How to reduce recruitment costs?

That’s one of the main concerns in every HR department. On this post we explain how to calculate recruitment costs and how to reduce them.

Many people tend to think that HR departments should cover all aspects of the department by themselves: recruitment, payroll, feedback interviews, training, compensation system… because that’s why they get paid…

Well, that’s what some people may think, but just as we don’t ask the Sales Director to do everything in his department – prospecting, the cadence, the closing, and the operation -, we shouldn’t ask HR to cover all areas either.

The HR Department is one of the great engines of a Tech company and needs the same focus, resources, and tools as any other department. With good planning and strategy, HR supports the company’s objectives and success.


Because in a Tech company, talent is EVERYTHING.

HR planning is focused on the recruitment and engagement of employees. For this, we must thrive on 5 pillars:

  • Culture
  • Communication
  • Training
  • Career development
  • Compensation and benefits system

Each of these 5 points helps attracting new talent (which is EVERYTHING) and helps maintain our team’s enthusiasm and commitment to the project. It helps improve their performance, which translates into company goals being achieved.

These 5 pillars require an investment of time and dedication. If you spend most of your time focusing on the department’s operational side (recruiting, managing payroll…) you will not have quality time for these levers, which are the key to HR’s success.

You have to do good planning and outsource those tasks that are not the core of the department and that also increase your costs. One of these tasks is recruitment, not selection, which must continue to be carried out by the people area.

Last week I read a comment from a person in HR, who was alarmed when he found out about a headhunter’s fee and replied that ‘I save a lot of money if I recruit them myself.’ This person had only assessed the cost of the headhunter’s services but had not taken into account other recruitment costs.

How do I calculate the recruitment costs?

This is what you have to keep in mind:

  • Recruitment time (Total annual cost including the company expenses of the person or people who recruit in your company)
  • Offer disclosure costs (payment to portals)
  • Administrative recruitment costs (bureaucratic costs)

Add the 3 amounts and divide them by the number of vacancies.

You must also take into account the following costshow long it will take to recruit the profile you need and therefore:

  1. Loss of current business (you have a need that can’t be covered until the vacancy is filled)
  2. Loss of future business (associated with the acquisition of customers by your competitors until the vacancy is filled, and the subsequent difficulty of bringing those customers back to your business)

Therefore, once these calculations have been made, most companies decide to invest in headhunters and specialized recruitment agencies, which support your recruitment efforts, achieving more speed.

Recruitment specialists network every day with the professionals you are aiming to contact. That is the focus of their work. This is why they can offer qualified candidates, as well as transparency and agility in the process.

Not only this, but with a good recruiting professional, you also receive advice regarding professional careers, salary ranges, the competitiveness of the sector, specialization, recruitment trends, and benefits in companies similar to yours. They can also advise and help you define the profile according to the stage of your company based on experience in companies in the same industry.

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