If you’re running a start-up company, you’re probably very conscious where you’re spending money. As your budget will likely be very tight, your biggest question when facing any decision is something along the lines of ‘is this cost-effective?’
Thinking like this is understandable – you don’t know how your revenue streams will ebb and flow. Also, by this time you should have come to the realisation that it pays to be cautious when it comes to spending your capital.
The cost of recruiting is a big one. Not only are you employing another person whom you’ll have to pay a wage, you are also going to spend time creating and posting a job ad, and sorting through applicants, all of which takes time and money away from other items on your agenda!
However, it is one that cannot be skipped over, as ensuring you make the right hires for your business is crucial to having a successful workplace, so here are a few tips on how to keep your hiring process from tipping your budget over the edge.
Place your Eggs in One or Two Carefully Selected Baskets
Instead of paying to have your job ad posted on every board possible, do some research and find one or two places where your ad will have the right traffic.
If you’re still worried about your ad not having the reach you want, you can share it through all your social media platforms, which will increase the chance of it reaching people who already have an interest in your business. There are also a variety of free job boards that can be utilised to save money.
Word of Mouth can Work Wonders
Your current employees are likely to have friends or other associates who have the skills you need, and since they already understand your business they will know who will suit and who won’t.
No one wants to let their boss down by telling them to pick a friend of theirs who goes on to fail, so you can feel fairly certain you will be only recommended people who are actually going to be suited to the role. So asking your staff to encourage their network to apply for a position at your company can be a great way to receive CVs at very little cost.
Don’t Spend Hours Reading Each CV
The most time-consuming part of hiring is wading through swathes of CVs to find ones that tick all the boxes. Especially if you’re only just starting up, this can take valuable time away from other tasks that require your attention, and can often be what puts off a lot of start-ups from hiring when they should.
Or at least it used to be. Technology has blessed us with the ability to use Applicant Tracking Systems (ATS) to efficiently filter through hundreds of CVs by using key relevant words and phrases to pick out the CVs most likely to belong to people who you want to take a closer look at. Affordable ATS systems can be a great tool for SMEs, providing a noticeable ROI.
Screen Applicants before Inviting them to an Interview
The in-person interview is no doubt one of the most important parts of the selection process, but that doesn’t mean you have to interview a large number of candidates! The simplest way to cut down on face to face interviews is to conduct a short phone interview prior to selecting those you want to invite in to meet you.
Another strategy to cut down on one on one interviews is to select those who you think might fit the bill and invite them for a group ‘orientation session’. Those who aren’t really interested will not show up, and those who are well suited or very interested in the role/company will make themselves known as you spend time with the group.
Leave Application Channels Open
On your website, setting up a ‘Careers’ or ‘Job Vacancies’ page will leave you with the option of encouraging people to send in their CVs even when there are no job vacancies available.
This means you have the chance to filter through and find the best CVs, giving you an instant resource to search through, when a vacancy comes up.
Recruitment can be a costly expense for start-ups, but with a small business, it is more important than ever to get it right. As you can see there are plenty of ways to save money on recruiting, without reducing the quality of applications. All it takes is a bit of creative thinking and using the resources you have at hand.
Technology can also help to take a lot of the time and hassle out of recruiting, especially when it comes to the administration work (email confirmations, organising applications and ranking them).