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In today’s competitive and fast-paced business world, companies may often be tempted to recruit the first job applicant to meet their pressing human resource needs. However, this lack of proper planning often does more harm than good. The cost of a bad hire alone is a solid reason to warrant hiring the right person. Based on a 2017 CareerBuilder survey, the average cost of a bad hire is close to US$15,000. These unwanted costs can be avoided when the right talent is hired. Moreover, a suitable candidate benefits more than the team or department the candidate joins.
Why is Talent Important?
Talent, who are the right fit, are essential to businesses. Aside from avoiding unwanted costs, it can facilitate efficiency and drive business innovation and competitiveness.
1. Saves Time
During the hiring process, senior team members are required to step out of their daily routines to review potential candidates. Constantly having to review candidates requires additional commitment in terms of time and energy. On the other hand, hiring talent who are a good fit for the company is likely to reduce turnover frequency. As a result, senior employees and the human resources department will be able to avoid spending an excessive amount of time on hiring activities. Disruptions to workflows and task planning can also be avoided, benefitting the organisation in the long run.
2. Improves Company Culture and Talent Retention
Talents who are a right fit for a company are more likely to possess the right mindset and attitude that aligns with the organisation. This enables them to fit well into the organisation and feel happier at work. As employees rarely work in silos, the positive energy of these candidates will rub off on others in the team, inspiring and motivating those around them and contributing to a synergistic and innovative work environment. This translates to a virtuous cycle of higher talent retention rates for a company.
Great Talent is Scarce
By taking the time to find employees who are a good fit and are more likely to stay longer in the company, firms can reap the benefits of a more engaged and productive workforce. However, there is no denying that great talent is scarce, especially in Singapore. Based on the ManpowerGroup Employment Outlook Survey 2022, the nation has reached the highest level of talent shortage in 16 years, with 84 percent of employers reporting troubles with hiring. This scarcity also accounts for an increasingly competitive job market, as employers are forced to fight for the limited pool of top talent.
Multiple organisations in Singapore have rolled out attractive initiatives to increase their appeal to the talent pool. For instance, many firms offer a referral bonus for employees who successfully refer a new hire and some of these incentives can be substantial. Other companies, such as KPMG in Singapore, recognise the importance of making the most of their existing talent and have focused on talent retention initiatives. For KPMG in Singapore, plans were drafted to set aside S$25 million for salary increments and approximately S$30 million for lifelong learning programmes to develop its talent.
What Needs to Be Done for Talent Attraction and/or Retention
Apart from traditional methods of offering a competitive salary and monetary incentives, talent can be acquired and retained in several ways. In Singapore, employees are increasingly looking beyond just wages and want to work for companies that value their skills and provide growth opportunities. This echoes Randstad’s 2022 Workmonitor survey findings, which showed that 91 percent of Singaporeans value learning and professional development opportunities. As such, launching programmes that support employees’ diverse learning needs can be an excellent place to start. An example is KPMG in Singapore’s Global Talent Exchange programme, which its international network of member firms relies on for secondment opportunities and specialist expertise for business-critical projects.
Perhaps the most important area to work on is to create an inclusive and nurturing environment where employees can easily share their feedback. This supportive environment will make employees feel valued and foster their sense of belonging, which is favourable for talent retention. By accounting for the needs of a diverse workforce and providing competitive packages, companies can set themselves apart from the competition and attract the best and brightest employees.
