There are many different functions within Human Resources and it has been long-argued which of these is most important when it comes to bottom line profitability. So our friends at The Boston Consulting Group put this debate to an end. Drum roll please…
Recruiting comes in on top! When it comes to having the best employees, there are two ways of accomplishing this. The first is to take an average person and develop them into a high performing employee. This approach takes a lot of time and money. The other option is to see who the high achievers are in the market and recruit them into your company. This takes less time and money.
With recruiting at the forefront having a profit growth of 3.5 and a profit margin of 2.0 its total improvement score is 5.5. This means that recruiting alone is 5.5 times the impact of a low level HR function. One thing that sticks out in this table is employer branding. When this is combined with recruiting the total improvement score doubles. Employer branding is an intangible piece of recruiting. With this dynamic duo working together the performance bar is raised to a 10, meaning recruiting and branding together have 10 times the performance of a low HR function.
Knowing the different levels of HR functions is important for companies to be competitive in the market. You want to have the best employees possible on your team, this will intern have a positive effect on the profitability of the company.
At InPursuit we are extremely experienced in the recruiting and placement of excellent employees. We are a personable executive search firm that works hand in glove with our clients, working first to define the needed position in detail. Then, we deploy a search strategy using advanced technology to find exceptional candidates for the position.
With recruiting being the top Human Resource function it is crucial to have a solid recruiting team. That’s us!
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