Finding the Right Talent Through Sourcing and Recruiting
By Steve Racz
SUCCESSFUL COMPANIES REDUCE TURNOVER COSTS AND HIRE THE BEST PEOPLE BY KEEPING THESE FUNCTIONS SEPARATE
The Information Age has begun to shift corporate thinking toward the notion that people, rather than what a company produces/owns, are the catalysts of its competitiveness. Every day you hear the term “human capital,” and insightful executives are beginning to realize that how they compete for talent can make or break their company. But attracting talent is only part of the formula. The ability to identify (source) and recruit (attract) the best and most appropriate individuals for the position and company is paramount, and this requires a skilled, well-organized, and high-performing staffing apparatus. A quiet, hard-to-detect ravager of corporate profits, namely, turnover, awaits those who fail to grasp this finer distinction and who fail to build sophisticated internal staffing capabilities that separate the sourcing and recruiting functions and enhance automation to support those functions. The larger the corporation, the more attention they have to pay to this issue.
FOR EVERY SEASON, TURN, TURN, TURN
There are a number of reasons for turnover, some of which are out of a company’s control. The root cause, failing to hire the right people for the right job, is more controllable, and the success or failure to do that is directly attributable to the effectiveness of the staffing department. Yet too often these departments are overburdened, underfunded, understaffed, and antiquated structurally and technologically. If senior corporate executives truly understood the bottom-line consequences, they’d be alarmed. While they’re quite familiar with the enormous known direct costs of turnover–that is, the cost of hiring and training–they have only a vague sense of the other costs. The more insidious side of turnover beyond the known direct costs is lost productivity, which is far and away more costly than direct spending on staffing. When companies analyze staffing costs they usually consider just the direct costs of recruitment and training, which constitute a small portion of direct costs. Other direct costs inc lude vacancy, orientation of a new hire, separation (exit interview, accrued vacations, and the like), recruiting, and selection.