I was perusing through some articles the other day when I came across the best topic of all time. Dr. John Sullivan, a Professor at San Francisco State University and former Chief Talent Officer of Agilent Technologies, wrote about how recruiting has the highest business impact of any HR function. Hooray ? finally the world sees how ridiculously valuable we recruiters are!
Seriously though, the Boston Consulting Group performed a study determining the value of each HR function (you will need to sign up to their site in order to read the full article). In the study, recruiting came out on top with 3.5x the profit growth and a 2x the profit margin resulting in a 5.5x total improvement in relation to the function with the lowest impact ? ?managing an aging workforce?. The second highest ? onboarding and retention ? was a full 1.1x below, with a total improvement ranking of 4.4.
What does this mean for expansion-stage companies? Value your recruiters and invest in hiring a proper recruiting team (or, if you are in our portfolio, utilize the OpenView recruiting team)!
A company needs employees (and great ones) to grow and gain revenue. Recruiters are responsible for going out into the world, finding that perfect candidate, and convincing them he or she wants and needs to work for our company. It?s no small feat ? the best candidates often aren?t looking to make a move. We bring in qualified employees who become the strong, dedicated team that make up the backbone of the company. Without them you aren?t going to get very far.
Dr. Sullivan also makes a great point about employee branding. The BCG study listed it as a separate function when, in reality, employee branding is a huge part of what we do as recruiters. Recruiting teams are the face of the company to prospective candidates. We need to emulate the corporate culture and values and ensure that they are carried out. Without being able to effectively create a strong employee brand we would not be able to acquire strong talent. When you add employee branding to the recruiting impact you get a total impact almost 10x that of the function with the lowest impact. That?s pretty amazing if you ask me.
So what should you take away from this? A recruiting team is an essential part to any company, especially expansion-stage companies. OpenView Labs sees that value and invests in a full team of recruiters to consult with our portfolio companies. You should invest in a recruiting team, too!
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