What recruitment strategy is recommended for a company with high turnover to reduce costs?

A recruitment strategy that focuses on adopting a low-cost approach, such as utilizing referrals, is highly recommended for a company experiencing high turnover. This strategy is effective for several reasons. First, employee referrals typically result in candidates who have a better understanding of the company culture and the specific roles, leading to a better fit and potentially lower turnover rates in the long run. Employees are likely to refer individuals they believe are suitable, which enhances the quality of hires.

Furthermore, referral-based recruitment often incurs lower costs compared to traditional hiring practices because it reduces the need for extensive advertising and recruitment campaigns. Existing employees are motivated to refer capable candidates, often resulting in quicker hiring processes and reduced time spent on onboarding. This ultimately helps the company to mitigate the costs associated with frequent turnover.

Promoting from within can also be a valuable strategy, but it may not directly address the immediate need to reduce hiring costs if turnover is high. While internal promotions can improve morale and retention among existing employees, the root cause of high turnover often needs to be addressed more fundamentally.

High-cost hiring practices might not be sustainable for a company with high turnover, as they could lead to further financial strain without guaranteeing retention. Similarly, relying on executive search firms may not be feasible or cost-effective in situations