5 Ways to Optimize Your Hiring Process to Save on HR Costs

Shefali Vasave | December 22, 2021 | 19 views

Integra News
Hiring is one of the most critical functions of HR teams. When you do it appropriately, it can foster better business practices, boost revenue and save a lot of money in the long run.

However, the problem with hiring is it can be an expensive and time-consuming affair. . It can be tedious for both parties involved - the employer and the employee if done without a good strategy. It can tremendously cost your organization and may affect your ability to find talent. 

This is why every HR professional must consider HR cost optimization as a critical part of their job role. When you have a clunky hiring process, you tend to lose money and hamper your talent management efforts. There is no better time to revisit your hiring process and identify areas of optimization. One of the best reasons to do this is it will help you find better talent in less timewhile saving you money.


Why Should You Optimize the Hiring Process?

Boosting the company's talent acquisition process is essential for its long-term success. Sounds complicated? Well, it's not! The key to optimizing your hiring process is through organization, efficiency, and collaboration. But why fix something if it’s not broken?

More often than not, many organizations are unaware of the money they are losing due to gaps in their hiring process. According to a study conducted by the Johnson Service Group, it takes an average of 42 days for companies in the U.S. to fill a vacant job position. This, in turn, costs them about $98 each day if the position remains unfilled. This alone builds the business case for optimizing HR processes.

Here are some more reasons why you should consider using HR cost reduction strategies:
  • Hire more people in  less time by reducing the time spent on recruitment.
  • Reduce HR expenses by leveraging external sourcing tools for recruitment, training, and collaboration purposes.
  • Reduce hiring risk by using predictive analytics or using AI-based recruitment tools.

There are numerous components within the hiring process that can be integrated with better tools or new technology to make them faster. Let’s look at some ways you can do this in your organization.


Use Video Interviews for Fast Screening of Candidates

Video interviews provide a virtual, cost-effective, and efficient way to screen candidates. These ways have been  a boon to HR. In a post-Covid world, video interviews have transformed the hiring process across all industries. It has become a popular way for HR professionals to screen candidates and save extra bucks. Video interviews help companies save money by cutting down on time required to interview potential employees.  It’s because video interviews enable HR teams to screen more people in less time than traditional phone interviews.

Video interviews also enable companies to cast their nets wide and reach candidates that they would not otherwise be able to interview. They are also beneficial for applicants who cannot attend physically. They remove geographical boundaries and allow job seekers to search jobs from anywhere.

Simply put, video interviews provide a virtual and inexpensive way to screen candidates and assess those who would not otherwise be interviewed. As a result, it inexplicably contributes to cost optimization practices for your organization.


Create Skills Inventory for Every Role

The skills inventory helps employees and employers assess an individual’s strengths and weaknesses to help them make better career decisions.

The purpose of a skills inventory is to provide a concise and objective summary of one’s skills and knowledge. The current trend is for employers to ask potential job applicants to complete a sample skills inventory as part of the hiring process.

A comprehensive list of all the candidate's abilities will enable them to make an informed decision about who they would like to hire. This also gives the applicant a clear idea of their strengths - information that can be used in their personal development plans.

When it comes to cost-saving, skill inventory helps HR clarify what skills  the company needs. This allows them to plan and hire for the skills crequired, which in turn helps reduce the cost of making a bad hire.


Use an ATS as the Hub of Your Hiring Process

An applicant tracking system (ATS) automates the recruitment process for an organization.

An ATS is a central hub that connects all other areas of a company’s recruitment process, thus saving time and money.  Using an ATS also allows the HR team to be more productive and efficient with their efforts.

“Hiring is still a very subjective process, and one size does not fit all.”

- Arran Stewart, Co-Founder and CVO, Job.com

A candidate routing software can be used to make cost optimization strategy. It automates the process  of picking candidates from application to interview. The ATS then routes candidates to hiring managers based on skill set, location, and more. By using the ATS as your hiring hub, you  ensure that your best candidates get in front of your best hiring managers first.

While there can be more benefits to using an ATS,  it can also have downsides. For example, it takes time for employees to get used to  the process, which can potentially cause problems for new hires. To ensure a smooth transition, you can develop a training program that quickly helps integrate the new system into your HR process.


Implement a Better Applicant Tracking System

Applicant tracking systems are an absolute necessity in the hiring process. Hiring managers need to stay on top of the latest trends and technology to  make the best decisions for their company.

Many organizations get caught up in the buzz of using the latest trending software on the market without considering other important factors. While many HR software services are available today, it is crucial to find one that will fit your needs and budget. Here are some key factors to consider when choosing between provider -
  • Flexibility
  • Scalability
  • Skill level
  •  IT expertise required
  • Time frame for implementation
  • Post-implementation support

So, are you considering a new system or looking to transition to a different service provider? By considering these points you can save much of your resources. A study by Kienbaum found that HR teams spend 39% of their time on administrative tasks. Therefore,  streamlining your hiring process will  increase process efficiency and help you hire faster and better.


To Conclude: Focus on Quality Hires and Train your Team to Manage the Process

According to a WNS case study, a global fintech company reduced HR costs by 40% with a drastic reduction in turnaround times. They achieved this by simply deploying HR professionals with the right skills for their HR operation.

No optimization process can replace the value of trained staff. HR departments must focus on quality hires and train their teams to manage the process. They also need to identify ways  to increase productivity by reducing or eliminating redundant tasks.

It is no secret that employee engagement has a massive impact on HR teams' costs. The positive cascading effect , on employee turnover, productivity, and well-being contributes massively towards employee cost reduction strategies. That being said, ensure your team is well-trained in their roles helps to foster productivity and career fulfillment. It also enables fewer mistakes, more efficiency, and higher quality work. These are some ways you can ensure your employees are fully engaged. Not only does it save long-term costs, but it keeps your organization working like well-oiled machinery.

Frequently Asked Questions


How much time do you think HR optimization will take to implement?

The time to implement HR optimization will vary depending on the size of the business. However, there are plenty of companies that have already implemented HR optimization. These companies adopted HR tech for  payroll, benefits, and employee management functions.


What are the most common HR costs?

There are various costs in HR. But the most common ones include employee training and development, salary administration, payroll administration, performance management, selection, and hiring.


What are some of the best practices for HR cost management?

HR managers need to figure out if they are wasting time finding candidates that don't meet company requirements or not hiring enough people for open positions. This way, HR managers can focus on their core responsibilities.


What are some of the best practices for HR cost management?

One of the best practices you can follow for HR cost management is conducting and tracking annual and periodic evaluations and studies of cost-effectiveness and efficiency in HR operations. This helps you identify  cost savings opportunities and determine if changes in policies, procedures, or technology should be made.

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Inspiration Manpower Consultancy Pvt Ltd is the name reckon with the Hr Consulting and Recruitment. We have two offices in Bangalore. We Ignited to succeeded on 15th December 2008. We Cater to Industries to

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hireEZ Launches Business Tier for Small and Medium-size Hiring Teams

hireEZ | June 16, 2022

hireEZ, the leading AI-powered outbound recruiting platform, today announced the launch of its Business Tier product offering for small to medium-size companies. As growing startups and small companies contend with a tight labor market, hireEZ is expanding its recruiting platform to help non-enterprise organizations make finding and hiring talent easier. With the new Business Tier product suite, smaller recruiting teams will have access to the hireEZ platform to streamline hiring workflows end to end, from the intake process to engaging with prospective talent. "Small companies are often more nimble than their larger competitors, but they also face higher rates of churn and have fewer resources at their disposal. Our goal with Business Tier is to make the most advanced recruiting tools available to those non-enterprise teams, so they can remain competitive," - Steven Jiang, CEO and co-founder at hireEZ. With Business Tier, hiring teams can create projects to start the intake process, add access to all stakeholders, outline job requirements and set goals for recruiting processes, and specify salary ranges. hireEZ also gives users the ability to parse job descriptions to align sourcing keywords with recruiters' searches, based on desired criteria such as skills, degrees, education, and experience. The new Business Tier provides high-growth organizations with access to the hireEZ platform, including: EZ Sourcing — AI-powered sourcing from the largest available talent pool, with over 800 million candidates EZ Engagement — Communication and nurture tools such as email templates, sequences, and tracking data to scale candidate outreach EZ Collaboration — A user-friendly portal to help hiring teams align on needs and goals, share projects, review candidates, and provide feedback About hireEZ hireEZ (formerly Hiretual) is the #1 AI-powered outbound recruiting platform with access to over 800 million candidates from 45+ open web platforms, market insights to build strategic recruiting campaigns, and candidate engagement capabilities to make outbound recruiting easy. With hireEZ, you can execute a strategically scalable approach to build your workforce of the future.

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RECRUITMENT & RETENTION

LiveHire and Enboarder Collaborate to Offer a Cutting-Edge Onboarding Experience

LiveHire | June 16, 2022

Industry-leading total talent platform, LiveHire announced a partnership with Enboarder, the world’s first and only people activation platform, to offer a tailored onboarding experience for organizations when making new hires. "Our integration with Enboarder comes at an opportune time where candidate experience is vital to recruitment, Enboarder's integration with LiveHire provides a seamless transition from recruitment to onboarding that is experience-driven from end-to-end." -Christy Forest, LiveHire CEO. "At Enboarder, our mission is to help organizations put their people and human connection at the center of everything they do. By integrating our People Activation Platform with LiveHire, we'll ensure that companies worldwide are providing their new employees with a smooth transition from the hiring to onboarding process, solidifying strong connection and engagement throughout the employee's entire journey." - Brent Pearson, founder and CEO of Enboarder Organizations are increasingly looking to deliver a candidate-friendly onboarding experience. Considering that bad onboarding practices increase attrition and cost millions of dollars every year, LiveHire and Enboarder’s partnership comes at an ideal time. The combined strength of their offering will increase flexibility and create a seamless transfer of data. "Kent Removals and Storage have undertaken a highly successful dual partnership and integration with LiveHire and Enboarder as part of our people initiative to ensure an excellent candidate and employee journey. What we have loved about LiveHire is that we can be agile in our messaging and contact with candidates, ensuring that we are communicating to everyone their status and progress. The talent community is a great way for us to engage passive candidates and build a connection for opportunities down the track. With Enboarder, the workflows allow us to really tailor the onboarding to the needs of our changing workforce. Catering to our blue and white collar staff and those on site and remote is easy with Enboarder. We get to engage with our new hires the moment they accept and keep them engaged during that critical time during their notice period. Having both systems in play means the journey from candidate to employee is seamless, engaging, intuitive and fun. Our feedback to date indicates that we are just shy of reaching a 5 star rating for this integration." - Paula McCabe, Head of Talent and Performance at Kent Removals and Storage

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