If you lead a business of any kind, you’re totally aware that there is a war on talent. The challenge is greater than ever before. According to the 2021 Bureau of Labor Statistics, the overall turnover rate is 57.3%. This astounding statistic most often results from a poor culture fit—not a lack of technical expertise.
DID YOU KNOW that the cost of replacing an individual employee can range from one-half to two times the employee’s annual salary? This means a 100-person organization that provides an average salary of $50,000 could have turnover and replacement costs of approximately $660,000 to $2.6 million per year—not to mention the disruption and stress caused by losing the employee.
“The marketplace war happens at the hiring table.”
In other words, the team that fields the best players wins.
Right People. Right Seats
Since the people you hire have the potential to change your culture, you’ve got to hire the right people and get them in the right seat. While that seems like common sense, most hiring leaders don’t know how to make it happen.
The first step is to clearly define the core values that make your organization unique and special, then ruthlessly recruit, hire and retain only those people who share them. The best companies hire, fire, review, reward, recognize and coach people on core values.
When those are clear, we can quickly size up who to hire within minutes and determine if the person is a decoy or the right fit.
Southwest, Google, Apple and The Four Seasons are all great companies that hire on core values. Their high-performing employees live their values every day, and it’s a big part of what makes these organizations so successful.
12 Tips on How to Recruit the Best Talent
So, how do you find someone who’s the right fit? Here are 12 tips from companies who have successfully won the war on talent.
1.) Be Clear & Consistent
Start out with the clarity up front of knowing exactly what you’re looking for.
2.) Attract the Right Attention
Create a compelling job description that entices someone with the right talent and cultural fit.
3.) Choose the Right Channel
Determine the best marketing approach. Today, the best hires are coming from employee referrals and networking. A company’s A-players can find and refer other A-players just like them. Additionally, LinkedIn and Indeed are two of the top job-hunting websites.
4.) Rethink Your Interview Process
Create an interview strategy that is specific to the position. Typically, there will be a pre-screening phone interview before the candidate interviews in person with the hiring manager.
However, for managers and key individual performers, consider getting the candidate out of the conference room. See them operate by shadowing others in the field or spending a few hours with a co-worker to see if there’s a fit, for example. The point is to observe the candidate in a variety of other environments.
5.) Have Your Questions Ready
Prepare interview questions in advance, including some on technical abilities and work experience, as well as those on soft skills, including:
- Effective communication
- Conflict resolution
6.) Create Clear Expectations
Ensure that the candidate understands the essential responsibilities for which he or she is accountable.
7.) Talk Less. Listen More.
Rather than monopolizing the conversation, ask a good question and then get out of the way. Focus on really hearing their response so you can ask thoughtful follow-up questions.
8.) Debrief Following Interview
Block time after each interview to debrief and finalize notes while the experience is still fresh.
9.) Assess Skill Level
Implement appropriate skills testing for technical competencies or employment personality testing to determine if there’s a fit for the specific job.
10.) Set Them Up for Success
Design and implement a thorough onboarding program to effectively integrate the candidate into the organization. How they start will determine their career with you.
11.) Make Room for Development
Create a career path, including additional training, mentoring and the possibility of more responsibilities over time.
12.) Remember, There Is Always Room for Improvement
Finally, define and continuously improve a core process of best practices to recruit and retain the best talent.
Great hiring could be the biggest factor to your future enterprise. What’s more, 65-80% of operating costs are consumed in salaries. Additionally, those who get the recruiting portion right with the same payroll and same number of people, have shown to increase revenue 3-5%.
Ready to Win the War on Talent?
If you want to win the war on talent, you first need to consider a new battle plan. It may be the most important game that your company plays! To learn how you can prepare your company to attract and retain the best talent out there, contact Chris Naylor, M.A.
As an Expert EOS Implementer, business coach, and speaker, Chris can equip you with the right tools and strategy to develop and accomplish strategic plans, enhance decision-making, handle difficult people and complex work situations, and meet sales goals—all while increasing the quality of your personal life.