Sixty-two percent of CEO’s say they will be hiring more in
2014 according to a PwC report
and yet Gallup reports some of the lowest employee engagement and morale
numbers even with the economy improving. So what’s more important: is it
recruiting or retention for your HR and hiring teams?
The battle between HR and Recruiting is centered on two
things recruiting versus retention. What’s more important? How can companies
choose between filling a leaky bucket or filling those leaks through employee
engagement and development strategies?
As professionals we understand that recruitment and retention
both have value that impact the bottom line. The risk and expense invested in
talent are the highest in the early stages of the talent growth life cycle.
From talent outreach activities to the sign on bonuses, relocation packages and
training of the new hires, upfront recruitment costs can run three to four
times the normal rate.
Retention is managed with the help of insurance, vacation,
holiday pay and the long-term benefit packages that have been designed to keep
the newbies loyal, gainfully hired in hopes to retain and develop human
capital. This approach is designed
to grow the initial value of the talent investment, however, it is possible
that the benefits being offered alone are merely maintaining the employees. The
traditional benefit packages are not rewarding the attributes today’s companies
need to compete. Furthermore, the benefit packages are not meeting the needs of
today’s most stellar professionals. This is the reason for the revolving door
of today’s workforce. A very expensive door.
This makes sense doesn’t it? Hiring new people who have a
fresh approach to solving your organization’s challenges just seems easier,
smarter and faster. Bringing on new people to offer new ideas and a new life
into the organization seems to be a key strategy for many of today’s leaders
who want to innovate and compete in the market.
Especially in today’s digital era that is riddled with
disruption and change, companies understand the need to innovate. Innovation is
all about the “new” and the “different.” This is an exciting time for those who
are change agents. Change agents who have ideas and take initiatives to
implement the ideas are coveted traits that recruiters are courting today.
Retaining talent that is innovative in today’s digital world
on the other hand is not that easy. For many years, change agents have been
out-casted and have not been the “top in class” in companies. The ideas and
enthusiasm that was once alive in some of the humans sitting in your company’s
cubicles has either dimmed or completely gone dark. Why? The traditional
benefit packages reward employees for longevity and not innovation.
Have your benefit packages and retention programs turned
yesterday’s change agents into coasters? You may need to innovate your own
retention strategy before you make the decision to just cut your losses and
investing more resources into recruitment.
Managing human capital in today’s disruptive market requires
new and innovative strategies for both recruiting and retaining. Both are
important areas of investment. I’ll write more about specific strategies that
you can implement to help engage talent in your recruiting and retention
activities in the Part 2 of this series, stay tuned.
Jessica Miller-Merrell, SPHR is a workplace and technology strategist specializing in social media. She’s is the Chief Blogger & Founder of Blogging4Jobs. You can follow her on Twitter @jmillermerrell.