By Yvonne Manzi
Social Media Officer, Profiles Asia Pacific
In this highly competitive era, managers that merely dispense people to jobs based on instinct are likely to severely fall behind. This Resoomay Infographic places the cost of a bad hire at $840,000 (₱34,305,600). It is therefore of utmost importance that companies not be superficial in their acquisition of talent. The McKinsey Quarterly (2003, 2) states that “a systematic and continuous approach to fitting the right person to the right job at the right time [is] the Holy Grail of workforce organization.”
If you want to make sure your company doesn’t fall prey to such common neglect, the key steps to follow are 3:
1. Evaluate the company’s current state and talent pool
2. Identify current and upcoming gaps
3. Devise a strategy to decisively fill these gaps
It is at point 3 that strategic talent acquisition is essential. To fill the talent gaps, you typically have 4 options.
1. Build. Developing talent within the organization. It creates a culture of appreciation and trust, thus mitigating risks for low productivity or turnover.
2. Bounce. Reorganizing talent by removing obsolete jobs, and redistributing it to positions that are a better fit. Bouncing unproductive persons from the company altogether.
3. Buy. Recruiting outside talent. This can lead to excellent candidates, but is also costly and time-consuming. Ultimately there is no guarantee that the hire will be successful.
4. Borrow. Hiring contract employees. This option is flexible, it does not involve excessively expensive risks, and allows for a “trial period” with potential talent.
So, which is the right option?
This will depend on the size and internal resources of your company, as well as talent supply and demand. For new ventures which have not yet built a strong relationship with long-term employees, borrowing may be desirable. This can then be followed by building employee-employer trust alongside the growth of a distinct company culture.
Ultimately it is of utmost importance for companies to ensure that they have a systematic and consistent approach. Employees must fill the job descriptions with the basic required skills, and they must fit the culture of the organization.