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Cutting the cost of growth: Smart hiring
(Kuwait Times Via Thomson Dialog NewsEdge) The growth of this region is undeniable. We hear the buzz words every day: boom, growth, expansion, etc, in most Kuwaiti economic sectors. With this expansion, organisations are challenged to boost resources to sustain growth. One of the vital resources required, is that of the right human capital. In today's growing market, organisations and recruiters are increasingly finding themselves playing a game of 'catch - up' with the economy. Long gone are the days of multiple qualified applicants for a single position. There is now a growing abundance of job openings, but a select few qualified candidates to choose from.
To gear up in face of this change, companies in Kuwait have recently begun to realise the importance of establishing (or expanding) a dedicated in-house Human Resource Department. At a point, not too long ago, it was the norm to have all HR functions simply handed to the VP of Finance or bury it under "Administration" where it never got the priority it deserved. And while this may still be the case within some organisations, there is a change in attitude towards the role of HR. In some cases, this is even reflected in company policies and internal strategies. Organisations nowadays are finally beginning to realise that having a dedicated HR team or department is crucial to remaining competitive in the marketplace. Recognising the fact that people are a company's greatest asset, business leaders need to rely more and more upon an effective management policy that applies specifically to the area of human resources. What is also becoming quite apparent is the fact that, effective human resource management -- from recruiting to training to administrating -- is directly linked to a company's profitable bottom line. It was mentioned to me, quite recently actually, that approximately 30 per cent to 40 per cent of an organisation's HR expenses come from recruiting and training of new employees and/or dismissing old employees. It therefore amazes me to see how only very few companies have actually invested in sophisticated recruitment solutions which improve efficiency in the recruitment process and cut overall costs, reduce loss of vital candidate data and allow for more effective internal recruitment. Accomplishing this requires the deployment of a set of integrated and optimal human resources business processes based on best practices. This provides decision-makers with the right tools to implement effective HR strategies. For example, an integrated recruitment workflow, starting with the definition and management of the position/job catalogue, where each position/job in the organisation is uniquely defined including classification and requirements for each position in term of education, skills, and experience. Having a reliable system in place ensures full compliance with the recruitment policies of the organisation and that no application or recruitment document is misplaced. Putting certain 'routine' tasks into an automated system allows HR employees to conduct their work focusing more activities that add value and people management, rather than document management. HR professionals should be putting a great deal of focus on hiring for the long-term. Most companies know what their employees cost, but not how much they are worth, or how much it costs to replace them. Ultimately, the solution to recruitment and retention problems boils down to awareness. Once you understand just how positively effective recruiting and retaining strategies can affect your company's bottom line in terms of greater productivity and ultimately profitability, the cost of implementing those strategies will seem modest in comparison.
Copyright 2006 Kuwait Times. Source: Financial Times Information Limited - Middle East Intelligence Wire.
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