Recruiting or Retention: What is the Best Strategy for Your Company?
Posted July 17, 2017 in Articles
Increasingly, companies across the board are focusing on employee retention as a form of recruitment. Rather than concentrating their efforts (and dollars) on finding qualified outside hires, many companies are finding that it is more efficient (and less expensive) to promote from within. In addition, data show that today’s employees place significant value on having opportunities for advancement; and, in the current employment environment where lateral moves are the norm, showing a commitment to employee development can help reduce the costs of keeping critical roles filled.
But, an exclusive focus on retention will not necessarily be the best option for all employers. In many sectors, if not all, a blended strategy of recruitment and retention will generally provide the best solution for building a strong workforce and effective management team. For human resources managers seeking to strike the right balance, here are some key considerations to keep in mind:
1. How Much Are You Spending to Recruit Outside Hires?
Let’s start with the bottom line: How much are you spending to help your company grow? As we recently discussed, the costs of recruiting and onboarding a new employee will usually significantly exceed those of promoting from within, and this is not a factor to be overlooked.
2. Where is Your Candidate Pool?
Of course, as a practical matter, you need to go where you can find the best candidates. Do you have viable in-house candidates for the positions you need to fill? Is the company looking to go in a new direction, such that an outside hire is necessary? These and other questions should all factor into where you decide to focus your efforts.
3. Does Your Company Have Natural Paths of Advancement?
As a related matter, it is important to consider whether your company has natural paths for advancement. Oftentimes, there will be divides between where most internal employees can continue to provide valuable contributions and where outside hires become necessary.
For example, a great programmer or account manager may be able to succeed in managing his or her department, but may not be the right choice for an executive role. On the other hand, someone in the company’s finance department who has shown an aptitude for strategic decision-making may be a strong candidate to set on the path toward company leadership. Of course, each company’s (and each employee’s) situation is unique, and this is one area in particular where companies should be hesitant to rely on generalizations.
4. Where Have You Found Success in the Past?
While it is always important for a business to look forward and evolve, it is equally crucial to rely on tactics that have previously proven successful. Where have you found your best hires? What strategies have failed? Social media, new social norms and other factors are constantly changing the HR landscape, but this does not necessarily mean that the past should be forgotten.
Contact Mithras Investments | Strategic Consulting for HR Management
At Mithras Investments, we provide strategic consulting for human resources departments in companies of all sizes around the globe. If you would like to discuss ways to improve and streamline your company’s recruiting or retention efforts, please call (305) 517-7911 or inquire online today.