Recruiters may never have had it so tough. Despite working harder than ever, businesses are questioning the value they add, budgets are often frozen or cut, and 1 in 5 of new hires are considered bad or regretted decisions.
And all the while, application volumes just keep on growing. 1 in 4 candidates apply to 10 or more organizations and out of this applications deluge only 72% are considered of, at best, average quality.
CEB data show large companies that are unwilling or unable to fix their recruitment processes beginning with employment screening risk an annual performance deficit of $28m (based on 2,500 new hires per year).
The 3 Pillars of Smarter Volume Recruitment
But every firm can take steps to streamline their volume recruitment and improve quality of hire:
Smarter employer branding: Shift from “branding for appeal,” in which organizations promote the organization as a great place to work, to “branding for influence,” in which they help applicants make better decisions about the skills they have and whether to apply. Companies that brand for influence see a 54% increase in applicant quality.
Candidate driven experience: Bad hiring experiences are reported by 1 in 4 candidates. The effects include post-hire performance issues and increased employee turnover. It even leads to lost revenue, as 1 in 5 unhappy candidates stop buying from the firm as a result. Organizations that want to hold on to top talent and retain their customers deliver a recruitment process that is fast, engaging, and relevant for candidates.
Effective and efficient recruiting process: Recruiters typically focus more on candidate ability than fit, although ability is shown to have less impact on quality of hire. When assessing for fit, only 35% meet the requirements. The best organizations achieve better and faster hiring decisions by measuring candidate fit, not just ability, and by prioritizing activities that add strategic value over low-value administrative tasks.
With these steps in place, the hiring process won’t just become less burdensome for recruiters and candidates, it will have far-reaching benefits for the organization.
Where both employer and candidate are confident that they made the right decision, new hires exhibit more than 20% higher performance and engagement, and are almost 50% more likely to stay with the organization.
Why Recruiters Need to Change
These changes all require much more from recruiters. In fact 44% of the variation in quality of hire between organizations is due to recruiters’ differing abilities, and that 33% of the difference is in how they are managed. So 80% is down to the kind of people who do the recruiting, and those that manage them.
Basing the recruitment process on these three steps will help firms streamline and refocus recruitment and talent assessment, and use it as a lever for improved company performance. But to do that, recruiters need to shift from process administration to become true strategic advisors to the business. The slides below provide more detail.