9 Cost-Effective Ways to Source Candidates for Your Small Business

When you're ready to fill a job opening, using a variety of recruiting methods can help increase your chances of finding a qualified candidate. Consider these nine cost-effective options to that won't break your recruiting budget.

Key points

When sourcing candidates:

Develop and maintain a fair and consistent process to help recruit the most qualified candidate for the job.
Use a variety of talent sources, such as the company website, social media, and public resources.
Consider existing networks such as employee referrals, internal candidates, and past applicants.

9 cost-effective ways to source candidates for your small business

1. Internal job postings

Hiring an internal candidate can be a great, low-cost option in certain circumstances, such as when the current employee possesses strong skills when compared with the external market, and is the most qualified candidate due to their:

Deep institutional knowledge of the business and its products and processes; and
Existing relationships with clients and coworkers (which typically decreases the learning curve since external candidates may require more time to get up to speed).

Note: When making an internal hire, keep in mind that you may need to backfill the employee's previous role.

2. Employee referrals

Referral programs, where current employees are encouraged to recommend positions available in the company to qualified people they know, can be an inexpensive way to find candidates. If a successful hire is made, the referring employee typically receives a referral bonus. If you decide to establish a referral program, develop a written policy addressing eligibility and other program rules.

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3. Previous applicants

Another low-cost option to consider is reviewing the applications you have on file. There may be a position that was closed, or a candidate who wasn't the right fit for a previous opening but is a good fit this time around.

Note: Follow recordkeeping laws to make sure you are retaining files for as long as required and properly disposing of them when the retention period has expired.

4. Rehires

Hiring former employees is another good option to fill a job vacancy if they were a strong performer and have a proven track record with your business.

5. Company website

Many employers have also found success posting job openings on their company website. This is typically done via a "careers" page that enables candidates to browse and apply to the company's job openings. Many job seekers use their mobile devices to seek and apply for jobs, so ensure your website and application are optimized for mobile devices.

Related: What to look for when hiring

6. Social media

If you have a presence on social media, share job openings with your followers. More than likely, this group is already engaged and committed to your company's mission. Even if your followers aren't looking for a job themselves, they may know someone who is.

Considerations when using social media to source candidates

When researching applicants online, you may inadvertently come across information that would normally be "off limits," such as their age or disability. If you're searching for candidates on social media, take steps to prevent protected information from influencing your decisions (intentionally or unintentionally):

Consider choosing someone outside the decision-making process to conduct the searches; and
When using social media's ad-targeting tools to attract applicants, make sure you avoid targeting ads based on a protected characteristic.

7. School and community job boards

Most universities have online job boards that allow students and alumni to search for employment, and many community-based, professional and trade organizations host job boards as well. To help expand your applicant pool, seek out organizations and schools that serve communities that are underrepresented in your current workforce.

8. Workforce Recruitment Program

The federal government's Workforce Recruitment Program connects employers to a database of college students and recent graduates with disabilities seeking employment.

9. Veterans Job Bank

The federal government has resources to help connect employers and veterans who are looking for work.

Conclusion

Consider these recruiting methods to help build a strong and diverse applicant pool and follow applicable laws to help maintain a fair and equitable recruiting process.

Frequently asked questions

Do I need to post on paid job boards to find qualified candidates?

No. Many effective sourcing methods — including employee referrals, internal postings, rehires, reviewing past applicants, and posting on your company website — cost little to nothing. Free public resources such as school job boards, the federal Workforce Recruitment Program, and the Veterans Job Bank can further expand your reach without a paid job board subscription.

What compliance risks should I watch for when sourcing candidates on social media?

When researching applicants on social media, you may encounter protected information such as age, disability, or other characteristics. To reduce risk, consider assigning someone outside the hiring decision to conduct social media searches, and ensure ad-targeting tools are not filtering based on protected characteristics.

How do I set up an employee referral program for a small business?

Develop a written policy that addresses eligibility, program rules, and the referral bonus structure. Encourage current employees to recommend qualified people they know for open positions. If a successful hire is made, the referring employee typically receives a referral bonus.

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This article was originally published as an "ADP HR Tip of the Week" which is a communication created for ADP's small business clients.