Posts Tagged ‘Talent Management’

For a SME what have these statements got in common?

• We are recruiting direct!
• We don’t use recruitment agencies!
• Recruiters don’t understand us!
• We can’t afford the fee!

Simple, they all mean that the business is wasting money!

I understand that is a sweeping statement and pretty blunt but in this market (at least in my business) every £ of cost counts.

Just ask yourself a couple of questions

How much is one hour of your time worth?

Multiply that by the number of applications you get, phone calls from candidates, pre-screening, providing feedback, arranging interviews, negotiating job offers and then factor in that you may not be making the right decision anyway or selecting the best person for interview.

Then add the cost of advertising, across different platforms to make sure you get the widest choice of the right applicants.

What total do you come to?

If you are a Business Owner / Director, Senior Manager or a Consultant then it will add up to a lot more than a recruitment fee.

In these economic times, using a recruitment company is one of the best uses of your corporate spend.

This will allow you more time to build your own business and train your own people.

Not convinced?  Then you are not working with the right recruiter!

Build a relationship, work in long term partnership and make sure the recruiter has a stake in making sure only the right people are hired ( We provide a 12 month guarantee on every candidate , we also like to work exclusively!)

Richard Morgan at Remit Resources

Are staff really your best asset?

In businesses large and small we will often hear the statements “our staff are our greatest asset” or “we couldn’t do it without our staff”

This is a widely held belief (or at least a widely stated belief), but is it true? And if it is (which I believe 100%) how does this relate to the process of hiring staff (and not surprisingly from my point of view, relationships with recruiters)

I’ve posted elsewhere some issues around retaining staff and onboarding (and will be following up on these with other posts shortly)

In this post let’s look at recruiting new staff.

The cost of replacing staff are said to be 30% – 50% of the annual salary of entry level employees, 150% for mid level employees and up to a staggering 400% for specialised executive level employees!

On that basis for every mid level member of staff with an annual salary £50,000 the cost to the business in terms of lost productivity and profit is £75,000!

It is also said that in the UK that 75% of new hires fail to meet expectations.

It is therefore essential to have an effective talent management process in place. This needn’t be complicated but it does take time and planning.

Think for a moment the process that your organisation would go through before a £50,000 software implementation.

I’m sure this would involve an RFP with a detailed requirements analysis and in depth selection process. Once this was in place each vendor would be considered with advantages weighed up carefully. Once a vendor was selected there would be an implementation team to work with the vendor’s implementation team and a project manager to work with the vendor’s project manager. Following this there would be training and maintenance / support contacts put in place. (This isn’t meant to be a comprehensive list but I hope makes the point)

How does this compare to the last £50,000 employee hired?

Are staff really your best asset?

Written by Richard Morgan at Remit Resources