6 ways organizations can optimize their talent acquisition budget
As the COVID-19 pandemic continues to test the leadership and agility of global industries, organizations are being forced to reevaluate and optimize their spending as a matter of priority.
Talent acquisition is arguably one of the most expensive parts of an organization’s day-to-day business. It is also one of the hardest to evaluate due to the highly ambiguous nature of the costs involved. This was confirmed by a recent Korn Ferry poll, in which an astonishing 86% of HR professionals said they did not know the total annual cost of acquiring talent for their organization. Sixty-nine percent said they did not know the annual attrition cost of losing and replacing talent. Forty-four percent had no idea what percentage of premium pay costs were a result of open vacancies.
Before organizations can truly optimize their spending, it is critical that they find ways to understand and measure costs more effectively. This includes not just the direct costs of talent acquisition but indirect costs and investment costs as well.