Valuation

Consulting

Business Research

Accountancy

Philanthropy

The importance of recruiting

Are your people the greatest asset in the business?

Recruitment is the key to a growing and successful company. Finding the right person is not always easy and you can’t build a great company without great people. It takes strategic planning and an implemented recruiting system to be successful in the search for a top employee.

"Company success depends on who you hire," says Rich Lubicz, director of recruiting at International Profit Associates, a leading North American consulting firm.

But not every company is prepared for the arduous task of recruiting. It takes time, money and a plan. Smart Business talked with Lubicz about how to get the process started and ensure success.

Clearly, a strong recruitment plan isn’t inexpensive. What are some of the possible recruiting costs?

There are many costs. These include recruitment advertisements, promotional company materials such as brochures, DVDs or other print or multi-media products. And don’t forget about the recruiter’s salary, if you use one.

There are costs to attend job fairs, such as travel and associated expenses. Travel expenses are something to consider, especially when you fly prospects in for interviews. Training is a big expense, but it only comes into play once you make a hire. The same applies to classroom materials that are used in training and orientation.

How much could you typically spend on recruiting new employees?

The cost involved is certainly more than the price of a newspaper advertisement. To determine your cost per hire, you must add up all expenses and divide by the number of people hired over a month. Understanding this amount will help you to recognize the importance of recruiting and retaining top candidates.

With such an important investment, what’s a key element of ensuring the right hire the first time?

It is critical to create a detailed job description in order to find the right employee. When creating a job description, you should provide the required skill set and education, primary purpose or contribution to the company, daily-weekly-monthly- annual responsibilities and appropriate chain of command.

You need to make sure your new hires know the critical details of their job and where they fit in the organization.

What steps are most successful to ensure you’re recruiting top-quality employees?

You can place advertisements through multiple outlets such as newspapers, Internet or radio. Make sure to screen calls and review faxed or e-mailed resumes. Place a contact call to the candidate and schedule an interview. It can be a traditional face-to-face setting or phone interview. Many companies now focus on the phone interview as a cost savings factor. This concept is catching on throughout large businesses as well as privately held companies.

Why is the phone interview gaining momentum?

Don’t underestimate the importance of a phone interview and the cost savings that go along with it. Not only does the interview or screening save time allowing for more interviews, but it is a key component of the recruiting process. A phone call is an opportunity to learn more about a candidate than you can from just their resume. Treat it the same as a face-to-face interview and use a consistent set of questions to maintain a structured interview and evaluate candidates accordingly.

How do you narrow down the field once you’ve tapped a select few candidates?

The selection process can be difficult. Increase your chances of success by reviewing the candidate resume for length of time on the job; short-term employees may mean a lack of commitment. Look for gaps or overlaps in employment and ask for an explanation. Be sure that the candidate’s skill sets match the needs of the position. Finally, trust your instinct. Did the candidate make a good impression?

Should the goal be long-term retention?

Retention is essential to the success of your business. Selecting and retaining top individuals is important. You need to select those individuals who will continue to develop their skill set and increase their value to your clients and business.

Creating an environment that is thriving, challenging and positive is the key to retaining talented people. Other factors that influence retention include incentive plans, benefits and growth potential within the organization.

Once you implement a recruiting system in which you can measure costs, quality hires and retention, you will be able to accommodate your growth or sustain your current success.