Recruiting
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Recruiting: definition, process and tips for companies
Competition for skilled workers in Germany is becoming increasingly fierce. Companies are therefore well advised to put their recruiting to the test and try out new things. This includes the use of various recruiting channels, such as direct contact with candidates (active sourcing), but also a presence on suitable social media platforms. Not forgetting AI as a new and powerful recruiting tool.
We show what is important when recruiting and what options companies have to find the right applicants.
TL;DR: The most important facts about recruiting in a nutshell
- Recruiting describes all recruitment processes.
- Recruiting cannot be standardized: The optimal measures differ depending on the position to be filled.
- Recruiting cannot be standardized: The optimal measures differ depending on the position to be filled.
- Various recruiting channels are available, such as job platforms or social media.
- The selection of suitable recruiting channels must match the position and the candidate profile.
Definition of the term recruiting
Recruiting is the process of recruiting personnel. It encompasses all applicant management activities that a company undertakes to find and hire suitable candidates for vacancies. Recruiting begins with the identification of personnel requirements and ends with the integration of the new employee into the company.
Various methods and channels are used in the recruiting process to reach potential candidates and get them interested in the company. The aim is to find the best candidate for the position in question who both meets the technical requirements and fits in with the corporate culture.
The recruitment process: the 6 phases
For recruitment to be as effective and successful as possible, the process should be divided into several phases that build on each other. In this way, the requirements of the company can be taken into account in the best possible way. At the same time, the needs of potential candidates are taken into account.
- Phase: Needs analysis and planning: This is where the future employee’s area of responsibility and the requirements for the position to be filled are determined. This involves both professional qualifications (hard skills) and personal and interpersonal skills (soft skills). The budget available for filling the position must also be clarified. Based on this, the appropriate recruiting channels, such as active sourcing, are selected. The salary range and benefits associated with the vacancy are also required for the advertisement.
- Phase: Search: The starting point of the search is the creation of a job advertisement. However, this is not to be taken literally, as videos, audio content or briefings for recruiters can also be created in addition to a traditional job advertisement – depending on which recruiting channels are to be used.
- Phase: Selection: This includes viewing the application documents and conducting interviews. Promising candidates are shortlisted. For some positions, an assessment center may also be held.
- Phase: Decision: Once the company has decided on a candidate or candidates and agreement has been reached on the terms of employment, the employment contract can be drawn up.
- Phase: Recruitment and onboarding: This phase is particularly important. A good candidate experience is important here. This includes providing the future employee with all the necessary information. It is important to procure all work equipment such as hardware and software in good time. A contact person must be available to ensure a smooth start for the new employee. This can prevent frustration at the beginning and the premature departure of the new employee.
What different recruiting channels are there?
In order to find the right employees for a company, there are a variety of recruiting channels that can be used depending on the target group and the specific requirements of the position.
The channels chosen should be based on the available budget, the position to be filled and the competition. Especially in highly competitive areas, companies need to use different recruiting channels to find the right candidates.
Companies can either recruit new employees internally, i.e. from within their own ranks, or externally, by recruiting new talent from outside the company. Internal job advertisements offer existing employees the opportunity to develop professionally and take on new tasks.
Employee referral programs
Employee referral programs use the network of your own workforce to reach potential candidates. Through targeted personnel development, companies can train employees internally and prepare them for new positions.
Job advertisements
The classic job advertisement, whether in print media or online, is still an important tool. Job portals such as Indeed, Monster or StepStone offer a wide reach and enable a target group-specific approach.
SEO and SEA
Another important recruiting channel for many companies is search engine marketing, consisting of search engine optimization (SEO) and search engine advertising (SEA). Google plays a particularly important role here. Google for Jobs is a service that prominently displays companies’ job vacancies on search results pages.
Trade fairs and university marketing
Career fairs and recruiting events offer the opportunity to make personal contact with potential candidates and present the company as an attractive employer.
University marketing aims to address young talent directly at universities and colleges.
Active Sourcing
Active sourcing refers to a company making direct contact with desired candidates. It is also possible to involve a headhunter. The approach is often made via social networks such as LinkedIn or Xing.
This requires a good network, research skills and a sure instinct when approaching candidates. The recruiter must be able to identify the right candidates, convince them of the benefits of the company and persuade them to apply.
Active sourcing is often more effective than passive recruiting, as it allows companies to target the best candidates and not rely on chance. However, active sourcing is also more time-consuming and expensive than conventional recruiting and requires more resources. For this reason, it is usually only used to fill key positions and to approach particularly sought-after specialists.
Guerrilla recruiting
Guerrilla recruiting relies on unconventional and creative measures to generate attention and draw candidates to the company. This can involve a particularly original job advertisement or benefits that are not available at other companies. In principle, guerrilla recruiting can be applied to all recruiting channels.
The applicant experience must be right
The applicant experience is a key element of successful recruitment. This is all the more true in times of a shortage of skilled workers and a competitive applicant market. Companies that value their applicants and offer them a positive application experience have a clear advantage when it comes to attracting talent.
Candidate experience describes the entirety of the experiences and impressions that an applicant has with a company during the entire application process. This begins with the first contact, for example a job advertisement or the company website, and continues through communication, the application process itself, the interviews and the final decision – right through to rejection or onboarding.
The focus here is on how the applicant perceives the interaction with the company: Do they feel valued and respected? Is the application process transparent, fair and efficient? Do they receive prompt feedback and are they informed about the current status of the application process?
A positive candidate experience makes a significant contribution to strengthening the employer brand. Satisfied applicants, even if they are not hired, often share their positive experiences in their network or on review platforms and recommend the company as an attractive employer. Conversely, negative experiences during the application process can damage a company’s reputation and deter potential candidates.
Typical mistakes in recruiting
Mistakes in corporate recruiting are not the exception, but rather the rule. The result is high costs in HR and unnecessary effort that distracts from more important tasks.
A common mistake is an inadequate definition of the requirements for the position and the candidates. If companies do not know exactly what they are looking for, it becomes difficult to find the right candidates. This is where close cooperation between the specialist department and the HR department is essential, from the beginning to the end of the recruiting process.
Another weak point among recruiting measures are poorly formulated job advertisements that do not address the right candidates or do not contain enough information about the position and the company. For example, companies are still reluctant to mention the salary. At the same time, such high demands are often placed on candidates that the response rate is correspondingly low.
Companies may also fail to reach potential candidates if they do not use the various recruiting channels in a target group-oriented manner. For example, a recent study by the German Economic Institute (IW) showed that companies and applicants often use different communication channels and platforms and therefore do not find each other.
An unprofessional or inefficient selection process deters applicants and can lead to the best talent choosing other companies. Long waiting times, unclear communication and unstructured interviews leave a negative impression and damage the employer brand.
Companies should also make sure that they not only look at candidates’ professional qualifications, but also at their soft skills and cultural proximity to the company. A new employee who is brilliant professionally but does not fit into the team will not be happy in the long term and will probably leave the company again soon.
Many companies also underestimate onboarding as a key recruiting tool. A well-structured onboarding program helps new employees to quickly find their way around the company, understand their tasks and integrate into the team. If such a program is missing, there is a risk that new employees will feel overwhelmed, quickly become demotivated and leave the company again. In such a case, all the effort put into attracting the new employee will have been for nothing.
Finally, companies should not underestimate the importance of the candidate experience. The entire application process should be designed to be positive and appreciative for candidates, even if they are not selected for the position in the end.
A negative impression in the recruitment process can lead to candidates no longer applying to the company in the future and also reporting negatively about the company to their friends and acquaintances.
Importance of recruiting for companies
Recruiting is crucial for companies to ensure their success and growth. It enables companies to find and hire the best talent that will contribute to the company’s success. Effective recruiting has a positive impact on various areas of the company:
Competitiveness: in the competitive job market, it is essential for companies to attract the best talent in order to remain competitive. Through successful recruiting, companies can ensure that they have the necessary skills and competencies to drive innovation and adapt to changing market conditions.
Company growth: The success and growth of a company depends largely on the quality of its employees. Recruiting makes it possible to hire qualified employees who bring in new ideas and perspectives and thus contribute to the company’s growth – for example, through innovative products or by occupying new market areas.
Employer branding: The recruiting process is often the first point of contact between a company and potential employees. A well thought-out and successful recruiting process strengthens the employer brand and makes the company more attractive to talent.
Employee retention: Effective onboarding, which is part of the recruiting process, contributes to the integration of new employees and increases the likelihood that they will stay with the company in the long term.
Cost reduction: Companies can reduce recruitment costs by making the recruitment process more efficient and shortening the time-to-hire.
Current challenges in recruiting
The recruitment sector is currently facing various challenges that present companies with new tasks.
Skills shortage
In many sectors, it is difficult for companies to find qualified specialists. This shortage of qualified workers is exacerbated by demographic change and increasing competition for the best talent. Companies therefore need to consider new strategies to attract potential candidates and fill vacancies quickly.
Digitalization
Digitalization has fundamentally changed recruiting. Companies must adapt to the new opportunities and challenges and digitize their recruiting processes in order to remain competitive. This includes the use of online job boards, social media, AI-supported recruiting tools and other digital channels. Digitalization also brings new challenges, such as data protection and the increasing complexity of recruiting processes.
The changing expectations of candidates
Candidates’ expectations of their employer and the recruiting process have increased. They expect flexible working time models, individual benefits, a positive candidate experience and fast and transparent communication. Companies must meet these expectations in order to attract the best talent.
The growing importance of soft skills
In addition to technical qualifications, soft skills such as communication skills, teamwork and problem-solving skills are playing an increasingly important role in recruitment. Companies need to take these skills into account in the application process and evaluate candidates specifically on the basis of them.
Diversity and inclusion
It is becoming increasingly important for companies to create diverse teams and promote inclusion within the company. This presents recruiters with the challenge of approaching candidates from different backgrounds and ensuring a non-discriminatory selection process. Diversity management plays an important role here.
Sustainability (green recruiting)
The topic of sustainability is also playing an increasingly important role in recruiting. Candidates, especially Generation Z, are paying more attention to whether companies operate sustainably and take on social responsibility. Companies must therefore communicate their sustainability efforts in the recruiting process in order to be attractive to this target group.
The increasing importance of the employer brand
In a competitive job market, it is more important than ever for companies to have a strong employer brand. A positive employer brand attracts more talent and makes it easier to fill vacancies. Companies must therefore work specifically on their employer brand and communicate this in the recruitment process.
The influence of AI on recruiting
The use of artificial intelligence (AI) is changing the way companies search for and attract suitable candidates. AI-based tools can automate and optimize various recruiting tasks, leading to more efficient and effective recruitment.
Candidate sourcing is an important area of application for AI in recruiting. Intelligent platforms can use AI to analyze large amounts of data from various sources such as job portals, social networks and talent pools to identify suitable candidates. These platforms can match candidate profiles with job requirements based on criteria such as qualifications, experience and skills, helping recruiters to pre-select candidates. By using AI, companies can speed up the search process and reach a larger number of potential candidates.
AI can also be used to automate administrative tasks in the recruitment process, such as screening applications or scheduling interviews. AI-based tools can also analyze application documents to extract the most relevant information and filter candidates based on defined criteria. This saves time, which HR employees can use for other tasks such as optimizing job advertisements.
AI-based chatbots can provide applicants with initial information about the company and the position, answer questions and support the application process. They can improve the candidate experience by being available to applicants around the clock and responding quickly to their inquiries.
When using AI in recruiting, it should be noted that human interaction and assessment in the recruiting process cannot be completely replaced. Recruiters’ sensitivity and intuition are still essential in order to assess the cultural fit and soft skills of candidates and make the right personnel decision.
Key figures in recruiting
In order to make the success of recruiting measurable, you need the right key figures. One of the most important key figures is the “time-to-hire”, i.e. the time between a vacancy arising and the position being filled. This key figure provides information on the efficiency of the recruiting process and helps to identify bottlenecks and delays. It is also important to include the quality of the appointment in the analysis, as a quick appointment that leads to a high fluctuation rate during the probationary period is ultimately more expensive than a longer process with a sustainable appointment.
Modern software solutions can automatically record and evaluate many of these key figures, making it easier to analyze and optimize the recruiting process.
The most important recruiting key figures are summarized below:
- Time-to-hire: This key figure measures the duration of the entire recruiting process, from the time the job is advertised until the contract is signed by the new employee.
- Time to fill: Similar to time-to-hire, time-to-fill measures the length of time until a position is filled, but begins from the time the position becomes vacant.
- Costs per hire: This metric captures all costs associated with filling a position, including job advertisements, travel expenses for applicants and fees for recruiters.
- Click-through rate: This metric measures how many people click on a job ad and can provide insight into how attractive and wide-reaching a job ad is.
- Number of applications received: The number of applications received is an indicator of the reach and attractiveness of the job advertisement and the company.
- Quality of applicants: This key figure refers to the proportion of applicants who meet the requirements of the position. A high quality of applicants can indicate a targeted and successful approach to the right target group. It must first be clarified how the quality of applicants can be measured.
- Candidate satisfaction (candidate experience): The candidate experience throughout the application process plays an important role in the attractiveness of the company as an employer. Companies can use surveys or feedback mechanisms to measure and improve the candidate experience.
- Employee referral rate: This key figure indicates how many positions are filled through employee referrals. A high employee referral rate can indicate a high level of employee satisfaction and a positive employer brand.
Requirements for recruiters
The demands placed on recruiters have changed significantly in recent years. The increasing shortage of skilled workers and digitalization require new skills and approaches in order to attract the best talent for companies.
Recruiters today need to develop a deep understanding of their target group. It is no longer enough to sort out applications based on formal criteria. Rather, they must recognize and consider the specific skills and needs of candidates in order to identify and attract the best talent.
Analyzing data is becoming increasingly important for recruiters. They need to be able to analyze large amounts of data from different sources to identify trends in the candidate market, measure the effectiveness of recruiting channels and optimize the candidate experience. Writing job ads has evolved into a data-driven task, where keywords and wording must be chosen to be found by search engines and appeal to the right target audience.
Social media expertise is essential for recruiters. They need to master the various platforms and their specific functions in order to approach candidates, publish job advertisements and get in touch with potential applicants.
Active sourcing via social networks requires strong communication and networking skills. Recruiters must be able to build relationships with potential candidates, convince them of the benefits of the company and persuade them to apply.
In addition to these technical skills, soft skills are very important for recruiters. They need to be empathetic and communicative in order to build trust with candidates and create a positive experience for applicants. Especially in times of employer branding and candidate experience, the interpersonal skills of the recruiter play a decisive role in strengthening the employer brand and retaining talent in the company in the long term.
Outlook for the future of recruiting
The future of recruiting will be characterized by various trends that bring both challenges and opportunities. As the shortage of skilled workers is likely to intensify and the need for highly specialized qualifications will increase, competition between companies on the labour market will increase accordingly.
The use of AI and automation will continue to increase and make the recruiting process more efficient. Nevertheless, the human component in recruiting will continue to be of great importance.
The importance of the candidate experience will continue to grow. Companies must ensure that the application process is positive and enjoyable for candidates. Quick feedback, transparent communication and an optimized application platform are important factors in attracting the best talent and remaining competitive.
Flexible working models and the ability to meet the needs of Gen Z are becoming increasingly important for companies to be successful in the competition for the best talent. The quality of new hires will become more important in the future as companies want to make sure that every new hire is the right one. AI could play a role in this by linking data points to better assess the chances of success of a new hire.
