Companies that achieve a compound annual growth rate (CAGR) of 40% or above are said to be in a hypergrowth phase of fast expansion. Alexander V. Izosimov first used the term “hypergrowth” in a 2008 essay for the Harvard Business Review. It refers to “the steep part of the S-curve that nascent industries encounter that differentiates them from losers.”
Contrarily, “fast growth” businesses have CAGRs of 20% to 40%, whereas “regular growth” businesses have CAGRs of under 20%. Consequently, hypergrowth recruiting is a crucial concern for such companies as they always need a robust pipeline of talented professionals to sustain their expansion.
Hypergrowth companies face numerous challenges in their day-to-day operations, including sales & marketing functions, technical issues, and customer service. However, hypergrowth recruiting remains one of their most critical priorities, as most of these businesses are service-based. Hence, a service-based enterprise’s primary asset is its human capital, i.e., the employees.
Best Strategies To Improve Hypergrowth Recruiting
The World Economic Forum is a global body that monitors the environment around hypergrowth companies worldwide. The world body has determined that scalability and talent acquisition are the two most critical priorities of growth and hypergrowth companies.
The below graph shows the main focus points of firms that want to streamline their hypergrowth recruiting efforts.
Source: Clever Tap
The data above shows that talent acquisition and recruitment are top priorities for hypergrowth firms. Inadequate hiring practices often cause talent deficiencies and vacant positions, which ultimately slow their growth or, in some cases, reduce funding.
However, hypergrowth recruiting can become straightforward and effortless if the top management of these companies adopts some proven strategies. Here are the best practices and methodologies that HR managers can use to boost their hypergrowth recruiting efforts:
1. Consult A Specialist Recruitment Agency
When your target is hypergrowth recruitment with maximum efficiency, the best way to go is to hire an external recruitment agency. Many hypergrowth companies often maintain an in-house talent department that oversees recruitment and other HR-related functions. But this can be very costly and often cause inefficiencies due to lack of experience and expertise.
On the other hand, an external recruitment agency offers multiple benefits to companies that want to achieve hypergrowth recruitment. Firstly, recruitment firms have years of experience and demonstrated expertise in the field of Human Resources, which includes recruitment on a large scale. Their experience will prove highly beneficial for your hypergrowth recruitment efforts as you’ll get access to an enormous talent pool.
Secondly, an external recruitment company is cost-effective in the long run as you only pay for a specific project, while achieving the best results. Get in touch with Benchpoint today to learn more about how you can scale your team quickly.
2. Carefully Plan Your Hypergrowth Recruiting Timeline
People can often overestimate their hiring needs when a digital business is snowballing. You must precisely assess the essential workforce your startup requires to prevent recruiting too many employees and then having to fire a sizable proportion of them. Before settling on figures that will serve as the cornerstone of your hyper-growth hiring strategy, consider your employee turnover rate.
The second stage is to choose which positions to fill first. For example, if you want to boost your sales targets, you could need marketing personnel before employing software developers. Divide your hiring strategy into the targets you must accomplish each quarter so you can decide which to focus on first.
As a result, companies that want to take their hypergrowth recruiting to the next level should develop a hiring strategy. This recruitment action plan should be time bound and entail the tasks that the talent team must perform regularly. A robust hiring plan will smoothen the entire process and cause fewer delays.
3. Establish an Employer Brand That Nurtures and Rewards Talent
Given that today’s workforce is skeptical of their workplaces, employer branding is essential for businesses that wish to attract and keep the most brilliant employees. It is a process that involves influencing and managing how important stakeholders, including workers, candidates, and potential employees, perceive you as an employer. It includes everything you do to promote your business as a top employer.
By creating a company blog, sustaining a strong social media presence, and encouraging current employees to act as brand ambassadors, businesses can enhance their employer branding.
Edward E. Lawler, a Distinguished Professor of Business and Director of the Center for Effective Organizations in the Marshall School of Business at the University of Southern California, says:
“Employees seek to work for organizations just as customers seek to do business with them: when they feel that the organization offers what they desire.”
When your business is young, you have the chance to determine how you want your brand to be perceived. This is the ideal moment to build the company culture that will attract exceptional employees in the years to come.
Employee referral schemes are another great way to establish a powerful employer’s brand. Nothing is more useful than current employees telling prospective new hires how great your firm is. Create a referral scheme to motivate your staff to assist in spreading the news about employment openings.
4. Post Jobs On Startup-Focused Communities
Known job boards like Indeed, Linkedin, and Glassdoor are used by businesses to post job openings. There is a significant disadvantage to hiring from these platforms, despite the fact that they are unquestionably effective and will draw hundreds of brilliant people.
Sorting through hundreds of applications will be a challenging chore because most of them will need to meet the requirements. Moreover, these traditional job boards are made to meet the needs of multinational corporations with expert talent departments. They are not very beneficial for startups and small businesses that are overgrowing.
Therefore, companies looking for robust hypergrowth recruitment should focus on startup-centric job portals and communities. These include AngelList and Stack Overflow for tech-based jobs and Career Center, Medicaljobs.org, and Hospital Careers for the healthcare industry.
Putting your open positions across all job sites is expensive and won’t bring in suitable applicants. Concentrate your efforts on startup-focused communities.
5. Revamp Your Tech Infrastructure
Technology and automation play a crucial role in nearly every aspect of today’s businesses, including recruitment and talent management. You can ignore the potential benefits of technology in HR management by taking a traditional approach. But if you’re looking for hypergrowth recruiting, you must invest significantly to enhance your existing tech infrastructure.
Most modern companies use automation to some extent in their hiring process, whether it is in the form of Application Tracking Software (ATS) or Interview tools. You can reduce the overall time it takes to fill job slots by using an ATS. The ability to develop and maintain a pool of passive applicants for future usage is an added advantage; this is helpful when you need to fill a position quickly.
Meanwhile, many corporations are using other sophisticated tools to take their hypergrowth recruiting to unforeseen levels. They use advanced testing technologies like virtual assessment and coding interview tools to gain a better understanding of their potential employees and their skills.
6. Use Structured Interviews Whenever Possible
The interview stage of the employment process frequently demands the most preparation of all the procedures. Interviewers are probably busy with their own obligations, but they still need to be ready to make the most of the time. They must be aware of the requirements for the position and how to evaluate candidates fairly.
Businesses should combine structured interviews with concise job descriptions when hiring new personnel. The utilization of a set of standard questions is an essential component of structured interviews. Contrary to unstructured interviews, where the interviewer may occasionally not prepare a list of pre-planned interview questions, these questions are frequently written before the interview starts.
When HR managers effectively convey their needs to the talent pool, a smoother process is made possible, making hypergrowth recruiting easier. If you want to learn more about hypergrowth recruiting and how to attract the best personnel, get in touch with BenchPoint, a healthtech recruitment agency.
We have a solid track record of ensuring client satisfaction which speaks for itself. We may work with you in the future to develop hiring strategies that are clearly defined and quickly yield the necessary results.