Balancing pressure to hire with a lower-than-expected talent pool

It is a common recruitment challenge. You are feeling the pressure to extend an offer or risk more attrition—or, even, losing that headcount in potential budget cuts. But you also do not want to make the wrong hire. 

Now what?  

Open headcount can have a significant impact on team morale, productivity, and efficiency—not to mention your bottom line. A “bad hire” can cost your organisation more than Rs 20 lakh, while others have cited that it costs approximately 15% to 20% of that employee’s salary. The longer the role remains open, the greater an impact it can have.

In other instances it is not just about the losses—it is about departmental leads ensuring headcounts and related expenses are secured, even if only temporarily. If budget cuts are looming, open headcounts are often cut before seated employees.

Given these challenges, hiring managers and HR leaders may be pressured into making quick hiring decisions based on the current candidate pool. While momentarily, this may seem like an optimal approach, an abbreviated search and applicant vetting may lead to a “bad hire”—and that leads back to another open headcount. The solution? Be proactive and strategic. The right talent is out there. You just need to find it and keep funnelling it back to your open headcounts.

Step 1: Create a constantly evolving talent “bench”

To overcome this challenge, focus on building out a constantly evolving network of talent—people who could be assets to your organisation, now or in the future. Many companies are opting to re-skill current employees while building a fresh talent pool.

Even if you do not have open roles or opportunities for these individuals, engaging them, sharing more about your company, and understanding their desired next steps and career objectives can help you build a roster of go-to talent should the right roles present. This is especially critical for niche industries or if you frequently find yourself hiring for highly specialised positions.

Colleges and universities can be an ideal first step in building out your potential-hire network. Many have department chairs who can point you towards high-potential graduates and undergraduates, or student-led organisations that attract engaged, active leaders with an eye on career next steps. By building strong connections with these individuals and groups, you can easily create a mutually beneficial relationship—you become a direct access point for internships and recent-graduate hiring, while the schools can help flag premier talent.

Other potential network-boosting partners? Professional or industry-specific organisations. Not only does this enable you to target and engage professionals in specific areas of work, but also to create a better culture of diversity and inclusion. Working with women in technology groups or minorities in business associations, for example, can boost both recruiting and ensuring you have a broad, representative talent pool.

Step 2: Implement an employee referral program

You can also look to in-house experts: employees with similar roles and responsibilities. Many professionals have connections from previous jobs, social contacts, or have access to industry groups and threads—and, with that access, can help promote open headcounts and share more about life within your company. 

These types of referral programs can simplify recruitment and hiring—and can lead to better retention and employee success. Because your current teams best understand organisational culture and day-to-day demands, they can best articulate the employee experience. In fact, a recent survey by Willis Towers Watson found that companies plan to focus on enhancing the employee experience over the next three years. At the same time, from this vantage point, they are also often best equipped to identify people who would be optimal fits within your workplace—plus, candidates trust employee feedback more than company messaging.

As a result, referral hires tend to be happier in the role, with less attrition and a better understanding of company needs on day one. They also tend to be more engaged—they know someone within the organisation and can come to them with any questions, concerns and other early-stage learnings.

To maximise the impact of your referral program, consider high-value incentives—additional paid time off (PTO), financial compensation, public recognition and other perks. 

Likewise, employees are often well-positioned to identify candidates who would best align with the organisation. Together, this can translate to quicker hiring processes, lower recruitment costs, and decreased turnover. Referrals can also be an easy way to identify niche talent or individuals for hard-to-fill roles. 

Step 3: Never stop recruiting

It is important to keep engaging high-potential talent for traditionally high-demand roles. Between employee attrition rates in the double digits and organisation-specific needs, this talent will likely be needed sooner rather than later.

To that end, be sure your teams are always focusing on building a strong network of talent—even if you don’t have roles for them (yet). This can happen through college and university connections, engaging industry organisations, starting or building out your employee recruitment program, and continuing recruiting for key roles once spots are filled. Again, you’ll no doubt need a new talent pool, and this approach ensures they’re standing by. 

Filling open headcounts efficiently is key—but it’s also essential to bring in the right talent for the role, especially now. A recent study found that India stands at number 4 in the world when it comes to making bad hiring choices.The majority of senior managers agree a bad hiring decision is particularly “severe” during the pandemic, and  hiring the wrong person leads to decreased morale and productivity, increased stress on managers and major financial implications—so do not allow yourself to feel rushed into a bad decision. Be strategic and be proactive, and soon, you will have a robust talent pool at the ready.