Recruiting Options for Small Employers

By Paul Finkle, CMC, SPHR – President & CEO/Principal

The topic of how to find talent in today’s challenging market was discussed at a recent CEO group meeting. With the improving business climate, combined with millennials staying about two years (and expecting to see growth and progress), it’s often necessary to have some sort of consistent recruiting tool. For employers too small to have a full-time recruiting function, the group agreed there were a few good options:

  • Contract recruiters – if several open positions need to be filled, or there is a high volume of searches required for a short period of time, a contract recruiter could be a good solution.
  • Traditional recruiting firms – the general view was that these firms were expensive and should be reserved for key position searches or as a backstop when other options fail.
  • Do it yourself – have the manager or an internal staff person post positions on your own site, LinkedIn, Indeed, Craigslist or others.
  • Alternate recruiting – sites like BountyJobs.com – this is a technology solution where employers can post job requirements, as well as what they want to pay a recruiter, and interested recruiters can bid on and fill the positions.
  • Internal referrals – The CEOs all confirmed that this is best source of quality talent. The consensus was that the referring employee should get at least $1,000 if the new hire stays more than 90 days.

While there are pros and cons to each option, and there are certainly more solutions than those listed, the group agreed that these are some of the most common options used by small employers.

This blog would not be particularly helpful, however, if it omitted basics of pre-recruiting preparation:

  • Start with your organization chart and be clear on where the position fits.
  • Develop a solid position description that outlines the skills and requirements needed to be successful in the job.
  • Create a position profile that effectively presents the advantages of working in your organization, as well as the skills desired.

Note: Talented candidates almost always have more than one opportunity and it takes salesmanship to get the top job seekers to consider your organization, particularly when you are small.

Lastly, check for negatives. Go to Glassdoor and see what your employees are saying about you and make sure there is nothing on the site that is incorrect. Also, check your own website – not only should you post your open positions on your own site (and remember to take them down once filled), but your site should be welcoming to potential candidates and hopefully give a glimpse into your culture and what it would be like working at your organization.

Disclaimer: Some information contained herein has been abridged from numerous sources and may be protected by various copyright laws. Such information should not be construed as consulting or legal advice. Please contact our office for specific advice and/or referrals.

Growth in Employee Population Stretching Average HR Staff

Malcolm Whyte, SPHR, Executive Vice President/Principal

On October 21st, Bloomberg BNA released its annual 2015 HR Department Benchmarks and Analysis Report. The Report provides key metrics and findings which are derived from a survey of almost 350 HR executives including a broad cross-section of US employers. Not surprising to many HR managers, a key finding indicates that the HR staff ratio has declined to 1.1 HR staff for every 100 workers on average. This is down from 1.3 HR staff for every 100 employees in 2013 and 2014.

Economic growth in the U.S. has led to the expansion of employee ranks in many organizations. “This means that HR departments are being tasked with supporting more employees, potentially putting a strain on organizational resources,” said Tony Harris, Managing Editor of HR publications at Bloomberg BNA. According to another global consulting firm, World at Work, companies with less than 250 employees spend an average of $3,372 per year per employee on the HR function. This figure is high but not unexpected given the increasingly complex compliance environment HR practitioners face.

One way small to mid-sized companies can control HR overhead is to outsource one or more HR functions. According to the Benchmark Report, 65% of companies outsource at least one of their HR functions. This practice dramatically increases with smaller companies that cannot justify a dedicated HR team, but must stay on top of compliance and day-to-day HR transactions. Many smaller firms also use HR outsourcing as a way to organize systems and technology.

Click here to read BNA’s press release.
Click here to read about the benefits of HR outsourcing.

Disclaimer: Some information contained herein has been abridged from numerous sources and may be protected by various copyright laws. Such information should not be construed as consulting or legal advice. Please contact our office for specific advice and/or referrals.