Top 5 Ways to Reduce Hiring Costs

top 5 ways to reduce hiring costs

Lowering the costs associated with hiring can be a challenge.  

Expenses related to job advertisement, interviewing, on-boarding, and training add up quickly.  Also, it is important for employers to consider that each hire, even the bad ones, can cost as much as 30+% of the employee’s first-year salary, so the revenue spent on hiring should be constantly analyzed and evaluated.

There are a few ways in which an employer can reduce those costs or eliminate them completely.


Top 5 Ways to Reduce Hiring Costs

#1 Reduce or Eliminate Job Advertisement Costs

There are a few different ways to accomplish this.  One of the simplest ways to eliminate the cost of advertising your open jobs is to outsource them to a temp staffing agency.  By doing this, the staffing agency will take on all of those costs for you and you will have eliminated them 100% from your budget.  Another big perk here is you will also eliminate your employment costs (see #2 for more information on this).

To reduce but not eliminate this cost completely, you can also convert your efforts from posting on job boards to utilizing social media.  Popular social media platforms, such as Facebook, Twitter, and Instagram, are excellent and free places to advertise your open jobs.  The only thing important to note here is you must create a consistent advertising campaign that you (or someone from your team) will need to execute on overtime to see results.  This is how this strategy can be different from posting on job boards.  Social media posts need to be constantly present and oftentimes, employers will opt to use the paid advertisements on social media which do not have a high price tag as job boards.


#2 Use a Temp Staffing Agency

This is by far one of the simplest and most cost-effective ways to reduce overall hiring costs in addition to employment costs for an employer.  Temp staffing agencies will take on 100% of the advertising, interviewing, and onboarding costs for any new hire.  Additionally, staffing agencies will also assume the majority of the employment costs related to new hires that an employer usually takes care of.  For example, the staffing agency will take overall costs associated with each employee’s Payroll and Administration, Workers Compensation, General Liability, ACA and HR Compliance, and State and Federal Taxes.

Additionally, using temp staffing agencies remove all the worry and risk associated with new hires.  Should someone not work out for any reason, the temp staffing agency will replace that person for free.  Alternately, should a temp new hire work out perfectly, that employer can see them operating in the role before making the decision to bring them on internally.  This is why this option is so attractive to so many cost-conscious employers; it’s an obvious safety net for them.


#3 Reduce the Application and Interview Process

Do not panic.  We are not talking about cutting out for the sake of shortening.  What we mean here is to develop or improve the overall efficiency of the application and interview process.

Employers can do this by evaluating the application and interview process with the purpose of identifying places where there may be bottlenecks occurring, relieve constraints, and improve the productivity of the various pieces important to the process.  Depending on how your process looks now, employers should analyze each step a prospective candidate goes through, from the first time they see the advertisement, applies, and through the onboarding process.  Keep a keen eye on the Candidate Experience, meaning what is communicated directly and indirectly to the candidate, what may the candidate observe, feel, or think throughout each step.  By taking each piece into consideration and maintaining a focus on the candidate experience, employers can create an efficient and productive process for all.


#4 Increase Employee Referrals

One of the employer’s most favorite ways to reduce recruiting and hiring costs is to develop an attractive Employee Referral initiative.  This tactic has a doubled effect: 1) a properly developed Employee Referral Program can build confidence and loyalty within their own existing workforce, and 2) the referrals an employer is will receive are likely to be will-suited for the role and team dynamics.  After all, who knows the ins and outs of a company and team better than someone existing within it.

Developing a strong Employee Referral Program should be all about making it attractive to the current employees who will potentially be sending in those referrals.  Some companies choose to offer cash incentives, others offer employment-related perks.  The point here is to get creative.  Think about what your employees may find the most attractive and what will strengthen your employment branding.  This type of thinking will quickly put you on the path to developing a strong, relationship-building Employee Referral Program.


#5 Automate the Application and Interview Process

There are tons of different ways an employer can accomplish this.  There are several different types of software and various technologies out there to help employers automate small and bigger tasks, like job posting, responding to applications, screening potential applicants, and fostering the workflow.  For example, by using some of the most important keywords, an automation system can sort through every application received to analyze if it matches your requirements.

This technique may take a little time to find the right one and set up, but once put into place, it can also save employers a great deal of revenue and precious time.


Are you considering bringing on new employees and thinking about what temps could offer your business?  If you are considering building your team or adding on additional support for incoming projects, let us know.


Empowered Partnerships LLC provides temporary, contract, and contract-to-hire personnel to healthcare and dental employers from coast to coast.  We have a wide variety of skilled specialty staff ready to work for you. 

No matter if you are looking for temporary/contract workers, contract-to-hire personnel, direct hire staff, direct sourcing support, retained recruitment assistance, or recruitment process outsourcing (RPO) services, we offer many different options to help employers hire and continue to grow.

If you are interested in learning more about temporary, and contractor staffing options, please contact us at or view more information about our services on our Employer’s Staffing Services page.


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