Our client is a national organization which partners with nonprofits across the country, helping them grow, providing much-needed infrastructure, funding, resources, and support. They recently partnered with our client in Phoenix, Arizona whose primary focus is to help children who are visually impaired. The technology team was in need of a Senior-Level Developer to help support the technology infrastructure as they continue their rapid growth.
Thoroughly understanding their needs from a technology and strategic perspective, we agreed their salary budget was on the lower end of the market. (Something we understand when working with nonprofits).
Our goal was to determine the skills and expertise which were critically important and those which could be acquired over time. The Recruiterie delivered three candidates to the hiring manager, all with strategic, entrepreneurial perspectives, but with varying degrees of technical knowledge and experience. One candidate was far below budget, another in the middle of their range, and the third was at the higher end.
We presented all three candidates, having pre-negotiated their salary expectations. From there, we consulted with our client, to discuss with them what each individual was looking for today and into the future. We weighed the cost associated with the skill set each possessed. All three individuals were interviewed by their CEO and VP of Technology. Technical and personality assessments were completed, and all the results were carefully analyzed.
After three rounds of interviews, the end result was that the lowest-priced candidate was actually the best long-term fit. Understanding the full list of expectations of the role, and the learning curve which would be ahead, the candidate’s compensation requirements were far less than the original budget set by the client. This resulted in a 34% annual savings in payroll for our nonprofit client. The candidate will be able to get up to speed with the new skills in the first 90 days of employment and has a strong career path ahead.
There’s a better way for you to recruit. Let us show you how. If you have a nonprofit recruiting need and would like to fill a mission critical role, contact Recruiterie or call us at 602-326-6820.
You know just what you want in a candidate for a crucial position at your company. Not only do you need someone who can perform the duties of the position, fulfilling hard-skill requirements, but also someone who is motivated, a self-starter. You want someone interested in learning, doing more, moving up, and contributing to the overall success of the company. Well-developed communication and leadership skills couldn’t hurt, either. Obviously, you also want a team player, someone personable who will fit right in with your existing team.
Incredibly, this type of well-rounded candidate isn’t the mythical unicorn you might expect. There are probably dozens of candidates that would fit the bill, even for top-level positions. The real problem is finding such highly qualified candidates that aren’t already gainfully employed, especially during a time of low unemployment.
More professionals than ever are earning college degrees and entering the workforce with the expectation of learning on the job, gaining valuable skills and experience, and climbing the ladder to earn better titles and compensation. However, you either have to nab these desirable workers straight out of school and spend the time and money developing their talents, grooming them for greater responsibility, and retaining them, or you have to figure out how to tempt them away from their current jobs.
Both can be difficult in the current job market. Unemployment rates in the U.S. have been declining in recent years, coming out of the recession, and recently hit historic lows. In July of 2017, the unemployment rate was at 4.3%. It dropped to 3.8% by May of 2018, marking the lowest rate since April of 2000. In June 2018 it rose slightly to 4.0%, but the overall trend of low unemployment across America is so far holding steady.
This can make it incredibly difficult to attract top talent, and worse, it can mean that your preferred candidates are already working for competitors. What can you do when the top contenders for a position are currently employed and ostensibly unavailable? With the right recruitment strategy and help from a qualified recruiting partner, you can still come out on top.
Identifying Top Talent
Right now we’re in a seller’s market, so to speak. As of January this year, there were an estimated 6 million jobs available at U.S. companies, matched against incredibly low unemployment rates. This gives top candidates with the right education, skills, and experience the leverage to pit potential employers against each other in order to negotiate the greatest possible benefits.
This leaves you in the unfavorable position of having to offer more money, greater benefits, increased opportunities for advancement, a desirable corporate culture, and other incentives to compel top candidates to accept your offer. Still, it might not be enough if your favored candidate has myriad offers to choose from. Plus, you may have to make same-day offers to desirable candidates without fully vetting them, just to remain competitive.
A better strategy may be to consider an alternative to candidates actively seeking jobs. By looking at potential candidates that are already employed, you can gain the time you need to properly vet them, including tracking past and current job performance, to a degree. You also take your time courting them to see if they are interested in the prospect of alternate employment opportunities.
The beauty of this strategy is multifold. Candidates that are interested in new opportunities but not actively seeking work are more likely to be forthcoming about both their talents and their desires, giving you the chance to gain a foothold to woo them, but also to understand exactly what you’re getting for your money.
In addition, those who aren’t in need of a job may be enticed by incentives other than money, such as opportunities for leadership, creativity, autonomy, and so on. This could make them a real asset to your company while reducing the potential cost of hiring.
The Poaching Conundrum
The biggest problem with this approach to hiring top talent is that there are ethical concerns related to poaching from competitors. Even if you’re attempting to gain the best advantages for your company, you’re simultaneously harming competitors by stealing away their talent. Both you and the employee could earn a negative reputation in the long run, despite the initial advantage.
Making the wrong move could cause problems down the line, potentially putting the kibosh on profitable partnerships if other companies find your recruiting tactics questionable, just for example. In addition, competitors may declare open season and turn the tables by attempting to poach your top talent.
What’s the ethical solution? There are a couple of strategies you might pursue. If you find talent that you think would be a good fit for your company and fill a needed role, you might inquire as to whether any current employees are personally or professionally connected to that person. An employee referral system is generally considered an ethical way to present job opportunities to those employed by competitors, but it requires existing connections, and if you interfere too much, it can still be ethically problematic.
A more reliable and productive solution is to work with a recruiting partner that makes it their job to connect companies and professionals that are a perfect fit. In this way, you can avoid courting competitor employees directly, eliminating an ethical conundrum. You can deliver your requirements, your goals, and your offer to a recruiting partner, who can then approach potential candidates and negotiate on your behalf.
Partnering with a Qualified Recruiter
An executive search firm not only offers you an ethical way to find and obtain top talent, but also the best opportunity to retain hires. When you find the perfect fit for your company, and you’re able to offer the proper enticement, the result will be a lasting union that profits both parties moving forward. Further, you’ll maintain your good reputation in the process.
Finding and hiring top candidates the traditional way isn’t always easy, especially in a market with low unemployment rates. However, with the assistance of a qualified recruiting partner, you have a chance to increase the scope of your search to include candidates that are already employed and potentially interested in the opportunities you have to offer.
It has long been said that you have to spend money to make money. We invest in education to increase knowledge, improve skills, and make ourselves more marketable, improving opportunities for jobs, advancement, and earnings. We put money into portfolios of stocks and bonds to increase earnings through interest so that we can comfortably retire one day. These things have a cost, but the high likelihood of increasing returns is what makes them a valuable investment.
When it comes to filling top-level positions at your company, you’re going to find that it not only pays to hire the right candidates, but to do so expeditiously. Naturally, filling a top-level executive or upper management position is a delicate endeavor. This person has a lot of responsibilities and plays a leadership role, so you need to make sure he/she has the qualities and skills required for the position.
There’s certainly something to be said for being choosy when filling these pivotal roles in your company, but that doesn’t necessarily mean you should take too much time deciding. When you wait too long to hire for key positions, your company could suffer some serious setbacks and losses in the process.
Even though there is a cost associated with hiring a recruiting company to assist you in finding candidates for high-level positions, you’re better served to view this partnership as a valuable investment. A dedicated, professional recruiter can help you find the right people quickly and efficiently, saving you time and money in the long run. If you’re worried about the “cost”, you first need to consider the price you’ll pay when you fail to hire top-level staff for an extended period of time.
The Cost of a Missed Opportunity
Top-level executives don’t get where they are by failing. The vast majority have worked their way to the top through ingenuity, tenacity, leadership, and large-scale successes. This means they tend to be in high demand. If you’re not on the ball, you could miss your opportunity to land a big fish, so to speak.
Naturally, you want to vet candidates before hiring. You don’t want to jump the gun and end up with someone who is not actually qualified for the position or who simply isn’t a good fit for your company. That said, you can’t draw out the process to a degree that your company suffers undue harm in the process.
This is why having a reliable and qualified recruiting partner is so essential. This person can pinpoint and feed you appropriate candidates much more quickly than you can find them on your own, helping to speed the process and ensure immediate results and long-term success. If you are looking for a recruiter, check out our services.
Impact of Vacancies on Company Finances
Sure, you won’t have to pay a hefty salary for a while, but there is a financial downside to vacant executive positions that could more than offset this temporary boon. In 2016, the Society for Human Resource Management (SHRM) reported that the average time it takes to fill a vacant position is 42 days and the average cost-per-hire is $4,129. Of course, this is just an average. When you’re hiring for an upper management or executive position, the costs and timetable are likely to be far more significant.
How can you determine how much you’re losing financially as top positions remain unfilled? You can use cost of vacancy calculations/formulas to figure it out. They may include fields like salary, working days per year, and the time it takes to fill a vacancy, just for example.
A Harvard University study found that an employee generates revenue or value at 1-3 times his/her salary, depending on the position. This information can be used to create a simple formula for determining financial loss when a position goes unfilled.
Suppose an executive position includes a salary of $200,000 and 230 working days per year. This high-level position probably infers the top value multiplier of three. If the position goes unfilled for the 42 days SHRM cites as average, the cost to the company is $109,565. Add another month to that equation and the cost jumps to $187,826.
Within just a couple of months, your company has lost the value of nearly an entire year of salary for the position. This is the tipping point at which you stop saving on salary and start losing big time on potential revenue and value, and it is compounded by the fact that you’re simultaneously shifting unfulfilled duties to other employees, disrupting their productivity and morale in the process.
Impact of Vacancies on Remaining Staff
When someone leaves the company, their workload doesn’t vanish with them, and it can only be put on hold for so long before it starts to impact planning and forecasting. Invariably, the workload, or at least certain responsibilities, will have to be shifted to other employees in the interim.
This can damage productivity and profit in a number of ways. For one thing, shifting duties to employees unfamiliar with them means the job will take longer and it won’t be done as well. In addition, this takes experts away from their assigned duties, potentially resulting in subpar performance or at least delays.
In the meantime, employees directly and indirectly affected by this shift in duties can begin to feel overwhelmed, overworked, out of their depth, stressed, and frustrated by the situation and the demands placed on them, further compromising output. In short, the ripple effects extend far beyond the vacant position.
Saving Time and Money with a Recruiter
Now the good news. You needn’t go it alone. A qualified recruiter that specializes in finding top-level talent can significantly reduce the amount of time a position is left vacant. Utilizing expertise and a network of trusted connections, an expert recruiter can not only deliver candidates for your consideration expeditiously but also serve up qualified contenders that are a suitable fit for your company.
This, in turn, can save you money, not only on the lost value provided by a properly filled position but on the productivity and morale of remaining staff. There is a cost to partnering with a skilled recruiter that delivers results, but the investment will save you an incredible amount of time and money in the process. Contact us today: recruiterie.com