You will always have to deal with recruitment at some stage in your business cycle. Even small businesses need employees – particularly if you’re looking to grow your company. Bringing new people to your organization shouldn’t be tricky, but you’ll be surprised at how many issues present themselves.
Below, you’ll find the most prominent recruitment problems for the modern-day business:
It costs a ridiculous amount of money to hire a single employee. In total, it can add thousands of dollars to your overhead expenses. Much of this comes from their wage, but you also have the cost of recruitment as well. Times this by however many people you recruit, and you’re in a position where your expenses go wild. It makes it almost impossible for some businesses to make a profit and also hire the talent they require. There usually ends up being a balancing act somewhere. This is why lots of smaller companies consider outsourcing to minimize recruitment costs in many areas of the organization.
Turnover refers to the rate of people leaving your business ever year (or within a specific period). If your rate is high, it means a large percentage of employees keep leaving your business. In turn, you need to high more – which adds to the costs. High turnover can also lead to productivity issues as you constantly need to spend time training new team members and helping them settle. To counter this, many companies turn to hire technology as a way of sourcing better candidates. Get the best candidates for the job and you should reduce your turnover rate dramatically.
Hiring people takes a lot of time and effort. In fact, it can take up to a month to hire one individual – sometimes far longer than this. Think back to when you were a jobseeker; how many times did you see the same role advertised for weeks on end? The longer you spend hiring someone, the more substantial the issue. You’re distracted from other business tasks, spending too much time interviewing candidates or sifting through applications. Much of this can be addressed with recruitment agencies of technology. Still, recruitment is time-consuming, which is an issue when time is money!
There’s a lot of talk about cultural fit these days. The easy definition is that cultural fit refers to hiring people who fit with the company ethos. In effect, you have a team of people who share the same values as the business. This can have pros and cons, but many experts believe hiring for cultural fit is the best way to create a synergistic team. So, issues arise when people don’t fit with the company culture. It leads to difficulties in the business, which usually ends with them being let go. This takes us back to the points about turnover rates, time-wasting, and costs!
As a business owner, you must be prepared to deal with these recruitment problems. Hopefully, by increasing your awareness of these issues, you now know how to solve them.