If You Snooze, You Lose.
You’re losing the best talent because you take too long to hire. You might be doing a great job following the advice you hear at your HR conference. You might be following the best practices your ATS vendor lays out on how to maximize the use of their system. You may even be following engagement principles on how to stay connected with candidates too. The problem is getting worse though—likely because of super low unemployment. Our clients have conversations internally that go something like this:
On how we measure success:
Citing metrics that beat the national average time to make an offer of 36 days and the time to hire a candidate being 43 days might seem like it’s as good as it gets. We beat those metrics, which must mean we are beating the competition to the best talent. Sweet!
Those metrics are atrocious. The competition has a 7 Daytime to hire. 7 Days. The best talent took a job over 1 Month ago. We are getting our a$$ kicked and we have got to do something different to win this war on talent.
On how we justify costs:
We implemented a new ATS with CRM capabilities that help us easily receive applications and work them through our thoroughly thought out process. As a result, we have reduced our annual agency spend from $1.2m down to $1.0m. We have improved the old, traditional model.
And…? We spend a ridiculous, borderline absurd amount of money on agencies. We keep doing the same thing and expect different results. Those fees are compounded by Turnover costs and more importantly Opportunity costs. Are we even addressing the real problem?
On how we view process:
We will absolutely NOT talk to a candidate until they complete an application, even if they are standing right in front of me in the lobby. We have another applicant before you, so wait your turn. We will reply to your application in 7-14 days and let you know what the next steps are in the process—so be patient.
Be Patient? Are you out of your mind! Why aren’t we talking to them immediately, especially if they are interested and came to us? Didn’t you say the competition HIRES in 7 days? No wonder turnover costs are so high, we are always scraping the bottom of the barrel.
I know it does. The question is who recognizes that this expensive hamster wheel has to be slowed down if you are going to solve production issues that keep the company from growing. Not to mention you are leaving REAL money on the table every month. Profits are significantly impacted by high agency costs, turnover costs, and opportunity costs. Who cares about this? Who is going to go find better alternatives and break the mold? Who wants to step out in front and find a way to BEAT the competition to the BEST local talent, every time?