As you head into 2016, it is critical to accurately identify your recruitment needs. This starts with establishing meaningful metrics and assessing the success of your current strategy. From here, you can reset goals and identify your business-critical talent gaps.
With the national unemployment rate expected to reach 4.25 percent by next August, you need to brace for the talent war to further intensify in the New Year. Even at its August 2015 rate of 5.1 percent, this figure had reached a level that economists considered close to full employment. The number of individuals with current, relevant experience is quickly falling below employers’ needs, thus upping the competition for the most valued candidates on the market.
Measure Your Results
Develop measurements that evaluate the success of your 2015 recruitment progress. Key metrics include:
- Value of strategy: Most organizations use multiple sourcing tactics. Determine which ones have worked the best for you and resulted in getting optimal candidate numbers.
- Time to fill: Lengthy time frames may suggest that necessary job skills are in short supply.
- Vacancy rates: Measure your overall vacancy rates as compared to your full staff complement. You may learn that your recruiting team is understaffed or that processes need improvement. You also can pinpoint which departments are experiencing the most difficulty.
- Turnover rates: High turnover in any job category can suggest a number of difficulties. Positions may not be clearly defined or assessment tools may need revision. It also is wise to evaluate the costs of turnover.
- Selection ratios: Divide the number of people hired by the number of candidates. A small figure may mean you did not attract the right people, resulting in an unproductive hiring process.
- Retention rates: How long did candidates stay in positions? What happened to those who left? Were they promoted or terminated, or did they leave voluntarily? This can tell you whether it is time to reanalyze a position to ensure that the required skills are on target. It also will help ensure that an incumbent experiences job satisfaction for a longer period of time.
- Recruitment cost ratio: Calculate the total sum spent in recruiting for each hire, inclusive of advertising, recruiter salaries, signing bonuses, candidate compensation and any other expenses. This will assist you in justifying costs and identifying opportunities to cut them.
Evaluate Your 2016 Needs
Based on 2015 results, set direction for the year ahead as you begin planning your upcoming recruiting needs.
- Look at your operating budget. Calculate the total cost of hiring for each position. Then, estimate the value that a new hire would bring to your business. Before making a decision, determine the extra revenue that this individual would help generate.
- Consider how work gets done within your organization. Is it time to reshuffle responsibilities, revamp job descriptions, or restructure? Perhaps you have missed deadlines in recent months due to increased capacity related to talent shortages. Your recruiting firm can help you answer these pressing questions and set direction for improved outcomes.
- Get a pulse on your people. If they are overworked, it can hamper morale, threaten safety, mar your reputation and contribute to increased absenteeism. There may be more health insurance claims and, ultimately, higher turnover.
- Be sure you are executing your business plan. If you have fallen short, it may be due to a lack of time or resources.
Consider partnering with BrainWorks as you build your executive recruiting plan for better results in 2016. We’ll help you set the right metrics and direction for the highest possible return on your talent investment. To learn more about our executive search services, read our related posts or contact us today.