Long term labour plans make way for current and immediate needs and are convenient rather than strategic decisions. Here are some tips for recruiting the right people.
Recruiting for success
Prior to any recruitment process commencing, careful consideration must be given to the current business need for the vacant position, the overall current and future needs of the business and the position, the workplace culture that the recruit will be entering and (where applicable) the reason for the previous employee leaving. With the right plans and processes in place, the recruit of a new employee can add strength and potential to the workplace.
The majority of recruitment processes will benefit from attracting a small group of suitable candidates to interview, rather than a large group of unsuitable candidates to sort through. Due to the tight labour market and skill deficiencies that exist in Australia, many small and medium employers have become reliant on candidate referrals, adept at drafting broad ‘catch all’ job adverts and accustomed to accepting the ‘best of the worst bunch’ of applicants. In most cases these employers have limited their potential for attracting the best quality of candidate. A well planned, well executed recruitment process can be a key strategic advantage – attracting a better quality of candidate and as a result helping to retain existing staff.
The cost of getting it wrong
The costs associated with hiring a new employee can run into the tens of thousands of dollars, even for a small business! Advertisements need to be constructed and placed on multiple job boards to source candidates, applications need to be processed and shortlisted, interviews need to be run – and in many cases multiple interview stages will be essential – and finally an offer is made and contracts and position descriptions are required. Making the wrong hiring decision can mean that this process needs to be completed multiple times before the right candidate is found.
Once a new employee commences working, there are further direct costs that the business will incur. These include wages, superannuation, taxes, workers’ compensation and the supply of all required tools and equipment. Further resources must also be committed to providing all necessary training – including introducing and explaining all relevant workplace policies. Unless the business has a dedicated trainer, workplace training typically comes at the expense of production or management. These costs will be most obvious during the training and induction process when the return on investment of the new hire is low or non-existent.
In addition to these costs, a business must simultaneously manage the disruption to the business that introducing a new employee can create. A positive and effective workplace culture can be put at risk by a disaffected employee – new or existing – with immediate and lasting consequences. A poor hire can also put a company’s reputation at risk if they are dealing with clients.
Unfortunately many companies overlook the importance of on-boarding, which is critical for getting a new hire aligned to the business and working productively as soon as possible. The best way to create and retain high performance employees is to surround them with similarly high performing employees.
What to do when it doesn’t work out
Unfortunately, great planning doesn’t guarantee success and it is likely that some new recruits will struggle to perform or fit into your Company’s culture. Due to the legislative protection afforded to employees, it is critical that employers are vigilant and act on the warning signs.
Unfair dismissal protection is afforded to employees of small businesses (as defined by the Fair Work Act 2009) once they have completed 12 months of continuous service and after 6 months of continuous service for employees of all other businesses.
Far too many businesses try to ‘stick it out’ with unsatisfactory employees due to the effort required to terminate and recruit again. Terminating an employee and hiring again may result in the loss of a few thousand dollars, not terminating may ultimately cost many multiples of that. Acting early and acting with clear intent will have the employer in the best position possible to assess all of their available options.
Do you have all your compliance related responsibilities taken care of in the recruitment phase? Often employers don’t consider it, however things like general protections claims are able to be made by people that you turn down for the job. You don’t even have to employ them! ER Strategies can assist you in managing your responsibilities and avoiding any risk in your recruitment process. If this sounds interesting, get in touch with us on 1300 55 66 37, or fill out our contact us form by clicking here.
This article was created by guest writer Chris Turner.