One of the crucial functions performed by the Human Resource department in an organisation is finding the right people for the job. Its mandate does not end there! HR handles employees’ skill development and training, employee engagement, compensation and wages, succession planning, and more. They have the tough task of maintaining the right balance between employers and employees.
All HR functions revolve around people. The crux of HR functions is strategic staffing so that the business has the right workforce to accomplish its goals.
Strategic staffing refers to aligning your workforce with your business goals. The purpose of strategic staffing is to ensure that your business has the right type of people in the right numbers. Strategic staffing optimises human resources to maximise the productivity and profitability of your enterprise.
Strategic staffing consists of several HR functions designed to achieve the objective of optimal resource management for the business to meet its current and future needs.
It starts with HR teams working with senior leaders to understand the organisation’s goals and aligning the staffing strategy to meet those goals.
Recruitment of the right talent according to these goals is the next step. Alongside recruitment, employee retention is also a vital part of strategic staffing.
For effective recruitment and retention, HR professionals work with individuals (employees and potential employees) to understand their career goals and aspirations. Based on the inputs they receive, they identify mutually beneficial opportunities for both current and potential employees.
They organise upskilling programmes to help employees stay updated with the latest needs of the evolving markets.
Another key element of strategic staffing is to forecast future demands. Based on this the roles and competencies required for future success are determined.
One of the biggest challenges for HR professionals in strategic staffing is fulfilling the organisation’s staffing needs within the allocated budgets. Employee cost is a significant factor to be considered in strategic staffing. Employee cost refers to the sum total of costs incurred for maintaining an employee — base salary, compulsory and territorial fees, training costs, employee benefits, etc.
Cost per hire has been increasing at a steep rate. According to the Society for Human Resource Management (SHRM), the average cost per hire which stood at $4129 in 2019 climbed to $4700 in 2023.
Another factor that makes strategic staffing challenging is the rapidly changing and unpredictable marketplace. To cope with this volatility, an organisation has to be agile and resilient. This requires flexibility in the workforce. In other words, the organisation needs skilled employees and expert leaders in specific areas depending upon the changing needs of the market. The role of the executive who leads these projects becomes extremely important. However, the cost of hiring such professionals with niche skills can be very high. Data reveals that the average cost per hire for an executive position is a whopping $28,329. Such high costs are not justified if the leader’s services are required only for a limited period.
Significance of fractional leadership in strategic staffing
Apart from these concerns, it is difficult to find the best leaders. This is where the concept of fractional leadership plays a vital role!
Fractional leadership refers to hiring leaders for the short term. Fractional leaders work project-by-project or on a time-based model and provide strategic direction to the organisation for a designated duration.
Availing the services of seasoned experts as and when required gives businesses the flexibility to hire the exact leadership capabilities they require for specific projects without having to get into long-term commitments or costs with the individual. The business benefits from the expert’s cross-industry experience while cutting down on its hiring costs.
For example, a full-time executive’s salary falls in the range of $200,000 annually; hiring a fractional leader can reduce this cost by 50-70 per cent.
How fractional leadership can provide your business a competitive advantage
Besides the cost factor, fractional leaders bring a lot more to the table which makes their hiring an indispensable part of strategic staffing. Fractional leadership can provide a competitive advantage to a business in several ways:
Partnering with a staffing agency to hire fractional leaders
A fractional leader can deliver these benefits only if you select the right individual for your project. However, finding the best fractional leaders for your organisation can be like looking for a needle in a haystack. The task gets simpler if you team up with a professional staffing or Remote Process Outsourcing (RPO) agency. These agencies have a wide network and can fulfil your fractional leadership requirements quickly. They are well experienced in recruitment and can identify and select the best leaders for your organisation.Conclusion
Careernet is a leading RPO agency that has the expertise to fulfil the varied hiring needs of an organisation. We work with our clients to understand their strategic staffing goals and build a recruitment strategy that aligns with those goals. We find the best fractional leaders according to your specific project needs. Our end-to-end recruitment process frees you to focus on growth while our cost-effective hiring solutions boost the ROI of your business.
Please note that Careernet does not practice charging a placement fee from any job seeker across profiles. Word of caution to the fraudulent news and information, if anyone demands any kind of charges from you, in the name of Careernet Consulting.