Having job vacancies can be detrimental to an organization. This is why recruitment plays a paramount role for the survival of a business. However, the world of recruitment is just as competitive as doing the business operation itself.
Hiring the best candidates is the goal but you could be casting them away if you don’t know how to attract and keep them. A huge mistake done by three out of four employers is having a bad hire.
According to Solutions-Driven, a job vacancy is costing companies an average of $500 a day. However, this shouldn’t be enough reason to settle with just any candidate. According to Career Builder, a bad hire can cost a company around $15,000.
There are different methods that you can use to attract the best candidates. Here are but some of them.
Know the Statistics
Effective methods can become ineffective when you use them too much or too little. The world of recruitment is fierce and you need to make sure you equip yourself recruitment knowledge before you get into its battlefield.
Otherwise, your efforts could end up becoming futile. Here are recruitment trends you need to know:
- A study by the Pew Research Center showed that 35% of the global workforce are millennials. It is estimated that by 2025, millennials will make up 75% of the workforce.
- In a Glassdoor study, 90% of millennials stated that they prefer employee benefits over increase in salary.
- The same study from Glassdoor showed that just 7% of HR managers think they have programs for leadership for the millennials.
- According to Talent Now, 73% of candidates are passive job seekers.
- It takes just 7 reviews before an applicant makes an opinion about the organization – Glassdoor
- According to LinkedIn, excellent employee branding can reduce recruitment costs by up to 43%.
- 57% of candidates believe that benefits and perks are their top considerations in accepting the job. – Glassdoor
- According to a survey by Sierra-Cedar HR Systems, Over 30% of companies use HCM systems.
With knowing the statistics, you can get a better idea of what to focus on, what to improve and what you should do less. From here, you can then formulate your methods for recruitment based on statistics.
Create Excellent Company Branding
Just how important is company branding in terms of recruitment? From what we’ve discovered earlier, 7 reviews is all it takes for an applicant to make an impression about the company.
Based from a study of CareerArc, more than half or 55% of job seekers abandoned their application when they read a negative review about the company. Develop and maintain good company branding as it is essential in the overall survival of the company.
Having quality hires is crucial because a highly-engaged workforce is 21% more profitable. This is based from Gallup’s meta-analysis. From engaged employees, you can build a positive company culture.
According to Forbes, companies with strong company cultures experienced a 400% increase in revenue. With a good company brand, the chances of hiring the best candidates is higher.
Your company will also have a better bargaining position. To keep great employees, care for them. According to Business Solver, 92% of employees stated that they are more likely to stay if their employer showed empathy.
Money is never enough to keep employees. In fact, according to Career Builder, just 12% of employees leave their jobs because of wanting more money.
Good Employee Benefits
Money alone is no longer enough to acquire or keep good workers. Most millennials would even prefer good employee benefits over an increase in salary. It’s important to focus on millennials because they are dominating the workforce population.
If you look at Fortune 500 companies, they are centered to their workers and have generous employee benefits. For instance, Morgan Stanley is America’s 67th largest company in terms of revenue.
Morgan Stanley employee benefits include bonuses based on performance, wellness programs, up to 20 paid vacations per year, healthcare insurance plan and more.
Another example is the United Airlines. United Airlines is ranked 81 on the Fortune 500. More than just the basic benefits, United Airlines employee benefits include company sponsored social clubs around the world, vacation and paid time off, maternity and paternity leave, vision insurance, mental health care and much more.
Having good employee benefits will let your employees know that you care for them. In turn, you’ll gain good reputation and their loyalty.
Recruitment Process Outsourcing
Recruit Process Outsourcing (RPO) is a trend in the business world. This is because the recruitment industry is so competitive. Everyone is after the best candidates.
From filling up job vacancies, avoiding bad hires and acquiring quality talent, RPO helps by handpicking the right people for the job from their pool of skilled candidates.
Businesses are outsourcing their recruitment process because of these reasons:
- Companies won’t have to juggle between recruiting and doing business operations.
- It decreases the amount of space for more HR employees.
- Better quality of hires
- Faster rate of hiring
- It is cost efficient
- RPO companies have connections to skilled candidates
- More competitive advantages
- It can help the branding of the company
- Higher diversity of skills
- Analytics and reporting
- Reduces need for advertising
- Good compliance regulations
- Best practices for better results
As you can see, there’s so much benefits with outsourcing the recruitment process. Job vacancies and high turnover rates are detrimental to your organization. Meanwhile, getting the right people can help boost the sales of your company.
As what Marc Bennioff, the Chairman and co-CEO of Salesforce said, “acquiring the right talent is the most important key to growth. Hiring was – and still is – the most important thing we do.”
If you believe the recruitment process of your company needs to step up, apply the knowledge you’ve learned from this article. You can also consider outsourcing your recruitment process to attract the best candidates.
Whether you decide to do the recruitment process on your own or not, we hope we’ve shared with you valuable information about the topic. Feel free to share this article to anyone you think will find this useful.