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.

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Process makes perfect.

The recruitment process is often an area of frustration for hiring managers, external recruiters and prospective employees alike, its particularly frustrating for potential employees searching for new jobs.

People who were initially very excited about a new job opportunity can quickly become disillusioned if the steps to getting the job are too complicated, too slow or not clearly defined with definite time frames and regular communication through each stage in the process.

process

First impressions count!

For employers it’s important to consider the candidates experience from the first time they make contact.

Will they have a good impression of the company throughout the process?

If an applicant has a bad experience when applying to work for an organization its potentially damaging to the brand itself (more about that in my previous post… “The People’s Value Chain”).

Word travels fast!

Even if an applicant is unsuccessful in their application it doesn’t have to be a negative experience, the key is that they are given proper feedback with regular communication throughout the process.

If organizations want to attract and retain top talent then its essential to get people engaged and keep them engaged from day one.

I am sure every employer can recall a time when they have failed to hire an outstanding candidate who they really wanted on board so the big question should be why ?  and what can be done to stop this happening again…


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Education… Aligned.

Advances in technology and workplace culture and environment are changing faster than ever before.

Education needs to be better aligned to suit each generation, and this comes down to understanding what makes each generation tick.

The gap in experience between generations is vast and we cannot afford to lose the skills and experience of the mature and experienced professionals or we are facing disaster. With this in mind each generation must be provided for in a flexible way which appeals to their differing learning styles.

The Gen-Y’s (Millennials) should be accommodated  for with their technological and flexibility requirements with online & apps based training, brainstorming, group workshops etc.

For the baby boomers and previous generations classroom based learning may prove more effective.

In my opinion, we must understand that today’s workplace has people working together with vastly differing age ranges, values and experience. One solution which is slowly being adopted by a growing number of organizations is training on generational awareness in order to create a better understanding and more effective internal communication. It’s time to get savvy and adopt technology, build creative brand energy, and be open to new ideas.


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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?


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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!


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