Which combination of actions is recommended to lower Cost per Hire?

• A. Increase reliance on external agencies and paid ads.
• B. Cut onboarding and training.
• C. Hire only from a single university.
• D. Maximize employee referral programs and invest in building a strong Employer Brand to attract organic talent.

Answer: (D)

Lowering Cost per Hire comes from using cost-efficient sourcing channels and attracting applicants organically. Employee referrals tend to deliver candidates with higher fit and faster progression through screening and onboarding, which reduces sourcing spend, agency fees, and time spent per hire. A strong Employer Brand draws many qualified applicants without paying for extensive ads or third-party search, increasing organic inbound talent and cutting recruitment costs overall. When these two elements work together, you get faster time-to-fill, better candidate quality, and lower overall recruitment expense per hire. In contrast, relying more on external agencies and paid ads generally increases direct recruitment costs, while restricting hires to one university narrows the candidate pool and can lengthen the process. Cutting onboarding and training may save some upfront costs but doesn’t address how you attract and select candidates, so it won’t meaningfully lower cost per hire in the long run.