An in depth survey on the effectiveness of the recruitment function in organisations in Australia has revealed some concerning results for business leaders. Recruitment is dragging the chain in some organisations, being recognised as uncommercial, unsophisticated and not strategically aligned with the broader business objectives.
The survey, conducted by consulting firms deliberatepractice and incorporatepsychology, has revealed that a huge opportunity exists for recruitment functions to improve their sophistication around reporting, thinking strategically, targeting the right talent and designing the correct recruitment model, to ensure that the function is contributing to the organisation’s bottom line rather than harming it.
The survey was completed by over one hundred leaders and professionals from medium to large companies in Australia, with just over 50% of participants being at a director or executive level. The transformational change in the recruitment function over the last decade has been immense, and more emphasis is being placed on the importance of effective and efficient hiring. In turn, this survey has demonstrated that the recruitment function, in many cases, has been unable to stay abreast of the developments and opportunities.
An alarming statistic from the research was linked to the effectiveness of database management. 70% of the respondents indicated that their organisation was not good at managing a database of candidates. These companies did not utilise an applicant tracking system, an excel record or any lists at all to manage their candidates. One large consumer organisation still paid for postage to respond to all applicants. The survey revealed that there is a real lack of commercial rigour being placed around the recruitment function, and as such these inefficiencies can be costing more than just time and money – it can be costing an organisation the best people.
Of greater longer term concern than information management, is the survey’s results demonstrating a lack of strategic thinking in the recruitment function. The survey revealed that nearly half of respondents (40%) think their recruitment teams are just reactive and don’t take the medium term requirements into account, let alone the longer term business needs.
Almost half (45%) think that their company has not invested enough time into understanding what the employment brand is and how best to communicate it. One in five business and HR leaders doesn’t think they get enough value for money from their company’s recruitment function.
So whilst half of organisations surveyed are relatively confident in their recruitment function, there is a gaping hole of opportunity for others. With most organisations placing their business units under a fiscal microscope, this survey has demonstrated that the recruitment function also needs to become more commercial and accountable in its day to day operations.
Recruitment can no longer just focus on hiring and firing. It must be an integral function; driving strategic direction, representing the organisations core values, sophisticated in its data management and commercial and forward thinking in all of its activities.
Overall, the research indicates that medium and large business in Australia are relatively confident in their recruitment functions, but far from complacent. Almost half of businesses surveyed need to become more strategic and more commercial.
Click here to view our survey results and perspectives paper titled ‘How commercial is your recruitment function’.