“It’s the most wonderful time of the year…”
No, it’s not the holidays yet. Nor is it about back to school for those of you with kids (think the old Staples commercial).
It’s time for the final CandE Benchmark Research evaluations! This is the time of year when we analyze the global candidate experience feedback data for all participating employers, from large to small companies and across multiple industries. We’ll also produce our annual benchmark research reports.
A lot is going to happen in September! We’ll reveal this year’s CandE winners (employers with above-average candidate experience ratings) and then have a huge celebration at the fall ERE Recruiting Conference on November 12-14 in Anaheim, CA. Plus, we’ll be conducting comprehensive data reviews with every participating company.
We’ve been busy reviewing the CandE data while conducting data check-ins with these companies to pinpoint where their candidate sentiment is going. One talent acquisition leader joked the other day about getting an award for the lowest candidate experience ratings. Well, there’s no award for that, I said, but I advised them to definitely take the insights gleaned across the candidate journey and start making those recruiting process improvements today.
One recommendation I’ll make this year is to get their CFO or head of finance in the room when they review their CandE Benchmark data. Why? Because while employees are usually the biggest part of any employer’s budget, HR and TA tend to be seen as cost centers.
Each year, we help employers understand the business impact of great and poor candidate experiences for both external and internal candidates. The two biggest impacts either way are on revenue for candidates and employees of consumer-based companies (check out our resentment calculator for the negative impact) and referrals for all B2C and B2B companies.
The ultimate outcome for talent acquisition teams, along with their hiring managers, is to make the hires that help grow and sustain their companies. Whatever the products and/or services their businesses sell, they must sell them to stay in business. But if their recruiting and hiring practices are crappy, and they’re losing the best candidates and getting declined offers, then those TA teams will remain the very cost centers they continue to be perceived as.
This is why it is crucial to get your CFO (and your hiring managers!) to understand why improving the candidate (and employee) experience and its business impact is crucial. Here are the benefits to share with your CFO:
Brand Reputation:
- Employer Branding: A positive candidate experience enhances the company’s reputation as an employer of choice, attracting better candidates in the long run.
- Customer Perception: Candidates often share their experiences online. Positive feedback can enhance the overall brand image, while negative experiences can harm it.
Talent Acquisition and Retention:
- Attracting Top Talent: A positive candidate experience helps attract the people you need. High-quality candidates often have multiple options, and their experience during the hiring process can influence their decision.
- Retention Rates: Employees who have a positive recruitment experience are more likely to stay longer, reducing turnover costs.
Cost Efficiency:
- Reduced Recruitment Costs: A streamlined and positive candidate experience can lead to faster hiring processes, reducing the cost per hire.
- Lower Turnover Costs: Satisfied employees tend to stay longer, decreasing the expenses related to hiring and training new staff.
Employee Engagement and Productivity:
- Onboarding Experience: A positive candidate experience usually translates to a better onboarding process, leading to higher initial engagement and productivity.
- Inclusivity: Candidates with a positive experience are likelier to feel like they belong, enhancing their engagement and productivity.
Risk Management:
- Legal and Compliance Risks: A transparent and fair hiring process reduces the risk of discrimination claims and other legal issues.
- Reputation Risks: Negative candidate experiences shared publicly can damage the company’s reputation, affecting both recruitment and customer and investor perceptions.
Financial Performance:
- Higher Productivity: Engaged and satisfied employees are more productive, directly impacting the company’s bottom line.
- Innovation and Growth: Attracting and retaining the most qualified candidates drives innovation and growth, leading to better financial performance.
We’ve been touting the business impact of candidate experience for many years now. Our data is clear that when candidates feel like their experience is positive and fair, whether they get the job or not, they’re more willing to continue to engage that same business and brand, whatever that means to them – applying again, referring others, buying stuff, and/or just being a brand advocate.
When CFOs understand this impact, they can champion and proactively help ensure that their companies attract and retain the very best people and operate more efficiently. This contributes to their overall financial health and success, even when local-to-global economies stall. And that’s the most wonderful time of any year.