Competencies for recruitment professionals: measure your efficiency and return on investment.

Aim:

For high-growth organizations, attracting, hiring, and retaining the right talent is critical. Add the right players to your team and you have a key source of competitive advantage. Attract the wrong talent and you’ll have a hard time meeting your strategic goals and objectives. “Hiring the wrong person … who can’t fit into an organization … will leave, resulting in a high attrition rate.” “Hire someone … give them wrong information … or misrepresent company policies and procedures and you won’t even know what damage you’ve done to the organizations’ ‘public image’.”

Introduction

More than anyone in the Human Resources Department, the responsibility lies with the “Recruitment Specialist”, he is like the advertising manager of “companies”.
You must know well the “Business” of the company, its strategies and policies.
It is up to him to stay up-to-date with the latest skills available on the market.
It is up to him to “stay” up-to-date with the organization’s “business competitors.” Even the responsibility for “retaining people lies with the” Recruitment Specialist.
It is up to them to find out if the “person” will fit into the “culture” of the organization.

4 P’s of recruitment

Product

What positions are you trying to fill? What do you have to offer potential candidates? Who else is trying to recruit similar candidates, and how can you gain a competitive advantage?

Price

How much are you willing to pay high-quality candidates (e.g. salary and benefits, other costs associated with the hiring process)? Is this more or less than your competition?

Person

What is your target market? Who are you trying to hire? What skills are needed for the jobs you need to fill? Are these competencies valid? How is the ideal candidate?

Promotion

Where can your ideal candidates be found? How will you inform these candidates about your job openings and encourage them to apply? What resources can you use to generate a diverse pool of candidates?

Searching for “correct” profile

Networking: developing relationships with institutions that have direct or indirect access to culturally diverse candidates.

2. Internet: searching web databases, placing advertisements on various career sites targeting a wide range of people, attending professional talks online.

Resume Services: Purchase a package of resumes that match identified recruitment criteria and contain a significant level of diversity.

Direct Mail Campaign – Systematically mailing your recruiting materials to people of diverse cultures who meet your hiring criteria and organizations that have access to those individuals.

Job Fairs – Participation in job and career fairs that cater to job seekers from diverse cultures.

6.Newspaper / Periodicals Advertising: Place job postings in periodicals that cater to people of diverse cultures.

7. Advertising on radio and television: Place job advertisements in programs that are adapted to people of various cultures.

8. Professional Associations – Actively participating in a professional association serving underrepresented members of a particular profession.

Recruitment: return on investment (ROI)

The return on investment (ROI) of recruiting understands and compares the elements, costs and risks of a project related to recruiting with the expected benefits, for example; hiring technology, hiring center implementation or process reengineering.

Recruitment ROI can help build a business case for organizational decision makers to evaluate the benefits and estimated return on investment to improve an organization’s recruiting function.

In summary, the hiring ROI process would address the following:

1. Tangible and intangible benefits to the organization, including increasing quality and saving time and money through implementation

2. Estimated cost of services and associated technology

3. Investment / amortization period of the contracting project

4. Problems and costs associated with not continuing with the recruitment project

Measuring the effectiveness of the recruitment process

Collecting data and calculating proportions is just the first step. Metrics are a tool for a broader analysis of your recruiting effectiveness.

Metrics don’t just mean time and cost. It’s about looking at every transaction point with a candidate and tracking it from a time and cost perspective – every activity that draws a candidate into the process and the path that leads the candidate to an accepted offer.

Hiring metrics measure the effectiveness of the hiring function. These metrics return valuable and relevant information to business stakeholders. Its purpose and benefits are:

1. Prove the real value of the hiring function

2. Gain buy-in from business decision makers to invest and optimize the recruitment function.

3. Provide an accurate picture of current costs and results.

4. Demonstrate changes and impacts on the organization over time.

5. Establish shared responsibility between the hiring center, hiring managers, and business units.

6. Manage costs

7. Analyze productivity

8. Assist in the identification and evaluation of risks.

A good recruitment specialist should be able to answer the following questions:

A. How much time and how much does your administrative staff spend opening, responding to, and submitting resumes to the hiring team? The best way to do this is to calculate an average cost per resume and keep track of how many resumes you receive for each job so that you can calculate the administrative cost per job.

B. How much time does your hiring / recruiter team spend reviewing resumes? This can also be an average cost per resume received for the job.

C. If your organization conducts preliminary telephone interviews, how many were conducted and how much time did the recruiter spend preparing, conducting, summarizing, and communicating the results of those interviews?

D. Do you have an automated candidate tracking program? This is an indirect cost that you can choose to prorate across your hires over a specific period of time, kind of like depreciating a new computer on your taxes.

E. Did your hiring team or the interviewee incur travel expenses that were reimbursed by the company?

F. How much time was spent scheduling interviews?

G. How many staff members participated in the interviews? How long per interview? How many interviews? What is the average cost of interviewers’ time?

H. How long and what was the cost of following up with candidates during negotiations and notifying those who were not hired?

I. What was the cost of a recruitment agency referral fee or an employee referral?

J. What costs will the company pay for the new employee to move? Some costs may include moving company, airline tickets, hotel accommodations, temporary lodging, home search visits, sales / purchase assistance, or spouse / dependent assistance.

K. What was the cost of the background checks and / or reference checks? Drug tests?

L. If there was a signing bonus, how much was it?

M. What costs does the company usually incur to incorporate someone: orientation, mentor, registration for benefits, computers, cell phones, uniforms, etc.?

N. How long did it take to fill the position from inception to hire date? What could you have done to reduce the time to hire and not have affected the quality of the hire?

O. What was the impact on productivity while the position was vacant? This is a very difficult calculation to perform, especially depending on the position. However, it has an impact on the hiring manager and the organization as a whole. If it can’t be quantified, at least keep it in mind.

Q. How satisfied was the hiring manager / organization with the hiring? This assessment can be done after hiring, but should be repeated again 3-6 months after the employee has been on the job to get a real idea of ​​the success of the hiring.

Calculations for the hiring specialist

Cost per contract:

(Cost per hire is a calculation you can use anytime you are hiring. Suppose you are a consulting firm bidding for a large project. Cost per hire can help you estimate the costs associated with adding new ones. positions as part of the contract award. for the new project.)

Costs related to a new hire

[Advertising + Agency Fees + Employee Referrals + Travel + Relocation + Recruiter Pay & Benefits] / Number of hires

Billing cost:

Costs incurred when an employee leaves the organization
Termination cost + Hiring cost + Vacancy cost + Loss of learning curve
(Note: termination cost includes severance, unemployment, exit interviews, legal fees, temporary replacements, etc.)

Turnover rate:

Measures the rate of employees leaving an organization
[No. of Separations During Month ÷ Average No. of Employees During the Month] x 100

(Note: Define which employee status you will monitor. For example, it might not make sense to monitor temporary employees. It could skew your full-time staff statistics and lead you to false conclusions. Consider conducting an analysis)

Time to fill:

Number of days from the approval of the job application to the start date of the new hire
Total days to complete applications / number contracted

conclusion

For a recruiting professional to be efficient and effective, there is a lot to do. They can play an important role in “organizational transformation”, provided they are “true and fair” in their dealings. I also mentioned in one of my “previous articles” that “recruiting professionals” are corrupt, there is a good and a bad side in every profession, the only thing that matters is how true you are with yourself and your integrity.

I will await your comments and suggestions.

Feel free to ask any questions related to this article.

Stay in touch and take care