What Value Does a Retained Search Offer?
Author: Carolyn Silvestri
January, 2013 Issue
Filling a key role with the right person is critical to the ongoing success of your business. It doesn’t benefit you to “fill a desk” if that person isn’t qualified or not the right fit for your organization. With current employees responsible for multiple activities, a retained search may be the best plan of action toward finding that next “star employee.”
A recruiter finds candidates that you simply cannot access on your own. They develop relationships with individuals not typically looking for jobs but interested in hearing about key opportunities that match their area of expertise and longer-term career goals. They find these individuals, contact them, influence them and direct them through the recruiting process. Companies that work with candidates sourced only through a job posting are not only missing meeting key applicants but are greatly limiting their success. Recruiters have the expertise to source candidates from all venues so you’re introduced to the top talent from across the board.
If your goal is to hire the best and the brightest, those people who are top performers and will immediately have a direct impact on your bottom line, you should consider working with a recruiter on a retained search. The right hire will maximize the opportunity to accomplish your goals.
Time. On average, it takes 90-120 days to perform a thorough recruitment for a key employee, from developing a sourcing plan, obtaining a resume pool, assessing the candidates, interviewing the candidates and selecting a candidate.
Cost. There are the direct costs of the recruitment process and there are the costs incurred from lost opportunities when key managers are pulled away from focusing on their core responsibilities. Additionally, unless you have extensive recruiting experience, you risk making bad hiring decisions and the increased potential for turnover. One hundred percent of time and effort used on the search is wasted when the wrong hire leaves or is terminated in the first 90 days. Staff morale and productivity may then decline as you begin the recruitment process over again.
Return. Hiring the best and the brightest means increased productivity and a direct impact on the bottom line.
Hiring a professional recruiter with a reputation for successful placement will ensure success in all of these areas. You’ll benefit from the expertise of the recruiter, attract only the most qualified candidates in a timely manner and allow internal staff to focus on their critical responsibilities.
Eighty percent of employee turnover is based on mistakes made during the hiring process. A recent survey reported that costs related to bad hires indicated that 65 percent of the participating U.S. hiring managers said their bad hiring decision cost their company $25,000 to $50,000. Using a qualified professional placement firm can greatly improve success.
A trained recruiting professional has the experience necessary to assess behavior and learning style, provide a skills assessment, understand a candidate’s real motivation and compare these to a company’s needs. Using these factors along with a thorough reference checking process and background check can dramatically increase the likelihood of hiring the right person.
A top performer produces 48% more than an average performer. A manager making $80K annually who isn’t a top performer is costing $38,400 per year. If you have several managers who aren’t performing at the caliber they should be, you’re losing more than $100,000 annually as opposed to a top performer who will have a significant positive financial impact on your bottom line.
Working with a recruiter provides access to a large network of contacts, one that continuously expands. This network includes qualified candidates not actively seeking a new position but wanting to be informed of outstanding opportunities. You’re introduced to experienced and professional candidates whom you may have never found on your own, and you gain maximum exposure to candidates who have the ability to be high performers. A recruiter finds your “star employee” while you continue to operate your business at its full potential.
Carolyn Silvestri is principal at The Personnel Perspective in Santa Rosa. You can reach her at (707) 576-7653 or www.personnelperspective.com .
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