Rising labor costs, severe staffing delays, and chronic job vacancies are derailing organizational productivity and growth. Put simply, inadequate workforce planning and poor management of talent demand are major barriers to business growth in a time of an aging workforce, heightened regulatory constraints and economic uncertainty. In the typical organization the following occurs:
- The average recruiting organization misjudges its 12-month forecast by 15% and can only predict 50% of the types of hires needed over the same period.
- Costly compensation penalties (largely a result of poor talent planning) are widespread: more than 50% of hiring managers offer higher-than- necessary compensation packages to fill positions.
Source: The Recruiting Roundtable
Information about workforce trends available at Perfect Labor Storm
Growing companies should lay special emphasis on their hr requirements, and this is there the need for a separate human resource department comes into focus. For one, it certainly takes the pressure off the management and helps in forecasting future needs, employee evaluation etc.
Alan,
I respectfully disagree. Your cost to hire may be only $2,000 to $4,000 but the cost of turnover is much higher. Think about the amount of managerial time associated with bad hires…and interviewing unqualified candidates. Or how about the lost opportunity…if you weren’t spending your time hiring and re-hiring where could you be better investing your time? And what about lost customers related to bad employees or under-staffing? This alone incurs an enormous cost when one bad hire results in the lost of a customer.
Thanks for reading and your comments.