Statistics indicate that the average cost of hiring a new employee in the U.S. was $4,700 in 2022. Furthermore, most employers agree that this cost can be almost three times the position’s salary. So, if you’re hiring for a position that pays a salary of $40,000, your hiring costs may be as high as $120,000 to fill that role.
Now, imagine trying to fill multiple roles in a mid-sized company — it can be quite expensive, to say the least, with no guarantee that you’ll get the right skills.
The truth? It’s a larger company’s world. Mid-sized and small companies get the leftovers after the larger companies take away their share. In this case, the leftovers are the remaining skilled workers after large companies pick the crème de la crème. It’s no wonder that for many mid-sized companies, maintaining a competitive edge seems almost impossible while having to deal with talent management challenges.
But all is not lost. Even with limited resources, leveling the playing field isn’t unachievable. With the right talent management strategies, you can compete fairly and squarely for talent with the “big boys.”
Insights into Market Trends
- Research by SHRM indicates that 75 percent of organizations have trouble filling up full-time positions. This is in part due to the evolving skillsets demanded by technological advancements. For example, roles in AI, cloud computing, and data analytics are growing rapidly, yet the talent pool remains limited.
- According to LHH, Tech, and data roles continue to dominate hiring in 2024, with a premium placed on security engineers, data engineers, machine learning engineers, business analysts, and backend developers. Salaries for these positions have increased significantly to keep up with demand.
Leveraging Networks to Find Qualified Candidates
Advertising for an open role in your organization will cost you money, whether you use a job posting platform or recruitment services. Without a big hiring budget, these “traditional” advertising methods may not effectively reach the right talent. For instance, your reach may be confined to free or less effective platforms, which may result in fewer qualified applicants.
Leveraging your networks can work in your favor to quickly and efficiently fill any open positions you might have.
Employee referral programs are one way you can achieve this. These work by providing incentives to employees who refer skilled candidates when a position opens up in your organization. Other networks you can use include industry associations, alumni networks, and professional networking sites like LinkedIn.
Crafting Targeted Recruitment Strategies
Just because a recruitment strategy has worked or works for one organization doesn’t mean it will work for yours. Your organization has unique needs in terms of talent, so most of the “tried and tested” strategies mentioned in many hiring literatures may not work. Therefore, it’s imperative to analyze your needs and then create strategies in line with them. Some examples to get you started include:
- Use Localized and Niche Platforms: Instead of investing heavily in broad job boards, focus on industry-specific platforms or local job sites where you’re more likely to connect with qualified candidates. For example, if you’re hiring for a technical role, consider platforms like GitHub Jobs or Stack Overflow Careers.
- Emphasize Your Employer Value Proposition (EVP): Highlight what makes your organization unique, such as a collaborative culture, growth opportunities, or work-life balance. This can help you attract more culturally fit talent.
For instance, a strategy that might work regardless of what your needs are is to highlight what makes your organization unique. This can help you attract more culturally fit talent.
Building a Strong Employer Brand
While attractive compensation packages are a big motivator for candidates to want to join your organization, a strong employer brand is equally crucial. Jobseekers today consider the perception and reputation your organization holds as a workplace among current employees, potential candidates, and the broader market. Therefore, you must position yourself as a desirable place to work to attract skilled candidates and retain top performers.
For instance, you can showcase employee experiences to humanize your brand and make it relatable. Testimonials, case studies, or video content from employees who share authentic stories about their growth, achievements, or day-to-day experiences in your organization can help you achieve this.
Actively Engaging with Potential Talent
Even when you’re not actively hiring, creating relationships with candidates who have the skills you need in your organization is essential. When a role opens up in your organization, these formed connections can be the first place you look for a replacement. This helps reduce the time and resources needed to fill open positions.
There are several ways you can engage with potential talent, including connecting on professional social networks such as LinkedIn, hosting and attending industry events, and participating in online forums or specialized communities.
Utilizing Data-Driven Approaches
Accurate insights into talent management are essential for attracting and retaining top talent in your organization. Leveraging data-driven approaches can help you achieve this by streamlining the recruitment process. So, instead of relying on intuition to make talent-related decisions, analyze hiring metrics, which ensures a more accurate hiring process.
A great example of a data-driven approach is tracking recruitment metrics, such as time-to-hire, cost-per-hire, source-of-hire, and candidate conversion rates. These metrics provide insights into the efficiency of your recruitment channels and processes. For instance, if you realize that a specific job board consistently delivers high-quality candidates, you can allocate more resources to that platform.
Supporting Employee Development Initiatives
If you’re like most mid-sized companies, you might be facing high turnover rates due to competition from larger companies. This is because your organization may lack growth opportunities for employees or it isn’t doing anything to retain its skilled employees.
Luckily, there are several things you can do. For instance, to reduce the temptation of your top talent looking for growth opportunities elsewhere, you can offer internal mobility opportunities. These allow employees to explore new roles within your organization. You can also offer programs like tuition reimbursement or upskilling workshops to show your commitment to employee growth.
Level the Playing Field With Recruiter Expertise
Competing against larger companies for top talent can overwhelm your organization’s resources. That’s why recruiter expertise is so important. Sure, your internal team might make some headway, but without in-depth knowledge of the challenges that mid-sized companies face, it will eventually become a losing battle.
So, if you’re a mid-sized business trying to attract skilled candidates, talk to us. We’ll help you find the right talent.