When asked, “what do you frickin‘ hate most about recruitment”, recruiters will undoubtedly say time and money.
Time and money are both essentially what make or break a business. Without the necessary time to accomplish tasks, a company loses money and potential business; a business not making money is a failing business. Efficiency is key in the workplace and this starts with the personnel within the company. It is essential to have the best employees for any given job; hence, resulting in a recruitment process that can potentially be long and arduous. This process takes time and resources away from other profit-generating business matters; training candidates is also very costly. This lengthy process handicaps a business even more so when said business falls into the category of an SME or rather a “small or medium-sized enterprise.”
The recruitment process is even more critical when the company in need is extremely dependent on all workers and the need for “cultural fit” is fundamental to the flow and success of the business. The wasted money and time spent on the recruitment process is exponentially more detrimental to an SME than to larger organizations, as capital tends to be more limited for smaller companies. We are here to provide pragmatic and invaluable insights as to how a smaller-sized business can recruit team members while being confined to a budget.
The hiring process sucks, I think we can all admit that, from both a recruiter’s and a candidate’s standpoint. Let’s be real, if there was a way to rid ourselves of this lengthy and superfluous process, we would. This also explains why most of the time recruiters resort to picking the first candidate recommended to them by a colleague instead of sifting through a wide pool of candidates to find a more suitable, qualified candidate. It just takes too much time, effort, and above all – money! But what if I told you that there’s a full-proof method of getting qualified, interested candidates while still staying within budget. Sure sounds appealing to small and medium business owners, wouldn’t you agree?
The actual cost of the recruitment process can be hard to determine. Depending on the time spent, the resources used, and the training and onboarding timetable, a hire can potentially cost up to $5,000. Dial in the opportunity cost lost by not having a worker there in place for the time allotted, the cost of a hire might rack up to the tens of thousands. Multiply that times the amount of people which get fired or simply leave the company, and thus have to be replaced on a year-to-year basis and you get a world of increased costs associated to your hiring practices.
There’s obviously much room for improvement in the recruitment process and in recent years, technology has helped improve the techniques used to find qualified candidates in a timely manner. Resources like LinkedIn are available to everyone and provide a great accumulation of professionals which companies can use even just to get a sense of the workforce available. Building a strong social media presence in general can be very beneficial when it comes to recruitment; obviously the more brand awareness, the better. However, having social media accounts which reflect the culture of the company is important because not only will it attract interested people to the company page, but it will also give potential candidates a sense of how the company conducts business and will deter people who wouldn’t mesh well with company culture from applying.
Besides using your social media presence to your advantage, there are other ways to enhance the entire recruitment process to minimize time and again, most importantly, costs.
- First off, avoid posting listings to all job boards available. It’s not so much about quantity as it is quality; posting on job boards will significantly increase the influx of applications and that, in turn, results in a huge amount of wasted time.
- Consider promoting listings through a select few job boards where the type of candidate you search for might frequent. A huge trend within recruitment is the utilization of ATS, or Applicant Tracking System. This technology helps in weeding the good candidates from the bad; also, it helps gauge the interaction of candidates with respect to job listings.
- A good tool that does exactly this is Candidate ID. This type of technology (which usually is a one-time purchase) can save thousands of dollars in the long run by helping choose the right candidate the first time. Not only will this help in picking the right candidate the first time, but these types of technologies will also aid in fast-tracking the selection process and getting the preferred pool of candidates from the get-go.
Also make sure the offer for the position is worth reviewing for the candidates. For many candidates (especially millennials) it’s more about the package deal. Offering great benefits and maybe sacrificing on the salary a little will boost candidates’ interest in the listing and more qualified individuals will likely want a piece of the metaphorical pie. For SMEs, treating your employees like family and making their time worthwhile is absolutely necessary. In this day and age where millennials always try to achieve bigger and better professional lifestyles, treating employees you covet with fair benefits is a must. Not doing so will influence his or her loyalty to the company and potentially can cause a “break up” to occur. Doing this could also be potentially cost-efficient because normally, again, recruiting new candidates is a drag and quite costly.
Lastly, devote a lot of time to the interview and referral process. With the time saved from scavenging through the hundreds of online applications, recruiters can dedicate more time to the interview and referral process. Making sure you get the right employee the first time, while maybe taking more time initially, will save the company a world of hurt from having to source more candidates in the future. For SMEs it’s also extremely important that the candidate meshes well with current staff and fits in with the company culture.
If all goes well, not only will you have cut the time spent on sourcing qualified candidates, but you will get yourself one solid, engaged employee who will hopefully be part of the company for the long run. You also will be cutting the costs spent on hiring and training new employees. A harmonious work environment yields optimal business practices and over the years you will be saving money by running an efficient, lean company. If you are looking to expand your knowledge on the kinds of systems and automation tools that might be beneficial for your business, reach out to us at v6Talent and talk to one of our specialists.