Creative Recruiting Strategies

Labor Shortage. Those two words are striking fear and frustration into increasing numbers of organizations. In addition to competing for customers, most companies are recognizing that they also are in a fierce battle for qualified employees. If companies want to win the battle, they will put the same energy into improving the quality of their recruiting, selection and retention efforts as they do into improving the quality of their processes and products. In fact, the two are tied together closely; each feeding the success of the other. Good employees will be more likely to produce quality products and services. Quality products and services create a solid reputation and sense of job security that will help to attract and retain good employees.

The statistics are disheartening. The baby bust has shrunk the 16- to 24-year-old entry level workforce from approximately 24 million in 1984 to about 20 million in 1995. In 1980, young workers made up a quarter of the U.S. labor force. By 1995, this same group made up only about 16 percent of the labor force.*

Are you discouraged by statistics and your company's struggle to find qualified employees? You don't need to feel victimized by this buyer's market -- you need to take action. After reading this article, make a commitment to develop a creative, aggressive plan for recruiting, selecting and retaining employees. Then follow up on it.

Creative Recruiting Strategies
The first major question a company usually asks is, "Where do we find qualified people?" If your sole method has been the classified ads, you're missing some of the better channels for recruiting.

Recently, a national retail chain hired our company to help them improve their recruiting efforts in a particularly tight segment of their labor market. Many of the strategies we recommended can apply to the manufacturing sector.

The first step is obvious, but many companies fail to take the time to do it well. Identify the specific skills and personal characteristics needed for the jobs you want to fill, then identify where the people with those characteristics are most likely to be found. Usually, Skilled workers already are employed, which brings us to our first strategy.

In addition to competing for customers, most companies are recognizing that they are also in a fierce battle for qualified employees.

Recruit Those Currently Employed
Hiring employees away from their current employers may not be easy, but it will probably get you some of your most qualified candidates. There are certain rules that govern this strategy, however. You obviously don't walk into another company and set up a booth. And you probably don't want to call employees at work. But if you ask the question, "Who do I want and how can I get to them other than using the two options above?" you may identify some creative options. Trade fairs, conferences, workshops focused on your industry or particular job classifications are some places you may find qualified candidates. Attend and bring extra business cards with you so you'll always be ready for a "sellable moment." Be aware of the many networking opportunities you have to discover a potential candidate. You never know when that person next to you on the plane might be just ripe for a job change, or know of someone else who is. Looking for qualified employees is not something you should start and stop as jobs become available -- it is an on-going process. The best strategy is to get your whole workforce thinking like salespeople for your recruiting efforts. This leads to the next strategy.

Employee Referral Incentive Programs
Formalizing an incentive system that rewards employees for recommending interested and successful candidates can be a very effective strategy. Most companies pay a small incentive for a completed application, then pay a larger sum if the candidate is hired. Some pay an additional amount when the employee has stayed on the job for six months. For entry level positions, pay-outs average around $100 ($5 for an application and $25-50 pay-outs once the employee is hired). For professional positions the average is much higher. One company paid a $500 referral bonus for hiring a qualified engineer.

Quality products and services create a solid reputation and sense of job security that will help attract and retain good employees.

On-going internal advertising, communication and follow-up is critical if this strategy is to succeed. We suggested to our retail client that they keep the momentum going by holding a quarterly or semiannual raffle for everyone who submitted names of candidates who were hired or just submitted applications. We also recommended that periodic reminders explaining the program's process and results be placed in pay envelopes and in the company newsletter.

Classified Advertising
Classified ads are still a viable avenue for advertising job openings. The biggest advantage of classifieds is the wide audience they reach and the large volume of applications they can generate. The biggest disadvantage is that you need to screen out and respond to a lot of unqualified applicants. There are many other strategies that organizations need to add to their list. But before we discuss those, I'd like to offer two words of advice for your classified advertising -- get creative.

In a tight labor market you'll find more ads competing for your reader's attention. What will make your ads stand out? Think of using a catchy headline and make sure it includes something that will target the interest level of your reader.

Our client needed to fill a lot of entry-level positions at a low-wage rate. The headlines and large type in the ads we drafted focused on benefits, flexible hours and an emphasis on opportunity for advancement. We also recommended that some graphics be used. Because we were looking at classifieds more from a "marketing" perspective, we contracted with a marketing specialist and copywriter to draft copy for the ads and suggest some design ideas. We also did a competitive ad analysis so they could see how their ads compared to ads that were appealing to the same labor market.

Once you recognize the need to really "sell" the job and your organization in your ads rather than just list your job opening, you will have taken a critical step forward in improving your recruiting efforts.

Temporary Agencies
Many of you are already using this strategy. One Grand Rapids manufacturing company hires all production employees through a temporary agency they have a relationship with. Another company set a goal that no more than 10 percent of their workforce would be comprised of temporaries. The main advantages of temporary hiring is a reduction in recruiting and selection time and costs, and less long-term risk for the company.

Companies can "try out" the new employee and let them go for poor performance without having to go through a lengthy disciplinary process and costly unemployment claims. They also can ride the down turns in business a little more easily. The main disadvantage is the unstable element it adds due to a constant stream of new faces that need to be retrained on-the-job and educated on the company culture.

Alternative Advertising
More and more companies are using radio and TV to reach their target labor market. If you do, make sure you select stations and time slots that target the type of audience you are trying to attract. You probably have a local cable station that will let you list job openings at no charge.

Formalizing an incentive system that rewards employees for recommending interested and successful candidates can be a very effective strategy.

We also identified two other modes of advertising that many companies don't think of -- billboards and signs on the outside of city buses. Bentler Industries, a Grand Rapids-based manufacturing supplier of steel door impact beams to the automotive industry, used 20 billboards located throughout the city over a four-week period to invite people to come in and apply for a job. They estimated they reached 90 percent of the adults in the area at about 15 viewing times each. It worked; they tripled their recruiting results. If you decide to choose these types of methods, you probably want to enlist the help of an outside ad agency that specializes in employment campaigns.

Larger organizations and/or those doing a lot of hiring can list a number for a 24-hour job hotline that would give the most up-to-date listing of job openings. Oh yes, and don't forget the Internet as a tool to search for potential employees. The Michigan Employment Security Commission has a home page with "hot links to MESC job site, Michigan Talent Bank Prototype, America's Job Bank." Find out what is available from your local office.

Local Community Options
For less specialized jobs, take your job search deeper within your own community by advertising on bulletin boards in local churches, libraries, retirement homes, day care centers, laundromats, colleges and trade schools. Most trade schools and colleges, have special job placement services you can plug into by simply completing and sending or faxing a job request form. Some colleges we spoke with will even help screen and match students for specific job openings.

Once you recognize the need to really "sell" the job and your organization in your ads rather than just list your job opening, you will have taken a critical step forward toward improving your recruiting efforts.

Area manufacturers seem to have the best success with local community colleges. One company we spoke with has established a relationship with specific instructors in job-related programs and encourages them to refer students from their classes. The instructors make job announcements at the beginning of their classes. Many schools also are starting up their own job hotlines. And don't forget advertising in college newspapers if you're seeking students or soon-to-be graduates.

Community organizations can be another vehicle for targeting your recruiting efforts. We obtained the names and addresses of senior employment programs, state and local jobs programs, and human service programs. This approach works very well if you have a narrow audience. One client felt that working mothers and retirees would be a good target group because of the flexible hours and ability to work shorter (two to four hour) shifts. Knowing this, we identified several womens' organizations, day care centers and senior centers to advertise the openings. We even suggested advertising at some bingo halls.

Recruit Past Employees
How many good employees have left your company for reasons that may no longer apply? A local company we contacted sent a letter and application form to 2000 of its past employees thanking them for their years of service and inviting them to come back and apply for a job. They were even offered a small incentive if they just turned in a completed application. The company received 385 applications, and reemployed about 60 of their former employees.

Do As Much As You Can
You don't have to implement all the strategies listed to improve your recruiting efforts. For now, just pick a few that you can do soon and well. Then, develop a recruiting plan that lists the short- and long-term strategies you want to implement, along with responsibilities, due dates and, maybe, even costs. Don't forget that you need a quality interviewing and selection process to support your efforts. Training on interviewing and hiring for anyone involved in the selection process is crucial.

It's a buyer's market -- now its your turn to do the selling. If you don't, your competition will, and maybe already has a headstart. Don't be left in the dust; do as much as you can! MF

Training Seminar Sponsored by PMA
Barbara Jordan, the author of this article, will facilitate a two-day PMA-sponsored seminar entitled, "Getting Your Training on Track." The program will focus on how metalforming companies can accurately assess their training needs to determine strategies for prioritizing and meeting their most important requirements. It will take place in Indianapolis on November 20-21, 1996. For more information and a seminar brochure, contact Angela Casey at PMA, phone 216-901-8800; fax, 216-901-9190.