Date: March 2nd, 2024

Estimated Read Time: 7 minutes

Sponsorship Acknowledgment: This edition is proudly presented by Sonar Talent, developing an AI-powered talent marketplace for tech business leaders.

With so much disruption in the talent market over the last two years, many companies are reassessing how to align their recruitment strategies with the company's growth objectives. A critical aspect of this alignment involves matching the headcount planning process with the recruiting capacity.

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This newsletter will dive into the primary methodology to help analyze recruiting capacity to meet headcount goals.
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Capacity Planning Basics

There are two main phases to planning recruiting capacity. We'll dive into each in our 6-step process below.

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Setting Headcount Goals. The process begins with headcount planning, typically derived from the finance team's projections based on budgetary requirements. For organizations without direct projections, a historical analysis of monthly headcount growth can serve as a basis for forward-looking predictions. Additionally, incorporating attrition numbers into the planning process is crucial for a more accurate forecast.

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Calculating Needed Recruiting Capacity. The next step involves assessing the recruitment team's capacity to meet the projected headcount. This assessment is crucial in determining whether the current team can handle the recruitment load or if there's a need to increase capacity.
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Implementation

(Follow along with our free recruiting capacity template, available here.)

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Step 1: Establish Baseline Assumptions

Start by inputting the starting headcount and making assumptions about monthly headcount growth and attrition rates. These assumptions will serve as the foundation for the capacity model.
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Step 2: Calculate Recruitment Needs

Calculate the total number of open requisitions that must be filled each month using the baseline assumptions. This calculation should account for both growth and attrition within the organization.
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Step 3: Assess Recruiter Capacity

Conduct a reverse funnel analysis to determine the expected number of monthly hires each recruiter can make, considering different roles and their respective hiring complexities. This step involves analyzing the time required for various recruitment activities and the overall requisition load.
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Step 4: Adjust Capacity as Needed

If the analysis reveals a gap between the recruitment needs and the team's capacity, consider adding additional recruiters or reallocating resources to areas with higher demand. This adjustment is critical to meeting recruitment goals without creating a backlog.

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Step 5: Monitor and Update Regularly

Implement a system for tracking actual recruitment outcomes against projections. This ongoing monitoring allows for timely adjustments to the recruitment strategy, ensuring the team remains on track to meet its goals.

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Step 6: Plan for Future Capacity Needs

Utilize the capacity tracker to anticipate future recruitment needs and plan accordingly. This foresight can help mitigate potential challenges, such as a recruiter's absence or an unexpected increase in requisitions.

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Want to see this process in action? Check out our video walkthrough below:
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Are you eager to overhaul your recruitment strategy?

I partner with entrepreneurs as an advisor and mentor during their growth phase. I help them lay the correct foundation for building a world-class team, avoiding expensive mis-hires and churn while reducing time away from the core business.

If you are a founder or startup executive passionate about building great teams and have an appreciation for using data to make better decisions, I'd love to hear from you.

Aligning headcount planning with recruiting capacity is a dynamic process that requires regular review and adjustment. Following the steps outlined above, HR leaders can create a flexible and responsive recruitment strategy supporting their organization's growth objectives.

This approach helps meet current recruitment needs and planning for future capacity requirements, ensuring long-term success in talent acquisition.

Until next time!

Chris Mannion

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