Young companies may often not have the same level of resources or expertise as mature corporations, but what they lack in financial support they make up for with passionate engagement. For a culture that innovates incredibly fast, hiring talent can easily become a nightmare without a proper recruitment model.
Why Does Your Start-up Need a Hiring Strategy?
A single bad hire can lead to financial distress. According to 2016 research by CareerBuilder, the estimated cost of a bad hiring decision is approximately 30% of the individual’s first-year expected salary. To be more precise, the economic loss could reach about $17,000 or even $240,000, depending on the duties and responsibilities. Preventable employee turnover presents a financial challenge many start-up founders can address if they implement a strategic, systematic approach to employee retention.
Creating a well-thought-out recruitment plan can not only help start-ups to avoid variable costs associated with hiring a poor fit but also compete against high-share companies. As the global labor crisis continues, most businesses today compete with one another to find the most skilled workers. Start-ups need to know the environment the other companies work in to develop a customized recruitment strategy.
Hiring Strategies for Start-Ups
Recruiting field is highly competitive and changes constantly, and, as a result, start-ups without formal HR departments need to create more elaborate search strings to find and engage with qualified candidates.
1. Start Creating Targeted Content to Promote Your Employer Brand
Be notorious. Over 70% of candidates use search engines to do their own research before applying to a company. Just as marketers try to persuade customers to buy their product or service, start-ups should develop a powerful strategy to brand their business with a distinctive image and generate the exposure it needs among candidates. Start-up founders can consider creating a business blog to share photos, videos, and stories of the company, using social media to start conversations, or starting an employee spotlight program. This offers candidates the opportunity to learn about the team, ethos, values and culture of the company.
2. Check Out the Flexible or Open Talent Model
Talent acquisition is no longer limited by its traditional geographic boundaries. For this reason, start-ups can make use of open talent, such as freelancers or remote employees. This type of workforce operates in a highly competitive and volatile job market and, consequently, it is characterized by continuous improvement to stay current on the news and upskill. Open talent cultures are cost-efficient, dynamic, and can easily help fill gaps in skills.
3. Leverage Your Employee Referral Program
Recruitment statistics indicate that employees who are referred tend to stay at their jobs longer than traditional hires. Not only that, but such employees also reduce hiring time because they come through grassroots networking, cost less than $1,000 per hire, and are typically more productive. Referring by current employees allows start-up founders to access the potential reach of employees’ networks and relationships and add value from a strategic perspective to employer branding efforts.
4. Consider Campus Hiring
Gen Z workers are expected to account for 27% of the workforce by 2025. Given the current prospects, young talent is prepared to enter the workforce and apply academic knowledge and skills to a real job. As a startup, it is recommended that founders invest in campus ambassador programs, offer a work placement, leverage company culture to create social media buzz or ask administrators to help in recruiting the best-qualified students.
5. Attend Networking Events and Community Group Meetings
Business events increase the chances of meeting new customers and potential partners, but they also allow startup founders to step into a setting where they can connect with professionals seeking new positions. Networking offers the possibility of accessing a larger, more diverse candidate pool, increasing the visibility of the firm, and targeting specific audiences. Alternatively, start-up founders can reach out to groups to become a panelist at a discussion and sell their knowledge, expertise, and accomplishments.
6. Offer A Comprehensive Benefits Package
Benefits that align with the values preached and demonstrate commitment to team goals can help a company find the most-qualified talent, motivate the current workforce, and create an atmosphere of real unity that breeds success. Among the most valuable benefits that should be added to early recruiting strategies are flexible work arrangements, professional development opportunities, a four-day workweek, or paid time off.
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At Your Talent Agency, we source, recruit and relocate. We help businesses that enter the phase of rapid growth to drive growth forward. We make sure that time spent in the boardroom does not become consumed with trivial matters and find the best candidates to fill your positions.