With markets across the globe becoming more competitive, finding and retaining the right talent is a huge challenge. The human resources (HR) department plays a critical role in ensuring the quality of hires which in turn impacts efficiency and productivity. A periodic review of the health of the human resources is essential to understand if the functions are effective in terms of policies related to strategic planning, recruitment, performance management, employee retention and succession planning.
One of the major components that need a review relates to the HR cost analysis. Metrics and analytics give a clear picture of the status of your current HR strategy, and whether support from a recruitment firm may be recommended.
Cost to hire: Calculating the cost of hiring an employee should include the following factors:
- Hours or days of loss in productivity before the last working day of an employee
- Time to fill a position
- Time taken by supervisor or colleagues to make up for the loss in productivity that includes any overtime or shift changes.
- Cost of hiring, onboarding, training or orientation of the new employee
- Cost of advertising the job, screening of resumes, interviewing
- Errors in processes, customer servicing, problem solving
Also consider, it is estimated that organizations invest up to 20% of the annual salary of an employee in training.
Employee absenteeism rate: The absenteeism rate is calculated by dividing the total unpaid and paid leaves taken by all employees by total number of employees in a year. The cost of absenteeism per employee can be derived by multiplying total number of leaves by the cost of absenteeism per day.
Can HR handle hiring dozens of new staff quickly?
Multiple jobs open up when a new branch or department is opened. One of the factors that need to be reviewed is the HR’s ability to hire multiple candidates in a short span of time.
Despite the constant pressure to hire quickly the recruitment process usually takes between ten to twenty days on an average. A study showed 49% of recruiters faced increased pressure for hiring the right candidates in a short span.
When a company needs to fill one position quickly, or perhaps staff a new office or department, Direct Hire or Project Recruitment services can be very effective.
Are you looking for talent in the right places?
A Virtual HR study on staffing and industry trends showed the top challenge for HR relate to finding the right talent for the right job. Staffing jobs with the right technical expertise, experience or qualification is a challenge when the HR department is ignoring the right places to source them from.
Looking at whether the HR department is casting the net far and wide enough to rope in passive candidates or needs help of a staffing agency is important. Recruitment Process Outsourcing can not only provide access to numerous skilled candidates, but also can provide best practice processes, employment branding, and sourcing tools to solve your talent acquisition needs.
Do you have a recruitment plan in place if older staff retires?
With changing demographics in many geographical areas, there is increased turnover due to retirement of the aging population. As these experienced employees hold a wealth of knowledge and expertise, it is important to have succession strategies in place well in advance. Review of the HR department must examine if there are policies in place to map the demographic profile in the organization and a subsequent plan to replace the retiring population.