Often, when entering scaling businesses, there has been little to no strategy or thought put into the hiring process. It tends to be a quick “bum on the seat” approach, resulting in poorly planned hires that leave the business stuck in a talent revolving door.
The costs associated with recruiting, onboarding, training, and the loss of productivity when an employee leaves can add up quickly, eating into profits or even invested capital if you are in a loss-making situation.
Recruitment is sometimes thought of as not being rocket science, but we disagree, as it can be as costly as an aborted rocket launch. Every role should have a clear return on investment (ROI) attached to it, along with a well-defined job description. Our CEO often compares a role to a cog in an engine and emphasises how it fits in with all the other cogs.
Screening candidates and maintaining an unbiased approach are essential. It’s crucial to hire someone based on their skills, experience, or their demonstrated willingness to excel in the role, rather than simply choosing someone you like or can have a laugh with.
Hiring the wrong person, without the right HR practices in place, can result in a low-productivity workforce, a lack of employee development, poor communication, and adverse effects on your business’s growth. This can also lead to valuable talent leaving your organisation.
Remember that reputation is everything, and both your company culture and external brand in marketing will impact your business for years to come. If you fail to practice positive HR processes, departing employees will discuss their experiences in the marketplace, which can affect current employees’ desire to stay with your company and harm your overall reputation, making it challenging to attract, retain, and build trust with talent.
Employee morale and engagement are paramount to an effective workforce. Low morale is contagious, as is dissatisfaction and absenteeism. On the flip side, high energy, a positive outlook, and a sense of achievement are also contagious. What kind of workforce do you want to cultivate?
If you are an employee in a workplace, consider the kind of environment that allows humans to thrive. Companies need to champion this environment.
Employees value training, development, and fair compensation. Ensure that these aspects are handled in a way that meets the workforce’s needs by soliciting their input through employee voice and surveys, rather than imposing what the business believes they want.
Lastly, creating a healthy work environment will lead to increased retention and a happier workforce. Therefore, investing in HR will save you a substantial amount of money by fostering a productive, engaged, and content workforce.
