61% of recruitment firms expect to see increases in hiring demands over the next year, according to Bullhorn. 54% of business leaders also feel their hiring demands will increase, however, 77% of Australian CEO’s are concerned that their recruitment strategy isn’t strong enough.
An effective recruitment and employer branding strategy is vital to a company’s success. When a business implements a strong process, this means they’re focusing on quality talent acquisition, taking steps to ensure staff happiness in the workplace, and subsequently, retaining new employees at a high rate.
If a sound strategy is not put in place, things go wrong. Business efficiency and profitability is negatively impacted, beyond the direct costs of poor recruiting processes.
A bad recruit costs approximately $12,500, and it’s even more to replace one, according to Forbes. Entry-level employees cost between 30 – 50% of the annual salary to replace, while the number rises upwards of 150% for mid-level employees.
Employers need to remember that in today’s job marketplace the balance of power rests with the candidates. Recruiting is more about mutual evaluation and finding the right fit.
So, how do you enhance recruiting strategies and processes and keep up with rising recruitment demands?
1. Build a strong online presence
90% of job seekers use the internet to research recruitment opportunities and make the decision whether or not to apply for a job. This illustrates the importance for companies to be online and searchable. More so, when the candidate finds a company website or social media profile, all the information they could possibly need to make a decision, should be right in front of their eyes.
Companies that are active on social media daily, are 37% less likely to have trouble sourcing top quality candidates. Furthermore, companies who use digital platforms are 50% more likely to be growing revenue than those who still use basic IT methods and they earn 60% more revenue per employee, according to Deloitte.
The numbers don’t lie – building a strong online presence is a worthy investment.
2. Have a strong Employer Value Proposition
An EVP is a company’s way of telling a candidate why they should apply for a job with them. It explains company benefits, workplace culture and essentially, what’s in it for the candidate. Employer Value Propositions should be clearly communicated through engaging content marketing, utilising several channels including company websites, social media and blogging.
Having a strong EVP will help employer branding which, in turn will increase the impact of a company’s online reputation and brand when searching for a new quality employee.
3. Using employer branding for talent acquisition
Employer branding has a massive impact on talent acquisition. In fact, 77% of Australian SME leaders acknowledge this, but only 8% have allocated budget to it. (compared to 32% that went towards job boards). Despite this, nearly half of the SME business owners in Australia planned to increase their volume of employees in 2018.
To meet this demand, companies need to have a strong marketing strategy, a good workplace culture and a testimonial strategy. Testimonials being showcased particularly on LinkedIn, are a great way to increase employer branding as they show off the strengths and skills of current employees. Jobseekers will always want to work for a company that has good reviews online.
Good employer branding also leads to positive referrals. A study by JobVite, found that 46% of referred employees stayed in their job for at least 1 year after they were hired. Having said that, pardon the plug but our stats are that 92% of our placed candidates have stayed win their role after 1 year plus. Referrals have also been shown to reduce the time to hire by almost 50% compared to candidates who apply through a company careers site.
4. Talent acquisition is nothing without a retention strategy
It’s great securing a quality employee and having hopes and dreams they will grow and advance within a company. But for that to happen, a retention strategy should be put in place.
20% of employee turnover happens in the first 45 days after a new recruit comes on board. Making new employees feel welcome and valued from the moment they start within the business is critical to employee satisfaction. An organised, in depth induction, allocating them a mentor, setting out short and long-term goals and providing regular feedback will ensure a sound retention strategy.
Managing Director – Norwest Recruitment