Making the case for a solid recruitment budget (it’s easier than you think)
(2 minute read)
The days of the spray and pray recruitment strategy are long over!
Research has proven that the best quality candidates are produced through two recruitment sources; the company’s internal referral system and the use of specialist recruitment agencies. Surprisingly 85% of companies will first attempt to source candidates externally before approaching an agency. The reason given? “We don’t have enough of a recruitment budget”.
Posting on job boards and hoping for the right candidates just doesn’t cut it in this current market. Make the case to increase your recruitment budget with these top tips:
Identify your company’s strategic goals and highlight the ways your budget aligns with these. Think ‘how will this increased budget solve business problems’ (and remember not to think from purely a recruitment perspective).
Instead of using lots of recruitment specific jargon such as KPI’s and turnover cost, find a direct link between recruitment issues and the bottom line. Talk about how much the company will save and use data to back your points.
Talk about competitive edge. That’s the name of the game. How is increased budget going to help the company get the best candidates first; how is your strategy different? Think about what the competition is doing and relate this to keeping the company a step ahead of the rest. Pay attention to the economy and skill shortages when driving this point home.
By 2020, 46% of the workforce will be Millennials. Make note of how human resources will target these job seekers better than the competition with an increased budget. Show that your strategy is forward thinking and how it ties into moving the company into the future. Make sure that you emphasize the ROI. These things can ultimately come down to this one point. Have this figure ready and try to provide numbers that show a short payback period and increased productivity.
Last but certainly not least, show the cost of not doing it. Create a sense of urgency by explaining the ramifications of not investing in Human Capital projects as we move into the future of work.
To make the best case for increasing recruitment budget, we have to use the recruiting data at our disposal and show the relationship between recruitment efforts and the overall success of the organisation in a manner that’s easy to understand.