Procuring people. What’s the cost of getting it wrong?

Whether it’s for a start-up and this is employee number one or if there is a requirement for employing vast numbers of people an organization will always have direct costs relating to hiring and will decide whether to pay for advertising, marketing, career portal, external recruitment services or headhunting fees, assessment tests, visa’s etc etc.

The choice is there for an organization to spend as much or as little on these direct costs as they wish… but how little is too little?

It’s practically impossible to get it exactly right when hiring a person (or people) but investing time and money in developing sufficient process and procedures will increase the chance of hiring the best people in terms of cultural fit as well as ability and experience.

Finding a good balance between the cost of hiring the right people versus the cost of getting it wrong isn’t easy but when you take the time to really consider the hidden costs of making a hiring mistake then investing more time and money up front becomes a very worthwhile and necessary investment.

Hidden cost factors of a bad hiring decision;

  • Time spent hiring a replacement
  • Reduced morale of other team members
  • Disruption to clients
  • Investment in on the job training (internal and external)
  • Time taken from exit of previous hire to the replacement person reaching minimum standards to perform the job
  • Loss of confidential information
  • Damage to company brand
  • Additional work load for other employees

The list goes on and many are interlinked, but the actual cost of an employee leaving is not easily quantified as there are just so many additional factors to be considered, for example a key employee with a very specific skillset will have a greater impact when leaving an organization than that of someone in a role which is easily replicated. Smaller businesses will also be more affected by one person leaving than larger businesses.

I guess the best advice is don’t cut corners and always think about what could be the cost of getting it wrong.

Consider the hidden costs...

Beware of the hidden costs.

How does your organization calculate the cost of replacing an experienced employee?

I look forward to reading your comments.

Advertisements

Virtual engagement in the people supply chain…

We increasingly live and work in a socially (or virtually) networked world and the acceptance of this fact by organizations when it comes to hiring is proving advantageous to those early adopter organizations that have leveraged social networking as part of their recruitment strategy. Increasingly organizations are focusing on developing their brand as an employer, and a key part of this is building a talent community where potential candidates are kept engaged and informed as to what’s happening in the organization that they may one day wish to join.

Building and maintaining an enlightened talent community is a key factor in winning the battle for talent and it’s a far better strategy than purely creating a CV database which quickly becomes outdated.

Ensuring you have a ready pool of candidates to meet possible recruitment requirements is no easy task and just as managing a supply chain is about managing uncertainty and variability, the same applies to your future hiring needs. Current economic dynamics typified by significant fluctuations in customer and business service requirements often determines that it is usually difficult knowing what your talent requirements will be in the short and medium term and what types and levels of skills are needed.

Whilst all organizations need to embrace modern technology, increasing numbers are realizing that technology can’t and should not replace human interaction and valuable relationships. More and more companies are realizing that creating vast databases of CV’s is an inferior option to building a community of targeted prospective future employees through the use of technology and keeping them informed and engaged online. This methodology supports tracking and managing the recruitment processes and enabling the relevant information to then take the relationship offline and into the real world as early as possible when commencing the recruitment process for a specific role.

For many forward thinking HR Directors and Managers it is the candidate experience that is first and foremost in their recruiting strategy and to create this experience is not possible with the “one click / apply” routine that we see from the majority of job boards and applicant tracking systems. This is old school practice which is losing its place in the hiring processes used by many organizations today.

Virtual engagement


If you enjoyed reading this post please consider sharing it on Linkedin, Twitter, Facebook or any of your other social networks.

Please CLICK HERE to follow me on Twitter, I will follow you back asap…

 

The People’s Value Chain…

There’s a lot of talk within the global community about the need to attract more talent to an increasingly dynamic Supply Chain & Logistics sector.  Demand for talented professionals continues to increase yet the sector is still not the sexiest of professions particularly amongst undergraduates, despite an evolving discussion within the sector on ways to bring in new blood.

By referring to company and employer branding there are some simple lessons that can be learnt by the sector to attract new talent and address these skill shortages.

To attract talented professionals, organizations strategically  integrate their company values and reputation with their employer brands.  The perception of a company’s success, values, image, including their reputation in areas such as management style and work environment, is incredibly important. Jobseekers heavily weight these factors when considering their employment decisions.  If supply chain is to stand out as a career of choice it needs to increase its image awareness around these factors.

Once these factors commonly referred to as the “Company Brand” are put in place, the internal factors, which fall under the banner of “Employer Brand” can be addressed. This involves all aspects of the employee offering from the recruitment process to training, remuneration, culture etc.  Finally it’s about aligning the Company and Employer Brand and then establishing how best to effectively communicate these messages.

How does your organization create value?


If you enjoyed reading this post please consider sharing it on Linkedin, Twitter, Facebook or any of your other social networks.

Please CLICK HERE to follow me on Twitter, I will follow you back asap…

 

Generation workspace. Out with the old and in with the new…

The increasing influence of the millennial generation within the workplace with their significantly differing needs and expectations to any previous generation before them is driving a step change in how we view the world of work these days.

But what about the physical working environment? Does it have a big part to play in how your organisation and brand is viewed by future and existing employees, and by your customers?

Can your office environment impact your ability to attract and retain talent as well as encourage creativity and productivity in the work place, and can the environment contribute positively to your organisation being a better or great place to work?

I bet we can all identify areas where we can improve our physical working environments to encourage greater levels of engagement, motivation and enjoyment, enhancing the image and presentation of our businesses and our industry as a whole.

Imagine you walk into an office to be greeted by a place filled with nooks and crannies – creative work spaces, themed breakout rooms where you can take a seat (or a giant bean bag) and work from your tablet, glass partitions that can be used as wall to wall white boards, strategically located smart boards with blu-tooth connectivity, modern ergonomic furniture, stylish yet highly functional hot desks / workstations and seating that provide an escape from traditional environments.

Ignore Convention....

Ignore Convention….

Well lit interiors and motivational words adorning the walls, company values written not in the usual plaque or square sign on transparent perspex format, now they are vinyl prints shooting across the walls with flashy writing and jazzy colours spelling out just who you are and what you stand for.

Why is it the likes of the Google’s and the Facebook’s are constantly catching the headlines with their impression of what a modern working environment looks like?

The answer is simple; They were bold enough to ignore convention and just go ahead and do it!


If you enjoyed reading this post please consider sharing it on Linkedin, Twitter, Facebook or any of your other social networks.

Please CLICK HERE to follow me on Twitter, I will follow you back asap…