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The Different Types of Recruitment Methods

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recruitment methods

Like most entrepreneurs, you started your small business as a one-man show. As it grows, you’ll quickly realize that you can’t run the show alone. You need to bring people on board and build a team.

However, hiring the right people is easier said than done. On average, a wrong or unsuitable hire will cost your business $7,000 to $10,000.

With the stakes so high, you need to get hiring right.

Continue reading to learn more about the different types of recruitment and how to choose the right one for your business.

The Different Types of Recruitment

To start us off, let’s look into the various recruitment methods you can choose from.

Direct Advertising

When you think of hiring your first employee, this comes to mind.

Direct advertising is the traditional way of doing things. You place an ad in a local magazine or stick it to a window on your store and wait for applications to start streaming in.

If you’ve embraced the digital age, you will place the ad in the jobs section of your website and probably post it on social media and external job sites.

The success of direct advertising depends on how widely your ad is seen. The more applications you get, the better your chances of finding the right talent.

Recruitment Agencies

The time it takes to hire an employee, from the job ad to onboarding, varies depending on several factors, including your industry, hiring method, and hiring experience. However, don’t expect to post an ad on a Monday and hire by Friday of the same week. It can take several days, often a couple of weeks, to find the right person.

You likely don’t have the time or experience to hire a competent employee as a small business owner. Conducting interviews, for instance, takes your concentration off the business’s core operations.

This is where recruitment agencies come in.

Outsource the task to an agency, and for a fee, you’ll get a suitable employee within a relatively short time.

Some recruitment agencies can help you fill your open positions and advise you on the best recruiting strategies when you want to do the job in-house.

Talent Pool

You’ll receive several applications when you try the direct advertising method.

Once you identify the applicant who stands out, don’t discard the other applications. There were probably other applicants who caught your eye, and you would have hired them if only you had more open positions.

Use such applications to build a talent pool. Add more applicants to the pool every time you run a direct job ad.

After some time, you’ll find that you no longer need to use a recruitment agency or make a direct job posting when you want to hire. Just dive into your pool and pick a talent, reach out to them to see if they’re available, and continue.

Internship Programs

Launching an internship program is ideal for recruiting fresh talent when your business is well-established. Students and recent graduates will be able to intern at your company, upon which you can absorb those who best meet your requirements.

It’s also possible to strike a partnership with colleges in your community so that they can promote your internship program. This way, you’ll always have a pipeline of fresh talent coming to your company.

Employee Referrals

Sometimes, the people who know your next hire are your current employees.

Through an employee referral program, you’ll empower your employees to alert their friends or former colleagues when a job opening arises. Ensure the program has a reward element, such that if a referral turns out to be the perfect hire, the employee who referred the hire gets a reward.

How to Choose the Best Recruitment Method for Your Business

So, how do you determine which recruitment method to use? It depends on several variables, including:

The State of Your Business

Is your business setting out to hire its first employee, or have you already built a team?

If you’re entering the labor market for the first time, you cannot use a method like employee referrals. Can you tap into a talent pool because you have none? In this case, your choice is limited to direct advertising or using a recruitment agency.

Your Budget

Direct advertising is the least expensive method (direct costs) of hiring an employee. Nobody will charge you to post an ad on your website on social media, for instance.

If you’re operating on a shoestring budget and would love to incur as little as possible when hiring, direct advertising will come in handy. A recruitment agency will charge you a fee; some programs, like internships, have indirect costs.

How Quickly You Want to Hire

Sometimes, you want to hire a new employee as soon as possible; other times, you’re in no rush. Either way, how quickly you want to bring a new worker on board will play a significant role in your choice of recruitment method.

When time isn’t on your side, a recruitment agency is your best bet. These services have large talent pools and technologies that sieve through the database to find a job seeker who matches your requirements in seconds.

If you have one, tapping into your talent pool is the fastest method.

Direct advertising is time-consuming. You don’t know how long it will take for the right applicant to submit their application, and employee referrals can also take time.

Recruit the Right People, the Right Way

Recruitment is a crucial function in any company. The quality of your employees can make or break your business. This guide lets you know the different recruitment methods and how to choose the right one for your business.

Keep tabs on our blog for more small business tips and insights.