A new playbook

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One of the biggest challenges our clients are faced with today is attracting and retaining good people. This can be a costly problem, as the average cost of hiring is $4,425 per recruit, according to a study done by career consulting firm, Zippia. For senior leadership positions this figure is more than triple that number. In the same study it was also noted that it takes an average of 12 weeks for a new employee to become fully productive. This can all have a significant impact on the bottom line.

Seeking potential solutions to this problem, we spoke to Steve Schad, President of Optima Advisory LLC, a firm that provides fractional or part-time HR executives for small to mid-sized companies.

“Rather than ‘posting and praying‘ – creating a job description, posting on Indeed or LinkedIn and praying applications will flood your email inbox, I recommend a shift in perspective, starting with reframing from thinking about jobs to fill to how work gets done.”

Steve suggests company’s think outside-the-box by considering the following:

  • Could you get more from what you have within reach by rethinking assignments and shifting resources to work with fewer people, or shift part-time employees to full time? How about retirees?
  • Contract or fractional help, including remote workers, can be a great way to save time and money on hiring and training. What can you do to redesign or portion out work?
  • Lean principles. What productivity gains can be realized by leveraging lean principles? It’s not unusual for inefficiencies to creep into daily processes. A review of all company processes may lead to a savings in labor.
  • Recruiter assistance. Although there are additional fees associated with a recruiting service, they often have access to better talent. And with a shared motive for success the right recruiting firm typically has better, more effective screening procedures.

Steve also suggests that a business owner should think about why someone would want to work at their company. If the answer is simply that your company has a “family-friendly” atmosphere with good benefits, you may need to consider some re-branding.

What is your employer value proposition (EVP)? A good EVP should make a strong case for why someone would choose to work for you instead of a competitor. Focus on the employee experience, which should include benefits, financial rewards, career development opportunities and any other perks that employees receive.

It should also include your company’s values and vision. An Indeed survey found that 21% of job seekers decided to accept the offer for their current job because their interests and values were reflected in the company’s mission.

The labor shortage is not expected to improve through 2025. A plan for hiring and retention will reduce costs and lost productivity and set your business up for success.