If your company doesn't have any open positions, what's the point of recruiting?
It's a question worth considering, and most companies seem to agree with the sentiment: there is no point in recruiting when there aren't any open positions. In fact, a recent study by CareerBuilder found only 38 percent of employers continuously recruit throughout the year for positions that may open up down the line.
However, having and leaving open vacancies can have a big impact on a company, costing time and money and impacting current employees in a negative way. To avoid this, your company should always be recruiting. Although it may seem like overkill, a company that continuously recruits builds what is called a 'talent pipeline,' or a community of qualified, interested candidates with the skills and experience to meet your organization's unique needs.
There are three main benefits of continuous recruitment:
1. Open positions see shorter vacancy times.
Right now, it's taking companies longer than ever to fill open positions: 26 days, according to the Dice-DFH Vacancy Duration Measure. And those are work days, meaning it can take five full weeks for a company to fill an opening. This is even longer than it took during the recession (16 days, according to the same measure).
The longer a position stays open, the more it impacts a company, especially financially. In fact, companies can determine the financial impact of an open position by calculating the daily revenue per employee. Simply take the annual company revenue, divide it by the number of employees, and divide that number by 365. That number is the amount of revenue your open position is costing your company.
Ideally, there would be a seamless transition between employees, allowing companies to maintain productivity. While this isn't always possible, continuous recruitment can help cut down on the time it takes to fill these vacancies.
2. It's more cost efficient.
The average cost-per-hire is $5,100, according to a May 2013 study by the National Association of Colleges and Employers. That means companies are spending more than five thousand dollars on finding, recruiting and training new talent. Continuous recruitment can help cut down on this cost, as well as the cost of lost productivity when open positions remain unfilled.
In addition, having a pool of talented applicants to choose from can help keep companies from making hiring mistakes that will cost even more money in the long-run. Instead of feeling rushed to find and hire someone, you can choose from a pool of applicants you already know are a strong fit.
Also consider the fact that continuous recruitment can be done using social media channels, which are incredibly cost-efficient for organizations. Through sites like LinkedIn, Facebook and Twitter, companies can be continuously connecting and interacting with talent for little to no cost. And, 59 percent of recruiters have found what they call their best candidates through social media.
3. Current employees are more motivated.
A March 2013 study in the International Journal of Business and Management Invention found there is a significant relationship between employee motivation and job stress. Simply put, the higher level of job stress, the less motivation an employee feels.
When there is an extended open vacancy, it's the current employees who have to pick up the slack and shoulder the burden of extra work in order to ensure everything gets done. Continuous recruitment cuts down on this. Instead of two people doing the job of three, the work is spread out evenly, and having a manageable workload leads to less stress on employees, making them more motivated.
Continuous recruitment and building a talent pipeline allow your company to take control of the recruitment process. Instead of starting from scratch and searching out applicants every time there's a vacancy, you will have your pick of qualified and relevant applicants readily available.
What are other benefits of continuous recruitment?