Thankfully people refrain from using the “HR & recruitment” function together, unlike olden days, and recruitment is recognized as a separate function, having its own budget to spend wisely.
Here’s how a typical recruitment budget allocation in the following steps:
Job posting and advertising
Recruitment agency fees
Testing and assessments
While there’s no issue with the steps, these are not the thoroughly thought steps in the recruitment, and definitely not aligned with the modern objectives of the recruitment process.
In this blog, let us explore the unchartered, offbeat, yet significant areas of recruitment budget that can help you steer clear of the competition.
1. DEI-focused recruitment
First up, we have DEI-focused recruitment. Now, I know what you’re thinking: “But wait, isn’t DEI just a buzzword everyone throws around these days?” Well, yes and no. DEI, aka diversity, equity, and inclusion, is a hot topic right now, and for a good reason.
Companies prioritizing DEI in their recruitment efforts are more likely to attract and retain a diverse workforce, leading to better decision-making, increased innovation, and improved overall performance.
So, if planning to focus on DEI-focused recruitment, ensure setting aside some budget for these initiatives, such as targeted job postings, employee referral programs, and diversity recruiting events.
2. Passive candidates sourcing
Next, we have passive candidate sourcing. Sure, it’s easy to focus on active job seekers, but what about all those talented individuals who are content in their current roles? That’s where passive candidate sourcing comes in, which takes much more effort.
It’s all about finding and reaching out to those hidden gems who may not be actively looking for a new job but would be open to hearing about opportunities that align with their career goals.
And let’s be real! It’s not only about finding the perfect candidates; it’s also about building relationships with potential candidates. So that they know your company is the place they want to be. So, ensure setting aside some budget for human capital, tools, and resources that can help you identify and reach out to passive candidates.
3. Screening and Qualifying Resumes
Unplanned recruitment requirements are another significant overlooked factor in recruitment budgeting. Especially when companies are experiencing rapid growth, unexpected job openings pop up out of the blue, such as a sudden new technology implementation, a new business opportunity, or a simple resignation.
Hence, reserve some budget for recruiting resources to help you fill unplanned recruitment requirements, such as a recruitment agency or a contingency search firm.
4. Budget Extension
Last but not least, budget extension! The truth is - recruitment is a long and unpredictable process, and often you may need to extend your budget to cover additional costs, such as travel expenses, signing bonuses, or relocation costs for ad hoc recruitment. So, make sure to set aside some budget for the budget extension.
While your recruitment budget might be set for 2023, it is important to keep room for the diversity-focused, passive candidate sourcing, screening & qualifying resumes, and unplanned requirements.
It will help you to carry out these activities of talent sourcing recruitment more effectively, without the hassles of planning and replanning your finances.