One of the ways that exceptional organizations separate themselves from the pack is by adopting the concept of their recruiting function as a value center. Conversely, a not-so-forward-thinking company sees recruiting as a cost center activity. The evidence of this becomes apparent when they trumpet cost per hire as their leading metric:
“We’ve got our cost/hire down to $1200”. Congratulations, you’ve just won the race to the bottom.
The cost center mindset may save on the recruiting budget, but it bleeds over into operations with added expenses, the most notable of these being the cost of high turnover. There is a correlation between companies who have the lowest cost per hire and high turnover. When I see these cases, my thoughts go to what must be the opportunities lost, namely, the opportunity to hire someone amazing who raises the bar.
Companies with a value center focus understand the implications of the performance difference between an A Player and a C Player. These employers focus on the metric of ROH (Return On Hire). A good value center invests wisely in the resources that deliver the best talent. A Player-focused recruitment, like the tide, raises all ships: Operations benefits from a well-led team with little to no people distractions; culture improves because the A Players lead by example focusing on strategic goals; and bench strength increases which front loads succession planning.
When employers begin to recruit military-experienced talent with a value center approach, Bradley-Morris helps them focus on their ROMH (Return On Military Hire). Military personnel, particularly Junior Military Officers (JMOs), are force-ranked by their command and the #1 of 9 officer performs at a higher level that the #9 of 9 officer. Not every veteran is high performer; not every veteran is a fit for a key, demanding role. Bradley-Morris leverages best practices from two decades of lessons-learned to produce outstanding ROMH for our clients – it’s how we earn repeat business.
Is your companies recruiting function viewed as a cost or value center? What metrics is your team focused on? Are you taking a deep look into the people dynamics of your output?
Image courtesyDean Hochman