The Hiring Experience

Revolutionizing Recruitment for Business Growth

August 03, 2023 Max & Mike Episode 3
The Hiring Experience
Revolutionizing Recruitment for Business Growth
Show Notes Transcript

What if you could turn the challenge of recruitment into an avenue for revenue growth? 

Picture this: rather than constantly scrambling to fill vacancies, you've built a proactive, consistent recruitment system that keeps your business ready for inevitable turnover and changes. 

In this episode, Max and Mike, expose the hidden cost of vacant positions and why your recruitment process just might be the key to unlocking untapped potential in your business. We focus on the long-term care industry, but the principles and strategies discussed can be applied universally.

Ever wondered how staff burnout and morale can impact your bottom line? Or why you should reframe your perception of recruitment as a cost center? Drawing on startling statistics from a study by the American Healthcare Association National Center for Assisted Living, we delve into these questions and more. We challenge you to rethink your approach to recruitment, proposing that efficient and timely hiring can enhance the quality of your services and improve your revenue. 

Join us as we redefine recruitment and reveal how proactive hiring practices can position your business for success. Tune in, learn, and take your business to the next level!

We love to hear your hiring experience, whether you're a hiring manager with 100s of hires, about to make your first hire, or an applicant that has a story to tell. Share your stories with Max & Mike at hiringexperiencepod@gmail.com

This podcast and the matters discussed herein are for informational purposes only and should not to be construed as advice for a particular company or person. This podcast is not intended to be a substitute for professional or legal advice.

Speaker 1:

This is the Hiring Experience the podcast that helps you break down the art and science of hiring. Hosted by Max and Mike friends, founders and creators of rapid hiring, on a mission to bring an end to the resume, bringing you tactical advice to help you attract, select and retain the best talent. This podcast and the matters discussed herein are for informational purposes only and should not be construed as advice for a particular company or person. This podcast is not intended to be a substitute for professional or legal advice.

Max:

All righty so talking about the cost of vacancies in the job market and in your company, the hard costs of recruitment, the soft costs of burnout and morale of your current employees, as well as the loss in potential gains of revenue, as well as opportunities that are just no longer available to you when you are having a hard time trying to fill some of these important positions.

Mike:

Yeah, and I think today we'll dive into kind of a very specific field.

Mike:

We'll dive into the long-term care industry and more and more long-term care than healthcare as a whole.

Mike:

But came across some pretty surprising studies and surveys when I was going through some of this stuff the other day, and one that really caught my attention was one that came out by the American Healthcare Association National Center for Assisted Living, and the figures that they presented just really helped to underline the severity of the situation and underscore kind of what these implications are for your business, especially if you're a long-term care provider.

Mike:

Yeah, I mean, you can apply this to any industry, but pretty much what they were saying was 98% of facilities are grappling with staffing in general, they're having difficulty in some capacity, 60% of these facilities are limiting new residents due to shortages and 99% of providers are asking their existing employees and existing staff to work overtime or pick up extra shifts. So all of these different things carry various implications. The last one carries the implication of you know, there's hard cost implications and soft cost rates. So with 99% of providers asking their staff to work overtime and extra shifts, that very quickly can be seen to lead to staff burnout and overworking and your morale going down altogether, which would directly conflict and make it harder to provide consistent patient care and resident care. Those are the things that aren't seen on the accounting books but they're seen within your facility and you know your residents will see them and everything else. So outwardly that'd be conceptual in any field where your client sees that right.

Max:

Right and like. When you're talking about the things of like restricting how 60% are restricting their resident care of new residents you're directly limiting potential revenue profit that can be reinvested into other aspects of your business in terms of providing better care to your residents, and that's something that really does apply to almost every industry. The revenue not earned is something that you can't see on the books, and so in something like long-term care that has a real estate component to it, where you are physically able to see the empty rooms that you can't see Could be filled if you were able to achieve and your recruitment goals in a timely fashion, then you can start to visualize it, which is something that a lot of industries are not able to do. They just feel that we could do more revenue if we had better people or more people, etc. But without that visual aid to it, there isn't the complete conception of the idea.

Mike:

Yeah, that ties into another thing that came up where, talking about that revenue cycle and talking about expenses, there was something that stood out where a lot of these places cited I think it was I don't have it in front of me because in the 90% range of these places cited their financial situation as being a reason why they can't offer a competitive wage what you were just talking about with inhibiting your top line revenue and the other point of spending more on overtime costs and things like that. So on one token, you're saying that you can't afford a higher wage or you can't afford these other things, but on the other, you're overspending because you're not filled through in your vacancies. So they're contradictory statements and it's the age old problem of do we hyper focus on minimizing our expense and operating to the maximum possible efficiency possible and if one thing goes wrong, then the whole house of cards falls over, or can we look more big picture and you increase your top line revenue and you're a little bit more free for these inefficiencies?

Max:

And this is one of those issues that is only fixable with speed, because we need to be able to fill those roles in some cases yesterday, and so the eventuality of being we can't do that.

Max:

We're going to focus on how to fill these roles as fast as possible and that recognition of these immense costs of the vacant roles should be something that allows people to make better decisions and allocate more resources to the recruiting part of the picture itself. And having more resources for your recruitment can directly increase your revenue, because if we're a start to like continuing along with the long term care focus here, it's speeding up that hiring. We're now able to start taking on new residents, we are able to provide better care, so, on top of that, even potentially increasing your price point because of your ability to provide that excellent care to your residents. And all of that starts at the recruitment level, and it's something that people don't always consider, because recruitment is continually thought of as a cost center and not something that can be directly tied to an increase in revenue, because it's not in the way that people think. It is in efficiency and speed that allow you to maximize the expenditure of those dollars and gain maximum leverage into the other aspects of your business.

Mike:

Recruitment is generally done on a reactive basis, right? Oh, we have a vacancy, okay, let's try to fill it now. It's a very reactive process where you can employ some of these tactics and not standard recruitment, but consistent recruitment practices to be more proactive in your approach. You can be ready all the time, right, you always want to be ready. You know that you're going to have vacancies, you know that there's turnover. These are all things that you try to limit, but you can't live in a fantasy camp and think that none of these things are going to happen within your business, right? So it's something that you need to be well equipped for and it's something that you need to understand that you're competing for. So this happens in every other industry that's vertical to yours. This happens in every other competitors business, and these are all things that, if you can set yourself apart from the rest, then you'll be more successful, which is the general formula for success, but it does stem at the recruitment level and not being reactive to your issues and your problems that you will have.

Max:

That ability to pre-spend, almost in terms of if we are continually in a reactive place and put on the back foot with recruitment. If we start pre-spending a little bit just to always be at the ready for that eventuality, we can then spend more efficiently and have those vacancies filled at such a level, at a speed that is unprecedented and unheard of in your industry. But it doesn't mean that it's not possible, and by exploring new ways to do that we'll find a direct increase to the quality of your service and the Top line revenue you can actually achieve and I mean it comes down to if you're willing to just not allocate any resources and have a big problem, or if you're willing to oil changes every 5000 kilometers and not replace your engine.

Speaker 1:

Thank you for listening to the hiring experience. We hope you enjoyed this episode and learned something new about the art and science of hiring. Don't forget to subscribe and leave a review on your favorite podcast player. This helps others discover the show. Share with a friend, colleague or anyone going through the hiring experience right now. Share your hiring experience with us at hiringexperiencepod at gmailcom.