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Top 10 Most effective ways of reducing recruitment costs

  1. Changes to use of employment / recruitment agencies
  2. Ensuring only essential posts are filled
  3. Shifting recruitment away from employment agencies towards online recruitment
  4. Moving job advertising from printed publications to the internet
  5. Appointing someone to manage recruitment
  6. Greater use of internal recruitment among existing staff
  7. Introducing an employee referral scheme
  8. Reducing the size of printed advertisements
  9. Introducing a software-based recruitment administration system
  10. Making use/more use of JobcentrePlus

Reduce Recruitment Costs, save Money, Time and Resources

Would you like to reduce your agency recruitment spend?

Our team of REC (Recruitment Industry Trained) Managers can help companies to optimise their relationships with recruitment agencies, saving money and improving standards.

We will simplify your recruitment processes, handle contract paperwork, and check invoices, giving your team more productive time to drive sales and gross margin.

It is possible for employers to save between 10% to 25% on its recruitment expenditure.

Employers seek to reduce recruitment costs

Employers are looking for ways to reduce their recruitment costs in the wake of the economic downturn. Labour is one of the biggest costs.

A recent survey of 143 employers - covering a combined workforce of almost 489,000 people - found that employers were typically reviewing four main areas of their recruitment procedures in an attempt to save cash, such as the use of advertising, deciding whether or not to fill certain vacancies, the cost of agency fees, and candidate selection procedures.

The areas receiving the most attention were found to be:

  • Finding alternatives to recruitment advertising (73.5%)
  • Reducing the use of agencies or other suppliers, or getting better value for money (71.3%)
  • Improving the cost effectiveness of recruitment advertising (71.3%)
  • Tackling recruitment budgets and staffing (58.1%)
  • Imposing recruitment delays and freezes (54.4%)

In total, the survey identified 50 specific areas of recruitment practice that employers are reviewing in a bid to cut costs. But the three most effective ways of doing so were found to be reducing agency fees and charges, recruitment freezes, and closely reviewing all vacancies to ensure that only the key posts are filled.

In terms of perception, 11.8% said their cost-cutting initiatives had been very successful, while 54.4% believed they had been fairly successful.

Just over half the employers surveyed are expecting further spending cuts, with the typical amount predicted to be between 25% and 50%.