As we navigate these unprecedented times, organizations areseemingly much more cautious with their spending. Amid ongoing uncertainty, companiesare adopting a “let’s do more with less” mindset. But cost-cutting must be weighed against the risk of a “pennywise and pound foolish” mentality, especially when it comes to talent acquisition. As some companies are finding out, their “low cost” hiring solution can cost them much more than they expected.
Business Luxury Versus Business Necessity: Knowing the Difference
Over the past month, I’ve had several conversations with business leaders struggling to find the right talent for key positions. After trying to fill these positions on their own, they never found the caliber of talent they expected, so they’re reaching out for help.
Why It’s Harder to Find the Right Talent
It’s tempting to look at the latest economic indicators and think that hiring will be easy. Depending on the position and the industry, however, the opposite may be the case. Professionals who have been let go are flooding job postings with their applications, and the sheer volume of applicants is difficult for a single employee to process. At the same time, managers feel the pressure to be even more selective– no one wants to be responsible for making a costly hiring error. If a company doesn’t have a recruiting firm on their side, finding the right candidate often falls on a current employee. That person is now doing multiple jobs, and they can quickly be spread too thin.
Adding to the challenge: most of the top candidates are currently employed elsewhere. These passive candidates aren’t actively looking for a new opportunity, and in this time of uncertainty, many are hesitant to consider a switch. It takes the right recruiter to build a relationship with this talent and pitch them on an exciting future at your organization.
The Mindset of Top-Tier Talent
As companies implemented cost-cutting measures this spring, some businessessought to bolster their own internal team to manage talent acquisition. Through follow-up conversations, I’m learning those plans have notbared the fruit they expected.
Why? Because the professionals those companies were finding weren’t the best fits. The individuals they discovered were ones who posted on social media that they had been let go. Or they immediately updated their LinkedIn profile and re-uploaded their resume onto job sites. As far as fit, these candidates were in the 75 to 85 percent range—good employees who could certainly get the job done, but they weren’t the top candidates for the open positions.
Top-tier talent—those in that 90th to 95th percentile—typically doesn’t operate in the same way. If they’re let go during trying times, they don’t update their resume and start blasting out job applications. They reach out to a few select people in their network, likeformer managers, peers and recruiters. The way to these stellar professionals is through networking connections– not a job board posting.
The Benefits of Working with a Firm
An extensive network of quality candidates is one of the most signficant benefits a recruiting firm provides. Weinteract with top-tiercandidatesregularly and have a sense of where they’re at professionally, having built strong relationships with them over time. We know how they feel about their current role, their passions and challenges, and what makes a company intriguing to them.
When there’s an open position at your organization, we can connect you with ideal fits because of that network, saving you time. According to LinkedIn, only 30 percent of companies hire someone within a month. It takes much longer for the other 70 percent, sometimes up to four months.
That lengthy time to hire can cause acandidate to lose interest in the role and possibly look elsewhere. By working with a recruiting firm, you already have a leg up in your search, and it will cut down on overall time to hire.
There are financial benefits, too. The cost to replace an employee is 20 percent of their salary. For example, an employee making $75,000 costs $15,000 to replace. You’re already spending the money and time training a new employee—wouldn’t you want to ensure they’re the best fit? When talent caliber and speed-to-hire matters, a strategic recruitingpartnership can be a sound financial investment.