Whether hiring or looking for your next career, this blog is a key recruitment resource, equipping you with the information you need for recruitment or job seeking success.
Get the latest insights and market research from your recruitment experts in top industries including construction and property, resources and mining, technology, and banking and financial, and learn from our team's breadth of knowledge on different functions such as accounting, IT, estimating, human resources, procurement and supply chain.
Posted by James Hawley, Executive Vice President, Veredus | Hays on Thursday, Nov 12, 2015
As the construction boom continues across the US and employers build a pipeline of new projects moving into 2016, hiring managers are sure to be busy implementing strategic hiring plans to get the best team onboard. Dodge Data & Analytics recently released their construction outlook for 2016 with ABC Chief Economist Anirban Basu predicting a 7.4% growth in nonresidential construction spending next year, causing significant demand for qualified workers. The pressure will be particularly felt in in-demand areas; 80% of employers plan to hire Superintendents next year followed closely by 78% of employers planning to hire Project Managers. One of the the big questions hiring managers will be faced with is whether to hire from within the business or to hire externally, as both have their benefits.
Our new Global Managing Director of Hays Talent Solutions, Matthew Dickason was recently in the same situation as he began to build a new, energetic and bold global leadership team and in a recent interview, offered his words of wisdom.
Building the team
Establishing a global team for Talent Solutions is essential for the development of our business, and as such the pressure was really on. Getting just one individual wrong would have been a threat to the whole operation; one bad hire is all it takes to affect the positivity and productivity of the entire team. I needed to make sure that everyone would be pulling in the same direction and supported by the wider business from the word go.
Advantages of promoting internally
I’m a huge advocate of promoting internally; after all, internal promotions have got me to where I am today and it means I can walk into the new role feeling fully competent and confident about the company structure and processes. However there are many more benefits to this method of team building:
Better business understanding –
Those who have been with the business for some time should understand the processes and systems already. These employees are ingrained in your business’ culture and will have a comprehensive understanding of its values and ambitions. This helps to make the on-boarding process a lot smoother for the employer.
Rewarding loyalty –
Rewarding high-performing employees from within your business demonstrates that you care about their career progression and that there are many more rungs on the career ladder within the business for them to aspire to. They are, as a result, likely to remain loyal to the business for a while yet. In fact, a recent study has found that those promoted externally are 21% more likely to leave the business compared to the more loyal, internal hires.
Cost and time effective -
Internally promoted employees won’t require as much training or on-boarding as those recruited externally. This saves you both time and money. The study referenced in the previous point also found that external hires end up costing your business between 18 and 20% more for the same job.
As Matthew points out, there are clear advantages to hiring internally especially in a competitive market, however it is also not always possible. Stay tuned for part 2 of this interview in next week’s blog.
Are you facing hiring challenges in building your team? Contact an expert in your area today or discover more hiring tactics for the current market in the Hays Construction Recruitment & Retention Guide 2015/16.
Find out more about James Hawley, Executive Vice President, an expert in Construction & Property.