This article is for HR managers to streamline their recruitment processes and its associated costs. In this article, we dive into how Huneety can help you reduce recruitment costs. 

Intended audience of this article: HR managers, talent acquisition specialists, Head of HR, CHROs.  

The true cost of hiring is hidden:

Most companies view recruitment costs solely in terms of direct expenses.  Hiring the wrong person can be even more costly, averaging 5 to 25 times the position's salary (Indirect costs below). 

What to include in your recruitment costs: 

💸 Cost of Vacancy (COV): The cost of vacancy refers to the financial impact when a position remains unfilled within an organization. This can include direct revenue loss and other financial repercussions due to the absence of a critical role.

💸  Direct Recruitment Costs: These costs encompass all expenses related to sourcing candidates, including:

• Advertisements: Funds spent on job postings across various platforms. 
• Recruitment Agencies: Fees paid to headhunters and external recruitment firms.
• Internal Recruitment Team: Salaries and operational costs of the in-house recruitment team.

💸  Cost of Onboarding: Onboarding expenses cover the period from a new hire's start date until they reach full productivity. This includes:

• Training and Orientation: Time and salaries of line managers, HR personnel, and employees involved in the onboarding process.
• Productivity Ramp-Up: Costs associated with the new hire’s gradual increase in productivity until they reach 100% efficiency.

💸  Cost of Internal Inefficiency: These costs arise from the internal processes required to fill a vacancy, such as:

• Role Definition: Time and resources spent on defining and opening a new role.
• Organizational Design: Costs incurred when designing or restructuring roles within the organization.
• Interview Process: Time and expenses involved in multiple interview rounds.
• Hiring Decisions: The time taken to reach final hiring decisions, which can delay productivity and add to overall costs.

By understanding these various components, HR professionals can better manage the recruitment process, minimize the costs associated with vacancies, and ensure a more efficient transition for new hires.

Estimation of Recruitment cost for a sales engineer (Industrial sector). 

HR Tips to decrease recruitment costs

1. Build talent pools to reduce direct recruitment costs  

Building a talent pool makes you resilient against market slowdown. Not only it helps your company hire faster, but it also helps you save costs. 

In order to save costs hiring, your company must consider : 

• Invite your internal employees to apply for open roles (internal recruitments) : Consider your internal employees before hunting elsewhere. Internal recruitment is the solution that helps you save the most costs! We recommend our HR users to invite internal employees to their open roles in priority in order to fill roles faster, improve employee engagement, and reduce costs. 
• Enhance Employer branding : this is especially useful to be visible across your targeted audience and ensure you receive organic applications. You can consider investing in recruitment employer branding videos in “short format” to ensure you can scale your company branding across thousands of applicants. Click here to know more about employer branding. 
• Pool candidates : Ensure your company is provided with an ATS system to gather candidate information, and activate your talent pool whenever your recruitment is available. With an ATS, you can build candidate pipelines and better evaluate candidate availability before you decide to spend additional money on advertising or recruitment agency fees. Click here to know more about ATS. 

2. Leverage recruitment assessments to reduce Mis-hiring costs

Why Soft Skills Assessments Matter: Utilizing soft skills assessments helps organizations select the most suitable candidates. With Huneety, companies can efficiently evaluate both soft skills and cultural fit, ensuring that candidates not only meet the job requirements but also align with the organization’s values and culture.

The Huneety Advantage:

• Pre-Screening for Soft Skills: Huneety pre-screens each candidate based on the company's specific soft skills requirements before they reach the hiring manager. This ensures that only the most fitting candidates proceed to the interview stage.
• Comprehensive Candidate Reports: For every applicant, Huneety generates a detailed report that includes:
  • Behavioral and Qualitative Analysis: Insights into the behavior and key qualities required for the role.
  • Interview Report: A thorough evaluation of each candidate’s performance during the interview process.

Integrating soft skills assessments into your hiring process with Huneety can lead to more informed, efficient, and effective recruitment decisions, ultimately contributing to the organization's success.

Click here to learn more about the importance of soft skills in the hiring process.

3. Implement an efficient recruitment process to avoid hidden costs 

Recruitment processes may take weeks, or months! In Thailand, it takes in average more than 75 days to recruit white collars workers. To ensure your recruitment resources are well used, pay attention to the following items in priorities 

📊Salary Benchmarking: Make sure the salaries you offer match what is common in your industry.

📄Accurate Job Descriptions: Write clear job descriptions that follow best practices and meet local regulations. Check with line managers to ensure job requirements are clear from the start.

🗣️Line Manager Feedback: Get feedback from line managers on shortlisted candidates within 48 hours.

📅 Timely Interview Scheduling: Schedule interviews within 24 hours of getting feedback and keep scheduling until the final rounds are done.

🤝 Negotiation and Hiring: Draft contracts that comply with local labor laws with already existing templates. 

⚓️ Onboarding Support: Provide a structured onboarding program with clear goals for the probation period to help new hires succeed in their roles.

Click here to post a job and improve your recruitment process. 

About Huneety

Huneety is the leading talent matching platform in Thailand specialized in the industrial sector. Our vision is to provide Human resources professionals affordable tools to recruit the best talents with : 

• A.I Job board and talent matching platform 
• Recruitment assistance for companies seeking to decrease their hiring costs. 

Do you want to know more about how to reduce cost of hiring for your organization? Click here to schedule a discussion with our team. 

Did you like this article? You may also like reading the following resources : 

• Thailand 2030 : Turning vision into reality with a qualified workforce
• What is an ATS (applicant tracking system)
• Recruitment strategies to tackle talent shortage in 2024