One of the biggest costs a company can incur is replacing employees or adding new people as the business grows.

While it is exciting to see companies do well, the increase in salaries and other costs associated with new employees can also impact a budget. It is important that the company look for the best ways to find the right employees while staying within budget.

As unemployment continues to fall in many areas and more businesses are adding new staff, it becomes a challenge for recruiters to hire the best qualified applicants while managing the budget.

It begins with the earliest stages of the process.

Budgeting for Recruitment

Social media has not only made it easier for many companies to recruit new talent, it has made the job more cost-effective.

It is inexpensive or even free to post jobs on LinkedIn, Facebook and Twitter. Since many people spend a lot of time on these sites, you are sure to get a higher response through this method than with other options.

Online recruitment can often replace other, more expensive options like job fairs and newspaper ads.

Another way to save money on this phase is by hosting online interviews instead of requiring the candidate to meet in person. It often saves time, especially if the person can meet with multiple interviewers at once.

Cost of Hiring and Retention

The expenses of recruitment don't end just with hiring a new employee.

In fact, many of the costs are just beginning. Training can take up a good portion of an HR budget.

All of this money is wasted if the person doesn't stay around. One of the best ways recruiters can help save money for the business is by matching the right candidate with the job and providing incentives for them to stay.

For instance, a small business often finds applicants that are new graduates and only looking to stay for a few years to get experience and move on.

What if a company offered incentives they couldn't find in a larger organization? What if some of those incentives drew experienced employees to them and away from the larger corporations?

A flexible schedule could appeal to someone with a family while a profit-sharing plan might win a new graduate over.

As the article “5 Ways to Be an Even Better Budget Manager” says, you must be accountable for your budget. For the recruiter, that means ensuring that your methods are working towards the bottom line.

Change Hiring Methods

Many businesses rely on old-fashioned and outdated processes for hiring staff.

As the company culture changes, so must the methods of finding the best candidates. Choosing the best applicant is only half the battle; the other half of the challenge is to retain the employee to reduce the expenses associated with recruitment.

Recruiters must always be aware of what works in locating and hiring the right people for the company while not forgetting about the budget they are given to work with.

Photo credit: Image courtesy of Stuart Miles at FreeDigitalPhotos.net

About the Author: Joyce Morse is an author who writes on a variety of topics, including business and human resources.