How To Save A Lot Of Money When Hiring Employees

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How To Save A Lot Of Money When Hiring Employees

Recruitment is a significant part of the business world, and it’s often something that’s hard to get to grips with. On the one hand, you want to do everything you can to hire the best talent to benefit your organization. On the other hand, you don’t want to spend loads of money as it can limit your resources and decrease your profit margins.

The common mistake is believing that these two things mirror one another in the sense that the more money you spend, the more chance there is of hiring the best employees. It doesn’t always work this way – there are many ways you can recruit talent without spending wads of cash. Bearing that in mind, here are my money-saving tips with regards to recruitment.

Advertise Jobs In-house

You can save yourself so much time, effort, and money if you advertise jobs in-house before opening them up to the wider world. If you have a new role in your business, then it may transpire that an existing employee is best suited for it.

This makes things far easier as you can promote them in-house, which negates all the costly recruitment expenses such as advertising online, etc. The beauty of this idea is that you also get someone that you already know and trust. They understand your business, they know how things work, and they already have relationships with your team.

So, their transition into a new job will be seamless, whereas hiring an outsider can mean you spend money on training or suffer a slight loss in productivity as they get to grips with things. Hell, you may even find that an existing employee can take on another role in conjunction with their existing one. For example, a member of the admin team can also take on payroll responsibilities, saving you from spending money hiring another person to do this.

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Ask The Right Questions

Hiring people is all about asking questions. You won’t know if someone suits your company until you ask them specific questions and see their answers.

We place loads of emphasis on what candidates say that we often forget that our questions themselves are what’s most important. You must pose questions in job applications and during interviews that are geared towards assessing if someone aligns with the cultural fit of your company, whether or not they can handle various common situations they’ll be put in, and if they have the desired knowledge you need in an employee.

As such, choose your questions wisely and don’t just use common ones like ‘what skills do you have?’ Job application questions are a great way to filter out the best from the rest early on, which helps you spend less money as the whole recruitment process should be quicker.

That’s the main aim here; ask the right questions, get the correct answers, and waste less time hiring people – which means you spend less as well. Plus, you should hire the right person the first time around, which means you don’t waste money going through the whole process after firing them!

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Don’t Pay For Training

I briefly mentioned the idea of having to pay for new employee training, so they understand how to do things in your business. Many companies do this, but I suggest you don’t. Training can be expensive, so why bother paying for it?

The obvious rebuttal to this is that you want new employees to understand their jobs and know how to do things correctly. My argument is that you can already achieve this by making the right hire in the first place.

Make sure you clearly state that certain skills and training are essential for your role. If you come across applications without the essential skills/training present, then you discard them right away. It sounds harsh, but you need to hire people that are already built for the specific roles you’re advertising.

Think of it this way, you wouldn’t buy a car that can’t turn on and doesn’t have a steering wheel, would you? No, you’d buy one that’s fit and ready to rumble. The same goes for your employees; hire ones that are pre-trained and ready to hit the ground running. Therefore, you save money by not needing to pay for training.

Ultimately, saving money comes down to a couple of vital things; hiring the right person at the first time of asking, and limiting the time it takes to hire someone. The tips I’ve given you will undoubtedly allow you to do both of those things.

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