Survey Finds Companies Plan Dramatic Recruitment Overhaul

Attracting talented workers tops wish lists

People hoping to land a new job this year can expect opportunity not only to knock, but also to enhance their benefits and offer greater potential for advancement.

A recently completed survey by Development Dimensions International (DDI) shows that the tight labor market is forcing companies to place more money and emphasis on effective recruitment and selection strategies. The result will be better employment packages and benefits for employees, who are more likely than ever to be entertaining more than one job offer.

The study by DDI, a global training and human resource consulting firm, indicates that nearly half of the organizations surveyed are unhappy with their selection and recruitment strategy and plan to significantly change their approach.

Sixty-two percent of respondents report the biggest challenge to effectively recruiting and selecting candidates is that there are fewer qualified candidates available and competition is increasing for the same applicants. In addition, almost half of the respondents say they have difficulty locating qualified candidates and find the selection process challenging because it is slow and cumbersome.

Status quo won't do, according to the experts, because the tables have turned. "Now the responsibility lies with the organization to find innovative ways to attract good candidates and entice them to join the organization," said Richard S. Wellins, DDI senior vice president of marketing and global accounts. "The investment is definitely worthwhile. Effective selection and retention practices can be a substantial competitive advantage for companies."

Organizations plan to beef-up the recruitment and selection process and make better use of technology to attract and select the best candidates.

Who Says?
Human resource executives at 162 organizations participated in the research. Seventy-four percent of the responding organizations are based in the United States with reported revenue ranging from $1 million to more than $10 billion.

It's Not Just The Money, Honey
The study shows that in order to get good employees, businesses must offer candidates a variety of high-quality incentives. Organizations with the most effective recruiting strategies were nearly 20 percent more likely to offer high-quality options such as potential for advancement, a solid company reputation, stock options, benefits package, a positive corporate culture, learning opportunities and a competitive salary scale. The most effective organizations reported that the favored lures for recruiting are (in order of importance) company reputation, benefits, corporate culture and potential for advancement.

"To successfully attract candidates, organizations must not only provide compensation, but also an environment and culture in which candidates will feel comfortable and can flourish. Organizations that offer their work force a diverse, innovative environment that promotes growth and advancement are more likely to have satisfied, long-term employees," Wellins said.

What Companies Are Doing About It
On average, a company's human resource department allocates 17 percent of its budget to recruitment and 10 percent to selection. During the next two years, 75 per-cent of organizations plan to spend more money on recruiting and 68 percent plan to spend more on selection. Almost half of the responding organizations plan to significantly change their current approach to both recruitment and selection in the next two years by increasing the use of behavior-based interviews and computerized resume screening.

Organizations use different tactics to recruit candidates for managerial/professional and non-management positions. Although the Internet is a hot new recruiting tool used by 76 percent of respondents, local newspapers are used by 90 percent of organizations to recruit for non-management positions and national newspapers are used by 63 percent to recruit managerial/professional candidates.

In addition to Internet advertising, companies use employment agencies, colleges and professional organizations to recruit managerial/professional candidates. However, when recruiting for non-management positions, companies typically use temporary help agencies and job fairs.

Overwhelmingly, approximately 80 percent of organizations use internal job postings and employee referrals to recruit candidates for both managerial and non-managerial positions.

It's Worth It
The survey showed that organizations with highly effective selection systems were nearly 40 percent more likely to experience higher business and employee outcomes than those with ineffective systems. Organizations with effective selection systems appear to be better able to identify and hire employees with the right skills and motivations to succeed in the organization. When employees are successful in their jobs the organization benefits through increased employee productivity and higher-quality products and services. By using a good selection system to hire qualified employees, organizations can reduce turnover, increase employee retention and ultimately increase critical business outcomes.

- DDI has worked with thousands of organizations around the world and with clients from nearly every industry. The Pittsburgh-based company operates more than 70 offices and affiliates worldwide.

Source: Columbus Dispatch / January 2000