At the same time, profitability across privately held, tech and non-tech businesses has been expanding on a consistent basis, empowering CEOs with a level of confidence not seen since 2006. In fact, while earnings are expected to decline over 4% in the S&P year over year, private companies’ sales have grown 9.2% year over year, the fastest pace since 2012.

Yet, even with this seemingly undisputable upward trend in hiring, and candidates’ greater receptivity to changing jobs, many employers have resisted making the necessary adjustments to their hiring process. During recessionary periods, companies are rewarded for their patience and willingness to diligently sift through hundreds of resumes to identify the few candidates that are qualified for their open positions. It is during these years that companies are in the driver’s seat, weighing a myriad of hiring options, expecting to get 100% of their candidate “wish list” and saving money thanks to falling or stagnant wages. However, as the job market heats up, the pendulum swinging in favor of candidates once again, these “best practices” become limitations, preventing hiring managers from making successful, timely hires.

With the war for talent re-emerging – particularly in functions such as software development, engineering, IT, science and analytics – businesses must now emphasize their employee brand, opportunities for career advancement, and the adherence to a “values-based” mission that connects their employees with the greater good. While “A Players” and skilled professionals have the confidence and drive to change jobs more regularly, they will only do so when their values, business philosophy, and career aspirations are aligned with their potential new employer.

Fortunately, today’s candidates are looking for more than just a bigger paycheck. Survey after survey illustrates this point by showcasing the reasons employees leave their job for another position – and compensation is rarely #1 on the list.

While compensation is certainly one piece of the puzzle, companies possess the ability to increase their hiring and retention rates, without having to write a blank check. However, this improvement will only occur within organizations willing to initiate a conversation with their employees about their career goals and expectations. Over the next two quarters, every CEO, VP, Director, and Manager should commit to identifying the key factors attracting employees to their company, along with what compels them to stay. While this will require time, planning and focus, the result can be game-changing.

Step 2 – Review your hiring process and survey your most successful hires
Companies analyze their marketing campaigns, track sales and identify their most productive customers. However, very few spend time reviewing the results of their hiring strategies. Take the time to analyze your top and lower performing employees, identifying their source of hire including job boards, corporate website, referrals, etc. Johnson & Johnson recently conducted an internal analysis of their hiring practices, identifying the success of their college recruiting strategies. Understanding their hiring history has allowed them to focus on hiring people that are more apt to remain engaged, while also staying with J&J longer than their more seasoned employees, with equal or better performance.

Step 3 – Develop a “hiring map” and create an effective process
When filling vacant positions, most companies jump right into the tactics, without much thought about the strategy. Hiring managers need to work with human resources to create a customized and appropriate process to fill each position. VP and executive level candidates should not be subjected to the same process as someone working in the warehouse. Likewise, candidates should be told upfront what to expect in the hiring process, including the number of interviews, the timeline and the makeup of those interviews (e.g. panel, role play, employee shadow, etc.)

Step 4 – Provide training on effective interviewing
To ensure the right candidates are making it to the final stage of the interview process, equip your hiring managers with the tools to conduct an effective interview. Many managers are elevated to a position of leadership, tasked with building a team, without the training necessary to identify and select the right talent. Train your managers on how to ask relevant and deeper behavioral questions, rather than relying solely on their “gut feeling”.

Step 5 – Institute an “ABR” strategy – Always be Recruiting
With or without an HR department, recruiting should be everyone’s job. Building, maintaining and sharing your network, should be part of each job description. It is incumbent upon leadership to create a culture of connecting with great talent at all times, rather than scrambling to fill open slots in a reactive manner.

Step 6 – Establish an employee referral program
Year after year, industry surveys reveal that the longest-tenured employees, and those with the quickest ramp-up times, are hires that were referred by current employees. There is no better way to reduce hiring costs, boost employee morale and increase average tenure than to initiate a referral program. Just be sure that everyone knows about the policy.

Step 7 – Create a repository of compelling, unique and engaging job specs & interviewing questions
In order to attract the best talent, job descriptions must tell a story, serving as a marketing tool that takes an employee-centric perspective. The job spec needs to engage the prospective employee by describing what she will be able to accomplish – what the company will do for her – and how she will impact the overall business. The job description and interviews should be more than a description of responsibilities.

Step 8 – Conduct a salary survey and make necessary adjustments, now
While it may cost some money up front, the job market has changed, and so have salaries. It is well worth the Investment in time and money to get an updated salary benchmark of the key positions within your organization.

Step 9 – Define your metrics of success
How will you know if your newly enhanced hiring strategy is successful unless you identify your success factors? These may include an array of numbers that are easily tracked including decreasing the turnover rate, increasing the number of accepted offers, increasing your average tenure and promotions, etc.

Step 10 – Embrace the new reality!