Attracting and retaining top talent is key to building a successful company. It impacts every business function and the employees of a company create the culture and contribute to building the company’s brand equity that can also attract additional talent.
A study done by The Boston Consulting Group entitled “Realizing the Value of People Management from Capability to Profitability”, shows that recruiting is the most important human resources function when it comes to return on investment. Business units are able to grow and innovate more effectively when the proper talent is in place. In this same study, companies with great recruiting processes had two times more profit than companies that did not. Companies with successful recruiting are also seen as places that talent want to work. The employees of a company can be a determinant of the direction the company may go, and it is essential that the right people are put in the appropriate roles. Forbes magazine states that in order to create an impactful recruiting process, companies must implement the following:
- Define your organization’s values, vision and goals
- Find out if your candidates are talented, growth-oriented and mission driven
- Interview the candidates for their ability to meet the challenges specific to your organization
- Carefully decide who’s the best fit
Recruiting talent can be tedious and time consuming for companies. Successful companies are working towards creating a comprehensive recruiting process and tend to come across some of these concepts:
Companies are Looking to Recruiting Agencies
Recruiting agencies are supplemental resources that help companies grow their talent pool. They tend to have great market knowledge and collect helpful data that informs companies about the current landscape of the job market. Agencies can gather insights such as salary ranges, favorable companies and regional preferences. Recruiting agencies also have a great reach of candidates and have the ability to attract a diverse pool of talent. Recruiters also filter out candidates that are the right fit for certain roles and are typically very transparent about the company and roles they are pitching. Relationships with agencies are built on trust, therefore agencies tend to work with reputable companies and highlight positive attributes of the company’s brand and culture.
Saving Time and Money Through a Competitive Recruiting Process
A company’s recruiting process can impact their financial growth and also occupy valuable time of employees. When recruiting, it is important for the company to find candidates that are a good fit for the role and the company culture, while being transparent about both the positive attributes of the company and any opportunities for improvement. The hiring process can be very time consuming and monetary resources are also put into place for training on and onboarding initiatives. If a proper strategy is put into place for the recruiting process, this can ensure the retention of employees and cut costs on hiring activities. According to the U.S. Department of Labor, the price of a bad hire, is at least 30% of the employees first-year earning . Poor hiring can also bring down the overall productivity of the business units, so it is very important to have a good process in place.
Great Talent can Attract Other Great Talent
Once talent is recruited into the company, they typically have a network of valuable talent that can be referred into the company. Companies are emphasizing the importance of employee referrals because it gives them the ability to utilize less resources on recruiting through credible sources.
The software company Careerify did a study and learned that referred employees are 23 percent less likely to quit than other hires.
When talent is referred, they will typically be mentored through the recruiting process and have a resource that provides a realistic perspective on the company. If a large number of employees choose to refer people in the company, this is a positive indication that the company is a favorable place to work. Referral systems give employees an opportunity highlight positive attributes and benefits of the place they work and incentivize them to share this with their friends, family and networks.
Finding the Right Fit to Retain Minimize Turnover
Throughout the recruiting process, it is important to follow a clear strategy to avoid a percent Increase in turn over. Although this must be managed throughout the employee life cycle, it begins at recruitment. Recruiters should screen for cultural fit in order to ensure that candidates can thrive in certain work environments. Transparency is very important in the process and recruits should be fully aware of the upcoming roles and responsibilities. The right questions must be asked, and the proper measures must be taken to get to know candidates. High turnover rates can impact a company’s brand equity and deter strong talent from seeking employment at the Company. Other outcomes of turnover can be legal consequences from upset employees that can also be a financial burden.
How executive search firms can streamline the recruiting process for companies and find executives for the c-suite.
Executive search firms having access to the best talent across different regions, and they can easily locate executives with a good mix of skills. These firms become experts in the field, and only focus on filling the top roles within the organization. When looking for C-Suite leadership, companies can be very specific when using search firms and utilize the resources of the firm to fill the open positions with top talent. Companies do not want to spend too much time sorting through hundreds of applications and resumes so it is best to have a firm narrow the search down and create an efficient process. They will research, vet, screen and interview all candidates for success and narrow the pool down to 3-5 top prospects. Forty-one percent of those surveyed by AESC said tenure was the most important metric of a successful candidate, and research shows that candidates placed by executive search firms stayed in their roles longer. Using a search firm will streamline the recruiting process for top C-Suite executives and the tailor the search to meet the unique characteristics and needs of the company.
The majority of employees at a company have been through some sort of recruiting and tend to have feedback regarding the positive and negative aspects of the process. It is important for companies to include current employees in the recruiting process and use any feedback to constantly improve. Strong companies are able to attract and retain strong talent which has great long-term benefits. The wrong hire can negatively impact the growth and development of the organization, so it is important to keep recruitment strategies at the forefront of company initiatives. When done right, recruiting talent will lead to productivity, a great company reputation and overall growth.
Have more questions about how an executive search firm can pave the way for the future success of your company? Get in touch with the experts at Enlow to take the first steps!