On-Site Financial

Are you thinking differently about human capital?

Consider what the typical workfoce investment includes:

  • Payroll
  • Benefits
  • Bonus/incentives
  • Training
  • Perks
  • Severance
  • Turnover

These costs typically represent between 30 and 60% of a company’s overall operating expense.

Companies routinely destroy their ROI through inefficient alignment and utilization of the people resources.

The average time to fill for a mid-to-senior level accounting or finance position in the local market is 6 weeks, not including the notice period most candidates need to give before they start.

The average candidate, then, takes between 60 and 90 days to be fully integrated into the organization and operating at an acceptable production level.

How can organizations reduce time, and ultimately costs, associated with hiring?

A proactive approach using workforce planning can allow you as department head to take control of the process rather than waiting for others in the organization to react when the opening occurs.

Taking the reins and leading the process, what does that mean to you?

First, you need to know how to assess your short term and long term hiring objectives. Next, you need to determine how to engage those involved in executing a workforce strategy.

And then, you need to seek ways to create and maintain a workforce reserve.

Conducting hiring needs analysis should start from the top, or the department head. First, you need to evaluate your department as a whole and determine whether you are getting the value that you need from the employees that you have. You may already be behind the eight ball!

Then, you have to look at what things will influence your future needs. Corporate strategy, labor market, and competition are a few examples.

In order to be proactive you should not wait for your recruiting arm to lead the process. Developing an effective workforce strategy will allow you to engage the appropriate team to meet your needs before they become urgent.

Building key relationships with those stakeholders and understanding each other’s needs can smooth out the process. Building proactive relationships with outside talent will enable you to create a workforce reserve of candidates that are appropriate for your department and culture when the time is right.

If you would like greater insight into how to initiate a strategic workforce plan, please join us for our upcoming event featuring Pamela Moore, President of Compass Human Resources, in November 2007.