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Just Because You Can, It Doesn't Mean You Should...

Plan Your Recruitment

Ever since Adam Smith (in 1776) determined that division of labour represents a quantitative increase in productivity, individuals in organisations have continued to struggle with the dilemmas of ensuring that the right people are performing the right tasks at the right time. Too often in organisations, the most valuable people perform tasks that others could accomplish. For some of these tasks, quality is essential but for others, "good" is "good enough".

So, just because you are able to do a task adequately, the question is often should you be doing this task at all?

The answer to this question is usually found in understanding the value of your time.

One way of calculating your "value" is to look at your Annual Salary

Let's say you spend 10 hours per day either at work, commuting to work, or doing tasks related to work. With a five day workweek, that's 50 hours per week. And if you work 50 weeks per year (2 weeks off for vacation), then that's 2,500 hours per year.

If you earn £50,000 per year then your "hourly payment" for turning up is £20 per hour.

But hang on, what are you actually worth to your company?

A salesperson carrying a sales target of £1,000,000 per annum has only 2,500 hours per year to dedicate to achieving that target.

Therefore the value of her working hour is actually £400 per hour!

A Director brought in to increase turnover by £5 million via clever strategic re-positioning of the business, selling off a non-profitable subsidiary, renegotiating a costly supply chain deal, and growing productivity via some clever strategic mergers and acquisitions still has only 2,500 hours per year to dedicate to achieving that target.

Therefore the value of his working hour could be viewed at £2,000 per hour!

And let's not even try to think of the true value if the company is listed on the stock market and your activity will influence the share price!

How many hours are you actually "fee earning"?

If we accept that many of these hours are taken up with business travel, meetings with lawyers, meetings with HR, presentations, public speaking, shareholders meetings, board meetings, staff PR, external PR, some admin etc. then we realise that we are not "selling" or delivering at full potential every single hour out of our 2,500 hours per annum.

Depending on the level of your job responsibility and how much collateral damage comes with performing that role, it can be argued that many employees are only "fee earning" 50% of the time. So your expected performance to the company of each fee earning hour has just doubled!

It's obvious that if it takes a salesperson, valued at say £800 per hour, another hour to do her monthly invoicing, contracting it out to a bookkeeper who charges £30 per hour clearly is a more cost effective use of her time!

All of this also applies to recruitment

So, when it comes to recruitment, one of the biggest questions we ask our business clients is not "can you do these recruitment tasks?" but it is "should you do these recruitment tasks?"

Firstly, recruitment done well involves a lot of time and time, as we have established, is money! Taking on the right new employee is not simply a transaction but is the difference between successfully growing the business and causing a massive amount of disruption, distraction and time lost for no return.

The employer absolutely needs to be involved in the final interviewing process and in choosing the best candidate and contributing to the successful induction of the new starter. However they don't need to do every other activity and single step involved in the process. And, by the way, there are 40 steps to be followed to ensure the highest chance of a successful outcome.

So there's a clear financial reason for outsourcing most of these recruitment steps. The opportunity cost of your time and money can be better used elsewhere in the business.

However, there's a further reason for outsourcing this process. Your sales people are trained and experienced sales people. Your technical experts are highly qualified with years of training. So let the recruitment specialists with almost 20 years' experience work closely with your organisation!

As your partners, Jackie Kerr Recruitment will get to know your culture and your ethics, your work time and your fun time, your ambitions for the business, and will be able to recruit the best candidates for your business, whilst you concentrate on what you do best - running the business and increasing profitable productivity.

Are you looking to attract talented individuals who will help grow your business?

Call us for a chat on 01793 762026 or email Jackie and her team at:


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