Clients tell us, “Reduce my cost per hire!”
Reduce your cost per hire by keeping the employees you have – the good ones, at least – and minimizing the time you spend surfing and cruising to find a horde of mediocre applicants. Trite though it may be, focusing on quality versus quantity will slash your cost per hire.
Becoming “Employer of Choice” is so yesterday. You ever heard somebody say, “I work for an employer of choice?” No! There’s no universal definition for Employer of Choice anyway, so why strive for some meaningless trophy? Give your employees challenging work, train supervisors to be effective leaders, provide good benefits, recognize their contributions and unleash them from their smartphones, tablets and voicemail every once in a while so they can enjoy life.
Reduce your cost per hire focusing on making sure they enjoy what they do so you can sustain a profitable venture.
Give employees a voice – ask them for referrals and reward them for helping you make good hiring decisions. Scratch the typical employee referral program and the accounting nightmare that comes with it. Include staff in candidate interviews instead. That’s the only way you can truly discover if a candidate fits the workplace culture. Have you ever heard a hiring manager rave about a candidate, only to hear employees wonder how he could have made such a stupid mistake?
After one or two interviews, a superbly qualified candidate can say all the right things to wow the hiring manager, but it takes more than one POV to see whether that person is a good fit, especially if your work environment is team-oriented. Reduce your cost per hire by engaging the people who will interact most often with the candidate. Who works with team members most often? It’s not the manager – employees are the ones who develop relationships with their colleagues, so why shouldn’t they play an integral role in the selection process?
Don’t treat an employee’s first 90 days as a hazing period. Double-digit turnover usually happens in the first three months. You already know the correlation between lowering turnover and reducing cost per hire. That old sleep-inducing, follow-along-in-the-employee-handbook variety of orientation is useless. Inattentive employees are probably daydreaming about when they’re going to actually start doing the work they were hired to do. An effective, interactive orientation program gives new hires the foundation on which to build a rewarding career.
Avoid forcing collegial relationships from Day One. Let them to evolve organically, but provide some structure for peer-to-peer interaction. For instance, devise a round-robin onboarding program for new managers. Give them opportunities to meet peers from every department or business unit. Employees who spend time learning the business are more likely to become engaged and we all know that employee engagement can reduce cost per hire.
Stop using Facebook for researching candidates. It’s a time waster and the time spent peering at Facebook profiles doesn’t do a thing to reduce your hiring costs. Obviously, you don’t want the Facebook addict on your staff, but be resourceful when you’re investigating people. Today’s diverse workforce includes four distinct generations and practically all of them use some form of social media. But, did you know that more people use Facebook for checking newsfeeds than posting updates and pictures? Using social media sites for your primary resource on candidate behavior encourages overly subjective assessments and judgment calls. Base your hiring decisions on qualifications and merit, not how many “Likes” they clicked on their friends’ timelines. Besides, with all the talk of recruiters using social media for research, people are using privacy controls to conceal their personal interests.
Practice time management, be responsive to promising candidates and close out contact with applicants who don’t make the cut. This three-prong approach is brilliant. It organizes your efforts, and organization is a sure-fire way to reduce hiring costs. Applicants complain online about that proverbial black hole they think swallows every resume. If the person doesn’t meet the requirements, say so. Well, you don’t need to actually say it – put it in writing. A short email is all it takes to keep applicants from badmouthing your company in online job seeker forums. And, being the responsive recruiter saves time and money in the end because you won’t get repeated calls and emails from applicants who just don’t have what you’re looking for.
Andrew Greenberg’s roots in recruiting date back to 1996. He has experience both on the agency-side and corporate-side of the staffing business, with a focus in the financial services space at companies like Bloomberg and UBS. He also has core experience with information technology staffing, and has worked for major software companies such as SAP Business Objects and IBM/Informix Software. To get in touch with Andrew, you can reach him by email or by phone at (800) 797-6160.