The recruiting industry is currently seeing a greater focus on retention. There’s good reason for this. Hiring an employee costs a lot of money that most companies can’t afford to spend repeatedly.
CareerBuilder cited a study from Matthew Bidwell, an assistant professor at The Wharton School of Business, who found that external hires cost more and also receive poorer performance reviews for their first two years on the job. In addition, those promoted from within are less likely to get laid off than external hires.
Hire right the first time
Recruiters have a critical role to play in this. If you can hire right the first time, you can bring on an employee that can move up through the company and eventually land in a leadership role. But first, you need to recruit the right person.
A candidate’s relationship with your firm starts as soon as they interact with your recruiting team for the first time, whether it’s through a job post or conversation. Companies need to keep in mind that they might be communication with a future managing director, not just an entry-level associate. During the hiring process, recruiters need to think in terms of the long haul. That means not just filling a hole, but seeking out someone who is truly a great fit for the organization.
That means reaching out to the places where the best candidates are likely to be, using social recruiting and user-friendly applicant tracking systems that make it easy to reach the best talent. If you can accomplish this, you can also invest in training tools to move those associates up the ladder.
Invest in training
As CareerBuilder puts it, the track record of a company finding an external hire that meets 100 percent of the competencies needed is zero. It just about never happens. But you know a lot about current employees already. If there are skill gaps, you have identified them and can address them as needed. You already know how they interact with the rest of your team.
In an interview with Forbes, Principal of Deloitte Consulting LLP Diana O’Brien made a particularly astute observation about investing in people. Not developing people is almost like a manufacturer failing to upgrade equipment.
But it’s not just bad for business. Focusing on training and professional develop actually reduces turnover. Oddly enough, when a workplace gives back to its employees, they return the favor. Employees are more likely to stick around when the company provides the resources they need to succeed. Yes, they could take these skills on to their next position, but they also might stay with you for the long haul. Reducing attrition starts from the very beginning.
What many organizations fail to see is that investing in internal candidates begins when they are first hired. To do that, businesses need to invest in recruiting software that can help recruiting teams find the best people. They need to invest in employee branding that truly expresses their company’s beliefs. While it might sound paradoxical, investing in internal hires starts with your recruiters.
Jobscience | Beyond the Applicant Tracking System