Recruiting Strategies to Hire the Best Candidate
Recruiting in today’s fast paced, global economy is not the same as it was even five years ago. With constant competition, identifying the right candidate is far more difficult than writing up an ad based on a job description and hiring someone that has most of those skills. And research has shown the high costs of filling a position as well as leaving it open. Developing a clear, deliberate strategy to hire the best candidate instead of “a candidate” has become increasingly important.
In this course, we’ll review best practices in acquiring talent without wasting resources. We’ll focus on what it means to hire for cultural fit and discuss the interview process. Building a strategy to maximize a return on recruiting investments is imperative. Educate and guide your management team by learning how to hire the best and save your organization a great deal of time and money.
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Title: Stats: Costs for Open Positions
Module: The Stats: Strategic Hiring
Ok, let’s go back and take a look at hiring from a strategic perspective. Most organizations develop strategic plans on a yearly basis, and adjust
as the industry changes. Your recruiting should be done on a strategic basis as well. Strategically, most look at what the possible, probable and
worst case scenarios would be from a revenue standpoint (sales if you will), and then look at the cost of materials, and man power to achieve the
best of these scenarios. Often when thinking of man power, organizations forget to factor in what the costs may be for recruiting. They just look
at the salary and benefits to be paid to the needed staff which I believe is a big mistake!
In actuality, the cost of recruiting for the expected man power can skew the rest of the budget if not carefully factored in. I mentioned previously that one study estimated that it costs on average, 23,000 US dollars to have a needed position remain open, which is close to $2,000 per month. The longer a needed position remains open, the more expense the organization incurs – and that isn’t on the balance sheet – so it isn’t being tracked.
I also mentioned the estimated costs of recruiting for positions ranged from 7,000 US dollars to $40,000 per salaried position (depending on the salary of the position). This is for internal or external recruiting partners. Often expecting you, the HR professional, or even your management team to utilize their time to do the hiring from start to finish, can be less cost effective than engaging in an external recruiter, and will actually raise the recruiting costs another 3-5%. Obviously, if you are a large organization, and have a full recruiting staff that only does recruiting as their primary function, that would not be the case. There would be a cost associated with it (the cost of the department in salaries and benefits, but not lost time on other functions), however; most smaller or mid-size organizations do not have that luxury and divert valuable time (which is money – in the form of working hours) to the recruiting function. That time must be taken away from some other functions that are also performed by you, an already overworked HR Pro, which as a result, turns into lost productivity in these other areas.
Ok, so now we understand that if we do not look at recruiting from a strategic standpoint, the organization can incur expenses that have not been planned for.
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Lois has held senior HR leadership positions with both domestic and global responsibility, with emphasis in workforce planning (including succession planning); organizational development; employee relations; regulatory compliance (including Affirmative Action); compensation and rewards; benefits (including development of wellness programs); performance management; recruitment; and mergers & acquisitions.
With over 25 years of experience, Lois has served a...