Are You Budgeting for the Right Talent in 2016?
The following excerpt was written by the talented staff at our sister company, TeamPeople
Recently, LinkedIn reported that 62% of companies plan on hiring more in 2016 than in previous years. In 2015, U.S. companies increased their average talent acquisition costs to about 7 %. This increase is equal to about $4,000 per hire. So what does this mean? This means that managers will be fighting to hire top talent and it will be a challenge for companies to attract and retain top performers in 2016.
So what should you think about while you blueprint your budget for 2016?
- Benefits, Perks? – To attract and retain top performers, companies should carry health insurance for their employees. Health benefits are extremely important, as we all know, but studies have shown that when an employer offers to pay for medical insurance for employees and family, this gives employees the peace of mind that their health and their loved ones will be looked after. If a candidate has two similar job offers on the table, but one has health insurance and the other doesn’t, chances are they will lean towards the offer with health insurance. Companies should also start thinking more about perks. Does your company have the cool factor? What sort of perks does your company offer that are different from other companies? An in-house gym, espresso bar, game room, company Uber account and the flexibility to work from home are all examples of a few things that matter to employees. Having solid perks keeps employees motivated, engaged, and overall helps morale.
- Invest in your People! – What does your current staff makeup look like? Do you have a mixture of Millennials, Generation Z’s, and Baby Boomers? Maybe you have more Baby Boomers than Millennials? Current studies show that millennial workers now make up the largest percentage of the workforce. As more and more Baby Boomers retire, these Millennials will need to step into critical management and leadership roles. However, many millennials are not properly trained to take on these roles. Do you have a culture of learning? Training courses and educational seminars should be added to your company’s budget. This will also allow your team to look more attractive to top talent and help keep your current employees motivated and growing within the company.
- Recruiting Strategy – Because of the tightened labor market in 2015 and this trend only continuing in 2016, companies will need to get creative with their recruiting strategy. Companies can no longer post a job and expect the perfect job candidate to come through. Top performers will already be working and chances are, not looking. In targeting top performers, companies need to think outside the box. Recruiting through different avenues (social media, job fairs, industry events, referrals, etc,) will need to be considered. Is recruiting not your cup of tea? Then hire a staffing company that can help you identify a top performer. Most staffing companies have the resources to identify the exact talent you need. Going to a niche staffing company will increase your chances of finding the key player you are looking for (i.e. If you’re looking for an Accountant, you should go to a staffing company that specializes in finding accountants, etc). If you’re looking for media/ AV talent, then you’ll want to give TeamPeople a call! By the time you spend money on job boards and spend your time and energy reviewing tons of resumes that aren’t a perfect match on your own, it might be cheaper to go to an expert and have the recruiting done for you.
- Turnover – There is a cost for employee turnover. Statistics show that the cost of an entry level employee leaving could cost the company between 30 -50 % of the employee’s salary; the cost of executives and specialized employees could cost the company upwards of 400 % of the employee’s annual salary. That’s a huge hit to a company! Do you have a cushion in your budget to prepare for unexpected turnover?
Bottom line – if you are not staying on top of your game as a company, chances are you will not have top performers knocking at your door. While preparing your budget for hiring, look to attract and retain key performers and have a plan in place on how to handle unexpected turnover.
-Written by TeamPeople’s Director of Talent Acquisition and HR, Kimberly Townsend