This guest post was written by Frank Cavallaro, CEO of Fronetics Strategic Advisors. Fronetics is a boutique marketing firm focused on the logistics and supply chain industries.
Today’s hiring managers in the supply chain face a number of challenges, so making the right hire is more difficult, and more important, than ever.
Finding the right person for a job opening is essential. Hiring the wrong candidate can be costly, not only in terms of team morale and productivity, but financially as well. The U.S. Department of Labor estimates the average cost of a bad hiring decision to be as much as 30% of an individual’s first-year potential earnings. That means a single bad hire with an annual income of $50,000 can equal a potential $15,000 loss for a company.
Given the demand for supply chain talent, the dearth of experienced talent, and an increasing number of newly graduated talent entering the job market, how do make sure you extend an offer to the right person? Here are a few tips on hiring the right supply chain employee.
Look within the company
Is there someone within your organization who would thrive in a new role — even if the role is outside of their current field?
Look across the industry
Look at your competitors’ employees and identify individuals who are a good match to your company and the role.
Look outside the industry
A talented professional from outside the industry could provide fresh ideas and insight that would greatly benefit your company. Look for someone with transferrable skills and a willingness to learn a new industry.
Work with colleges and universities
Develop a relationship with colleges and universities. Work with the schools to identify upcoming or recent graduates who are/were stars. Another option is to establish an internship program with a school.
Work with a strategic advisory or recruitment firm
Working with a strategic advisory firm is an option, as well. This type of partnership, such as the ones I build with our clients, can make identifying the right talent for the right position easier. An advisory firm often has the pulse on where the most talented people are in the supply chain and logistics industries. The firm can launch a successful candidate-search process, get new hires up and running, and help retain talent for the long run.
Be creative and have vision
Throughout the hiring process remember that creativity and vision are key.
Offer an out
Zappos pays new employees to quit. You read that right: The company pays new employees to quit their jobs. Once new employees have completed a 4-week training program, they can choose to remain with the company or quit. If they choose the latter, they walk out the door with a $4,000 bonus. Offering such an out may seem crazy. But the reality is that when unhappy employees leave the company within their first four weeks of employment, the financial implications are much, much lower than the cost of unhappy employees who are likely to be uninspired at work and quit in less than a year.
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