Hiring new employees can be a substantial drain on profits for any business. The Wall Street Journal addresses an obvious tactic that could be of help: Reducing employee turnover [1]. Fewer departures mean fewer new hires, which can save a company money in the long run. Regardless of turnover, however, businesses will always need to make staffing changes. Here are key suggestions that can minimize the expense of hiring new employees.

Utilize Social Media to Attract Talent

A study conducted by the Center for American Progress shows that companies pay an average of 21.4 percent of an employee’s annual salary while trying to hire their replacement [2]. Part of this expense is the retraining period, paying a temporary replacement and setting aside time for interviews. To cut costs in other areas, consider utilizing free social media to attract talent. Posting about available jobs on a Facebook page or through Twitter and Instagram can reach a large audience and provide immediate feedback.

Hire From Within

Susan Adams, writing for Forbes, believes that hiring candidates from within rather than from outside the company can be a smart way to cut costs [3]. Not only will hiring from within mean less time recruiting, interviewing and processing applications, but internal hires often receive lower salaries. Promoting from within can create stronger company loyalty, which means fewer promoted employees heading to competing firms in the years ahead.

Limit Your Scope to Local Candidates

Limiting recruiting to a local area can feel like limiting the field, and it may not be recommended for top-level or niche positions. For the bulk of new recruits, however, it can be an easy way to cut costs. As an Inc article points out, recruiting from a local area means that checking references is simpler, and relocation costs won’t be a concern [4].

Reduce Time to Hire by Speeding Up the Interview and Screening Processes

An easy way to reduce cost per hire is by reducing the time per hire. Don’t drag out the process any longer than it needs to be. Screen applicants in bulk and schedule back-to-back interviews. Monster suggests giving recruiters lots of details and feedback so that they can source the top talent more efficiently [5].

[1] http://guides.wsj.com/management/recruiting-hiring-and-firing/how-to-reduce-employee-turnover/

[2] https://www.americanprogress.org/issues/labor/report/2012/11/16/44464/there-are-significant-business-costs-to-replacing-employees/

[3] http://www.forbes.com/sites/susanadams/2012/04/05/why-promoting-from-within-usually-beats-hiring-from-outside/

[4] http://www.inc.com/john-greathouse/5-reasons-to-hire-locally-no-matter-where-you-are.html

[5] http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/managing-hiring-costs/reducing-time-to-hire-checklist.aspx