Manage The Labor Shortage Like Supply Chain-Or consider a recruitment agency.

Companies should consider using supply-chain strategies to hire, train and retain talent according to new Harvard Business Report or consider hiring a recruitment agency.

Companies are having a hard time finding and hiring the right candidates for their job openings. Managing the labor shortage during the Great Resignation wave has become a priority for corporate boardrooms and top management around the country.

In logistics and supply-chain, results come from proper planning. Businesses understand this concept as it relates to the goods they procure and produce, but few apply those strategies to hiring, training, and retaining talent.

Employers looking to hire the talent to run/grow their operations, are going to have to improve their talent sourcing channels and focus on improving their workforce skills. The latest report from Harvard Business Review, provides strategies on how to manage the current hiring crisis with supply-chain like strategies. These are some of the strategies they recommend:

– Employers must work actively to draw from a broader talent base.

This means recruiting from a wider set of feeder jobs and geographies. Some candidates may not have all the skills needed for a job. Can the rest be trained? Employers will also need to reevaluate job requirements to determine which are truly necessary and which are “nice to have”.

– Employers must invest in “growing their own.”

Most employees find that the best way to climb the ladder, is to leave the company, driving turnover. Only 31% of workers with expertise in emerging technologies were promoted from within. Employers need to invest in their workforce in the same way they invest in R&D. The best companies make planning promotion a part of each performance review.

– Employers need to implement fundamental principles of supply-chain management.

Companies need to share job specifications with colleges, meet regularly with them, provide access to experts and technology, discuss their requirements, evaluate their performance, and offer data-driven feedback. That’s especially important given the misalignment between America’s community-college system and the job market. Only 17% of community-college enrollees make it to a bachelor’s degree.

Americans have never been prone to accepting any type of shortages and always find solutions to problems, that’s when perhaps considering hiring a recruitment agency comes into play.

A professional recruitment agency can be the best way to quickly and effectively source and hire quality candidates for businesses.

Hiring a top-rated agency can shorten your time-to-hire, increase employee retention, and reduce talent acquisition costs. Some companies hire agencies because they lack access to candidates that aren’t actively looking for jobs, or their in-house recruitment teams are swamped and have open jobs of more than 30 days, or they just need the recruitment process taken out of their plates.

There are plenty of reasons to work with a recruitment agency, but you should always consider a number of factors before you make a choice.

We’ve listed the top five areas you need to consider:

-What type of agency are you looking for?

There are different types of agencies suitable for different types of jobs. You’ll find a lot of agencies specializing in finding people for white-collar jobs.

These large agencies with can hire at every level, across a variety of industries. Smaller boutique agencies with focused searches focus on specific industry sectors.

There are also staffing companies who service with temporary jobs.

At the top of the market, you’ll find niche agencies that focus on executive roles. These companies will hire executives who are actively working in senior roles and they’ll pour more effort into finding the right candidates.

-Know what you’re looking for!

A great job description will help you find the right candidate. It should clearly state the tasks and responsibilities of the job, working environment, compensation, organization structure, and hiring preferences.

-Do some research

After you figure out what type of agency you want, you’ve got to find the best agency for that specific role.

Go to the agency’s website and you will see what the agency’s capabilities are, what their strengths are, and whether they can help you. Look at case studies, testimonials, and evidence of previous clients.

-Interview the agencies like a candidate

Having a phone conversation or zoom call is a must. It doesn’t give you all the information you need, but you’ll able to create a shortlist of potential agency partners. Ask plenty of questions!

At this stage, you can ask about guarantees. Most good agencies provide companies with a 3 month guarantee. If during this time, the employee resigns, leaves, or is fired because he or she is not a good fit, the agency should provide a replacement at no cost to you.

-Make sure it fits in the budget. Money is always important!

Recruitment agencies can offer any business the perfect candidates, but they do cost money.

Many agencies work on a contingency basis, meaning that businesses are billed only if they hire a candidate. This helps remove the cost of an in-house recruiter, initial costs, and eliminates some risk.

In general, you will have to pay a placement fee. Which depends on the level of service offered and range from 20-30% of the annual salary. Some agencies charge more than 30%, and the more senior a job is, you’ll pay up to 40-50%.

Another way to hire agencies is on a retainer basis, where you pay the agency’s fees up front (or in stages). This provides protection and gives the agency time to plan and allocate more resources for the search. It is used for executive positions or key roles and it provides a more thorough process and a better guarantee.

If you are going to hire an agency, you should have a clear idea of how much you will be spending on their services, but at the same time, calculate how much that job opening is costing, then figure out the return on investment.

This is free Cost of Vacancy calculator to determine if hiring a recruitment agency makes sense or not.

Happy Hiring!

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