Today’s global economy requires a new approach to business management and executive strategy. As leaders begin to incorporate other departments into their overall growth plans and projections – including finance, IT and marketing – the need to involve human resources strategy is also becoming apparent.
While executives often prefer to focus on the broad picture for affecting growth and expansion, many human resources concerns that have traditionally been perceived as minute and irrelevant to corporate strategy are being neglected at the cost of forging business advantage.
Recruiting and staffing, turnover and succession, compensation and benefits – these are all critical HR management concerns that should be weighed with equal consideration among executives, as they are the most expensive HR functions and have the greatest impact on company objectives.
With tightened budgets and an increasingly competitive global economy, businesses can no longer afford to make bad hires. Candidates need to be vetted thoroughly, as proper hires can serve as the missing link in bringing coworkers together to build ideas. On the other end of the spectrum, bad hires can devastate morale and cause organizations to miss their objectives.
Thankfully, there are a number of strategies HR professionals can adopt to plan for their current and future workforces while also helping chief executives to forge their own corporate objectives.
To begin, HR managers should cultivate relationships with job candidates and potential recruits before they are even on the market. This may mean attending job fairs or it may mean building professional relationships with hopeful recruits.
Developing a “wish list” of professionals specific positions is also critical. HR executives should target specific candidates – whether internally or externally – draft a list and rely on it when new positions open up or are created.
As far as marketing goes, word-of-mouth is perhaps the most effective and sought-after selling point. The same is true for recruiting. While such a goal is much easier said than done, spreading positive accounts of specific positions and company benefits can be instrumental in attracting top talent.
While HR executives manage a company’s overall recruiting and hiring strategies, the task should not be isolated to the HR department. Help can come from anywhere – the trick is in developing an incentive for others to do so. Accordingly, companies should implement a referral compensation program for employees who are able to attract qualified candidates on their own.
As executives manage big picture tasks, they need to be clued in on how HR managers are implementing the recruiting process. Staffing reports that outline the number of job openings, any incurred production backlogs and the cost of such positions need to be administered to executives on a frequent basis.
In developing staffing reports, HR managers should also be sure to include turnover rates and cost-per-hire, as well as strategies for filling positions that are traditionally more difficult to fill.
HR executives will also likely need to run the finances of new hires by CEOs and CFOs, underscoring the need to draft specific analysis of all relevant costs. The most effective way to calculate the cost per hire is by dividing recruiting and hiring costs by new hires:
Finally, HR executives should remember to include the following: recruiting department salaries and overhead, advertising costs, hiring and referral bonuses, outside recruiting agency payments, relocation costs and bonuses and potential immigration costs.