The Importance of Closing on New Hires Before the End of the Year
As the year draws to a close, businesses are navigating an increasingly competitive landscape, striving to meet their business plan, KPIs, and milestones. Especially, with the excitement of Christmas upon us, it’s easy to forget about closing on new hires and getting things organised before the start of the New Year. There is so much that needs to be done before the end of the year, such as submitting budget requirements or completing performance reviews.
Amidst these challenges, one critical aspect that can significantly impact a company's trajectory is finalising new hires before the year closes. The importance of this act cannot be overstated, and it is why it holds significance for organisations aiming to thrive in the coming year.
Talent Acquisition in a Competitive Market
Though the job market has softened during 2023 the “war for talent” continues in many critical areas, especially the engineering and high technology arena. Talent acquisition continues to be an arduous task for many companies. Top talent is still in high demand and the best candidates do not have to look for a new job for long, as someone is bound to snap them up quickly.
Employees continue to no longer be content to work the same way or in the same environment after discovering how different the workplace can often be.
As the dust begins to settle on the year, one thing becomes very clear: the companies that win the war for talent will be those that successfully navigate these challenges and adapt their people value-proposition accordingly.
Skilled professionals continue to have a broader variety of options, often fielding multiple offers. Figures from the ONS estimated the number of vacancies in October to be 957,000, still well above pre-COVID levels. Consequently, delays in the hiring process can result in losing top-tier candidates. Though businesses should not rush a hiring decision, waiting too long could mean your preferred candidate goes elsewhere.
Below are some key approaches that can be taken to put you above the competition, retain your great existing talent, and attract the best new talent.
The closer it gets to the end of the year, the harder it becomes to have people sign off on hiring decisions. As Christmas looms, decision-makers get ready for the holidays. If a new hire needs approval or the onboarding process needs to start, it is better to do so before everyone departs for Christmas.
This jumpstart is invaluable as it accelerates the time-to-productivity for a new team member. Getting them engaged as early as possible in the company culture, processes, and potential team dynamics should ensure a seamless transition into their new role.
Meeting Annual Objectives and Initiatives
Every company sets annual goals and initiatives to drive growth. It can take a while for things to get going in January, which means that it could be midway through the month before interviews are organised, and a few further weeks before a final offer or decision is made. It is always good to remember that the recruitment process was started for a reason, and delaying closing on a new hire might affect these objectives.
All businesses align hiring goals and organisational objectives, but sometimes we can forget how hiring new staff will directly contribute to achieving these goals and meeting the strategic needs of the organisation.
Budget Allocation and Fiscal Responsibility
Budgets and fiscal calendars often reset with the start of a new year. Finalising new hires before this reset allows companies to allocate remaining funds for hiring purposes. Delaying the hiring process might result in budgetary constraints or the loss of allocated funds, leading to a potential delay in filling crucial positions.
Mitigating Staffing Shortages and Reducing Overburdening of Existing Teams
Staff shortages can place significant strain on existing employees, leading to burnout and decreased productivity. Hiring delays can exacerbate these shortages, burdening current employees with additional responsibilities. It can also be beneficial for the reasons below:
- Fulfilling staffing needs - Ensures that the organisation enters the new year with a complete and optimised workforce, ready to take on upcoming challenges and projects.
- Reducing workload for existing staff - Completing the hiring process before year-end can alleviate the workload on existing staff who may have been covering additional responsibilities during the vacancy.
- Boosting morale - New hires joining at the beginning of the year can create a positive atmosphere, fostering a sense of growth and progress among the existing team.
- Facilitating smooth onboarding - Starting new employees at the beginning of the year allows for a structured and comprehensive onboarding process, helping them integrate into the team and understand organisational goals from the outset.
- Demonstrating stability - Completing the hiring process before year-end sends a message of stability and commitment to both existing and potential employees,
Building a Competitive Edge
Though it’s tempting to leave hiring a new employee until the new year, the benefits of doing so beforehand are clear. The sooner the business closes on a new hire, the sooner they can integrate them into the team and utilise their skills, experience, and knowledge, giving them a competitive advantage during this period.
A proactive approach to hiring also sets a company apart in the market. It signals to potential candidates that the organisation is efficient, forward-thinking, and invested in its growth. This positive image can attract talent and strengthen the company's position in the industry.
In conclusion, the importance of finalising new hires before the end of the year cannot be overstated. It’s not merely about filling vacant positions; it's about securing the future success of the business. It's about acquiring the right talent, optimising resources, and staying ahead in a competitive employment environment. Businesses that recognise this urgency and act decisively will position themselves for growth and prosperity in the upcoming year.
At Redline we change lives every day, building world-class teams for technology companies. We offered four decades of knowledge-led solutions to suit client and candidate needs. We achieved a 4.8 out of 5.0 rating (96% positive) on Google Reviews and hundreds of Case Studies and testimonials confirm it’s not only WHAT we do, but HOW we do it that clients and candidates appreciate.