The human resource department is one of the most important departments in a business, especially when it comes to efficiency and productive staff. A company is only as strong as its human resource department. If the company lacks a human resource department altogether, it is possible that the potential success of the business is being hindered. However, if you find that human resource tasks take up too much of your time or that you are unable to effectively handle them, it can be extremely beneficial to use an outplacement company. An executive placement agency will provide the following benefits to a business.
Lower retention rates
High employee turnover rates can harm a business?s success, even at the lower levels. A business that has a high turnover rate must put a lot of time and resources into hiring regularly. When the human resources department is not qualified in effective hiring, or does not have sufficient time for proper hiring practices, the business suffers as a whole. A recent survey by Robert Half showed that one third (36%) of 1,400 executives surveyed felt the top leading factor to a failed hire, aside from performance issues, is a poor skills match. The second most common reason (30%) was unclear performance objectives.
Both of these failed hiring causes are usually due to poor hiring practices. The employees are not screened enough and do not contain the necessary skills or personality characteristics that are required for the position. They are also not properly informed of their expected job performances, often leading to dissatisfaction or failure at the job. When this failed hiring practice occurs at the executive level, it can be detrimental to the business.
Improve poor working conditions
Some businesses are prone to losing valuable executive employees because of office morale or current working conditions. Many employees do not feel comfortable enough to go to their direct boss with these types of concerns, especially when they are at the executive level. Instead, they go to the HR consultant because they are bound by confidentiality and an open door policy. The human resource professional is an important part in listening to consistent employee concerns and making improvement, when possible.
Abide by federally regulated hiring practices
A person who is not familiar with human resources skills or federal hiring regulations may make hiring mistakes. This can result in negative publicity and poor job skill matches. Executive search consultants, however, are familiar with the best work force match ups. For example, McKinsey?s research shows that gender diverse companies are 15% more likely to outperform their peers and ethnically diverse companies are 35% more likely to do the same.
Create important employee programs
Employees expect some types of programs at their place of employment, including health insurance, childcare opportunities, and retirement funding. The specific benefits that are offered with a position can help attract better qualified candidates. An executive placement agency can also be helpful in creating new employee programs that will also increase overall satisfaction. Approximately 86% of companies with employee recognition programs cite an increase in worker happiness.
A few examples of these programs include employee recognition programs, holiday parties, and continuing education opportunities. Employees tend to stay with businesses that they feel valued in. An executive placement agency can be beneficial in conducting the best HR executive search. The HR executive will be one of the most important roles in your business and will affect every other position.
Many business owners see the human resource department as the center of the business. Without them, employee quality would fail and many executive level employees would be unsatisfied with their positions. High turnover rates leads to poor morale and expensive hiring decisions. If you do not currently have a human resource department, consider using an executive placement agency to find the perfect candidate. From there, that person will be responsible for lowering retention rates, choosing the best selection of executive candidates, and creating employee recognition programs.