Talent Management - September 2008 - (Page 52)

dashboard by Jennifer Floren The Price of Finding the Right Gen Y Candidate The competition for quality Generation Y talent is steep Talent managers must . consider how to best recruit and retain this critical workforce demographic to replace rapidly retiring baby boomers. Finding the right talent to replace valued baby boomers as this key demographic begins to retire en masse is one of talent managers’ most serious recruiting challenges. Further, the competition to obtain, and ultimately retain, the best talent is ﬁerce. Organizations that understand the immediacy of the baby-boom exit and thoughtfully prepare for it will be in the best position to achieve unmatched success. Most talent managers hope when they hire an entrylevel Gen Y employee that this person will stay with the organization for a long time. But it’s doubtful whether they have thoroughly analyzed why this is so important. As a recruiter, the goal is to achieve a solid return on investment (ROI) for the company. This starts with the ability to hire the right employee as quickly as possible and retain them for as long as possible. Talent managers realize if they lose an employee within the ﬁrst year, the organization will have lost a considerable investment in time and money, which is why it’s critical to quantify and avoid these costs. Talent leaders should be able to answer the following questions with hard numbers: • What is considered good ROI? • What is the ﬁnancial impact of turnover on the organization? • What steps can be taken to ﬁnd and retain the right candidates? Analyzing ROI and the costs associated with turnover quickly will show talent executives and other senior leaders how critically important it is to ﬁnd the right candidate from the start. The beneﬁts obtained from hiring a person who stays with the organization — and is quickly able to ramp up, perform and generate proﬁt for the company — far outweigh the costs associated with a targeted recruiting program designed to ﬁnd the right hire. The end result not only is increased ROI, but also organizational stability, a beneﬁt to which it’s difﬁcult to attach a price tag. Analyzing ROI Even the most experienced, stalwart talent management professionals occasionally shudder when considering how best to gather metrics. Instead of focusing on ratios and percentages, a more simpliﬁed measurement approach is to compare what it costs to hire a new employee against the beneﬁts the organization derives from the hire. For U.S. companies, the average revenue generated per employee is $150,000 per year, according to a 2007 benchmarking survey by the National Association of 52 September 2008 talent management magazine www.talentmgt.com http://www.talentmgt.com

Table of Contents Feed for the Digital Edition of Talent Management - September 2008

Talent Management - September 2008 Editor's Letter Contents Human Performance: Stop Wasting Money on Training Leading Edge: No Whining, No Excuses Learning Connections: Do You Get It? The Untapped Resource Reinventing HR Doing Compensation Right: The Winning Spread Managing Performance in the Knowledge and Innovation Worker Age Stop-The-Clock Time Management Preparing for the Future in the Public Sector SAS: Connecting People, Process and Products Talent Transformation at Textron The Price of Finding the Right Gen Y Candidate Advertiser's Index Editorial Resources Full Potential: Do What You Love, Love What You Do

Talent Management - September 2008

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