It is no secret that everyone wants to be hiring the best talent and spend less time and money doing so.
Most companies will agree that their recruitment, hiring and onboarding processes are painful, falling far behind where they should be.
First, cast a critical eye to the recruitment process; no holes barred! It just might be just the thing to start saving time and money.
In a world where innovation has made recruitment and hiring easy, many companies are unable (or unwilling) to take advantage of recent innovations in recruitment. A recent study by ACT Bridge found 56 percent of U.S. employers don’t even take enough time to assess their return on investment for locating and developing talent.
Could it be that they don’t care who they hire?
Crunching the numbers, you can quickly see that companies need a better way to cut costs associated with traditional hiring. Another survey, this time by the Society of Human Resource Management (SHRM), shows the cost-per-hire for mid-size companies (those with over 1,000 employees) is $4,285.
Well, there is! Two secrets to cutting down your search time for the right candidate, saving some money along the way:
· Hiring Secret #1: Develop an Effective Employee Referral Program
In 2011, the number one source of external hires was referrals. They outperformed business career sites, social media, job boards and other hiring tools (both traditional and modern). What’s more, hiring by referral results in greater and longer lasting employees. Hiring employees through referrals have proven that they will remain at least twice as long as candidates acquired through any other hiring means.
The secret rests in current employees! They are the people who know your corporate culture; they will only refer those they believe will fit in with ease.
Since a terrible hire costs a company as much as five times the employee’s annual salary (so says the SHRM) just by hiring through referrals an organization can save at least $1 million in training and replacement costs.
Your company doesn’t encourage referrals? You are spending—more like WASTING—money.
Invest in an employee referral program. Make it something accessible to every worker; promote it as a fundamental part of the culture of your company. Get the word out and make sure employees understand how crucial it is to your company’s future. Each employee is an example of your brand, they should be plugging your brand to everyone in their network.
Technology, social media and referral programs go hand in hand. Use technology to make it easy for employees to refer friends and family. The easier you make it for employers to refer others, the more they will do so.
Sixty percent of employees say they would participate in a referral program if only they could. The truth is that 23 percent actually participate. The reason? The company doesn’t promote the program, or even give them the necessary tools. Make the referral process simple, and you can quickly stop losing out on top talent.
The most significant aspect of an employee referral program is incentives. Reward employees who refer top talent—paid time off, a points system or good old cash!
Employee referral programs can be an integral part of your hiring strategy; all your workers need to be on board. With it, you will reduce employee turnover, improve hiring quality and save boatloads of cash.
· Hiring Secret #2: Turn Company Career Pages Into a Talent Community
Did you know that 90 percent of candidates visiting a corporate career site don’t actually apply for a job? Why? Either they are:
- Passive candidates not ready to leave their current jobs.
- Feeling there are no relevant job openings for them.
- Not wanting to waste an hour applying for a job at the company.
Career sites are bleeding talent like a sieve. Your primary job application should take no more than 60 seconds to register. This allows passive job seekers to create a comfortable relationship with their prospective employer over time, without the hassle of “formal” applications.
Create a community of talent, instead of hosting groups on established social site or forums. Turn your career site into a valuable talent community, and you are promoting your organization’s brand while at the same time building a pool of prospective employees.
Like any other community, to be successful, a talent community needs to remain active. Assign an employee as a community “organizer” that engages with candidates. Have that staff member partner with your marketing team—posting relevant blog articles, industry news and content that creates excitement and buzz.
This person will also be responsible for fielding questions and keeping industry-related conversations flowing. This will be the place to post job openings, as long as the majority of conversations stay focused on engagement, innovation and leadership.
The goal is to develop a reliable supply of candidates who appreciate your company culture, and are hoping for an opportunity to work for your company. When the time is right for hiring, these will be the candidates ready, willing and able to make the move.
Research has shown it is an average of 43 days to fill an open job position. With a functioning talent community, you cut hiring time by 14 days. Stop looking at hiring as an as-needed task. Instead, make hiring an ongoing process.
These two hiring secrets alone—employee referrals and talent communities—can significantly cut down hiring costs and reduce the time it takes to locate top talent. Stop the endless circle bad hiring practices; focus on building a team that moves your business into the future!
Any other juicy hiring secrets to share? Let us know in the comments!