Recruitment and human resource budgets are being squeezed all the time as the economy ebbs and flows, from the SME through to multinationals. Employers are having to increase their focus on sourcing candidates and balancing headcount in lower cost ways more than ever before. This article gives 8 cost-effective recruitment and recruiting strategies on how to save money when it comes to hiring new staff.

Effective Low-Cost Recruitment Strategy Tips

Tip 1 – Use Referrals

Your current employees will have friends with similar talents and interests, so let your workforce know you’re hiring if you have a key role you’re trying to fill. Many companies now offer a referral bonus, ie. cash compensation if a new hire recommended by a coworker turns out to be a good fit for the company. If you’re wary of shelling out a referral bonus, consider this: recruitment agencies can charge 20-40 percent more per hour than you would pay if you found a candidate through referral channels. Don’t stop at talking to employees, either. If you have loyal customers and suppliers who understand your business, they may be able to recommend candidates who fit the bill too.

Tip 2 – Use Social Media

Twitter, Facebook and LinkedIn are free services, and you’re missing out on top candidates if you’re not signed up. People with profiles on these sites are usually serious about their careers and touting their professional expertise. Connect with coworkers on LinkedIn, then use the site to request introductions to others who interest you. Follow people who tweet about topics related to your industry, as well as recruiters. Use the openness of social networking to get personal with your invitations and build your candidate bench. For example, if the person has a skill listed in her profile and that’s what grabbed your attention, say so in your invitation to connect.

Tip 3 – Think Outside the Box

Anytime you receive fantastic customer service from a retail assistant or from a staff member in a hotel or restaurant think about their fit with your company. If you hire people where customer service and people skills are required and other knowledge can be taught on-the-job, these people could be your next top performers. Be on the look out for top talent in the most unlikely of places. You never know where you might locate your next best hire!

Tip 4 – Use Self-Selection

Submitting a CV or resume online is easy, but showing up for an on-site information session takes a little more work. Choose the best resumes from the pile you’ve received, then invite those people to participate in a second step, whether that’s a facility tour, group interview or skills assessment test. People who aren’t really interested in your company will decline to participate, while those who are excited about what you do will be happy to take the next step. By getting applicants to self-select, you ensure that you’re using your time to interview people who are qualified and enthusiastic.

Tip 5 – Use a Low Cost Recruitment Solution

There are now companies offering low cost, fixed price packages which give you massive exposure to multiple job boards, jobsites, multiple talent pools and large social networks for a fraction of the cost of going to a recruitment agency. Just simply Google “Fixed Cost Recruitment’ or “Low Cost Recruitment’ and see what comes up. This can often be a much more cost-effective recruitment solution and they even take away all of the admin and CV management.

Tip 6 – Job Fairs

Virtual or in person Job fairs are a low-cost way to find employees. If you decide to attend a live job fair, you don’t necessarily have to invest in large, expensive stand, you could also attend and simply network with other visitors on the day. Talk to the other employers who are exhibiting as if you were a candidate and see how they are attracting top talent to learn from others.

Tip 7 – Attend Industry Conferences

Attend industry conferences and trade shows that aren’t normally about recruiting. Talk to potential employees through networking at these events. Talent currently employed by your competitors will be there so why not network and meet with others who work in a related industry who may give you access to tap into potential candidates. Awards dinners are usually great for this.

Tip 8 – Use Internships

An effective intern strategy within the Company can really give you a chance to meet fantastic employees of the future. Interns are usually very keen to learn and very keen on gaining the right experience in an industry. Many interns are free of charge, you can find companies who supply interns in your area, and often the colleges and universities fund their top stars internships. If you like them after a 3 or 6 month internship then you have the option to offer them full time employment.

These are just some ideas around cost effective recruitment strategies to help you and I am sure there are many more. I would love to hear your comments.

About the Author: Samantha Rathling is the founder of Recruitment Magic, and after spending 11 years working in and running recruitment agencies, her mission is now to change the way the world does recruitment through the provision of reduced cost, fixed price solutions to employers everywhere.