November 29, 2023 workforce podcast show notes
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Jamie begins the discussion by describing why she quit going to conferences, early in her career. The speakers didn’t really seem to understand or remember what it was like at the ground level. So, what’s the answer, how do you seek and ask for help?
Jason approaches this from a marketing perspective. Rather than outsourcing this recruiting element, some companies decide to hire “a marketing person.” Finding an individual who can handle graphic design, website development and management, copywriting, ad builds, interpret analytics and other important activities is usually too much for one person to handle, effectively. Many of these skills are separate and distinct. The same example applies to recruiters and talent acquisition professionals. The scope of the challenge is extremely broad and leadership doesn’t always understand how to properly resource these efforts.
Asking for Help
This is difficult to consider, especially when you think it’s “just not in the budget.” The reality is it’s probably there, but you have to dig to find it. How big of a financial impact does turnover have on the budget? Jamie and Molly comment that senior management may not actually attribute a dollar amount to this, but the real costs are there. Most organizations don’t truly understand how much it costs to hire an individual or group of people.
Waste associated with workforce planning, in general, rarely shows up in the budget. In reality, it may be one of the top expenses to a company, along with the general categories of payroll and benefits. Companies would do well to begin planning for it.
The cost of recruiting and hiring has changed. These expenses should be a dynamic part of the budget. Simply allocating what you’ve done in the past doesn’t actively consider the increases in these activities, or the actions being taken by your competition.
Jason suggests you consider whether or not your company’s budget has a significant allocation for capital expenditures. This may be an area from which to secure investment in your workforce development efforts. There may be some miscellaneous funds that tend to roll over in this ledger, year after year. There are software tools that can help you to better analyze your workforce planning and the cost of these tools may be less than you anticipated. The overall savings would definitely yield a return to the company’s bottom line.
The Cost of a Failed Hire
Molley asks new clients to quantify this number. Unfortunately, many can’t or don’t know where to begin. She goes on to explain in recruiting, there is a turnover number and a churn number. There’s a difference. Churn relates to what happens before the person becomes profitable for the company, in terms of the investment it made in identifying them, recruiting them, hiring them, onboarding them and training them. These expenses are real. If the employee leaves before he/she hits that point at which they can operate more independently (i.e. they’re now profitable), it’s churn. Turnover, by contrast, occurs once the person has become profitable.
You need to have the numbers to make an effective argument to leadership. Having an outside expert come in to work the numbers and to formulate and deliver “the story” is a win-win.
Timing Is Important
For many managers and C-suite leaders, the end of the year is when they really get laser focused on the budget. The time for asking is now. If you miss this opportunity, you may be stuck with that decision for the next 12 months.
Jamie recommends you identify the person who is representing the HR budget at the C-suite, for your division. Share a detailed, line-item version of what your budget should look like. Prepare them with the rationale and the numbers so they can advocate effectively on your behalf.
Jason and Molley discuss how to both build as strategy for the ask, as well as preparing to defend the questions regarding the ask. Be prepared to offer specifics related to the deliverables directly resulting from the company’s investment. It’s always about Return on Investment (ROI).
Know What You Don’t Know
Molley explains this statement. You have to define where the issues are and why they exist. This exercise will help to support your argument for increased funding for recruiting and talent acquisition. Show that the investment will address the issues traditionally leading to the problems. You have to dig into it and determine the root drivers. Doing so will enable to you identify “why” you’re asking. It’s not just a wish-list.
Returning to the core theme of the discussion, you can leverage the tools and expertise of outside resources to help you to build the right strategy. Some of the initiatives can obviously be handled internally. Reach out of help as needed. Find a partner who understands your situation and will provide solutions to specific issues.
That’s where we’ll leave the conversation for today. Before we close the file, we invite you to reach out to us with questions, suggestions or other comments. We’d love to hear from you.
Need Help Supporting Your Company’s Recruiting and Staffing Goals?
We’re here to help. You can contact us via our individual websites, depending on your specific needs or questions:
- Jamie Swaim, SPHR – www.ParcelKnows.com
- Molley Ricketts – www.IncipioWorks.com
- Jason Heflin – www.CrowdSouth.com
We hope you found this file insightful and helpful. Thank you for listening!
By Jason Heflin
Jason Heflin is one of CrowdSouth’s owning Partners and brings years of marketing experience from his past lives as a corporate marketing manager, writer, and freelancer. He also plays the ukulele for fun, which is cool.