Every day that your job remains open costs you money. How much money depends on the role and how much strain you put on the rest of your team by not filling it more efficiently. If you are hiring a salesperson responsible for driving $10 Million in annual revenue, each day the job is open is costing you $40,000, give or take. If it is a VP, CEO, COO, or other executive level role, those numbers are likely even higher.
If hiring the best people possible in the shortest amount of time isn’t already a top priority for your company, it should be; especially in a market that is changing as rapidly as renewable energy.
“If you can’t measure it, you can’t improve it.” – Peter Drucker
Put another way, “If you don’t measure it, you won’t improve it.” Many companies in solar and energy storage are leaving a lot on the table by not taking the time to develop an efficient and effective hiring process. The true cost of poor hiring practices can be alarming, but they do present a major opportunity for forward-thinking organizations looking to save time and money.
How can we measure and improve our hiring process?
The primary Key Performance Indicator (KPI) responsible for measuring hiring process efficiency is a company’s Time to Fill metric. Time to Fill is the amount of time (in days) between starting a new hiring initiative and the new hire’s first day of work. Do you know what the average Time to Fill for your company is?
Companies with higher Time to Fill averages struggle to attract top talent and keep morale high, especially when their existing team must carry the burden of a larger workload for months on end because of their poor or mismanaged hiring process.
A low Time to Fill average ensures that you waste less time searching and interviewing, you relieve workload pressure from your existing team sooner, and you get your new hires up to speed and producing faster. That translates to a boost in team morale and productivity, improved employee retention, and it allows you to move the needle sooner and further than would have otherwise been possible.
While some of the larger renewable energy companies have sophisticated HR departments that measure and analyze a variety of metrics, most of the small to medium sized companies that make up the bulk of our industry have not optimized their hiring process and have no idea how much money they are leaving on the table as a result.
Next Level Hiring
Companies in our industry are only just beginning to realize the importance of having a highly efficient and effective hiring process. Improving Time to Fill will give your organization an edge that other companies have yet to catch on to: a more positive workplace, accelerated turnover recovery, and the ability to keep strong candidates engaged and interested.
You may want to check out our e-book on Hiring Rockstar Talent if you are looking for more information on hiring best practices.
If you are interested in learning more about how to reduce your organization’s Time to Fill, click here to schedule a 15 minute consultation.