An efficient recruitment process significantly increases your capability for finding high-quality talent and the right people to help you achieve business growth. However, due to it often being perceived as a complicated and time-consuming procedure, many companies outsource to recruitment agencies, risking their quality of hires and employer brand – while paying handsomely for the privilege. To cut back on wasted time and money on the wrong hire, it’s vital to reassess your current strategy and identify where you can improve efficiencies in recruitment.
Currently too many companies are spending much more than necessary by outsourcing their hiring. According to the latest Recruitment and Employment Confederation (REC) annual Recruitment Industry Trends report, the average fee for a permanent hire was £4,238 in 2018. And this number can be considerably higher for rare executive positions, with some agencies charging up to 30% of the salary. After several hires, these charges certainly do add up and can become a strain.
This figure can be even more substantial if spent on a wrong hire. According to a separate report from REC, a poor hire at mid-manager level with a salary of £42,000 can cost a business more than £130,000. The hidden costs involved in bad recruitment include money wasted on training, lost productivity, and increased staff turnover. However, an efficient and streamlined process will be able to help you discount unfit candidates early on.
A different way of measuring recruitment success
Traditionally, the metrics used to measure recruitment success were the cost-per-hire and time-to-hire. However, as we are now more aware of the importance of retaining talent and building a positive company culture, innovative businesses are moving towards measuring recruitment success through the quality of hire instead. Often, candidates who receive high-performance ratings in their first year are indicative of hiring success, therefor recruiters are reinventing the interview to identify quality hires. According to LinkedIn’s 2018 Top Global Trends in Recruiting, 63% of companies believe traditional interviews should be transformed to assess candidate’s soft skills, and 57% say to better understand weaknesses. This provides businesses with a stronger overview of an employee’s potential.
How to improve efficiencies in your recruitment process
The number of informed candidates is rising, and with 94% of job seekers now researching roles before they apply, it is vital to manage the information that can be found about you online. Glassdoor and Indeed are both extremely popular sites for applicants, employees and ex-employees, so it’s important to monitor the activity and respond appropriately to any comments. A negative review which hasn’t been responded to suitably, or at all, risks putting off potential candidates. As it is often high-quality job seekers who research roles first, this is an area that you want to invest in to improve efficiency in your recruitment process.
Assess development potential
An efficient recruitment process should be a means to successful business growth. You need tests in place that will determine whether a candidate is suitable and has future career development potential. This will help ensure that you recruit talent that will mature with your organisation and develop new skillsets when required. Finding employees that may be suitable for today’s tasks, but not tomorrow’s can be a potential waste in money, time and costs. However, this also works the other way. If you employ people who seek challenges and career development but have no growth opportunities for them, you risk having an unsatisfied workforce and high levels of employee turnover.
Review your existing recruitment partners
By analysing your current hiring strategies and reviewing how successful they are in terms of producing quality hires, you’ll be able to identify which areas are hindering your growth. Engage in healthy communications with your existing agencies to ensure stale approaches are not being unnecessarily continued. If something worked in the past, but no longer delivers results, be confident is renegotiating terms with your suppliers. Engaging in frequent discussions regarding what is successful and what is not will identify where excess money is being spent.
Ensure hiring is targeted
By evaluating which channels deliver the highest quality results, and targeting applicants through these, you will be able to concentrate efforts and funds into proven, successful avenues and reduce recruitment agency fees. Also, creating distinct candidate personas can help you identify the skills and attributes you need and will help you be more direct in your approach. Narrowing your recruitment process by implementing a targeted recruitment strategy will allow you to be more efficient with your time, avoid wastage in your hiring and improve applicant quality.
Improving efficiencies in recruitment
Bringing talent acquisition inhouse and having a dedicated team solely responsible for taking care of all hiring activity can drastically improve your ability to source quality people. Minimising the usage of third-party suppliers by sourcing prospective candidates directly not only ensures that top-level hires are made, but also that they are in line with your strategic talent planning. In-house employees are more likely to be confident and willing to look past time-to-hire and cost-per-hire quick to find the right person that will be a perfect company fit, whereas agencies may feel more pressured to deliver on the obvious. To ensure the quality and success of your business’ more valuable asset - your people - it is vital to be extra cautious and involve the right managers that will put the company and its goals first.
For more advice on how to we can help improve efficiencies in your recruitment process, contact us today.