Control your staffing costs
Today’s news has been celebrating signs of growth in the UK economy with a record increase in the number of houses sold in May 2013, the number of new cars sold in the UK in the same period and with evidence showing an increase in the number of permanent jobs on offer in the recruitment industry.
Despite all this, the pressure is still on for business to control their staffing and in particular, their recruitment costs; many firms have geared their HR and Operations practices to reviewing internal recruitment , in the mission to find additional ways to save money.
Here we offer you are some ideas which may benefit your business and help reduce the overall cost of recruitment
Firstly, ensure that the recruitment process for the business is clear. Do your Managers know how to go about starting the hiring process, who should be involved ? which external agencies, sources they can use? What tests or selection methods are used and they should involve in the process and how much budget they have?
Make sure you are clear about the role you are looking to fill. What do you want the role to contribute to the company, department and team, on a short, medium and long term basis. If you are unsure about where the role will head or the effect of this will be on the business in the long term, then ask yourself if this could be covered on a temporary basis.
Being clear about this could save you a lot of hassle in the long term. You may not be sure how the role may develop but there are many talented freelancers/ temp workers who would be more than happy to commit to something indefinitely with the possibility that a permanent contract may come out of it. Equally there are many people who would commit to contract work without having a permanent job at the end of it.
Have you looked at whether the role can be filled internally, either by one person or split across a team of people? Considering internal applicants first has its benefits; it is easier to get an appraisal of how that internal applicant performed in their job so you can see whether they are suitable for your requirements; you can be sure that the internal applicant knows the culture and business of the company which can be sometimes daunting to a new employee; and finally employees like to see that the company they work for put their staff first and will always give them an opportunity to apply for a role before hiring externally. Not only is it great PR for the company, it can also increase your staff retention rate which should always be at the top of the agenda.
Ensure that the role has been authorised or “signed off”. Check this before actually starting the hiring process. There is nothing more costly, frustrating, and embarrassing for a company than asking your managers to spend hours on finding and sourcing the right person, to find that the actual job has not been authorised by the correct people and the initial offer of employment has to be withdrawn. This may sound obvious but we have heard of this happening to some of our candidates over the last 6 months.
Check whether the person you are looking to hire exists; is the job one which will be easy to source? Do you offer a competitive salary and benefits package? Are you looking for the right person? Not thinking about where this person is currently working or understanding what these people should be paid, could result in a long wait to recruit the right candidate.
Work with the best recruitment agencies; the adage that recruiting in- house will always save money is not always true. Although companies argue that their fees for using external agencies are high, working with the right suppliers ensures that you have access to the best people in the market. Good recruiters are experts who can advise you. They know their market , they have first- hand experience in dealing with the type of people you are looking to attract and can tell you what they want. They have access to a broader range of people that you wouldn’t otherwise be able to meet, and they are also able to provide full objective details regarding a candidates motivation and experience which could save you a lot of unwanted interviewing time. You may struggle to get an honest appraisal from a candidate if you are interviewing them directly and you may end up spending more hours interviewing people who aren’t suitable rather than the shortlisted 2 or 3 people.
Recruitment companies are also handy when there are a large number of similar jobs advertised by your competitors, when you are trying to rebuild a reputation in the industry or when you want to develop a new offering in your business but are looking to bring in the expertise in confidence.
Work hard on building your relationships with your suppliers; ensure they are updated on changes in the business, briefed fully on your needs and make sure that you have a very positive business relationship. You want them to always out you at the fore front of their minds when they meet an exceptional candidate .Let them also tell you about brilliant people even when you aren’t hiring as you never know how quickly your circumstances may change. Your star employee may suddenly decide to go travelling or change careers. Having a backup is always useful.
Always check references. Verify education , work visas and qualifications as well as work experience. By doing all of these you may be able to identify a bad hire before it happens and save you and your team a lot of pain in the long run.
Plan ahead and don’t leave recruitment until the last minute. After all, notice periods or surges in workloads can mean that if you have no cover, your client will suffer and you could ultimately lose their faith in you and your business.
Involve as many relevant people in the interview process. There might be nothing mroe costly than hiring someone who doesn’t fit into the team. People tend to embrace new recruits if they feel part of the recruitment process and don’t feel so threatened. However on the other side of the coin, involving too many people can mean that you lose valuable time in the hiring process and the relationship between the applicant and their potential new manager can suffer.
Rethink how you are selling the business and make sure you sell the business; if they are a high demand candidate and you know that good people are very hard to find then you need to make sure they can understand what the benefits and attractions are to join your company. Many Managers forget this part and feel that their company reputation speaks for itself, but as we all know this is never the case as there will always be someone out there who might be better at promoting their business. You can’t afford to make mistakes as this could delay the hiring process and be more costly to the business.
There is always a USP in a role (unique selling point), or a carrot to attract someone to join the company, it is just important to identify that so you can make sure you are always presenting your company in the best possible way. Equally, make sure that the opportunity you are selling matches the career aspirations that the applicant has.
By adopting the ideas listed above, you should be confident that you will save your business time, manage expectations and reduce your overall recruitment costs.