The most important recruiting statistic to determine how much an organization will typically spend on finding a new person is cost-per-hire. Every company has different standards and different recruitment processes. When recruitment consultants work with specific companies, they often find that businesses spend large amounts of money to fill a position.

According to a Deloitte survey, the average cost per hire varies depending on both internal and external factors, averaging $4,000. However, it is necessary to streamline the recruitment process. Streamlining the hiring process can cut your company’s per-hire costs and increase productivity. But, for this, you will have to adopt powerful strategies.

Here are 5 effective strategies to reduce your business cost-per-hire:

5 Effective Strategies to Reduce Your Business Cost-per-hire

  1.     Hire a Recruitment Agency

Hiring a recruitment agency proves to be cost-effective compared to managing the process independently. Leveraging the expertise of recruitment consultants can lead to savings while streamlining the recruitment process. These agencies claim to have a large pool of fully assessed and screened candidates, thereby speeding up the recruitment timeline.

The recruitment agency’s talent database enables quick identification of ideal candidates for your company. Additionally, recruitment consultants are experts in the field, having expert insight into target markets, top talents, and both passive and active candidates. This specialized skill increases the efficiency and success of the recruitment process, making it a prudent investment for companies seeking optimal employee solutions.

  1.     Build a Talent Pool

A talent pipeline is a pool of qualified candidates from which an organization can quickly fill job vacancies. To find and develop passive candidates for future hires, active identification is essential. To achieve this, it is important to understand the present and future employment needs of the organization. Effective candidate selection is facilitated by accurately identifying the required talent profiles, competencies, and skill sets. 

With this, it is important to find potential applicants in the talent pool who match certain job positions and required qualities. It is essential to build a relationship through phone and email conversations to nurture the prospect. Regular engagement allows recruiters to understand candidates’ key skills, competencies, and future career aspirations.

  1.     Start a Talent Acquisition Program Through Employee Referrals

An internal strategy for finding potential persons is the use of employee referral programs. Candidates are referred by current employees for open opportunities at your company. A program for employee referrals is thought to be the most effective approach to raising the most significant hiring measure, which is cost-per-hire. This is due to the fact that employee referrals are the least expensive, have longer employee retention rates, and expedite the hiring process.

Additionally, employee recommendations produce more hires than career websites, job portals, and other sources, according to a recent study. Therefore, you should make it simpler for staff members to submit referrals to the HR department if you want the greatest outcomes from your employee referral programs.

An email with the candidate’s details to recruiters should suffice in addition to specialized software. Employee referral bonuses can be paid in cash, but there are many additional ways (trips, gift cards) to reward successful recommendations besides money.

  1.     Invest in Employer Branding 

You must craft a compelling story. What makes your company unique? Highlight your culture, values, and employee benefits to attract top talent. Utilizing social media is crucial.

Showcase your vibrant work environment, employee testimonials, and career opportunities on platforms where your target candidates are active. Additionally, attend relevant industry events to build brand awareness and connect with potential candidates at conferences, meetups, and career fairs.

  1.     Use Targeted Job Descriptions

 When creating a job description, prioritize the abilities and credentials most important to the position, and avoid using long lists of prerequisites. To ensure easy readability and broad candidate appeal, be detailed about the actual requirements of the role; stay away from unnecessary jargon and use clear, concise language. Also, improve the description by emphasizing the role’s alignment with your company’s future goals and emphasizing the potential for professional growth.

 Furthermore, highlight the prospects’ significant scope for growth as professionals and paint an inspiring picture of their future at your company. This strategy not only attracts a wide range of capable candidates but also presents your business as an attractive option for long-term engagement and career advancement.


Strategies for reducing cost-per-hire isn’t just about saving money, it’s about attracting top talent, building a stronger team, improving efficiency, and gaining a competitive edge for your company. By streamlining your hiring process and showcasing your employer brand, you can compete effectively for the best candidates. Hiring the right people reduces onboarding time and gets them contributing sooner.