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Welcome to issue 410 of the ukrecruiter newsletter. Looking for Recruitment Research Organisations? Look at the Research Organisation Suppliers Directory on our site. For more details or to advertise on the site please contact us contact2@ukrecruiter.co.uk |
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CONTENTS
Visit http://www.ukrecruiterjobs.co.uk for the latest recruitment industry jobs. |
Weekly Tips - 3 Useful Websites 1. Google Calendar (www.google.com/calendar) - for independent recruiters who do not have access to Outlook type calendars 2. BBC (www.bbc.co.uk) - for all your news and entertainment 3. Five Minutes Away (www.5minutesaway.co.uk)
- for every motorway user Why not submit your 3 favourite web sites. See the guidelines at http://www.ukrecruiter.co.uk/articles.htm |
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Article One: The Cost of Bad Recruitment by James Osborne, Innergy This is a sermon about Recruitment and Retention, so permission to pontificate, preach and protest, if I may! Let’s make this very, very clear - It will be your people who will decide whether or not your business is a success. It will be your people will determine whether your profit margins are 5% or 55%. It will be your people will decide whether you sleep well at night. Not you … your people.
And yet, every day we are introduced to managers and business owners who claim they know all this and agree wholeheartedly, and yet time after time fail to put their people first. Why? And then there are all the costs involved with recruiting and training new staff, such as using recruitment agencies or head-hunters, advertising on the internet or in the local press or bringing in outside trainers. These are the responses of the short-term leaders, who focus on how many pence they have in their pockets today, as opposed to how many pounds they could have in there tomorrow. If you do subscribe to this way of thinking, be warned that you may soon find yourself in a downward spiral towards escalating costs and low profit margins, sleepless nights and days upon days fire-fighting problems that could have easily been prevented in the first place. Have you ever actually stopped to calculate just how much time and money you spend on your people currently and the return you’re getting for that investment? We recently developed a time / cost / value matrix for one of our clients so they could do just that. To enable them to get a clearer understanding and assessment of just how many hours and pounds were being lost by their key staff (two managers and the MD) through their current recruitment and retention strategies. On the recruitment side, it was estimated that through their current practices, their costs to recruit staff were close to £3,600 for every person they recruited, based on the number of hours taken up in recruiting multiplied by the hourly salary (and costs) of that hiring manager, as well as advertising costs and so on. A local recruitment agency wanted to charge them £3,300 for doing the work for them, which if you include the facts that they would only pay the agency once they’ve delivered as well as the replacement guarantee they offer if that person leaves, then it was clearly a better option for our client to outsource that part of their business to an agency with the expertise and database to match their requirements (not forgetting that they will also regain some precious time to focus on the more “core” elements of their business - in this case selling their product!). We then looked into the actual “value” the business was getting from their efforts and it became clear that with 1 in every 3 new recruits historically not working out within 6 to 12 months there was a far more significant issue facing the business than they had really anticipated - the knock on effect to other people and areas of the business When organisations make hiring errors, any one (or more) of the following happens: Performance drops - the learning curve of a new employee is often long and gradual, so if you multiply the downtime in productivity by the number of times you have had to recruit for that position you get an idea of how much productivity you have lost in that time. Similarly, many departing employees will go through a period of “wind-down” before they finally leave - more productivity downtime. Resentment grows - In the same way a banana can help ripen other fruit that it touches, so too can a good new recruit! However, quite the reverse can happen if you make a poor (hasty) decision and recruit someone that will negatively impact the rest of the team, often to the point where staff become resentful that the business is using resources deficiently. Morale gets knocked - furthermore, when someone just isn’t working out, and you’ve tried everything you can to develop them, then the right thing to do for you and for them is to arrange to part ways amicably, and in many cases the high achieving people are often glad to see the low achievers move on. However, this will impact the morale of the rest of the staff in some way - the more people who leave, the more morale is eroded amongst those who stay. Your reputation is tarnished - your business will very soon create a reputation for itself of not-caring, nurturing or looking after its staff (both internally and externally). Existing staff will feel unstable and uncertain about where the business is going, new staff will be wary of joining the business in the first place and clients will concerned about the stability of the business and the consequential risks that may have on working with you. Business walks away - people will, more often than not, buy from people and especially those people that they like and have developed a good relationship with. If you lose any of your staff because they weren’t the right people in the first place, or you were unable to retain and motivate them effectively, then you will often lose the relationships that they have built whilst working for you. If they have customer interactivity, some of those customers may move with them to their next job (if in the same industry). If the customer is happy to stay, you still have to spend more time and resources re-building that relationship with someone else in your business before a competitor moves in to pick up the pieces. We estimated from our calculations and research that this particular organisation we were working with had lost more than 20% of their revenue potential through a blend of these knock-on effects caused by their poor recruitment practices. Adding that to their initial costs to recruit and we were looking at bottom line impact of more than £150,000 per annum! And now you know why I pontificate, preach and protest! For the sake of £150,000 …
• Stop and take some time out to plan your recruitment strategies properly
As a recruitment organisation I also hope that this will provide you with some ideas for selling your services. James Osborne is the director of the award-winning training and consultancy organisation, Innergy, who have worked with over 300 recruitment companies in the past 18 months, enabling them to increase their productivity, improve their performance and embrace positive change. http://www.innergy-uk.com |
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Opinion Piece: The Coaching Process in Recruitment by Roxanne Barker and Josie Mascott, Zone 8 Life Management General opinion on the way the Recruitment Industry is changing during these economic times concludes that having motivated, well-trained and focused staff with strong client relationships will be key to not only surviving but thriving during 2009 and beyond. Clients are increasingly looking to place business with a trusted supplier who has gone that extra mile on previous assignments. This may mean some key staff adapting their focus and thought processes to reflect this. Coaching can be an effective and profitable form of support for recruiters who are under pressure to not only maintain their existing performance but to create and develop ways to compete in a difficult market. In fact, according to Fortune Magazine “Coaching is the hottest thing in management” .
Could Coaching Work for your Business?
Choosing a Coach
Buying in to the Coaching Process
Coaching Outcomes Include
Some Conclusions
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Online Recruitment Update Hitwise top 10 Recruitment
Sites, week ending Louise's UK Recruiter blog Discussion Board Summary |
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Regards
Louise Triance
UK Recruiter http://www.ukrecruiter.co.uk
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