The word “stakeholders” has come to be an umbrella term, defined as anyone who holds some sort of stake in a certain company or project. This can include everyone from million-dollar investors, to entry level employees, and even community members that a project or corporation serves. Basically, anyone who has some sort of vested interest in the success of a business can be qualified as a stakeholder.
And stakeholders often like to have their voices heard regarding any and all major company decisions. This means they might want to be involved in every aspect of the hiring process.
But should hiring managers really be expected to listen, and give equal weight, to the thoughts and opinions of every single stakeholder in their company before choosing which candidate to hire?
Yes… and no.
It is very important for hiring managers to communicate with the stakeholders in their company throughout the hiring process, but it would be unrealistic and unfair to expect a hiring manager to receive everyone’s sign-off, every step of the way.
That’s why transparency and organization are key when it comes to unifying your hiring process. Before we get into tips on how to do that, however, it’s important to break down the different groups of stakeholders, and figure out who should be directly vs. indirectly involved in these sorts of decisions.
Internal Stakeholders Vs. External Stakeholders
There are two different categories of stakeholders:
- Internal Stakeholders include any person whose stake in the company stems from a direct relationship with the business. These stakeholders are usually employed by the company, they own a part of the company, or they have invested money in the company.
- External Stakeholders are the people who do not have a direct relationship with the company, but who are still affected by the failures or successes of the business. This category includes suppliers, customers, and the general public in some cases.
- You might be surprised to see the ‘general public’ listed as a type of stakeholder, but they are often greatly affected by the business practices of corporations in their area. For example, if a company refuses to take environmental protection measures, their pollution and waste can have a negative effect on the health and lives of the community in which they reside.
- The voices of the general public do matter when it comes to company decisions, including hiring choices. More on that later.
When to Talk to Whom…
Because your company may have anywhere between a couple hundred to a couple thousand stakeholders, the task of discussing the hiring process with all of them may seem daunting. But there’s a time and a place to talk to the various types of stakeholders, and we’ve outlined a basic framework of who should be consulted and when.
But before you even cultivate your job posting, or set up any meetings with investors/higher-ups, it might be a good idea to implement an applicant tracking system. Having access to a quality tracking system will help you stay organized, and can provide transparency for stakeholders, so that they can be as involved as they want to be.
Order of Operations
- The first group of stakeholders you want to consult before starting the hiring process are the investors and the higher-ups. Because they wield the most power in the company, it’s important to make sure you understand their expectations for the new hire. These people will also typically be the ones who approve things like salary and benefits packages, and the last thing you want to do as a hiring manager is make promises you can’t keep.
- According to 2022 research from Zety, the top two most important pieces of information job seekers want to know early on in the hiring process are:
- Details on compensation packages
- Details on benefits packages
- A good way to ensure that you’re providing candidates with accurate information regarding their salary and benefits, is to let these high-level stakeholders review the job posting before going live with it. This way, you can be confident you’ve outlined all the requirements they want the new hire to have, and that the compensation range is correct.
- Next up, hiring managers should speak to the people who will be working directly with the new hire—i.e. their soon-to-be coworkers, bosses, and subordinates. These individuals will have unique insights when it comes to finding the right candidate. They, better than anyone, understand the day-to-day operations of the job you are hoping to fill.
- Speaking with them will likely provide you with most of the information you’ll need to accurately describe the position in your job posting—which is a must.
- In a survey from January of this year, 72% of jobseekers reported feeling a sense of surprise or regret after starting a new job because the “role or company was very different from what they were led to believe.”
A tip for streamlining!
Because most of the individuals included in these first two categories of stakeholders are internal, they could easily be given access to an applicant tracking system once a company account is made. This will cut down on the amount of time hiring managers have to spend in meetings and answering emails, since most, if not all, of the information stakeholders might want can be found in the ATS.
- The final stakeholder group hiring managers might want to consult are the external stakeholders, or those who are not directly/financially tied to the company. Shifts in the workforce provide an excellent opportunity for hiring managers and business owners to check in with the community they serve.
- Find out what is lacking in regards to the relationship between corporation and community. Then, perhaps begin looking for a new hire who can make positive changes when it comes to customer and community relations.
- If the relationship between your business and the surrounding community is frayed, it might be a good idea to bring in a new hire from the community. That way you have a direct link between the inner workings of your business, and those you serve. You will be giving a voice to one of the most important stakeholder groups available to you—the general public.
What Happens When Everyone Isn’t On the Same Page
If you’re still not convinced that unifying the hiring process, or signing up for an applicant tracking system (IsoConnect is free by the way, for those who are still on the fence), let’s take a closer look at what can happen when stakeholders are not included in the hiring process.
The Dangers of a Disjointed Hiring Process
Ever heard of Shift Shock?
Experts over at The Muse have defined ‘Shift Shock’ as a feeling of shock or regret after starting a new job and realizing it’s not the type of position you thought you were singing on for. According to their research, a feeling of Shift Shock can have a devastating effect on employee retention.
- 48% of survey respondents said they would try to get their old job back if they felt shift shock in their new position.
- 80% of respondents said they think it is “acceptable to leave a new job before six months if it doesn’t live up to your expectations.”
Considering it is estimated to cost a business an average of 33% of a worker’s annual salary just to replace one employee, hiring managers should be doing everything they can to avoid ‘Shift Shock’ in their new hires.
What better way to do that than to make sure everyone in the company is on the same page before bringing in someone new? Make sure there are no surprises by communicating with individuals at every level of the company before even uploading a job posting, that way the workplace portrait you are painting for candidates is as accurate as possible.
How to Best Unify the Hiring Process
As we’ve already stated, implementing an applicant tracking system is probably the most efficient way to start unifying the hiring process with an external recruiter. IsoTalent’s hiring platform—IsoConnect—for example, not only provides full visibility for stakeholders and contributors, but the IsoConnect system also gives hiring managers access to an easy-to-use, well-organized ‘hub’.
This centralized hub can help you keep track of all open positions, applications, and interview schedules. IsoConnect also provides you with access to top-tier, international talent pools, and can immediately connect hiring managers to recruiters or EOR experts if assistance/advice is needed.
Investing in an applicant tracking system and unifying your hiring process now will likely save you time and money in the form of turnover and recruitment costs. Really, you have nothing to lose and everything to gain. Reach out for more info today!