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A New Approach to Corporate Recruiting

By Elizabeth Rice, SPHR

The job growth outlook for 2005 is looking up. The reasons for this improvement are two-fold: the continued solid economic growth coupled with the slow growth of the labor force. In 2004 job growth averaged 185,000 per month, with the economy growing at an annual rate of 3.5% to 4%.1 Due to the current upswing in the market both passive and active job seekers are looking to improve their career positions. According to a Monster.com survey of 8,044 people, 93% of respondents plan to change jobs in 2005. In addition, a study by the Collegiate Employment Research Institute reveals that companies plan to expand hiring of college grads by 20% over last year, with a projected average pay increase of 4% to 7%.

Innovative Employee Solutions® (IES) recently interviewed Jeremy Langhans, a recruiter for the high tech and telecom industries, about the changing job market and its effect on corporate recruiting. According to Langhans, "it is becoming an employees market again. Competition is heating up between companies across industries to develop new business and grow their market share. As a result, the competition to attract and hire the best candidates is stimulating the recruitment market and giving both passive and active job seekers the upper hand in negotiating. Candidates are once again entertaining multiple offers with perks such as signing bonuses and relocation packages."

Companies are taking a more strategic and proactive approach to expanding their workforce. They are investing more time and resources identifying workforce needs and profiling appropriate candidates. In addition to the traditional review of resumes from active job seekers, companies are searching for passive candidates through Internet research and social networking. By doing so, companies are developing and building on internal databases for current and future needs. "With this new approach, the cycle to identify, interview and hire a new employee is averaging six months," says Langhans.

Aside from having the recruitment process in place, it is also critical for companies to have a strong employer brand. Just as important as attracting candidates with the relevant skills is attracting candidates who fit the corporate culture. According to Langhans, companies need to have a human resource staff that can represent the company well and provide the best candidate experience.

As companies plan to aggressively recruit and hire in 2005, the pressure is on human resources to quickly process candidates and new hires. With leaner human resource departments, many companies are outsourcing HR administrative and benefits services to third-party vendors such as IES to quickly process candidates and new hires.

With this new approach to recruitment, companies are well equipped to attract and retain the best employees. At the same time, job candidates who possess the relevant skills and qualifications are also in a good position to find the opportunity and company that suits them best.

About IES

Ms. Elizabeth Rice, SPHR is the President of Innovative Employee Solutions® - a San Diego-based company specializing in payroll and HR administrative services for the contingent, non-core workforce. Ms. Rice has more than 20 years of experience in HR and executive management and is noted both regionally and nationally for her particular expertise in employee relations, women's workforce issues, and temporary employment. Ms. Rice can be contacted at erice@innovative-es.com.