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At G-P, our industry leading Global Employment Platform™ helps companies unlock their full potential by building highly skilled global teams in days instead of months. But how does the everywhere workforce work together best? Here we discuss the opportunities – and challenges – in achieving the kind of global growth and success we can all share.
G-P. Global Made Possible.
In general, it is becoming increasingly difficult to retain staff across all industries as the impact of the “Great Resignation” continues to reverberate around the world. And scaleups are not immune to this turnover problem, particularly in the tech sector. But why is this? A recent ISL Retention report shed some light on the issue. Based on 200 interviews with workers that had recently quit their roles, the survey found:
- 80 percent left due to a hostile work culture.
- 79 percent said their line manager played a significant role in the decision.
- 77 percent said lack of career progression also impacted their choice to leave.
Compounding this issue is the difficulty in filling open staff positions while trying to scale. Gartner has forecast employee turnover to be 50-75 percent higher than in previous years, while it is taking 18 percent longer to fill roles since the pandemic.
Moreover, losing talent is expensive. Between recruiting, onboarding, and training, replacing an employee can cost up to two times the employee’s annual salary. Likewise, it can take one to two years for the new employee to reach a level of performance similar to their predecessor.
Naturally, all this can damage a company’s attempt to scale. Time and energy have to be spent on finding talented employees while simultaneously trying to initiate performance and growth. Therefore, recruiting and retaining talented workers needs to be a key priority for scaleups.
With that in mind, what hacks are essential for companies when devising a robust recruitment strategy for a scaleup?
1. Boost internal decision-making with digital tools.
Having the correct number of top employees on a team is essential for ensuring expansion goes smoothly, but recruiting and retaining the right people is one of the biggest challenges companies face when scaling up. So it is essential to get your recruitment strategy right from day one.
While you may be under pressure to complete your hiring process quickly, aim to make it as efficient as possible rather than rushing it. This is where digital technology can play a significant role. For instance, tools like Greenhouse allow companies to document their interview process and track a candidate’s journey from beginning to end.
Both hiring managers and talent acquisition partners can use Greenhouse to work through each relevant role and screen candidates before the interview phase. Once an interview is conducted, feedback is processed in Greenhouse, which will be visible to all appropriate internal parties connected to the hiring process for the open position. This increased transparency and communication enables more intelligent and strategic hiring decisions.
2. Identify more qualified candidates with AI.
Consider using AI to reduce time spent filtering through CVs and cover letters. According to a Greenhouse Hiring Manager Sentiment report, 84 percent of hiring managers and C-suite executives say they’re burnt out trying to fill vacancies. Given that a good manager is key to retaining talented staff, this can be crippling during a company’s attempt to scale up.
AI tools that easily identify qualified candidates will save money and time and avoid hours spent bogged down in applications for open positions. For instance, by using AI to build a talent pool containing highly skilled candidates that a company has already found through its recruitment policies, companies can access hundreds of applications before even posting a new job listing.
By utilizing AI to store these applicants in an automated database, specific candidates can quickly be recalled in the future whenever a relevant new position appears. AI can ensure that only the most suitable potential hires are stored and quickly select the best candidates for a new position based on specific filtering options. Not only can this match the best talent with the most suitable roles, but it can also benefit a company’s bottom line by saving on other areas like training.
3. Build a culture that will attract and retain top talent.
Hostile work culture is one of the key reasons people leave a scaleup. Therefore, building out your company culture through new hires is critical. Remember that every new hire is a building block that will shape your company’s future culture. Therefore, only hire people who are in tune with the values and morals of your company.
By hiring people with these attributes, your company will naturally improve employee engagement with each position. Building an employee-focused culture will ultimately enhance your company’s reputation, and attract and retain top talent.
4. Enhance team creativity and problem-solving with diverse hires.
While you want your employees to share specific values, you need to hire candidates from diverse backgrounds to truly scale a company.
Naturally, companies built upon varying backgrounds can benefit from a more diverse set of skills and experiences. The more diverse your employees, the broader their viewpoints, insights, and perspectives. Ultimately, this will deliver a more comprehensive range of thoughts, ideas, and solutions.
This combined knowledge can bring fresh ideas to the table and help solve problems faster, a crucial asset when a company is attempting to scale up. In fact, according to research done by McKinsey & Company, companies with diverse leadership teams outperformed companies without by 36 percent in the fourth quarter of 2019.
Additionally, a significant advantage is employee retention. According to research by Deloitte, companies with a diverse workforce have 22 percent less staff turnover.
5. Save costs and increase productivity by going remote.
Companies can tap into talent from around the globe by embracing remote work positions. Naturally, this means companies can have access to skillsets they may not find within a constrained radius of their office building. Aside from injecting world-class talent into a team’s ranks, there is also a cost-saving benefit for scaleups that opt to pursue remote workers rather than in-office ones.
By hiring remote workers, companies can benefit from cheaper local salary benchmarks and save on office space and utilities. Crucially, productivity levels are not affected by switching to a remote work model. Some 89 percent of workers state that their productivity has remained the same or increased after switching to a remote work model.
Offering remote work options can also give companies an edge over office-based competitors, thanks to the popularity of remote work amongst employees. For example, a survey by the International Workplace Group identified that 83 percent of workers stated flexible work options would be decisive in helping to decide between two similar jobs. Again, offering remote work only adds to your ability to hire some of the best workers globally, and gives your scaleup the edge.
How G-P can help
Managing compliance can become more complicated as your company grows. As scaleups expand across countries, regions, and continents, so does the list of regulations and laws that their hiring policies must include. This is where a global employment platform can save resources and allow scaleups to focus on building a profitable international company.
At G-P, we are your partner in global expansion, handling the stress of compliance so you can focus on building successful global teams. Our #1 SaaS-based Global Employment Platform™ is backed by the industry’s largest legal team, so you never have to spend time or resources on navigating evolving labor laws and avoiding fines and penalties as a result of noncompliance.
Contact us to discover more about making the best decisions for your company.