The rise of social media, the recession and the growing importance of the contingent workforce have also irreversibly changed the way companies go about hiring. With all these new trends, it's easy to become overwhelmed, which could influence how effective your hiring strategy is.
But if you are well aware of employee failure rates, what effects these can have on your business, the cost of a new hire and other figures, it can help you develop a strategy that will save you time and money, and could possibly even raise overall productivity.
Here are the facts.
According to Business Management, bringing a new employee onto the workforce can cost as much as $4,000 after recruitment, screening, training, taxes and benefits are figured in, making it crucial to choose the right candidate the first time. Otherwise, you could hire one of the 46 percent of employees that fails within the first 18 months of employment.
The most common reason for failing, according to Leadership IQ, is a lack of a culture fit between the new hire and the company. When an employee is hired solely because of their qualifications, they could potentially lack the teamwork skills that ultimately foster a productive business environment.
References, background checks
The media outlet pointed out that 21 percent of candidates are eliminated as potential employees once the company performs a reference check. This suggests references are a great source of information on a potential employee, so long as you ask the right questions. These include inquiries into the applicant's duties and experiences, strengths and shortcomings and the candidate's job title.
The Society for Human Resources Management states that 69 percent of organizations say they perform criminal background checks on every person who applies for a job. Another 18 percent said they perform such checks once the talent pool has been whittled down to only a few applicants. This is an important part of the hiring process, considering businesses can substantially lower their legal liability for negligent hiring. These checks also ensure safety in the workplace and compliance with state and federal laws.
A younger workforce
CNN reported that by the end of the decade, about 50 percent of the workforce will be made up of the millennial generation. This alone suggests that workplaces will most likely continue to value social media and mobile devices. One report, conducted by Cisco, showed about 56 percent of this generation would not prefer to work for a company that bans social networking sites in the office.
"The ability to use social media, mobile devices, and the Internet more freely in the workplace is strong enough to influence job choice, sometimes more than salary," the report read.
According to the news source, this suggests that the rising use of social media sites among recruiters will continue into the future. According to a recent survey conducted by Jobvite, 93 percent of recruiters at staffing companies said they have looked for candidates through LinkedIn, the top professional social network. Another 89 percent said they have successfully used the website to make a hire.
But LinkedIn isn't alone. About 66 percent of survey respondents said they have used Facebook to perform a search, with 25 percent of these reporting they made a hire using the website.
However, this goes both ways. According to a survey conducted by one online job search network, employers can attract better candidates by focusing on their business' LinkedIn or Facebook profile. The report also showed that more than half of all job seeker respondents, or 52 percent, said they have applied for a job that was advertised on a business' social media website.