WORKOUT Hiring too often an ad hoc response
A SURVEY from outsourcing and recruitment company Chandler Macleod reveals poorly defined or ad hoc recruitment practices in most Australian enterprises, and that these contribute to unnecessary expense.
Its Workplace Barometer report says as many as six in 10 companies have no documented recruitment plan, while only 28 per cent of plans are linked in any way to organisational strategy.
Companies too often treat recruitment as a ‘‘ reflexive distress purchase’’, made without regard to broad organisational requirements.
Fewer than half of respondents considered their recruitment function to be strategic, and only 29 per cent of enterprises had an employer value proposition articulating their appeal to potential recruits.
With Chandler Macleod estimating the average cost of a new employee hire at $15,185, the study draws a link between poorly defined recruitment strategy and increased costs.
General manager for talent management services at Chandler Macleod Sue Healy says the survey reveals a poor understanding within most companies of the link between a sound recruitment strategy and employee retention and morale, staff costs and enterprise performance.
‘‘ Most companies claim that people are their most important asset, but that is not reflected in their approach to recruitment and people management,’’ she said.
Healy added that the survey found up to 23 per cent of firms now use social media forums for recruitment, but that the jury remains out on their effectiveness — they remain a niche recruitment channel.
Traditional channels of recruitment — agencies (used by 92 per cent of respondents), newspaper advertising (88 per cent) and online job boards (79 per cent) — remain the most popular means used to attract candidates.
Employee referral programs (ERPs) are increasingly common, and productive. Up to 73 per cent of respondents use ERPs, and 19 per cent of new hires are sourced in this way. Company websites are also widely used and considered to be effective.
‘‘ Clearly, employers are broadening the mix of techniques used to attract candidates, and this is a healthy sign of innovation’’, Healy said.
‘‘ Employee referrals, particularly, are proving to be an effective tool. Anecdotally, we know some companies are generating as many as 40 per cent of their hires from existing staff.’’