How Investing in the Right Candidate Saves You Money in the Long Term
In an ideal world, companies would be able to search for job candidates quickly, inexpensively, and in a way that brings hardworking, ideal fits for the open positions. Unfortunately, it’s almost impossible to succeed in all three dimensions.
You can save time by investing more money into your efforts, such as placing job ads. You can save money by opting a minimalistic strategy and being more patient. And of course, you can save both time and money if you don’t mind raising the odds of hiring a low-quality candidate.
However, most companies believe it’s better to invest up front, and spend invest time and more money to find an excellent candidate … even if that means sustaining a temporary loss for the company or scrambling to fill the void temporarily while the position remains unfilled.
Why do they make that calculation?
Experience
First, salaries tend to increase parallel to experience, and for good reason. Think about your own career: If you encountered a complex problem 5 or 10 years ago, how would you have approached it?
You might have struggled a lot more, required more time, dealt with heightened stress, and eventually come up with a solution that’s not as ideal to the one you’d arrive at today. Hiring a candidate with more experience may cost you a higher ongoing salary, but the experience that comes with it is more likely to bail you out of tight problems.
Your firm will see its challenges addressed more quickly and efficiently, and achieve results that are higher quality.
Productivity and Performance
Not all candidates will have the same commitment to productivity and performance. It’s tough to tell which ones do during the interview phase, but examining each candidate’s personal achievement history should point you in the direction of the person who has the highest work ethic.
You’ll pay extra to land a candidate like this for your team, and you’ll probably have to hold out longer to locate one, but depending on the job, you’ll also probably save money in the long term. For example, would you rather hire a salesperson at $40,000 a year who closes 25 percent of her leads, or a salesperson at $50,000 a year, that took another month to find, but who closes 50 percent of the leads?
Culture Fit
Don’t underestimate the importance of company culture. Finding a candidate who fits into your existing company culture perfectly can improve morale for the entire group, and ensures your new hire will give an optimal performance.
Depending on the nature of your culture, it could take months to locate a candidate who fills your experience and skill requirements and still fits into your team. But it’ll be worth it if it secures the future of the brand (especially if this candidate will fill or eventually rise to a leadership position).
Training
The average company spends between $1,200 and $2,000 per employee on training and development. If you can find a candidate who already knows what he’s doing, you’ll instantly save that cost -- and the worker may be equipped to train other people within your firm, which means he’ll save your company even more funds for training and development.
If the candidate is in a position to lead or train others, she or he will also foster greater skills and values among those incoming employees, which increases the entire value of your workforce over time.
Turnover
Turnover is a profitability killer, obviously, and one of the biggest reasons to spend extra time and money to find the right candidate. When you lose an employee, you’re forced to go through the entire recruiting process again, and spend more money to train the new hire (not to mention the lost productivity while the position remains open).
Losing a candidate effectively doubles the total recruiting time you’ll spend to fill the position over the long run, so it’s worth spending more time initially to fill the position with a candidate who’s more likely to stick around.
Brand Image
Depending on how high up the corporate ladder the position is, your choice could also serve as a major reflection of your overall brand image. This person can and will shape how your company operates and how it’s regarded in the future.
Investing a little extra in someone who has a strong personal brand could instantly create a positive ROI by bolstering your corporate brand reputation.
How to Find the Perfect Candidate
If you’re willing to invest the time and money to find the right candidate, but aren’t sure how, here are the best strategies for you to adopt:
- Set high standards. First, be clear about what you’re looking for. Set high standards for your target candidate in all the areas cited above. During the recruiting process, identify the firm minimums for candidates to be interviewed, and don’t pull any punches; the extra money and effort will be worth it.
- The bigger your pool of candidates, the more likely you’ll find a perfect fit. Invest in at least some advertising to spread the word about the open position, but try to be fairly strategic about where you publish it.
- Attend networking events and become an active recruiter on social media. Again, the wider your network, the better. Pay attention to strong personal brands, even if they already have a full-time job, and be prepared to make a solid offer to the right candidate.
- Contact a staffing agency. Staffing agencies like First Professional Services have a wider pool of prospective employees than you’re likely to get through advertising and networking alone. They’ll also be able to customize candidate pools to fit your requirements.
- Be patient. You probably aren’t going to find the ideal candidate overnight. Apply “duct tape” fixes to fill the void your previous employee left, but don’t settle until you find the right candidate to step into that role.
Taking the time and spending the money to get the right candidate in your operation is going to be the smart move. If you’re ready to begin your search, contact First Professional Services today!
We’ll help you find the perfect candidate for your open position -- in skills, experience, work ethic, and price.
