SmallBizRecruiting.com - When Are Recruiting Dollars Well Spent?
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Posted By: Jon C. on December 10, 2007 As a small business manager, the first thing on your mind (or your CEO's mind) is usually budget, and return on investment. Why should recruiting be any different? The two biggest mistakes made in small business recruiting are: 1. Failing to invest in solid recruiting strategies when they are needed. 2. Investing in expensive recruiting solutions with minimal return. Let's begin by looking at #1, which is the more common mistake especially when small businesses are involved. To completely understand the value proposition offered by recruitment, you must realize the impact that a vacancy (or bad hire) has on your business and its bottom line. Some things to consider: Vacancies are expensive. Consider the added demand that is placed upon you or your employees by covering the responsibilities of the vacant role, as well as their own daily responsibilities. Have you noticed that there tends to be more confusion, more delays in delivering your product/service, and more time spent on training and "cleaning up messes" when there is a vacancy? Your clients notice too, and they're not impressed. Vacancies really do affect your bottom line, not just your stress level! A weak recruiting strategy wastes your time. Have you ever called in a prospect for an interview, just to realize that he/she is not a fit at all? Overqualified, underqualified, not willing to work in your salary range, skills that aren't applicable to the job or industry... think of all the frustrating possibilities that arise from poorly sourced candidates. The $500 you save by foregoing a job posting can quickly be eclipsed by the cost of waiting for the "right" person to find their way to you. A bad hire is a gift that keeps on giving. An ineffective employee can be a constant drain on your company's resources, as well as your own patience. The benefit of filling a position is quickly overshadowed once the new hire starts spending afternoons on the phone with friends / antagonizing her coworkers / ticking off your most valued clients etc. The worst part... it can be difficult to terminate for performance without incurring a possible lawsuit, or at least an uncomfortable situation for your company's management. It's important to choose carefully. Like marriage, employment is for the long haul, and it gets messy when it doesn't work. So, consider the facts: what is the best way to reach your target audience? It may or may not be expensive. Is it worth it to cut corners in recruiting? Usually not... you'll pay anyways, in the long run. Now, let's look at the other side of this problem - assuming that a huge investment in advertising will generate the perfect candidate every time. It's tempting to toss a posting at a major job board, and wait for fate to do the rest. Truthfully, are you getting the return on investment you expected? Are the resumes that come across your desk fresh, or are they automated replies from candidates who already found jobs four months ago? Are the candidates taking your position seriously, or is it one of the 25 they applied for with one click? If you make an offer, how likely are they to accept? The goal of your recruiting campaign is not just to find talented candidates - but to find the talented candidates who are seriously interested in working with your company. Don't be misled by hit counters and other metrics - just because your posting got a certain number of views or apps doesn't mean that all of them are serious candidates. Choose your media carefully. Who are you competing with for visibility - is it regional companies in a local publication, or Fortune 500s that can offer bigger salaries and more benefits? These things should be considered when developing and placing your postings. As a small business manager, your strategy must be balanced. You don't need to pour your entire recruiting budget into feature-laden postings that may disappoint; but never underestimate the value of a well-placed job posting. Are you a small business owner or manager? Subscribe to the SBR newsletter for insightful articles that can help you develop a strong, productive, and accountable team. Email “subscribeSBR” to jecarter@hbcuconnect.com. If you enjoyed this article, Join HBCU CONNECT today for similar content and opportunities via email! |
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Jon C.
Benefits Management Analyst, State of Ohio Hampton University class of 2004 Member Since July 2003 |
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