Recruiting is Local Part 2 - HR Examiner

Sustainable Recruiting Is A Grassroots Thing

Hopefully, you’ve had a chance to look over the Recruiting is Local presentation and poke through some of the local recruiting resources from last week. As the economy stabilizes, we are dealing with a new reality. Global HR endeavors, while they are all well and good, rarely boil down to an integrated effort. Local labor laws, customs, perceptions of status, wage differentials, costume differences, language, time zone, work ethic, definitions of a company, management style and interpersonal dynamics vary so greatly that seamless integration is only remotely possible.

The same is true of the cities that make up the world. Things are so different between cities that they may as well be separate countries. This is true for more than 400 discrete Statistical areas in the United States alone. All of the countries of the world have at least two distinct recruiting regions. Most have many more.

The first reason local recruiting is important is that small businesses are virtually all local operations. They only hire locally.

Small businesses in the United States

  • Represent 99.7 percent of all employer firms.
  • Employ about half of all private sector employees.
  • Pay 43 percent of total U.S. private payroll.
  • Have generated 65 percent of net new jobs over the past 17 years.
  • Create more than half of the nonfarm private GDP.
  • Hire 43 percent of high tech workers (scientists, engineers, computer programmers, and others).
  • Are 52 percent home-based and 2 percent franchises.
  • Made up 97.5 percent of all identified exporters and produced 31 percent of export value in FY 2008.
  • Produce 16.5 times more patents per employee than large patenting firms

“Small businesses employ about half of U.S. workers. Of the 120.9 million nonfarm private sector workers in 2008, small firms employed 59.7 million and large firms employed 61.2 million. About half of small firm employment is in second-stage companies (10-99 employees), and half is in firms that are 15 years or older. Small firms’ share of employment in rural areas is slightly higher than in urban areas; their share of part-time workers (22 percent) is similar to large firms’ share (19 percent). Small firms’ employment share remains steady since some small firms grow into large firms over time.”

Source: SBA

Meanwhile, there are only about 20,000 firms with more than 500 employees, only 11,000 or so have more than 1,000 employees. Here’s that breakdown

  • Firms with 1,000 to 1,499 employees 2,916
  • Firms with 1,500 to 1,999 employees 1,542
  • Firms with 2,000 to 2,499 employees 942
  • Firms with 2,500 to 4,999 employees 1,920
  • Firms with 5,000 employees or more 1,927
  • Firms with 5,000 to 9,999 employees 952
  • Firms with 10,000 employees or more 975

Something like 95% of all employment transactions happen in the proximity of the plant. As a result, understanding how to do grassroots recruiting is a survival skill for most people who do it.

However, the best that most current systems (STS, Job Board, CRM) provide is a way to narrow searching to the local neighborhood. Local Recruiting doesn’t mean narrowing your search. It means starting locally and working up.

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