The industry has been very volatile of late. The concern with recruitment is much greater particularly ever since the start of this year, let me tell you why. Although last year was a difficult year for everyone, even for the nasi lemak lady, for some reason, i felt that alot of jobseekers which were on the move last year had very good reasons to be on the move. Alot of candidates which wanted new opportunities had pretty valid reasons. Employers were choosy with who was hired last year. Recruitment was done very carefully with certain measures put in place i.e. test and role play hiring i.e. presentations. Also the job market has it at, if you wanted a job, you had to work for that job because there were really good candidates which were considered. Candidates which i spoke to, were focussed and knew what they wanted. I might be speaking for a certain group of candidate’s perhaps middle management and executives.
Enter 2010, yes, candidates with other opportunities when i have contacted them or wrong timing because a candidate is finalizing an offer. Where am i getting to?
Pick up a HR magazine or a magazine which place an importance with management or a business magazine, you will not miss out on at least a brief write up on ‘talent war’, recruitment, retention, Managing Generation Y and total HR Management. In the past few years turnover has been in an all time high and resignation rates increasing. Also, alot of input on Generation Y. But are we all really paying attention to these matters? These important matters?
Think about it, the cost involve with recruitment – retraining, job ads, headhunters, TIME, culture fit etc. If someone is earning about RM8000, the cost of rehiring is estimated at 3 times of that value. Headhunting services alone would cost about RM 20, 000. When the resignee is serving a notice period he or she is just sitting down and might not be as driven as they were as before. So that is paying someone two months’ salary with fewer results. Again, time, again retraining which is time. If managers are always busy as everyone else this year, the new hire will not feel as though he or she is getting the good training then, leave. Of course that is not always the case, but then again, the cost of retraining which includes external training, in house training and so forth.
Talent war is very real today. It hurts alot of organizations both local, multinational companies and regional companies. We need to place a great importance of strategy to curb issues of high staff turnover through retention. Its time that HR is not looked upon as an administration function but a value driver to a company because this is very real. Finance Managers are now value drivers of companies and are not looked upon as just a finance function but a function that adds value out of numbers information, reports generation, how reports are made into information and how information are made into cost savings or new expenditure to produce greater profits.
It is just a matter of driving high human initiatives and placing importance in not just work, but life at work, life outside of work. Easier said than done, but this is management reality. It is thinking outside of the box not thinking what works for the company but works for the value drivers of companies.