By: Specialized Recruiting Group — SE Michigan Branch
According to Forbes, an organization may spend up to 33% of an employee’s annual salary to replace them if they resign. The costs incurred include recruitment, lost productivity and onboarding/training. [1] That is $33,000 for a salary of $100,000! Forbes also found that “The average tenure of an employee is 4.1 years. Workers ages 55 to 64 had an average tenure of 9.9 years, while workers 25 to 34 had an average tenure of only 2.8 years!” [1] The talent market continues to ebb and flow with socioeconomic and political influences. As professional recruiters and specialists within the construction and civil engineering fields — our SRG Team has made the following observations:
- There are more job openings than qualified candidates can fill.
- Jobs are sitting open for months.
- Candidates are receiving multiple offers.
- The highest-paying job offer isn’t always the offer that wins!
- Job hopping is on the rise.
- Employees no longer stay at one company for the majority of their career.
As recruiters and employers, how do we face these challenges head-on? What can we do to attract and retain the best talent in the market?
Before we dive into potential solutions, we need to understand the current talent market and the difference between “active” and “passive candidates.” Randstad shared near the end of 2023 that approximately 70% of the workforce is comprised of “passive candidates,” leaving just 30% comprising “active candidates.” [2]
“Active candidates” are actively seeking new employment and applying for job postings. “Passive Candidates” are not actively searching for a new role, but that doesn’t mean they’re not open to exploring opportunities. Passive Candidates are willing to have a conversation, but the opportunity must be better than what they’re currently experiencing. What is exciting is that even though these candidates aren’t actively applying for jobs — we can still reach them! And we must reach them. We can’t continue to rely on the “active” 30% of the workforce to fill 100% of our open jobs. Logically, our next question is: what would be attractive enough for passive candidates to consider entertaining? [2]
- Reputation. We know from Forbes that up to 86% of the workforce researches a company prior to applying to that company’s job posting. [1] Therefore, we know that company reputation, integrity, transparency and success impact hiring.
- Ease of Interviewing. Randstad shares that passive candidates aren’t as willing to engage in a lengthy interview process, to complete assessments and to wait around for a delayed hiring decision. [2] Harvard Business Review recommends clearly defining an “ideal candidate profile” and utilizing that profile to design your interview. HBR also discourages involving too many people in the interview process as this can cause delays and redundancies. [3]
- Organized Onboarding. The first 90 days for a new hire are the most crucial as approximately 30% of new hires resign during this period! However, companies who offer organized and personalized onboarding tend to retain 58% of employees for at least three years and 77% of new employees met their first performance goal! [1]
- Work Life Flexibility. A third (32%) of the workforce is only considering jobs that allow remote working. Over 70% are already working remotely or have a hybrid/flexible working model. [1]
- Career Development Path. Offering a clear path for career development along with regular one-on-one mentoring conversations on how to achieve goals is key to retaining employees, but only 44% of companies are offering this. [1]
- Support. Without support from leadership and a clear path for their career, employees are three times more likely to consider leaving for a new job. [1]
It is evident that among all the benefits companies offer new employees company reputation, organized interviewing and onboarding processes, flexible work options along with career development, and simply supporting them outweigh a hefty salary. Pursuing passive candidates and including these options in your hiring strategy will boost your hiring — attracting and retaining the best talent in the market.
If your organization is struggling to hire and retain top talent — SRG would love the opportunity to connect, offer our insight and to support your organization. For more information — please contact: Adam Klug — Managing Director at adam.klug@expresspros.com or (248) 513-8320.
Sources:
Forbes
Randstad
Harvard Business Review
