December, 15, 2017
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Recruiting Q&A’
Rule


How much should we spend recruiting for any given job? How do you best sequence the spending starting with the cheapest options possible?


A. Formula to determine how a current vacant position at a property will impact profits each week the job is vacant.

  1. Title of position:
  2. Salary/Wage and any bonus you expect to pay this position in the next 12 months:
  3. For all positions except sales positions: Multiply line 2 by 5. (Example: $60,000 salary and bonus x 5 = $300,000)
  4. Divide line 3 by 50 weeks in a year to determine how much this position will reduce profits each week the position is vacant. (Example from above: $300,000 divided by 50 weeks = $6,000 profit reduction every week the job is vacant.

NOTE: Sales positions multiply line 2 by 10 times and then divide by 50 weeks.


B. Formula to determine how a current vacant position at a Regional office or Corporate office will impact profits each week the job is vacant.

  1. Title of position:
  2. Salary/Wage and any bonus you expect to pay this position in the next 12 months:
  3. Multiply line 6 by 10 times. (Example: $75,000 salary and bonus x 10 = $750,000)
  4. Divide line 3 by 50 weeks in a year to determine how much this position will reduce profits each week the position is vacant. (Example from above: $750,000 divided by 50 weeks = $15,000 profit reduction every week the job is vacant.

C. The weekly lost profits from A. or B. above is your guide to the importance of this position to your property/company.

Knowing the impact on profits each week also makes it easier to identify how aggressive your recruiting effort needs to be.


Rules of Thumb:

  • No hourly job should be vacant more than 3 weeks. (From the day the incumbent gives notice or is terminated until the start date for the new employee.)
  • 90% of your management jobs should be filled within 5 weeks. (From the day the incumbent gives notice or is terminated until the start date for the new employee.)
  • 10% of your management jobs can take up to 13 weeks to fill.

The average management position in the hotel industry is vacant 13-17 weeks. (Depending on the department)


How should you sequence your recruiting efforts based on lost profits?

  1. Tell the department head how much profits in their department are being reduced per day or week this position is vacant.
  2. Tell the department head the average days or weeks jobs were vacant in their department in the last year. Compute the expected loss from this position based on the department average.
  3. Ask the department head what an acceptable dollar loss in profits is. (See Rules of Thumb previous page.)
  4. Subtract the acceptable loss from the average lost profits for this position at your property to determine how many dollars are available for recruiting, interviewing, and relocation expenses.

If the dollars available are less than $3,000:

  1. Review previous candidates who have applied for the same job in the past.
  2. Place an ad on a Job Board.
  3. Create and print out a simple Jobs Flyer and distribute it to local sources that are frequented by people you would consider for this job. 
    -Your 8 1/2 x 11 Jobs Flyer: Put picture of your property/company at the top. Then list position and salary. Next, what they can expect from the position. Last where to email their resume or where to pick up an application. 
    - Flyer Distribution: Post flyers on bulletin boards at local supermarkets, Target, WalMart, and other locations close to your property that people frequent.

If the dollars available are between $3,001 - $15,000:

Immediately initiate steps 1-7 below.

  1. Review resumes/applications from people who have previously applied to your company.
  2. Referrals from your current employees and/or other people and organizations you know.
  3. Internet employment ads on niche job boards that attract passive job seekers.
  4. Print flyers that can be distributed within your local community.
  5. Automated email employment marketing.
  6. Targeted local, regional, or national social networking. Ads targeted to the exact job you are looking for at companies/properties similar in size, quality, and market to yours.
  7. Have managers call competing properties to let them know what you are looking for.

If the dollars available are $15,001 and above:Immediately initiate steps 1-7, but add Search/Placement to the mix. (Unless you have minimum of 3 highly qualified interviews scheduled within 2 weeks. Interviews with "maybe's" or "going through the motions" don't count.