.
3. Reduce time to hire with recruiting automation
Reducing the time required for routine operations is one of the critical goals of modern HR Technology. Result: reduced costs, increased efficiency. So why not use it to its full potential?
According to HR Dive, the time-to-hire ratio in IT recruiting can reach up to 45 days. That’s a lot of time you need to pay for. Indeed, the lion’s share of that time is different stages of consideration and assessment from involved parties. However, there is a way of reducing the time-to-hire ratio and attaining cost-effective recruiting – automation.
HR Tech can offer a lot for a cost-effective recruiting workflow. For once, automation can take on the routine elements of the workflow, which is a considerable chunk of recruiters’ work. For example:
- Tracking job applicants – which stage they’re on, how well they fit the requirements, and other information;
- Conducting applicant background checks – gathering information from open sources or even contacting related contacts for feedback;
- Pre-screening candidates – evaluating the quality of the candidate with a simple Q&A interview or by other means;
- Scheduling job interviews;
- Job candidate nurturing – by setting personalized reminders and follow-ups;
- Rediscovering past candidates from the internal databases that fit position requirements. (a worthwhile workaround to reduce time spent on new talent discovery – more on that later).
All these things can drastically reinterpret the entire IT recruitment workflow. Automation focuses the process on delivering quality results while avoiding getting stuck in the dregs and dreck of routines.
It is worth noting that implementing automation leads to increased monetary costs for software. However, reduced time investments from the recruiters and overall higher workflow performance mitigate this factor.
4. Maintain a talent pool of qualified candidates
As mentioned in the previous section, getting back to past candidates is a good workaround for talent discovery. It is also one of the advantages of hiring a recruitment agency as they tend to accumulate large talent pools over time and maintain a consistent connection with them.
What types of candidates are in the talent pools:
- candidates who didn’t make the cut the first time;
- haven’t found the job they wanted to apply but like your company enough to remain in contact.
Why is it a good idea? Re-engaging candidates takes less time than engaging new candidates over and over again. This approach is one of the cornerstones of proactive recruiting.
The thing is – qualifying candidates takes time. You need to gather position requirements, screen the applicant, arrange an interview, ask the right questions to get fulfilling information, process it from the perspective of both candidates and a position, and then make a decision.
For sure, automated solutions can handle initial stages, the rest is on the recruiter, and it is an undertaking through and through. Some applicants come through, others pass – the data remains and accumulates over time.
One day it may come in handy and save the day.
In this sense, the talent pool is like a safety net. It helps fill the position a bit faster and thus cheaper than usual because of more information. The recruiter still needs to actualize the data, but it takes a fraction of the time required for the whole qualifying flow.
Over time the talent pool can generate a feedback loop in the sense that past candidates can serve as referrals and recommend your company to other job seekers (or even become your clients).
Turning your recruitment effort into a cost-effective operation is a fine art of walking on the thin lines. You need to consider multiple factors and remain cautious about possible outcomes. In this article, we have explained all the most critical aspects that you need to keep in mind.
If you need a tech talent acquisition consultant or want to optimize your HR process, you can contact us. We will help you out.