The cost of Talent Acquisition has skyrocketed in recent years, with some estimates suggesting that the average cost per hire is over $4,000. This is a significant expense for any organization, and it’s one that banks cannot afford to ignore.
Moreover, it takes around 42 days to fill a position on average. Banks are losing valuable productivity and revenue by leaving positions unfilled for an extended period. A study found that high employee turnover rates can cost companies up to 2.5 times an employee’s salary in lost productivity, recruitment costs, and training expenses.
So, what can banks do to reduce talent acquisition costs while attracting and retaining top talent? The answer lies in strategic recruiting.
Optimizing Talent Acquisition Costs
Strategic recruiting involves developing a comprehensive plan for attracting and retaining top talent that aligns with the bank’s business goals and objectives. This approach is much more effective than traditional recruiting methods that rely on posting job ads and waiting for candidates to apply.
So how can banks implement strategic recruiting to reduce their talent acquisition costs?
1. Develop a Strong Employer Brand
A strong employer brand can help attract and retain top talent while reducing the cost of recruiting. By building a reputation as a great place to work, banks can attract candidates who are more likely to accept job offers and stay with the company long-term.
A strong employer brand can also help reduce the cost of advertising job vacancies as word-of-mouth referrals become more common.
2. Leverage Social Media
Social media is amongst the most powerful tools for recruiting top talent and is often much cheaper than traditional advertising methods.
Banks should use social media to promote their employer brand and job vacancies and engage with potential candidates.
LinkedIn, Twitter, and Facebook are all effective platforms for recruiting, and they allow banks to reach a wider audience than traditional recruiting methods.
3. Build a Talent Pipeline
Building a talent pipeline is a crucial element of strategic recruiting, particularly in the digital age, where the required skill sets are constantly evolving. This applies to all management levels but is particularly important for senior roles.
According to the LinkedIn Global Talent Trends report, 75% of candidates you want to hire are not actively looking for jobs. Banks must focus on building a multifaceted talent acquisition strategy that nurtures passive candidates and build relationships with them over time.
This process can be thought of as a funnel, where candidates are first attracted to the organization and then nurtured when in the middle of the funnel (pipeline). Once these candidates show any signs of becoming “active” candidates, banks can act quickly and efficiently to capitalize on the relationship they have built.
4. Develop a Referral Program
Employee referrals are often the best source of high-quality candidates. Developing a referral program that rewards employees for referring qualified candidates can be a cost-effective way to recruit top talent. Not only does it reduce the cost of advertising job vacancies, but it also improves the quality of candidates, as they are pre-vetted by current employees.
5. Upskill and Reskill your Workforce
A well-designed upskilling and reskilling plan can be more cost-effective for banks than hiring new talent. By upskilling/reskilling their current employees, Banks can retain institutional knowledge and experience within the organization. It also saves costs associated with recruiting, onboarding, and training new employees.
The upskilling and reskilling plan should prioritize Design Thinking, Innovation, and Creativity-led Entrepreneurship (D.I.C.E.), and soft skills over traditional skill-building programs. Employees need these skills to succeed in a constantly evolving industry and are more likely to stay with the company, reducing turnover rates.
6. Reduce Employee Turnover
Reduce turnover by identifying and promoting internal candidates eligible for development opportunities. Regular goal reviews with managers can help you stay informed about employees interested in lateral or vertical moves within the company. By leveraging internal talent, you can create a culture of respect and engagement, which is crucial in reducing turnover rates.
Consider designing employee benefits and perks packages that meet their needs as individuals. Even though it may seem costly to opt for benefits such as higher-coverage insurance, it can be cost-effective in the long run and improve retention.
Draup is a Talent Intelligence platform that can help banks cut Talent Acquisition costs and improve their recruiting strategies. With advanced data analytics and AI, banks can gain valuable insights and engage top candidates.