Arpit Mishra

Recruiting top-class talent is challenging in itself and doing it on a low budget can be quite a daunting task!

Startups and mid-sized companies that typically operate on a shoestring (small) budget (before they catch the eye of the big VCs and make it to the big league) are commonly faced with the predicament of how to recruit the right candidate with their limited budget.

At a time when big companies lure top talent with generous salaries and bonuses, VMware, Splunk, and Cadence the top three paying companies in America pay their employees in the range $160k according to Business Insider.

What chance do the smaller players have?

According to a study by Deloitte, employees reported work-life balance as being the most important factor apart from salary.

In another finding, a whopping 42% of those surveyed by Towards Data Science was willing to choose a lesser paying job with fewer working hours than a better-paying one with more working hours!

The attractive perks and benefits offered by tech biggies to their employees to keep them interested in more evidence supporting the finding that salaries aren’t everything.

For instance, Netflix offers its employees unlimited maternity and paternity leaves in their first year of parenthood.

Airbnb, on the other hand, offers its employees an annual stipend of $2000 to travel!

While the latter may not be applicable to a firm with budget constraints, a flexible work schedule can be very attractive to many employees. (Also Read – Employee onboarding: Looking at the bigger picture).

So what should startups do to hire developers and other tech talents on a small budget? While everyone is looking to get that developer worth million dollar bucks, there are few creative recruiting strategies to hire great talents, let’s discuss them below

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9 creative recruitment strategies for hiring top talent

1. Appeal to their emotional side

   While salary and bonuses may be more appealing to the logical side of the brain, there is another way to attract a potential hire – by appealing to their emotional side.

   At the core, all of us are driven towards finding a sense of purpose.

   If you can get candidates invested in your company’s mission, then it can go a long way in shifting their focus from merely looking for a well-paying job to one where he/she could make a difference in the larger scheme of things.

2. Additional perks never hurt

   Maybe you have a fancy cafeteria with unlimited snacks and all your employees are equipped with MacBook Pros. Or maybe not.

   One thing we need to understand is that not all employees seek these fancy perks.

   Quality bonding time with everyone over a piping hot cuppa and some munchies to go around may be just as appealing!

   Most companies tend to overlook certain easy-to-implement and highly effective perks that would appeal to the employees, such as

   1. Flexitime

      A flexible work plan empowers employees to plan their work around their own schedule, which in turn leads to a more productive workforce that is self-motivated and doesn’t need constant reminders or supervision.

      The flexitime can be in the form of late clock-in time or early clock-out time. Since the flexiwork applies to everyone involved, employees are more willing to pitch in for a colleague in case of emergencies.

   2. Healthy meal options

      Promoting a healthy workplace is also in fashion these days, with cafeterias serving all kinds of healthy and nutritious food for the employees.

      By adopting a healthy food policy, not only are you offering your employees a healthier alternative but also positioning yourself as an employer that cares for its employees’ health and well-being.

   3. Convertible or standing desks

      Emerging as one of the fastest growing and in-demand employee benefit across companies, the humble standing desks or sit-to-stand desks can be an inexpensive yet attractive perk to offer to a prospective candidate.

      These desks, apart from making the workspace more robust and dynamic, ensure better collaboration among employees.

   4. Discounted neighborhood membership

      Most startups operating on a tight budget would not be able to afford a fully functional gym in their workplace, however, a group discount at a neighboring gym can be an excellent alternative.

      This would promote a healthier, dynamic work environment.

   5. Travel or holiday allowance

      An excellent benefit to add to your list would be a holiday allowance that can boost the happiness quotient among employees in your office to new levels.

      A dash of creativity coupled with some well-thought out and relevant benefits can empower you to not only retain your current crop of employees but also galvanize them into becoming brand ambassadors for your company.

      Referral hires who are well versed with the dynamics and work culture of your company, thanks to this band of brand ambassadors, would be willing to take a pay cut because they know they would be a good fit here. (Also Read – How employee wellness affects productivity: four fundamental pillars)

3. Work-life balance

   Whether you’re running a bookkeeping side hustle with a team of two or managing an enterprise with a dozen headcounts, you must prioritize the work-life balances of your employees .Employees today do not prefer to be tied down to their desks for long work hours and require time-off to socialize, follow their passions, pursue higher education and lead a fulfilling life.

   It is imperative for employers to understand this need, and offer employees an excellent work-life balance. Such a workforce tends to be more productive and infuses robust energy to the workplace.

   A study by Deloitte reports how employees revealed that work-life balance was one of the most important factors while considering a job.

   There are limited hours in a day and demanding that your employee work for longer hours not only builds resentment but also affects productivity!

   An unhealthy lifestyle with irregular meals of unwholesome food, lack of adequate exercise, and the absence of stress-relieving activities can potentially lead to life-altering or fatal lifestyle diseases!

4. Autonomy, mastery, and purpose

   Experiments in the 1970s by well-renowned psychologist Edward Deci studied how money and motivation derived different results from its subjects.

   In these experiments, a group of people was divided into two sets, one that was asked to solve a puzzle with money as the reward and the other who was asked to solve a similar puzzle without any monetary rewards.

   He found the second group that was simply offered a challenge without any monetary compensation to be more motivated than the one that was offered compensation.

   This example is in no way to suggest you withdraw monetary compensation for your employees from the table! On the contrary, the lesson we could perhaps learn from this is that humans have an intrinsic need to succeed, which can be leveraged by offering them an environment that is conducive to attaining such a goal.

5. Potential for growth

   Some of the best hires are often looking for an excellent opportunity and a challenge as well!

   They are keen to know about the company’s growth prospects and their own professional advancement and career prospects.

   In a poll by Gallup, 87% of the millennials reported career advancement was very important in a job.

   A candidate who understands his current role, as well as the career prospects within the company, is much more likely to take a salary cut in lieu of career advancement.

6. Stock options

   Several companies offer equity or stock options as part of the compensation.

   This would mean that the salary that the employee gets in hand would be much lesser since he gets to have greater skin in the game.

   This is an excellent way to align the company’s interests with that of the employee.

   The employee who chooses to take a lesser salary in lieu of equity believes in the company’s potential and is incentivized to grow the company so that her own shares also increase in value.

   Microsoft is one of the early companies who offered stock options to its employees and created 3 billionaires and over 12,000 millionaires in the process!

7. Sell them on your technology

   A very effective way to attract players to your team is to sell them on the hot technology you are working on.

   People, from entry-level to senior-level employees, would take a smaller paycheck if they get to work on cutting-edge skills. (Also Read – Automation in recruitment and why it is a necessity for HR)

8. Show them you only hire the best

   Compelling stories about your team and their superior industry knowledge would persuade a talented hire to be part of your team.

   The reason?

   An A-player prefers to work with other A-players and would be willing to take home a few dollars less for the opportunity to be in the company of great talent.

9. Job vs. Career

   The best hires are not merely looking for a job to earn money!

   Instead, they are looking for a workplace that has the potential to grow and offers similar growth prospects to its employees.

   In short, a lucrative career is what a top-class talent is looking for.

   To convince a person such as this, you need to play up your company’s mission, its goals, its potential for growth, its team, and its work culture.

   It is imperative to find a dedicated team of talented employees to boost your company’s success and without lucrative paychecks, these above-mentioned ideas can serve you well in attracting great talent.

Conclusion

While finding new ways to retain employees through exciting perks and keep them engaged with new challenges, remember to not tweak the hiring process to such an extent that you have to make do with less than the best talent.

There are other ways to cut costs— employ novel tools to identify talent, streamline the evaluation and interviewing processes, and manage employees— and weed out under-qualified candidates.

Automation can save several man-hours, which means you save lots of pennies too, and improve the effectiveness and efficiency of your recruitment strategy.

Read how start-ups like GyanMatrix & global NGOs are using Technology Recruitment Software for hiring technical talents on budget.

Take a 14-day FREE trial for HackerEarth Recruit to see if the software is a right fit for your organization.

Recruiting new people is exciting. But, the additional costs that come along with it? Not so exciting.

In fact, these costs can be dreadful if you have not planned a recruiting budget to keep a bull’s eye on your overall costs.

Recruitment Budget Template

That’s what we have:

• put a detailed guide on the 6-step process to create detailed recruiting budget sheet
• created a free recruiting budget template downloadable for you to get started

What is a recruitment budget?

A recruiting budget is the financial plan adopted by businesses and human resources teams to manage all the expenses related to hiring processes. This includes:

• posting jobs
• investing in tools and services like ATS, assessments, video meeting software
• using external recruitment agencies
• doling out bonuses for referral programs.

For example, if your organization invests in job posting platforms, and recruitment tools like skills assessment and video interview software, and conducts employer branding events, then you need to calculate the overall costs for these activities.

These activities are handles by the HR department. A specific amount of money is allocated to each HR manager for these activities. They need to inform the HR department before making these investments so they can approve them and keep in the records.

Essential components of a recruiting budget

Drafting a recruitment budget goes beyond just looking at how much you want to spend on job ads. Consider the following critical components:

Job advertising: Allocate funds for platforms like LinkedIn, job boards, and niche industry sites.

Recruitment technology: Include costs for Applicant Tracking Systems (ATS), AI recruiting tools, and other software that streamlines the process.

Talent sourcing: Set aside funds for strategies such as headhunting, talent pools, and referral programs.

Candidate experience: This encompasses costs related to improving the interviewing experience, like travel reimbursements, meals, or gifts for candidates.

Training and onboarding: Consider the resources needed for onboarding new hires, including training programs, workshops, and materials.

Background checks: Budget for third-party services that conduct background verifications, drug tests, etc.

Recruitment events: Whether it’s hosting job fairs, attending university recruitment drives, or setting up booths at industry conferences, there are associated costs.

Agency fees: If you’re using a recruitment agency or external consultants, their fees need to be accounted for.

Internal costs: Think of HR salaries, office supplies specific to recruitment, and other overheads.

Miscellaneous and contingency: Always set aside a portion of your budget for unforeseen costs or opportunities that might arise.

How to create a recruitment budget

Step #1: Calculate the number of hires

The primary expense for any organization: its employees. Before starting with the math, get on board all the managers to understand their requirements in terms of new hires in the coming year.

Circulate a sheet similar to the following one and ask all stakeholders to fill it. This will help you understand how many new hires they may need in the coming year.

Based on this data, the recruitment cost analysis can be done more accurately.

Team/Qtr	Q1	Q2	Q3	Q4	Total
Engineering	12	22	14	19	63
Sales	6	7	12	3	28
Operations	2	4	4	1	11
Marketing	3	9	14	7	33
Administration	5	8	8	4	25

Along with these number, you will need

• Expected designation: Knowing if the roles are for interns, managers, senior managers, etc. will help estimate what the likely expenses, both quarterly and annual, are for specific teams.
• Skills: In case you need to collaborate with external agencies, having a good idea about the niche skill sets your organization is looking for help; also, you might have to start this process early.

According to Sharon Jautz, Head of HR, WGSN

Not accounting for the length of time role will stay open. I have a rule: If you have met with at least 10 candidates and the role is still open, you need to reevaluate the role, decide if you need it and reevaluate your interviewing criteria.

Along with these numbers, what is needed to be taken into account is the turnover rate for each team and for the organization. The HR team needs to have a good understanding of how many employees would be leaving the organization in a particular year.

So, if the turnover rate is 10% and your total employee count is 2000, it means that 200 employees would be quitting the company next year. Hence, if you are looking to hire 160 new employees (from the above table), your actual count increases to 360. 200 for employees who have quit and 160 new employees.

Going back to past few years number and calculating turnover (If you do not have the number refer to average turnover over rate for industries from the web) for each team, give you an exact measure of the number of hires you would be hunting for in the coming year.

Step #2: Estimate basic recruitment costs

Recruitment costs refer to basic expenses associated with the hiring and recruitment process. These expenses are mostly recurring and often billed early in the year.

This cost may vary for each organization, but you have to consider common expenses across boards to have rough estimates.

• Job boards: They are a great starting point to draw attention from candidates, and are frequently used by major corporations. For example, Cutshort, Indeed, LinkedIn and Stack Overflow.
• Salaries: Occasionally, teams collaborate with contract-based recruiters and agencies on yearly basis. Don’t forget to add their salaries too.
• Employee branding: Branding campaigns, career page optimization, and video campaigns—these are just a few ways you can amplify your employer brand and educate employees about why they should work in your organization.

Look at the following sheet to understand better.

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Also read: Nirvana Solutions uses HackerEarth Assessments to Reduce Cost Per Hire by 25%

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Steps #3: Calculate the fixed cost

Fixed cost are costs associated with your recruitment process happens yearly and is usually processed in an orderly manner like salaries, partnerships, recruitment agencies, etc.

• Internal Salaries: Calculate internal salaries for existing employees. Make sure to add your HR team. The rules say for every 50 employees you should have 1 HR. Budget your internal salaries accordingly. Also, take into account the expenses if you are looking for new team members.
• Partnerships: Calculate the cost of any yearly partnerships which you plan to commit to. These partnerships can include an external recruitment agency, event agencies, social media promoters, and others.
• Recruiting events: Make a list of all upcoming virtual recruiting events like conferences you plan to take part in, in the near future and budget them in your sheet.

As Neil Williams from AVI-SPL says

I found that fees associated with events such as job fairs including air travel and lodging can be easily missed. Remember to think of each event from start to finish and all the necessary logistics involved.

• External recruiting agencies: Most of the companies tie up with external recruiters agencies or independent recruiters who help them hire candidates, especially for niche skills. Think of the approximate number of hires you plan to make for the year. Factor in the cost associated with each hire (paid to the external recruiter) when you prepare the budget.

Step #4: Estimate recruiting technology costs

Technology is a great enabler. As HR evolves with enabling technologies like talent assessment software and video interviews, companies can expect better recruitment and overall management.

Coding assessment software

While candidate sourcing is managed by multiple agencies, job portals, and social channels, it is imperative you evaluate candidates on the right parameters. Coding assessment tools like HackerEarth Assessments helps reduce hiring costs by 10X.

Companies have also been using HackerEarth talent assessment software for university hiring by evaluating candidates remotely—reducing large cost (travel, stay, man-hours, etc.) associated with campus placement.

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Also read: 5 Best Practices for an Effective Hybrid Campus Hiring Strategy

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Video interview software

While assessing candidates can be managed by technical interview software, an organization should evaluate the candidate in person before selection. However, candidates are often scattered across the globe and the cost associated with their travel becomes too high. This is where video interview software like EasyHire and Kira Talent comes in.

HackerEarth’s coding assessment software is accompanied by video interview software called FaceCode, which helps you assess candidates on their real-time coding skills while interviewing them. Since these features are bundled, there are more savings to be had!

Background check service

A background check is an essential service used by organizations to verify a candidate’s credibility. Major global organization work in this field and charge relatively high fees in verifying all the relevant information.

With the increasing usage of social media and networking, referral hiring is a good way to save on the background check service. Calculate the cost accordingly.

Pre-boarding software

Candidate pre-boarding has evolved a lot over the last few years. With multiple options in hand, candidate ghosting has been a major menace for the recruiters. It is extremely essentials to keep your candidates way before joining, helping them understand their role, responsibility, and progression.

Companies using pre-boarding software have seen reduction in drop-off by more than 45%. Some of the top pre-boarding software available are Beamfox, BoardOn, Talmundo.

Application tracking system (ATS)

Application tracking systems have not evolved much since their inception in the mid-90s. But due to high dependency on them, most of the organizations still prefer to have a good part of their expenses dedicated to ATS.

Application tracking systems help follow the entire journey of a candidate, from sourcing, interviewing, joining, to exit. Some of the top ATS across the globe are Taleo, Greenhouse software, iCIMS, JobVite.

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Also read: Remote Work and Recruitment: An ATS Story

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Step #5: Estimate your miscellaneous hiring costs

Tying in the ROI on the unexpected expense with the broader strategic HR and/or organizational plan helps get stronger buy-in for unexpected added costs

Ensure you make allowances for miscellaneous expenses that pop up frequently in your hiring cycle. A few expenses relate closely to the internal campaigns you decide to run with referral bonuses taking up the major chunk.

Next, average out all incentives paid in the last two years to have an approximate idea about the budgeting for incentives to be rolled out in the appraisal cycle. It is essential to keep a check on inflation and the industry-standard before zeroing in on a certain amount.

Some companies regularly offer bonuses to their employees, sometimes in the festive season or when the business has had a great year. Discuss with the leadership on the target goals, and any bonus roll-out in case targets are achieved.

Step #6: Calculate cost per hire

And the most important step, calculate the cost per hire before finalizing the budget. If you have a previous budget to refer to the cost per hire for earlier years, then calculate expected expenses for the coming year.

According to Neil Williams, HRBP, AVI-SPL

Calculate it by adding the actual recruiting expenses from last year and divide by the number of hires you made. Then, multiply your average cost per hire by the number of hires you plan to make this year. Add all projected internal and external costs.

The basic formula for cost per hire is

Cost per hire = Internal Cost + External Cost / Total Number of Hire

Make sure that your cost per hire should not increase exponentially for any given year and should be in sync with inflation, revenue growth, and a number of hires.

Tips for managing tech recruitment budget

Here are some tips for managing your tech recruitment budget effectively throughout the year:

1. Plan ahead: At the beginning of the year, take some time to plan out your hiring needs for the year. This will help you to estimate how much money you will need to spend on recruitment.
2. Set a budget and stick to it: Once you have a good understanding of your hiring needs, set a budget for recruitment. Be sure to include all of the relevant costs, such as job postings, advertising, recruiter fees, and background checks.
3. Track your spending: It is important to track your spending so that you can stay within your budget. This will also help you to identify areas where you can save money.
4. Use free and low-cost recruitment tools: There are a number of free and low-cost recruitment tools available. For example, you can use social media to post job openings and to connect with potential candidates. You can also use free job boards, such as Indeed and LinkedIn.
5. Partner with recruiters: If you have a lot of open positions, you may want to consider partnering with a recruiter. Recruiters can help you to find qualified candidates and to manage the hiring process. However, it is important to note that recruiters typically charge a fee for their services.
6. Invest in employee referrals: Employee referrals are a great way to find qualified candidates. Encourage your employees to refer their friends and colleagues for open positions. You can also offer incentives for employee referrals.
7. Hire for soft skills: Soft skills, such as communication, teamwork, and problem-solving, are just as important as hard skills in the tech industry. When hiring, be sure to assess candidates’ soft skills in addition to their hard skills.
8. Negotiate salaries: When negotiating salaries, be sure to factor in the cost of living in the area where the candidate will be working. You should also consider the candidate’s experience and skills.
9. Offer competitive benefits: In order to attract and retain top talent, you need to offer competitive benefits. This includes benefits such as health insurance, paid time off, and retirement savings plans.
10. Review your budget regularly: It is important to review your recruitment budget regularly to make sure that you are on track. You may need to adjust your budget based on changes in your hiring needs or the market conditions.

Plan your recruiting budget effortlessly

Make sure that your cost per hire should not increase exponentially for any given year and should be in sync with inflation, revenue growth, and a number of hires. Download a sample budgeting sheet for the coming recruiting year.

HACKEREARTH – TECHNICAL RECRUITING SAMPLE BUDGET SHEET

We put together a list of top recruiting software platforms tech recruiters, HR can use, in no particular order.

Best Recruiting Platforms are

1. 1. HackerEarth (Coding Assessments)
   2. Dice (Open Web)
   3. Codility
   4. HireVue
   5. Pymetrics
   6. People Search (Workable)
   7. The Predictive Index
   8. Devskiller
   9. Hired
   10. Glider.ai

Read the detailed description on each of top recruiting software below -

1. HackerEarth (Coding Assessments)

   Recruit, HackerEarth’s technical recruitment software, allows companies to use online coding tests to automate their tech screening process.

   With a library of more than 15,000 questions, technical leads, and even non-tech recruiters can conduct tests on a large scale to grade developers for virtually any technical role.

   Supporting 35+, Recruit auto-assesses the submissions of each developer instantly based on defined parameters such as logical correctness, time-efficiency, memory-efficiency, and code quality.

   Tech recruiters can then analyze each applicant’s performance with the detailed reporting and analytics features within Recruit.

   With its proctoring measures and plagiarism detection techniques, recruiters can be surer about the originality of each submission. -

   Looking to hire developer - Request a free demo

2. Dice (Open Web)

   An award-winning social recruiting platform, Open Web aggregates profiles from over 180+ social sites to give you tech talent with hard-to-find skills.Tech recruiters can build a tech pro’s profile from digital signatures gathered from these social sites. Dice Open Web also helps them to reach out to passive candidates and get better response rates, saving time and cost.
   
   This recruiting platform offers predictive analytics to increase the efficiency of the hiring process.
   
   Talent acquisition and hiring managers can also get an overview of the candidates' technical aptitude as Open Web focuses on portals such as GitHub and Stack Overflow.
   
   (Also read: 5 reasons you should use Talent Assessment Software)

3. Codility

   Codility offers an intuitive recruiting platform to increase brand visibility and help source programmers to add value to your company. Developers can be evaluated, or inspired, using customized tests/challenges and interviewed via the automated platform.

4. HireVue

   Utah-based HireVue calls its product an “all-in-one video interview and pre-hire assessment solution.”The digital interview platform helped recruiters choose applicants from a sea of resumes by watching videos where they had recorded responses to interview questions.The company now adds artificial intelligence (voice recognition software, licensed facial recognition software, a ranking algorithm) to pick the ideal candidate.
   
   HireVue promises tech recruiters a modern, simple approach to hiring through insightful data.

5. Pymetrics

   Using neuroscience games and AI, Pymetrics offers a bold recruiting platform that is bias-free.It helps tech recruiters build a profile of a candidate not based on resumes but on their emotional and cognitive traits.Pymetrics identifies what candidates are best at and matches them to the right jobs; this approach puts applicants on a more equal footing.“If LinkedIn and Match.com could have a child, Pymetrics would be it.” (Digital Trends)

6. People Search (Workable)

   This search engine from Workable helps tech recruiters source candidates using “information aggregated from multiple sources in real-time,” streamline applicant tracking processes and manage interviews.People Search helps personalize reach and boost response rates. It allows Boolean queries as well.

7. The Predictive Index

   This is a behavioral assessment designed to be an effective, simple, and easy evaluation of existing and future employee work skills.The proven methodology helps tech recruiters define the cognitive and behavior requirements for a job and assess and hire candidates accurately.The test uses a free-choice format and is not timed; it takes about six minutes and measures four constructs: extroversion, dominance, patience, and formality.

8. Devskiller

   Devskiller lets companies use their own code base to test programmers online and lets developers use their own IDEs and resources.Tech recruiters can screen applicants with real-world sample tests to assess what really matters and interview them in real time.The recruiter-friendly solution automatically measures the coding skills and finds the real problem solvers. The company says it aims to imitate a “first day at work experience.”

9. Hired

   Hired brings together tech recruiters and employees, matching the right people to the right jobs.The website offers “algorithmic matching, key ATS integrations, and 1:1 support” to make smart recruiting decisions for employers looking for top quality technical talent.

10. Glider.ai

    This artificial intelligence-powered competency-based hiring platform helps recruiters build great tech teams. Glider’s approach combines the preferences and capabilities of employers (and job seekers) to ensure an efficient recruitment process without bias. For data-driven hiring decisions, Glider offers auto-scored coding tasks, video interviews, and real-world simulations.

(Read: How to pick the right assessment tool)

Conclusion

These are only a few of the most effective and popular recruiting platform available in the market.With amazing advances in artificial intelligence and machine learning, automation almost guarantees the efficiency and accuracy of the hiring process and helps create a rich workplace.Although automation in technical recruitment is a no-brainer, organizations must remember to give enough importance to emotional intelligence and human interaction.The recruitment landscape has changed tremendously in recent years, especially with diversity and inclusion goals and the need to become “innovative” gaining prominence.Forward-thinking HR leaders must focus on optimizing talent along with strategic hiring and retaining engaged employees to boost overall business performance.It pays to take all the help you can get—use talent assessment software best suited to your needs and “transform” your recruitment strategy.

Detailed feature comparison of 8 recruiting software platform for developer hiring

We decided to compare the 8 most common recruitment software platforms as per the number of users. These comparisons have been made from an external source.

All platforms have been compared based on price, number of users (admins), number of assessments and 9 other criteria.

Download full comparison by filling the form below -hbspt.forms.create({portalId: "2586902",formId: "28743abe-765e-4f2a-b7d6-470b90136efc"});