Strategic Recruitment Responds to Changes in the Business Environment

Adoption of a strategic recruitment approach is an HR policy that supports accomplishment of the business strategy.

Business strategy can change and must change in response to changes in the business and economic environment.

The strategies adopted during times of plenty differ from those during recessions. Recruitment strategy must change accordingly.

The use of strategy in recruitment is intended to attain the objective "Matching People with Jobs." With the absence of this approach, your organization may have to change its plan and may end up "Matching Jobs to People." This goes against the direction of your business plan.

What is Strategic Recruitment?
It means identifying the real recruitment needs of your organization and fulfilling those needs. The organizational needs are tied to the overall strategic business plan.

The needs are in terms of number, quality, and specialized skills and talents in every area of the organization's activities.

The organization's people needs range from the immediate to medium and long terms needs. These are considerations to make in recruitment.

Measurement of Recruitment Effectiveness
The quality of people that you can recruit will determine the future of your organization. You need to have the right mix of experience, skills and talents in order to grow stronger in every way.

The strategic recruitment approach requires your organization to measure the effectiveness of your recruitment policy and activities. This is important because a lot of money is involved in recruitment.

Recruitment metrics include:

  • Cost per hire which includes all the costs involved from the time the recruitment process commences until the selected candidate reports for duty.
  • Speed of Hire also referred to as Time to Hire referring to the time the position fell vacant to the time a replacement is found.
  • Customer Satisfaction. This refers to the satisfaction of the requester for the new employee and customers of the section where the new recruit is stationed.
  • Quality of Hire. Some consider this as the most important measure. This means that the requesting department or unit now have the right people in order to be more productive.

All of these can indicate the ROI of Recruitment. Consider including these in your human resource metrics.

Some writers talk in term of "ROI" of recruitment. Here, you compare all the direct and indirect costs of recruitment to the tangible and intangible benefits. It is not easy to do this, however.

Determine the customer satisfaction by conducting interviews among recruiters, managers, suppliers, recent recruits and so on.

Then decide what metrics are most suitable for your organization.

HR Models Affecting Strategic Recruitment
HR Models affect the choice of recruitment measures.

One of these HR models is that of Ulrich's "HR as a business partner."

Others include the Human Resource Model by Formbrum, Noel Tichy and Mary Anne De Vanne of "putting people at the heart of business success", and the Harvard Human Resource Management Model where interactions between all those involved in people management are intended to fulfill the "aspirations of organizational stakeholders."

Determining Staffing Needs
You can predict or determine staffing needs based on:

  • Gaps between what skills you have available and the skills needs to accomplish organizational goals
  • Employee turnover as the result of resignation, termination, retirement, and dismissal
  • Number of employees working overtime on a regular basis

Also take into consideration the number of employees promoted or deployed to different divisions or departments.

What is the immediate and future expansion plan of your organization? Are you going to cease certain activities?

Use this information to strategize your recruitment plan.

Recruitment During Hard Times
The importance of strategic recruitment becomes pronounced during economic downturns and during times when the organization is not performing well financially.

Cutting costs become a prime concern of organizations. Reducing headcounts is one of the common cost-cutting methods.* (see below) The effect becomes apparent very fast.

However, a survey by Deloitte Group shows that managing human capital is still a very important issue in industries.

A lot of organizations prefer restructuring jobs more to reducing headcount. Many choose to adopt people management strategies such as reducing bonus, benefit and salary, hiring more part-time employees and encouraging early retirement.

Surely it is logical to conclude that employees who are retained are those in critical areas of operations.

Whether during times of plenty or when hard times come, it is a good strategy to always adopt a strategic recruitment plan.

The future of strategic recruitment

Link the business strategy to recruitment strategy.

It is stated in "Staffing the Organization":

    "strategic recruiting may sometimes need to go beyond just filling empty positions. It can focus on discovering talent before it is needed, capitalizing on windfall opportunities when there is an abundance of highly qualified people..."

This is proactive action to ensure that nothing is left to chance. Strategic recruitment is a response to dynamic market conditions, whether local or global or both.

Organizations must not overlook this when you make your human resource strategic plan.

Click HERE for more information with regard to SMEs


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