Hiring the wrong person costs a company 3X their salary.
- A $50,000 employee costs your company $150,000
- A $150,000 employee costs your company $450,000
There is also the cost of lost opportunity, loss of existing business and lost momentum – all to start over looking for a replacement.
Statistics show that half of all new employees stay in their jobs for less than six months. Some are promoted, but the majority quit or are fired because the job was not the right fit in the first place.
Utah currently has an unemployment rate of only 3.6% vs 5.8% nationally. Full employment is considered 5% unemployment. Granted these statistics may be low due to many individuals giving up on the job hunt and retiring earlier than planned, going back to school or have simply timed out on their unemployment benefits.
Who applies through typical job hunting sources like the Classifieds, Indeed, Career Builder, Monster or LinkedIn?
- Those who just got fired
- Those who just quit their jobs
- Those who currently dislike where they work
- Those who simply need to fulfill their weekly unemployment requirements
In today’s recruitment market the traditional means are still important, but the quality of the candidate tends to be low.
Companies need to find the PASSIVE CANDIDATE and they can’t be reached through traditional means. You have to reach them in non-traditional areas; RADIO, TV, PANDORA and BILLBOARDS. Benefits of recruiting proactively:
- Your business will reach people who are looking for a job but more importantly those who are thinking of making a career change. These people are often more qualified.
- Your business will reach people who work for your competitors.
- Your business will reach people through a networking effect. 50% will hear about your job from a friend or family member who heard or saw your ad.
- Through many of these tools you can specifically target the type of person you want to reach. AGE, SEX, INTEREST, ETHNICITY, and GEOGRAPHIC LOCATION.
Your company can tell a story … Why is your company a great place to work? Why would someone want to work for you? Many times employee fulfillment and happiness is not about money.
The point of recruiting is not to reach those already looking for a job, because they are likely to find you. It is to reach highly talented individuals who are employed. You can tell them about your job and spark their interest in your company! This is the “Passive” candidate.
Recruiting proactively allows your company to have a personality business culture, that will allow your company to relate to your potential candidate. Within your commercial you can feature the things that make people want to work for you. It could be your weight room, a cafeteria, incentives, flexible schedules. This type of information is difficult to get out, but when people hear about it they might say: “I would love to work for that company!”