Guide to Recruiting in Good Financial Times and Bad
Recruiting is difficult in any good or bad financial situation. Be it an economic crisis and the company’s abilities to cover recruiting expenses to a good economic time and hiring the wrong fit for your organization. And spending upwards of $4,000 on recruiting in a bad financial time can really impact a company’s bottom line. Below is a brief guide to recruiting in good and bad financial times.
Respond to Potential Candidates Promptly
The truth is people are actively seeking employment all the time. You don’t always have to go out and seek employers in a good or bad financial time. They may ask for referrals to family, friends, and even old business acquaintances. One main issue with this is that as an employer, your inbox may be full of job applicants.
With over 151,000 new jobs created this past August 2016 alone, it’s important to remember that potential employees are in a need-based situation. They will quickly move on to the next available employer. So you should respond to a potential candidate immediately. Not doing so could put you in a position to miss out on a great applicant, already in your pool.
So, be sure to answer emails and return phone calls. If not and you look to contact them later to interview them, they’ll remember how they were brushed off. Even if you see the potential in the future for the candidate, just acknowledge them and do a short interview with them via phone. Tell them what they need to do to meet your standards and watch them come back to you – ready to start. This lessens your time and financial strain of seeking employees again.
Sift Through Past Applicants
As mentioned above, some candidates might not be ideal as of now, but in the future, they may. So consider past candidates for your financial needs. If there was a spark, keep them in a future applicant pile. They may not be fit for that particular position at that time. However, another position you are in need of may open that they’d excel in.
Sift through these applicants when you need to hire new employees at a good financial cost. You’ve already spent the marketing dollars for them before; there is no sense in going outside of the budget again.
Embrace a LinkedIn Recruitment Strategy
Turning your attention to LinkedIn opens up a whole new world of recruiting options. Half of all people in the U.S. with a college degree are using the network, and you can see everything from their work histories to their personal interests just by searching and browsing profiles. The information these professionals provide is so detailed, 94 percent of recruiters rely on LinkedIn to evaluate candidates!
Want an even faster way to find qualified talent? Ask employees for referrals from their networks. Known as “referral recruiting,” this method can decrease the time necessary to locate and hire new staff members by 10 days.
Take a Chance on Applicants Who Don’t Fit All Your Criteria
You must realize that there will never be a 100% fit applicant for your open positions. You have to be willing to hire performers who are just a bit below average. Unless this is a make or break role (such as a revenue impacting role), and you can’t spare an employee to mentor them, take a few risks here and there.
These employees can bring other talents to the table such as helping improve customer service, customer retention, and overcome your business’s plateau. Look at the applicant’s entire package of what they can offer you and benefit the company’s culture and financial basis.
Work with Top Recruiting Agencies
Since recruiting can be so expensive, you may be better off investing in the help of an agency rather than trying to pin down the right candidates on your own. Recruiting agencies are in the business of locating qualified talent based on the specific requirements for a given position. You provide the skill sets, educational background, experience level and other details you’re looking for. The agency then saves you the frustration of spending hours weeding out people who aren’t good matches.
If you’re hiring during a slow period in anticipation of a seasonal rush, a line of credit is a good option for covering the costs associated with using an agency. Depending on the type of agency you hire, you’ll pay between 10 and 25 percent of a the annual salary or 20 to 50 percent of the hourly wage for each candidate hired. Thankfully, you don’t have to pay at all if your new recruit doesn’t work out for some reason. Agencies offer a guarantee period, typically a few months long, to ensure employers are satisfied with the performance of their new staff members.
Hire Based on More than the Number of Years of Work Experience
Hiring based solely on the years of work experience a prospective employee has is a major financial disadvantage for a company. If you recruit for core skills, you can get far more quality employees.
You don’t want to have someone that has worked in the same industry with no advancement. They’ve had no opportunity in working different departments or various managers. You want employees who have worked in teams, are open to learning new things, and helped improve a company’s financial record, in addition to being loyal to a company.
Don’t Rely Solely on External Sources
In the 2014 Weber Shandwick report, they found that only 33% of employers encouraged their employees to share information about their company via social media. Why not have your happy employees proactively share about company openings? Most millennials hear about a company and its opening through friends.
Also, you should alert everyone in your organization that you are hiring. Talk to your financial insiders, board members, and even corporate suppliers. See who they feel may be a good fit. It’s prosperous for all in keeping your financial recruiting costs down.
The Bottom Line
Don’t settle for just any employee to come into your organization. You don’t want to be overextended in debt. Use your company’s business line of credit for something other than financial recruiting efforts. So just as in sales, whatever you have in the pipeline – work it to the fullest potential. So no matter the tough financial challenges that lie ahead, you’ll have a plan.