The costs of recruiting and hiring the ideal candidate is going to cost your company money. It might cost you a few thousand if you get lucky, or it could cost a hundred thousand dollars if you’re looking for a top-tier manager with a highly-specialised skill set. And you don’t get lucky.
Recruitment and hiring costs often get lost in the flurry of numbers coming from HR. Sure, you know you hired some new employees, but do you have a clue just how much it cost you? Probably not.
Each new hire is different. An entry level employee is fairly easy to find. Put an advert in the Help Wanted section of the local paper, sort through the resumes, interview ‘possibles’ and hire the best for the job. If that entry level hire doesn’t work out, there’s a pool of other prospects.
On the other hand, you don’t place an ad in the Help Wanted section of the local paper when hiring a new CIO. Finding a qualified chief technology officer to oversee equipment, software, systems upgrades, and security could take a long time, and every day that position is vacant you’re losing productivity, and that translates into “you’re losing money.”
Ask for referrals. Nothing creates confidence like a referral from a trusted source. A supplier may know of a good CFO, the marketing department may have the perfect layout artist.
Talk to businesses you trust and who trust you. As long as there’s no conflict of interest, your business associates may know someone, who knows someone who’d fill the position nicely. Start networking your business’ inner circle, slowly moving out.
Save time. Prepare a written job description. Instead of explaining the job duties, corporate culture, benefits, etc. over and over, write them down. Send the job description to all applicants. It’s a great way to cull the resume stack.
The very best are in a position to negotiate. Never forget that.
Quality, high-level company leaders are always in demand, and in many cases, you need them a lot more than they need you. Recognize that negotiations will take place, and be prepared.
Don’t low-ball salary. The top-tier knows its value within your industry segment. Put together an attractive benefits package. Create a legally defensible work contract that both parties agree is fair.
The best hires don’t haggle. They don’t have to.
Admit mistakes. Just because your new marketing officer took months to find, if she or he isn’t working out, let them go under the termination conditions described in a detailed work agreement.
This is a tough one. As the business owner or manager, you keep hoping that things will improve. You don’t want to start the search process over. Unfortunately, things don’t improve. Know when to admit a hiring mistake and fix it quickly to minimise the damage to the company.