By: Clark Jenkins
The human resource community in Cincinnati has some fantastic resources that provide frequent learning opportunities. With groups such as The Association for Talent Development Greater Cincinnati Chapter (GCATD), Northern Kentucky Society of Human Resource Management (NKYSHRM) and Greater Cincinnati Human Resources Association (GCHRA), there is typically an event every week that one can choose to attend. Recently, the topic of the hiring process has been at the forefront of some of these events. Here is a brief overview of the hottest trends in the hiring process today.
A SHIFT IN THE MARKET
No real surprise here but this data makes the approach of finding talent different than in years past. With the national unemployment rate at 4.7%, finding the passive job seeker has become a necessity.* Locally, Cincinnati boasts a low 5.6% unemployment. LinkedIn reports that 65% of current employees are either actively looking, or are at least open to discussing possible new opportunities.
ACCESS TO THE SAME DATABASE
Remember the Rolodex? 20 years ago, the recruiter with the largest Rolodex typically provided the most value. Today, most recruitment is done online and pulled from the same database or at least posted to the same database. On average, it takes seven job postings to receive one applicant. Recruitment has become more like advertisement with video, implementing social media and other tools that may help to set organizations apart from the competition.
LIVE VIRTUAL ASSESSMENTS
Live virtual assessments such as PinsightTM are not only becoming more popular with leadership development, but they are increasingly being utilized to help define the right hire. These assessments mirror real job assignments so well, employees can’t fake their way through the experience; they either excel or flounder in each scenario, which gives you great information about how they’ll do in a role. Imagine being able to assess a candidate’s potential prior to beginning the onboarding process. This would reduce turnover, align talent with the strategies of the organization, as well as reduce the stress on hiring managers and recruiters with the selection process.
The cost of hiring a new person is expensive when we consider the cost of advertising, interviewing, screening and hiring. A recent Forbes study shows that the total cost of losing an employee can range from tens of thousands of dollars to 1.5 – 2 times their annual salary.** Costs don’t simply end with the hiring process because organizations also incur the costs of onboarding and training of the new employee. An organization now must “calculate the cost of both structured training (including materials) and the time of managers and key coworkers to train the new employee to the point of 100% productivity.”***
The modern labor pool is becoming quickly known as The Free Agent Workforce. To offset this, companies are aligning job roles and descriptions to be shorter term and congruent with business strategies. The key factor is to hire the right candidate who either has the current right skillset, or the ability to develop the skillset quickly that will be needed to grow in their career. After the initial career objective and company goal has been satisfied, the employee can expect to move up to a more challenging role that is now in-line with this new skill. This will satisfy the employee’s need for growth and purpose, and help to serve the overall health of the organization.