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More than money: what you need to know about the true cost of recruiting

  • November 12, 2018

A stable workforce means that things run smoothly and without interruption, so when a staff member leaves it can have a big impact on the rest of the business. Valuable skills and job-specific knowledge that has built up over time disappear with a departing staff member, leaving you in a tricky position to bridge the gap. These practical implications of recruitment can have just as heavy a cost to your company as the financial element.

That’s why we’ve put together this guide to help explain what the true cost of recruiting is to your business. From finances to how attrition rates impact your recruitment, we’ve considered some of the things you may not have thought about when it comes to recruiting.

Recruitment costs: facts and figures

To understand the true cost of recruiting, it’s useful to look at the facts and figures and what costs they refer to. When a staff member leaves, your business could find itself paying for everything from recruitment costs to the wages of temporary staff.

Research carried out by Oxford Economics suggests that it costs more than £30,000 to replace a staff member. Two main reasons for this cost are highlighted in the findings:

  • Firstly, the logistics of recruiting a new staff member and the associated costs that go along with that. For example, HR activity and the cost to the business of the interview process.
  • Secondly, the reduction in productivity while the new staff member gets up to speed. According to the report, it can take between 20 and 32 weeks for a new starter to reach optimum efficiency, depending on the industry.

The financial figures are striking of course, although it’s important not to overlook the bigger picture. Not only does a departing staff member result in a monetary cost to the business there is a range of knock-on effects:

  • HR spends considerable time going through leaving and joining processes, completing all the relevant paperwork as well as sourcing a replacement.
  • Management has to spend time arranging for the work to be covered, either by distributing it amongst existing staff or appointing temporary cover. There’s also the time spent away from everyday work conducting interviews to take into account.
  • The workload of colleagues increases and there is a general reduction in productivity as staff take time to readjust and the new person to settle in.

Not only is this expensive, it’s time-consuming: resources which could be used to retain staff are instead spent on finding a replacement. There’s the commercial element to consider also, as time and energy are put into recruitment which could be put to more effective use by serving clients, refining work processes, and developing new products and services.

Attrition rates and their impact on recruitment costs

Losing a well-established member of staff is undoubtedly a blow to your business, although it’s equally important to consider how attrition rates play into your overall recruitment costs. If you find that you hire someone only for them to leave after a short while, or if staff aren’t sticking with you for the long term, it can have a huge impact on your overall cost of recruitment. What’s more, if staff churn is causing disruption, then it’s unlikely that your workforce is operating at maximum productivity.

There’s a mixed picture on attrition across the board, with turnover rates varying by profession and industry. Research carried out by XpertHR shows that general management and admin staff has one of the lowest turnover rates at 3.1%. The second and third lowest rates were engineers at 4.9% and technology staff at 6.8%. At the other end of the scale, the highest turnover rates are amongst publishing and events staff at 17.7%.

Each individual industry faces its own specific challenges, however it’s important to remember that each departing staff member impacts on your business. So, while the turnover rate for engineers at 4.9% seems low compared to the 17.7% average staff turnover in publishing and events, it doesn’t necessarily lessen the impact. The need to source candidates with specific skills and qualifications can take a long time, which extends the period that you’re without a valuable individual and means that the optimum productivity of your workforce is reduced for longer.

Each individual industry faces its own specific challenges, however it’s important to remember that each departing staff member impacts on your business. So, while the turnover rate for engineers at 4.9% seems low compared to the 17.7% average staff turnover in publishing and events, it doesn’t necessarily lessen the impact. The need to source candidates with specific skills and qualifications can take a long time, which extends the period that you’re without a valuable individual and means that the optimum productivity of your workforce is reduced for longer.

And while positions such as general admin may have a lower skills threshold than engineering, making them easier to fill, staff churn is disruptive. Having a plan in place to attract and retain the best talent is always a good idea, and if you find that your turnover rates are starting to creep up it’s worth revisiting your employer branding. Perhaps something is missing, or not connecting with staff and candidates and a few small changes could reduce turnover. The important thing is to monitor and refine: stick with what works and change what doesn’t.

Why businesses benefit from using a recruitment agency

Knowing what will attract candidates, what will drive them away and what will help to keep employees is invaluable. And especially when it comes to attracting candidates in a specialist field, having the experience and know-how of a recruitment agency on your side can make a big difference.

Of course, using a recruitment agency rather than recruiting in-house incurs a cost. However, by making use of a partner with specialist skills, your staff are free to do what they do best, meaning that you save time and money in the long term. Placing the right candidate with your firm will also reduce attrition rates, meaning you spend less on recruitment than you otherwise would have done.

A recruitment agency will be able to personalise their service to the needs of your business, so you can choose exactly the level of involvement that suits you. What’s more, an extensive network of candidates will mean that your agent can think outside of the box and help you to consider candidates that you might not otherwise have done, giving you more choice.

If the true cost of recruitment is proving to be an issue for your business, perhaps we can help? Even if staff retention is something that your company has been struggling with why not give us a call on 01772 259 121? We’ve over thirty years’ recruitment experience and would be pleased to help.

You may also find out recent blog ‘Staff retention – worth the effort?’, of interest if you’re looking for some new ideas on how to retain your staff.

And please feel free to register your vacancy online, if you’re looking to recruit at the moment.

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Staff retention – worth the effort?

  • October 10, 2018

Highly skilled employees set your business apart and finding individuals with the right talent takes time and resources. This is why companies need to consider the importance of retention, rather than just focusing on recruitment.

Resignation rates are at 15.5% according to XpertHR. That figure is a five-year high, the need to improve retention is evident. Reducing turnover of staff isn’t just a cost-saving exercise. Staff that stay with you, are highly skilled and happy in their job make for a more profitable business that runs with fewer disruptions.

Cost of recruitment

Recruiting new employees is a cost to your business. According to research published by Glassdoor, the average time it takes to hire a new recruit in the U.K. is 27.5 days. This means one-twelfth of a year is spent on reviewing CVs, carrying out preliminary interviews, secondary interviews, communicating with recruiters and checking references. Factor in multiple hires, and that figure increases significantly.

Considering the amount of resource, time, money and effort hiring takes, it’s evident that concentrating efforts on retention becomes far more beneficial.

It’s never too early to think about retention

Onboarding is the first step towards retaining talent. Yes, of course, it’s more effective to retain existing talent than recruit new talent, but sometimes a new hire is what your business needs. Even before they start, a new employee needs to feel looked after – keeping in touch regularly and sending a welcome pack that explains benefits and expectations makes the perks of working with you clear and maintains their interest levels.

Brexit might be a source of uncertainty for many industries, but it seems to have sharpened the mind on one thing – ensuring your staff feel valued. CIPD found that 26% of organisations ‘report a greater emphasis on developing existing staff’. The report also highlighted that more organisations are involving employees with their business strategies and encouraging them to contribute their own ideas.

Management is your best defence against staff leaving

When staff feel secure and supported at work they are less likely to look elsewhere. Management must demonstrate excellent leadership skills, this isn’t just managing the workload or a team with exacting standards, it means having good soft skills too.

If you want to keep hold of your best employees, then you must also encourage them to manage themselves and be invested in their careers. Maintain regular contact with them through formal appraisals, informal and open discussions and put the ball in their court. If they feel that they have a say in their own work and career they’ll be more engaged and more likely to stick around.

Training and Development

These two words are the most important words in your vocabulary if you’re going to successfully retain staff. If your employees don’t have what they need to do the job then their focus and energy will be put towards finding a new position elsewhere. The Distance Learning College found that 69% of employees are ‘open to better opportunities’ and a huge 40% of staff leave within a year if they have received poor training.

A strong training plan for new starters will equip them with the knowledge they need to feel confident on the job. Encourage staff to think about their own development, support their plans and listen to them. Investing in your people shows that you’re dedicated to them and will increase their commitment to you.

Recruitment costs vs. benefits

Recruitment takes time, effort and resources. There’s no denying that the right hire at the right time can make a huge difference to the business, yet a revolving door of talent increases the cost of recruitment exponentially. Retention starts to look a lot more appealing if you weigh the cost of recruitment against the benefits of retaining staff. Time spent training and looking after your best talent will pay you back dividends, with happier staff, you’ll have happier clients, and your business will be all the more competitive.

If you enjoyed reading this blog you might like our other post: Talent drought: How to attract the best against the odds.

And if you’re recruiting now, you can talk to one of the team on 01772 259 121, or you can register your vacancy online.

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Seal the deal with a tempting employment offer

  • August 6, 2018

You have interviewed the perfect match and you want to be sure that the offer you put in front of the candidate is tempting enough for them to bite the first time. How can you be sure that they’re as enthusiastic as you are? When you’ve worked so hard to recruit the ideal candidate you want to get them into the role without delay.

This guide gives you the lowdown on putting the right offer together handling the offer stage efficiently, effectively, ending with you employing the very best talent for your business.

Communication

According to research carried out by CareerArc, 60% of candidates think that better employer communication would improve their experience. Don’t leave your candidates guessing what might happen: explain the next steps at the interview stage, manage their expectations and ensure that if you say you will follow up by a certain date, you do – even if it’s just to say that there’s no decision yet.

When you’re ready to make an offer, a phone call will give you another chance to speak with the candidate and gauge their interest level. If they seem pleased and verbally accept an offer of employment, you can feel reassured that it’s the right time to make a written offer.

Speed

As with communication, the speed with which an offer is made affects the employee experience. And even if you decide not to make an offer, let the candidates who interviewed know. CareerArc also found that those who never heard about a job were three and a half times less likely to apply to that business again. A week allows time to consider your options, two weeks might see the candidate starting to lose interest.

It’s also a good idea to stipulate how long the offer of employment stands for. Seven days is usual, although you may wish to adjust this as per your company’s circumstances. If a candidate hasn’t accepted within a week, it could well signal that they weren’t quite as bought in as you’d hoped.

Use employer branding to your advantage

Treat your employees – and potential employees – as you would your clients. Demonstrate why it’s so good to work with you and what other employees have gained, both professionally and personally, from working for your business. Not only will a strong employer brand attract candidates to you, it’ll encourage them to accept your offer, and it will also help to retain them once they come on board. Check out our extensive guide for more on employer branding and why it’s so important.

Avoid the minefield of counter offers

You’ve found an outstanding candidate, made an offer and are eagerly awaiting them to return their signed contract. What you get in return is a counter offer. Maybe the candidate has had more money offered by their current employer or a competitor. Maybe they’re requesting a more extensive benefits package. Counter offers aren’t the end of the world and can be very revealing about what motivates the candidate you’re interested in.

But don’t get drawn into a bidding war. You may win the battle, although candidate indecision raises a red flag, and if they are playing off two parties for their own gain it begs the question as to whether they’re the kind of team player you want in your business. A trusted recruitment partner will be able to screen candidates for motive initially, which will help to avoid a counter-offer situation and make a first initial successful offer considering all motivations.

Non-starters

It’s frustrating, although keep it in perspective and remember that life happens. Give the benefit of the doubt to the candidate and – maddening though it may be – resist the urge to go in guns blazing if someone doesn’t show as there may be a simple explanation. And keep your employer brand in mind: if the candidate has a bad experience they’ll tell their network and that might make recruitment difficult in future.

The best offer

All stages of the recruitment process require careful thought and planning, and none more so than the offers stage. This crucial final hurdle to placing the right candidate decides the success of the whole operation.

If you’re in need of some support in navigating this – or any – stage of your recruitment process why not contact Clayton Recruitment, either online using our call scheduling service or contact form.

Alternatively, you can phone us on 01772 259 121 – we’d be happy to help you seal the deal with promising candidates.

And if you do find yourself in the position of having to deal with a counter offer, you may find our blog ‘How to handle a counter offer situation’ helpful.

You may also like to download our latest report on trends in recruitment: The 7 critical recruitment trends for businesses that will impact your talent pipeline in 2019.

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How to prepare for interviewing candidates

  • July 4, 2018

Long-winded, time-consuming and hard work; if any of those words spring to mind when you hear the phrase ‘interview process’, you’ll be relieved to know that there is a better way.

An interview checklist streamlines the process – whether you’re hiring managerial or support staff, a clear process and list of requirements ensure you take on the best candidates for your business.

Because it’s not just how the candidate performs in the face-to-face interview that matters. HR Departments and recruiters need to prepare too. According to Leadership IQ, 46% of hires fail within the first eighteen months, with ‘poor interpersonal skills’ rather than technical ability being the main reason. It’s clear then that interviewers have a lot more than just qualifications to consider when interviewing potential employees.
From the very start of the process to the end, an interview checklist will prepare your company and recruiter, help you ask the right questions at interview and make the right decision. We’ve broken down the ‘interview process’ into three steps to success: preparation, the interview itself, and decision making.

Preliminaries/Preparation

Successfully hiring the right team member requires preparation. There are two prongs to this:

  • Timings – Don’t try and rush the process as you will increase the risk of making a hasty decision. Ensure that the timings of the interviews work for all involved in the hiring process and leave enough time for note comparison and decision making.
  • Communication – Make sure there is a good two-way flow of information with your recruiter, whether they are in-house or external. Establish how information about candidates will be passed to the business – and how often. Too infrequently and you may miss out on candidates, too regularly and it may be too piecemeal.
  • Pareto Principle – The Pareto Principle is the idea that 80% of possible effects will come from 20% of the possible causes. Also known as the 80/20 rule, the Pareto Principle can be applied to interviewing, with the candidate speaking for 80% of the time and the interviewer for 20% of the time. This allows the candidate to answer questions fully, which helps give a better insight into suitability for the role.

The interview

An effective interview process will help those candidates that fit your criteria to shine and will reveal those that are not such a good match. However, it can only be effective if careful thought has been given beforehand to what’s required of the successful candidate. Think also about the interview format and additional requirements. For example, a business presentation is a popular requirement for candidates to prep for an interview. A word of warning – think about what these requirements are for and what they will reveal about potential staff, before getting bogged down in interview ‘extras’.

Decide what you’re assessing at the interview stage(s) ahead of time: hands-on skills and knowledge, fit, or potential for development if hiring someone in an apprenticeship or training capacity for instance.

Before the interview, look over the CV and note any areas you want to ask about. For example, gaps, achievements and why the candidate is moving. Notice how the candidate talks about their current employer; any unprofessional comments are likely to be a warning signal.

On the day, ask some initial questions to build rapport. This will paint a fuller impression of the individual than is provided by their CV. Enquire about their experience; the more demanding and senior the role, the more detailed the questions. Be clear amongst colleagues and recruiters what skills are ‘nice to have’ and what’s ‘need to have’ – check these off throughout the interview.

Competency-based interview questions give the candidate a chance to answer fully, helping to keep the interview in line with the Pareto Principle. Here are some example questions and responses:

“Tell me about your most difficult work experience? How did you approach it? What was the outcome?”

Listen out for positive action and problem solving – maybe the candidate enlisted help or used their experience to work around the issue. Even if the outcome was not successful, observe whether the candidate maintained a positive attitude or learnt anything.

“Give me an example of where you have had to handle a difficult situation? What was the background? What did you do? How did they react?”

A candidate that vents about the customer is a big red flag. When they are explaining the background look for clues that the candidate can see things from another’s perspective. Positive action and an ability to diffuse a situation are good signs.

“Give me an example of when you had to work to an important deadline? How did you ensure your deadline was met?”

This provides insight into how a candidate copes under pressure, as well as their organisation and time management skills. The reply ‘I was up until 4 a.m.’ might sound dedicated on the face of things but doesn’t suggest good organisational skills.

Finally, asking a candidate about their career aspirations and progression gives you an idea of how they see themselves in your business. An assured answer also demonstrates that the candidate has a clear vision for their own progression – and this clarity of vision could be beneficial to your company too.

The aftermath

Space for reflective thought is important, and it’s a good idea to take some time to compare notes with colleagues and your recruiter. Wait until you’ve seen all of the candidates before jumping to any conclusions – if interviewee number two impressed you and swung your vote, that’s great. But what if the last person on the list is even more suitable?

Finally, relaying the information to candidates – and being able to make a swift offer once the decision has been made – is the last piece of the puzzle. Decide what the process will be for feedback to unsuccessful candidates – and who will deliver it. And once you’ve reached the end of your checklist and are ready to say a resounding ‘yes’ to one lucky candidate, who is the best person to make the offer? Your recruiter will be able to help, although it may be more personable coming from the company.

Working through a process before, during and after will ensure the interview goes smoothly and provides the result you’re looking for. Our interview checklist is full of tips to help you add another effective team player to your business. Click here to contact us or call 01772 259 121 to request your free copy.

And if you enjoyed this blog, you may also like to read our blogs on ‘8 steps to successfully recruiting new staff’ and ‘How to shortlist candidates effectively and efficiently’. Don’t forget you can register a vacancy with us online or give us a call to see if we can assist.

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What to look for in a recruitment agency

  • June 19, 2018

As a business, one of the main challenges you’re likely to face is finding the employees that can help you grow. And to do that effectively you need to work with a recruitment consultancy. But with so many firms in the market, each offering to ‘revolutionise your people strategy’ or ‘find the talent that can make a difference’, what should you be actually be looking for when selecting a hiring partner?

  • A sector expert. You don’t want to waste your time outlining the hiring issues in your specific sector or what skills your ideal employee would have, you want an organisation that already knows what a good employee looks like and where to find them. A good way to gauge the level of expertise of a recruiter is to check their blog or social media channels. If they’ve been regularly commenting on the hot issues within the sector, then it’s likely they know what they’re talking about. Alternatively you could just pick up the phone and ask a few questions to the firm’s employees which should also allow you to ascertain their knowledge levels. 
  • A trusted advisor. There are far too many organisations that will simply nod their heads and say what they think you want to hear in order to secure payment. But the better firms will operate as a partner rather than just a supplier and won’t just say yes to everything. They’re also likely to take a real interest in finding out more about the culture of your firm and what makes it tick in order to find the best possible fit. 
  • A deep and detailed hiring process. Before committing to an agency, find out what its hiring process is, what they test, how they test for it and generally how stringent they are when reviewing potential hires. The best organisations will do everything they can to assess not just an individual’s ability to carry out their role, but also crucially how likely they are to stay with the job, rather than leaving after a short period of time and forcing you to restart the entire process all over again. 
  • A good reputation. This one may seem obvious but there is no excuse for not carrying out full and careful research on any organisation that you’re potentially going to work with. Have previous clients left glowing reports praising the agency? If not, why not? The best firms are likely to have at least some testimonials or sound bites reporting the positive feedback they’ve received from successful projects and if you can’t find any, you should begin to ask questions. 
  • Accredited. It may not have immediately leapt to the forefront of your mind but choosing an agency that’s a member of a trade body can make a huge difference. For one thing you’ll have a point of contact that you can complain to should the relationship turn sour, or if the firm acts in an unethical or unprofessional way. It’s essentially a guarantee that the firm will do things in the right way. Similarly, find out whether the business believes in professional qualifications and developing the skill sets of its own staff. Qualified consultants will possess expert knowledge on the legal, ethical and professional issues in your specific sector and will therefore be in a much better position to work with you.

What factors do you think firms should identify in a recruitment partner? Let us know your thoughts below.

Read our tips to getting the best from your recruitment provider or call the office on 01772 259121 to speak to one of our experts. To Register a Vacancy online, click here.

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Why we should value the senior end of the workforce more

  • June 5, 2018

Senior workers are often given short shrift in the working world. Many are seen as technophobes, grumps and various other redundant and generally untrue stereotypes. However, we believe employers should be doing much more to value the silver end of the workforce, and here’s why.

The most powerful position in the world has been filled by 72 year old Donald Trump since January 2017. That’s not to mention in this country where the leader of the Labour party, Jeremy Corbyn is 67 and the Queen is 90. In the business world the likes of Warren Buffett make a mockery of the idea that senior professionals can’t be effective and with people likely to live considerably longer in the future it makes sense for firms to take advantage of these skills much more than they currently do.

One of the reasons is that, naturally, senior professionals will have considerably more experience than the rest of the workforce. This means that they’re highly valuable assets to have on board because they’ll have a stronger understanding of the long term effects of specific actions. Rather than thinking in the short term, older workers are likely to think more strategically and over a longer timeframe. As we all know, diversity can be the key to business success and having these different perspectives in your team can be immensely valuable. Experience also brings a wider network and older employees are likely to have built up a greater array of potentially useful business contacts than a more junior professional.

Another major factor is loyalty. While it may sound like a sweeping generalisation, it’s very often true. Younger generations tend to job hop – which isn’t necessarily a bad thing – more regularly than their predecessors, while senior professionals are more likely to be loyal to their employer, if you treat them well that is. Part of this stems from the fact that they’re much more likely to have a clearer idea of what they want from a job, rather than eyeing up their next potential opportunity. In fact, a report published by BLS (Bureau of Labour Statistics) found that the average tenure at a specific organisation was considerably higher (10.2 years) for older professionals, than it was for younger employees.

More organisations should also channel the experience held by these professionals to mentor other employees, particularly in communications skills. Older workers will have been around at time when we people communicated face-to-face considerably more than they do now where e-mails, texting, social media and apps like WhatsApp are common place, even in the working wold. They’ve therefore generally got much more advanced communications skills which are essential in the business world, even today.

What attributes do you believe older workers can bring to an organisation? Share your thoughts with us below.

Call the office on 01772 259121 for some expert advice or read our other blogs here.

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8 steps to successfully recruiting new staff

  • May 23, 2018

Hiring new staff is no easy task. You need to consider any relevant qualifications, hands-on experience, area of specialism, salary, bonus; the list of things to think about is endless. Yet that doesn’t seem to stop companies from hiring; the latest figures from the Office of National Statistics indicate that employment rates are at 75.6% – the highest rate since 1971.

Despite economic pressures and doubt over the UK’s future relationship with Europe, businesses are still hiring employees in their droves. With all that recruitment activity going on it’s easy for the process to cause upheavals to the day-to-day running of your business. That’s why we’ve put together a guide to make your hiring process as efficient and effective as possible.

Tips for hiring the right candidate

Whether you’re taking on one person or a whole new team, follow these steps for a smooth and successful hiring process:

  1. Act fast: When a candidate responds you must act quickly. The longer you wait to get back to someone who shows an interest in working for your company, the greater the risk of them being snapped up by the competition.
  2. Project your brand: Treat your potential employees like you would your clients – show them what’s so great about working for you and demonstrate that your business is an attractive place to work. For a greater insight into employer branding our blog has everything you need to know.
  3. Avoid mistakes when hiring: It is absolutely crucial to get the hiring process right, not just from a business perspective, but from a legal perspective. Ensure that the person handling your recruitment is experienced and has a sharp eye for detail so that you won’t be exposed to accusations of discrimination or lack of due diligence. This will avoid costly legal proceedings and a lot of embarrassment. Which takes us to our next point…
  4. Dodge recruiting blunders: Ensure that your recruitment agency is experienced and won’t make costly errors. Having an external recruitment provider cause an issue is unlikely to be any less embarrassing or uncomfortable than if the mistake was made in-house.
  5. Be clear on how you will go about recruiting: Will the process be in-house or outsourced? Will there be a single point of contact within the business, or will recruitment be handled by a group of people? Having a clear process in place ensures all parties know where they stand and will enable those responsible for hiring to respond quickly to candidates, giving you the best chance at hiring the right person.
  6. Be transparent: If you’re going to attract the very best talent – and retain that talent – you need to be upfront and clear about everything: expectations, culture, the type of work available, salaries and bonuses. Any unexpected surprises could just put potential candidates off your business or see them jump ship shortly after joining you.
  7. Have a plan for the interview stage: A clear process for assessing candidates is crucial to screening the most suitable talent. Again, it’s worth considering whether this is something that will be handled in-house or externally. If handled externally, ensure that your recruitment consultant has clear guidelines as to what you are looking for – they may be able to conduct a brief initial interview with candidates and narrow the focus of your search, so you can consider only the best.
  8. Ensure the recruiter understands the job spec: Nobody knows your staff or the vacant position you need to fill like you do. That’s why it’s so important to give a clear, detailed and accurate job description to whoever is doing your recruitment – especially if you’re handing the task over to an external recruiter. Make sure they understand the job spec entirely, as being able to accurately represent your business to prospective employees stands you in good stead for finding the person with the skills and experience needed. It may be a good idea to enlist the help of a reliable recruitment specialist who has the experience of recruiting for your industry and is familiar with the intricacies of the sector.

Hiring the right person is tough for any organisation, and especially so in the competitive climate that many professions are party to. We hope these eight steps will make recruitment efficient and straightforward, so you can successfully appoint the right person to the post. Not only will a clear recruitment strategy and a trusted recruitment partner make the hiring process better, it’ll give your company the boost it needs to thrive in the long term.

You might also like to read our blog on How to handle a counter offer situation, and if you’re looking to recruit now, get in touch with us by calling 01772 259121 or Register a Vacancy directly online.

Click the following link to download our latest report on trends in recruitment: The 7 critical recruitment trends for businesses that will impact your talent pipeline in 2019.

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Talent drought: how to attract the best against the odds

  • April 24, 2018

Commercial talent; often it feels as though there isn’t any! And it’s not just a feeling either; in January, the British Chamber of Commerce published findings that skills shortages in both service and manufacturing industries were reaching ‘critical levels’. The headlines make for sobering reading, although it’s not all doom and gloom. Businesses can take specific steps to give themselves a much better chance of attracting, and retaining, the very best talent: a strong employer brand and a reliable recruitment partner could make the difference your company needs.

Building a brand: need to know

If asked to name a famous brand, there’s probably half a dozen or more that you could name off the top of your head. We’ve all heard of consumer brands like Coca-Cola, but what about employer brands?

An employer brand should be to your potential employees what your market branding is to the people that buy your products and services. It should be appealing and should essentially portray your business as a desirable place to work – as it is, no doubt. An employer brand might showcase the following aspects of your company:

  • Success stories – what kind of achievements have your staff made since working in your company?
  • Culture – is it work hard, play hard, or do you encourage staff to pursue a healthy work/life balance?
  • Quality of work – is the work varied, challenging and interesting?
  • Training and development – what opportunities are there to enhance skills, and how might a candidate grow their career with you?
  • Benefits – apart from salary and financial reward, what are the benefits of working for your business over and above another?

Reassurance

Post-recession and post-Brexit, those on the lookout for a new job want to know that the company they decide to work for is a solid investment of their professional time and skills. Businesses need to reassure potential candidates that their prospects are good and that the company offers a good fit in terms of values.

A strong employer brand shouldn’t just work to attract new talent, it should help to retain existing talent. In fact, one of the most effective ways to devise a strategy for creating an employer brand is to communicate with your existing staff. Find out what motivates them, what they would like to see more or less of, and how their experience could be improved upon and you’ll have a good idea of what potential employees are looking for.

Getting the right support for your employer brand

Having an employer brand is valuable and should pay dividends in the long term. A great employer brand, however, takes time to create, establish and maintain. And all the while the war for talent rages on. The very best talent work hard and it’s hard work to attract them to your company too!

A recruitment partner that works in the background while you concentrate on your own brand-building activity can be incredibly beneficial. An established recruitment agency will already have their own brand and a good reputation, which reflects well on your business and provides reassurance to the candidate. What’s more, a recruitment agency, especially one with a broad spectrum of commercial experience, will have their ear to the ground and be able to keep you informed of candidate feedback and motivations to be aware of when establishing and maintaining an employer brand.

Not just a helping hand

Clayton Recruitment’s regional analysis of recruitment trends in the North West found that vacancies are on the increase across all industries from commercial finance to logistics: it doesn’t appear that the skills shortage will be coming to an end any time soon. The benefit of working with a recruitment partner is that while you’re busy building up your employer brand, the agent can access their existing pool of talent to find you the best candidate.

An agency that understands and has plenty of experience in commercial recruitment is key too. They can use their extensive and wide-ranging sector knowledge to filter out the very best talent that matches up with your needs. And while the skills shortage isn’t likely to disappear overnight, it can take a weight off your shoulders knowing that a professional is handling your company’s recruitment.

If you’re thinking of creating an employer brand or think that your existing brand needs re-developing, then why not get in touch with Clayton Recruitment? We’d be happy to chat about employer branding or help with finding the best talent for your business.

If you’d like to find out more about building an Employer Brand, please download our guide here.

If you’d like to find out more about the benefits of using a specialised recruitment company, have a look at our blog on how to get the best out of your recruitment company.

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Candidates with the experience your business needs: impossible to recruit?

  • March 21, 2018

It’s no secret that businesses want to recruit the best talent. The right skills combined with several years of industry experience is invaluable; a suitable candidate makes a big difference not only to the quality of work but the bottom line too. Yet many businesses are struggling to recruit individuals that have the necessary experience or the relevant skills – and just the right combination of the two. Skills shortages, tough competition and an unstable political and economic climate combine to make the recruitment market extremely tough across all industries – though not impossible with the right help.

Why experience matters

In any industry or line of work the more time someone has spent carrying out tasks successfully, the less supervision they will require and the more effective they will be. Once an individual has three, five or ten years’ experience under their belt they will have encountered many different scenarios, have experience handling clients and varying workloads. At this point the employee may become more useful generally to the employer, as they start to think about developing their career in terms of management or specialising in a certain area that delivers a competitive advantage.

And it’s not just well-honed practical skills that form the backbone of experience. Take the engineering sector; EngineeringUK reports that annually the UK is ‘at least’ 20,000 short of the graduates required to fill engineering posts. The chronic skills shortage is a difficult hurdle for many different businesses to overcome yet it may not be as simple as hiring someone with a degree. Speaking to Director magazine Helen Atkinson, engineering professor at the University of Leicester, says that recent graduates often lack the commercial know-how that is the sum of technical ability and knowledge of how businesses stay profitable.

Experience delivers on the bottom line: businesses need well-rounded candidates that are capable, commercially savvy and have seen most it before. And once they have them, they need to hold on to them.

The three-year itch

Once an employee reaches a point where they are trained and they have some relevant industry experience they become a valuable asset, hence the reason why it’s so difficult to recruit candidates at this stage of their career. The business that spent time and money training the individual is faced with the prospect that they may jump ship, taking valuable knowledge and experience with them. It’s in the company’s best interests to keep hold of those individuals and retain those valuable skills. Simultaneously, they need to attract more staff at that crucial stage of their career in order to keep growing – and competition is high.

Competition isn’t just rife from other businesses within comparable industries, it’s an issue facing all industries. The IT sector is a good example of this: as technology changes and develops the need for people with those skills increases. An IT expert isn’t just needed at Microsoft or IBM, they are potentially needed by any industry or by any company that employs its own IT personnel and requires those skills. So now the competition doesn’t just come from Hewlett Packard or Dell, it could come from the banking and finance industry, healthcare, retail – anywhere.

If a candidate feels tempted by an offer elsewhere there needs to be good incentives for them to stay. Globalisation is another key factor in competition for candidates. An increasingly connected world brings new opportunities for work as well as potential overseas employment that may prove tempting. If businesses are to remain competitive it’s essential that they attract and retain employees that are highly desirable to other businesses both in the UK and abroad.

How to beat the competition and recruit the best candidates?

Recruitment can be a stressful affair at the best of times and especially so in the midst of a skills shortage. Posting an ad on job board or the company website can feel like sifting through an awful lot of sand to find a small amount of gold. It’s time-consuming and takes the focus off running the business, winning new work and delivering existing work. This is where a recruitment agency can really prove its worth.

A reputable, experienced agency will have an extensive network of contacts and a large database of potential candidates at their disposal which can save a lot of recruitment legwork. Any agency worth their salt will have developed good relationships with their candidates and will be able to act as an effective, trustworthy middleman between the two parties.

While there is no magic solution, by being alert to issues surrounding competition and retention companies stand a better chance of attracting skilled, experienced individuals. A professional recruitment partner doesn’t just present a list of the best candidates, they can offer advice on how best to retain them: an investment that pays dividends now and in the future.

If you found this blog interesting, check out our other blog on Where’s all the talent gone?.  Furthermore, contact our team to speak about your recruiting needs, call 01772 259 121.

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Where’s all the talent gone?

  • February 17, 2018

You place an ad with a recruitment agency, excited to see who will apply and what the crop of candidates will bring. Your business has a great reputation, an attractive benefits package and you offer a generous salary, so why aren’t quality candidates queuing up for an interview?

It’s a familiar story. Plenty of undergraduates show an interest in degrees such as engineering, design, and media, to name but a few. And while the number of students applying for higher education courses are down by 5% according to UCAS, the figure still stands at over half a million. While the numbers appear healthy at first glance, the reality is that businesses in an array of industries are struggling to keep pace with changing demands, and to find the candidates to meet those demands.

What does a talent shortage mean for business?

A lack of talent can sometimes feel like something of a vicious circle for businesses. Training a new staff member or apprentice from scratch incurs costs: the cost of recruiting them in the first place, not to mention the time and money put into expanding their knowledge, skills and experience.

Then there’s the fear that the individual will leave, taking all of that know-how with them, and resulting in further costs as the recruitment and training cycle begins again. And yet if companies don’t have the people to do the job, they’re unable to meet client demands and their bottom line suffers. It’s a catch-22 situation which puts businesses under pressure to retain existing talent and attract new talent from a shrinking pool.

Businesses must take action to remain competitive

When it comes to attracting and retaining talent, investment and training are vital. Whatever sector you work in, technology offers new ways of doing things that simply didn’t exist five years ago: from health and social care to aerospace engineering, technology is playing an increasingly important role in the workplace. If companies don’t move forward by investing in new technologies, they risk alienating candidates that are keen to be at the forefront of developing new processes and innovation.

Alongside investment in best practice for the future, training is another key factor in offering a competitive edge to candidates. If there are no opportunities to grow and develop it’s unlikely that the top-quality candidates will be keen to invest their time in your business. Demonstrating that there are clear progression paths and supporting staff to find better ways of doing things shows that you’re forward thinking, client-centered and interested in being – and employing – the best.
A skills shortage puts businesses in a difficult situation, as industry-specific skills only come from working in industry. Of course, businesses will always want to attract those who already possess those skills, and it can be frustrating having to develop staff when you need them to have the skills now. As time moves on and client demands change so too must the skills offered by business: flexibility is key. It’s important for businesses not to fall into the trap of thinking that recruiting new staff will always solve their current problems; the responsibility also lies with the business itself to train and bring on the next wave of leaders and experts.

The most important factor for businesses

With ways of working changing faster than they have in decades and technological advances continuing apace, flexibility is the defining characteristic businesses in all industries need to display. Investing in better ways of doing things and training staff is all well and good, but it’s only relevant until circumstances and client demands change next week, next month, or next year. Companies need to have one eye on the future, one eye on the lay of the land, and adjust and readjust as times move on to be in with a fighting chance of attracting – and keeping – the very best candidates.

Contact us today to see how we can assist you with your recruitment needs, by calling us on 01772 259121 or Register a Vacancy directly.

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