Maximizing Business Outcomes through a Strategic Talent Acquisition Function

Attracting, hiring, and retaining the best people necessary for a company to reach its goals efficiently can be an organization's most important investment. The cost and time associated with talent acquisition are key metrics of any strategy; however, measuring bottom-line impact is often even more significant. Having talented employees on board contributes positively to profitability and increases employee satisfaction, fostering an environment conducive to maximum productivity and creating a win-win situation!

The Importance of Investment

Companies are often tempted to view talent acquisition as a cost center. However, it may be more beneficial to recognize recruiting efforts as an investment. The actual value of this approach is seen in the results. By investing wisely in recruitment and hiring processes, companies can gain long-term profit from both savings on potential employee turnover costs & additional revenue generated through increased success that comes with quality hires. According to SHRM’s study about U.S Cost per Hire trends over time, each hire offers up financial opportunities if done intentionally; not only does budgeting for intelligent team members create initial economic sustainability, but it also helps maximize productivity which could potentially result in significant returns down the line!

Where should you start when you're trying to calculate the investment in your recruitment? Should the budget depend on what level of quality and speed is expected from a hire? The answer may lie in two key metrics - velocity &Net Hiring Score. These figures will determine if an organization's ROI equates to stellar hires or mediocrity. Each industry can range anywhere between 5-15% for these investments, but no matter how much time and money has been allocated, it all comes down to those numbers!

The Impact of Hiring Velocity

Hiring velocity, the percentage of jobs filled on time, is highly correlated to business velocity. In other words, it measures a company's ability to hire people they need when they need them to meet their objectives on time. A hiring velocity percentage above 80% indicates that your business is progressing at a healthy pace.

A strategic workforce plan will help guide the velocity of hiring. By aligning the hiring process with business goals and considering the resources and talent needed to achieve them, companies can ensure they are hiring at the right pace to meet their objectives. A fast hiring process can help companies stay ahead of the curve and take advantage of new opportunities. On the other hand, a slow hiring process can result in missed opportunities, missed business targets, and a loss of top talent to competitors.

The Benefits of Quality of Hire (Net Hiring Score)

Quality of hire refers to how well a new hire performs and fits into the organization. Companies can use a Net Hiring Score (NHS) approach 90 days after an employee starts to measure this. This involves collecting feedback from the employee and their manager on their satisfaction with the hiring process and the new hire's performance.

The NHS provides valuable insights into the candidate's job description accuracy, management competency, and fit within the company culture, as well as their attitude, aptitude, and growth potential. According to a study by the Talent Board, organizations that focus on the quality of hire are more likely to have lower turnover rates, higher employee engagement, and improved performance.

In addition, high-quality hires are more likely to stay with the company for a more extended period, reducing the cost of recruiting and training new hires. A study by the Center for American Progress found that losing an employee can be up to 213% of their annual salary, making the focus on hiring quality a cost-effective solution.

In conclusion, a strategic talent acquisition function that focuses on investment, hiring velocity, and hiring quality can significantly impact a company's bottom line. By prioritizing the attraction, hiring, and retention of top talent, companies can create a more productive, engaged, and profitable organization.

Investing in the talent acquisition function, streamlining the hiring process to improve velocity, and focusing on the quality of hire, guided by a strategic workforce plan, will lead to improved company outcomes.