Don’t Break the Bank When Recruiting: Why Hiring Internally Saves Time and Money

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You post a job ad online with the specific qualifications you need for a new vacancy your restaurant or brand has. A week later, you’ve become inundated with hundreds of enthusiastic candidates keen on filling the role. At this time, you or a hiring manager begin to think about the tedious work that will come with the task. Candidates need to be assessed, screened, and even acknowledging their reach out takes time.

If numbers on your staff aren’t your main concern and it’s more about fulfilling a higher-level position, you might now ask yourself:

“Am I sure there aren’t any internal, talented team members who can rise to the challenge and be considered for a development opportunity like this?”

You then come to the realization that within your establishment, there are a rare number of qualified candidates eagerly waiting for an opportunity to climb up the ladder. And as we know, the restaurant industry is one of the few where people can enter a dishwasher and leave an executive — the ability to grow within foodservice is unparalleled.

This is a consistent occurrence that several companies come across daily. There are numerous reports that have shown internal hires tend to do better than outsiders, and that promoting from within can significantly reduce your risk.

Here are the top reasons why you should consider internal recruitment.

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Familiarity of the Candidate

Working with an employee who’s already familiar with the establishment procedures, protocols, and process allows you the time to focus on development instead of workplace practices.

An internal hire is already familiar with company processes and structures and will probably also already know most of their team.  As mentioned, a lot of the research discussed previously proves that establishments generally underestimate the time frame to hiring new employees and bring them up to speed. Not to mention there are unexpected or unknown shockers that may happen during the onboarding process. At the end of the day, you need to expect the unexpected when hiring externally in the first 90 days of a hire.

Reduce Hiring Time

Have you ever heard the saying “time is money?” On average, it takes an establishment 48-52 days to fill an open position from start to end. And each day without this employee, you are losing manpower, resources, and money. (Or in the restaurant industry, you may fill in the roles quickly to get working hands and feet, but that may lead to bad hiring and turnover that is just as quick.)

Ultimately, one of the main reasons you decided to start your restaurant business was to make money. Be that as it may, when confronted with the burden on you to replenish an urgent vacancy, an action is required. As a result, money is spent for quick solutions. For example: marketing, recruiting, and labor cost. On average, a company will spend 16 percent of annual salary for high turnover, low-paying frontline jobs, and 20 percent for management to executive roles.

In closing, you want to encourage and nurture the talent you already have. Work hard to discover what you have before you go looking for more — it will certainly reduce your hiring cost and go a long way to retaining talent within your business and not losing it to your competitors.