BRANDS RECRUITMENT
a company. The cost of an unsuccessful hire is estimated at three times annual salary, factoring in recruitment, training and lost productivity. Not to mention the disruption to internal teams, external contacts and potential reputational damage within the industry. In the competitive employment market post-Covid, many companies have resorted to overhiring or overpaying in order to attract top talent. While it is common practice today, it must be recognised as a short-term solution to an immediate problem that risks causing more problems down the line.
P
WHY DO COMPANIES OVERHIRE OR OVERPAY?
As recent years have shown, people change their behaviour as a coping mechanism when the future feels uncertain or unpredictable. Remember the panic buying before Brexit in the UK, or the near riot over toilet rolls in the early days of Covid?
Similar changes take hold in the business world too. When talent is hard to come by, it is tempting to pay over the odds, and to stock up while you can. When the pandemic took hold, redundancies and pay freezes were inevitable. In the UK, 1.3 million people lost their jobs between March 2020 and January 2021. More job losses followed during 2021, as restrictions fluctuated and the furlough scheme came to an end.
Inevitably, some people who lost their jobs during this time moved into other industries, while others dropped out of the labour market completely, either through retirement or by deciding against returning to work. Post-pandemic, as businesses picked up again, there was a surge in demand for staff at all levels, across all sectors. In the resulting battle for talent, companies competed by offering
inflated salaries and sweeping up more suitable candidates. Tech companies frequently take this approach to staffing as they prepare for imminent, exponential growth in a fast- changing environment.
56 April 2023
eople are the lifeblood of any business, but finding and keeping great talent is one of the greatest challenges for
It has become known as ‘churn and burn’, as it so often results in mass redundancies when plans change or the anticipated growth fails to materialise.
WHAT ARE THE DANGERS? Of course, no-one overhires or overpays by choice. Both are a reaction to unusual circumstances, which the business was unable to plan or budget for. This makes them a significant drain on resources, and a direct hit to company profits. Ultimately, they are counter- productive tactics, with knock-on effects that risk making the company less attractive to future candidates. Company employees can experience seemingly random changes to staffing levels and a lack of clarity regarding team structure. This is destabilising and risks damaging morale and even accelerating staff turnover. Loyalty levels are high in the beauty industry and word soon spreads if employees feel they were treated badly or unfairly.
ATTRACTING TALENT The number one priority for any business is to ensure your recruitment process is efficient and candidate focused. If you have managed recruitment in the same way for years, it may well be time to review and update what you do.
An experienced recruiter or agency with thorough knowledge of the industry will be able to guide you on the latest best practices, so you can stay one step ahead of your peers. Protracted or overly complicated interview stages risk losing out to companies that move faster or are more transparent about process. A recent client lost a fantastic candidate when they had to wait three weeks for the department head to return from holiday and ‘rubber stamp’ the appointment.
Give candidates speedy and constructive feedback. Even if they are not selected now, you may want them in the future. If they leave the process feeling they were treated with respect, they may well become an advocate for the brand, and even a customer.
Keep up with changes in working habits. In a candidate-led market, people who are unhappy at work are likely to move on more quickly than in
the past. In a recent study by Go1, 30% of Gen Z workers (currently aged 26 or under) said they would leave a role with no prospects in just four months. Millennials (aged 27-42) would stay 11 months and Gen X (aged 43-58) 12 months.
If a rapid job change is the only point against a candidate, it is worth discussing it before you rule them out.
BE REALISTIC ABOUT THE JOB & THE OPPORTUNITY
Make sure your job descriptions are accurate and specific. I regularly read job descriptions that are little more than a job title and a few key tasks. Candidates naturally want to know what their job will entail, and employers find the interview and selection process far easier when the role is clearly defined. A good recruiter, with knowledge and experience of the beauty industry, can pre-empt candidates’ questions and concerns, and help with job description preparation. Arthur Edward has job description templates for most industry roles, ready to adapt as needed. All the candidates I work with are looking for a great job, with a great company, with great prospects. They want to hear about opportunities for training in the role and for career progression in the company. If you don’t offer career development support, candidates may look elsewhere. Smaller companies and start-ups don’t have the career development pathways established in larger businesses. But the breadth of experience and on-the-job learning they can offer will have enormous appeal to people with a more entrepreneurial approach.
MAKE YOUR COMPANY THE EMPLOYER OF CHOICE A company’s values and culture are especially important to younger candidates, but everyone wants to be proud of where they work and what they do.
Beyond growth and profits, employees care about the company, its leaders and how it gives back to the community. Progressive and inclusive values will help to attract candidates who are a good match, while building in diversity.
Large businesses and multinationals have perfected communication of their ‘employer brand’.
They proudly and publicly showcase their guiding principles, such as charitable affiliations and environmental
cosmeticsbusiness.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64
