Since the end of the recession, companies have become keen to increase revenues and post strong profits by taking advantage of a stronger consumer-driven and b2b demand than has been seen in some years. While this has had a strong effect upon inter-company relations, the stronger impact has been on recruitment, which is gradually shifting from an alignment with business goals to having a direct impact upon business goals.
Companies are now reaping the benefits of hiring top talent, rather than simply attempting to fill out the ranks with a series of middling recruitment decisions. For example, Google spends an immense amount on hiring only the best engineers, largely due to the fact that it believes that “a great employee is worth 300 times more than an average one.”
The advantages of taking on an employee already highly familiar with the role you wish them to fill are fairly obvious – they will require less time and money spent on training, they will be able to transition fairly easily into the role and, above all, they will have a proven track record of obtaining results in their chosen field. Of course, this may well mean that companies will have to pay more in order to attract the ideal employee, but this sum can easily be quantified by the positive impact said employee will have upon revenues.
The challenge for recruiters, therefore, is to convince executives that there is a correlation between recruiting results and improved business results. Fortunately, there exist a number of proven examples in which a clever recruiting strategy has a positive impact upon profit margins.
In her paper Recruitment Strategies; Managing / Effecting the Recruitment Process, Margaret A. Richardson argues that “poor recruiting decisions can produce long-term negative effects, among them high training and development costs to minimise the incidence of poor performance.” By channelling increased funding into recruitment schemes, companies can ensure that they take on only the highest quality of employees and therefore can work harder towards raising their turnover – and in turn, these stronger results will lead to an increase in client interest.
That all sounds simple enough.