In December’s 2019 HR Technologist article 3 Ways to Refresh Your Talent Acquisition Strategy Heading into 2020 talks about the need to shorten the hiring process. The reality is that the longer the hiring process, the more likely you are to lose the interest of a potential Procurement Director.
The suggestion to avert such a risk is to provide possible hires with a “quick and efficient way to apply for jobs while on-the-go.” Texting was one example of how companies can leverage technology to make the hiring process more convenient.
Unfortunately, the article did not specify for which jobs or positions this approach would be best.
In this context, the type of job is an important consideration. Fast and efficient may be an ideal way to hire your next pizza delivery person, but when it comes to choosing a procurement leader who will innovate and lead your procurement team into the new digital era, being thorough and precise sounds like a far better approach.
Looking beyond talent acquisition
There is no doubt that technology can play a potentially useful role in the hiring process.
To start, you can cast a broader net to build a much larger pool of potential candidates using functionality such as keyword matching to assess their suitability at a 10,000-radius.
The downside is the commitment and time required to judge a potential hire’s experience adequately with a reliance on keywords and no bandwidth to interact on a human level.
Once again, this may be a perfectly acceptable approach depending on the position within the organisation. However, there is another side of the speed and the efficiency coin that makes hiring the right person from the get-go important. Individually, the impact on retention rates and what replacing an employee who leaves will cost the organisation.
According to a Mach 19th, 2018 article, the average turnover rate across all industries is 10.9%.
In competitive markets such as high tech, and more specifically software companies, there is a 13.2% turnover mainly because there is an ever-increasing demand for talent. The greater the need for expertise, the higher the compensation scale and therefore, a greater temptation for employees to make a move.
Of course, the demand for talent and higher income potential is becoming universal. For example, Taco Bell recently announced that they intend to attract talent by offering $100K salaries and paid sick time to workers at their corporate-owned stores. In short, and regardless of industry, as the talent gap grows and the market becomes more competitive, keeping employees will become increasingly challenging.
This movement comes at a high cost for those losing an employee.
Having to replace an entry-level worker will cost an organisation, 50% of the individual’s annual salary. This cost increases to a staggering 125% when a technical or senior-level employee decides to seek greener pastures elsewhere.
Hiring right in the first place
A limited career opportunity, including career progression, is the number one reason why someone will decide to leave their job. The best way to keep an employee starts at the point of hiring, by having an honest discussion, preferably face-to-face or via webcam regarding their career goals and how they align with your organisation’s objectives.
Having this conversation will also allow you to assess qualities such as emotional intelligence, adaptability, and cultural fit, each of which are critical factors in your search for the right candidate.
The key is finding the “right” candidate.
Based on a Jobvite 2019 article, even though social media and talent acquisition software promises more accessible and more expedient navigation of the burgeoning talent pool, top candidates are generally lost in the mix due to, for example, a lack of keywords on their CV.
In our next post, we will examine more closely the power of employee referrals and how you as an employer can tap into the hidden job market to gain a competitive advantage in finding and hiring the best talent.
In the meantime, we’d appreciate if you could take a few minutes of your time to respond to our poll regarding the use and effectiveness of social media and talent acquisition software in the hiring process?