Improving the Recruiting Process
SHRM-Atlanta Employment and High Tech PEGs
Presented By
Tom Darrow
Copyright 2005 Talent Connections. All Rights Reserved.
Audience Survey
• Who are you?
–
–
–
–
–
Corporate Recruiters
Contract Recruiters
HR Generalists
Agencies
Others
• What are your challenges in recruiting?
Copyright 2005 Talent Connections. All Rights Reserved.
Agenda
• Recruiting Infrastructure Models
• How to elevate your recruiting program
–
–
–
–
–
Employee Referral Programs
Training your employees
Sourcing
Metrics
What doesn’t work well?
• Your Challenges
• Q&A
• Homework
Copyright 2005 Talent Connections. All Rights Reserved.
To Ponder
“By showing a significant improvement in recruiting
new talent, companies can achieve a 10.1 percent
increase in market value - the largest increase among
areas linking human capital practices and shareholder
value creation.”
Watson Wyatt Worldwide, 1999
“Talent will be the single most important strategic
factor for the next 20 years.”
McKinsey & Company
Copyright 2005 Talent Connections. All Rights Reserved.
To Ponder
“The average cost of losing a high-tech
employee is $123,000.”
Corporate Leadership Council
“The top 10% of candidates accept jobs
within 10 days.”
“A top performer produces 50% more
than an average performer.”
Dr. John Sullivan
San Francisco State University
Copyright 2005 Talent Connections. All Rights Reserved.
How to Elevate Your Recruiting Program
Step 1 – Ensure Proper Infrastructure
• Recruiting Infrastructure
– Ensure recruiter alignment is best for
organization
– Ensure recruiters recruit and coordinators
coordinate
– Ensure recruiter headcount and expertise is
adequate
– Sizing
• Based on level, support, geography, company
lifecycle
Copyright 2005 Talent Connections. All Rights Reserved.
Recruiting Infrastructure Models Centralized vs. Decentralized
• Centralized - Most recruiters at corporate site
• Decentralized - Most recruiters in the field
• Combo - Administrative recruiting functions at
corporate, recruiters at corporate and in field
Copyright 2005 Talent Connections. All Rights Reserved.
Recruiting Infrastructure Models Recruiter Alignment
• Positions are
very location
dependent
• There is high
volume within
each function &
activity is location
independent
Geography
Function
Business
Unit
Level
(Executive, Managerial,
Support, Entry/Campus)
• Skills very
different between
business units
• Each location
has critical
mass
Copyright 2005 Talent Connections. All Rights Reserved.
How to Elevate Your Recruiting Program
Step 2 – Employee Referral Program
World class employee referral program
How many recruiters do you have?
Copyright 2005 Talent Connections. All Rights Reserved.
Employee Referral Program — Why?
• Low cost
• Higher caliber candidates
– Skills, behaviors, cultural fit can be referenced
• Empowers employees
• Increases employee morale and loyalty
• Candidate has positive pre-disposition about
company
• Candidate is contacted proactively instead of
waiting for them to take the initiative
• Limited competition for candidate
Copyright 2005 Talent Connections. All Rights Reserved.
Primary Weaknesses of Employee
Referral Programs
•
•
•
•
Program is out dated
Program is poorly designed
Program is too detailed
Program doesn’t vary reward with
urgency and importance of the position
• Program doesn’t INCENT
• Program assumes employees know how
to recruit/find referrals
Copyright 2005 Talent Connections. All Rights Reserved.
Buy-In from Management
Develop a business case
– Collect sourcing and cost metrics from
prior two years
– Estimate cost of employee referral
program
• Marketing
• Referral bonuses
– Estimate increased number of hires
– Estimate cost savings
– Anticipate management concerns
Copyright 2005 Talent Connections. All Rights Reserved.
Primary Management Concern
• Referring new hires and helping to build the
company should be a part of the employee’s
job
• Considerations:
– Employees do what they’re evaluated on
– If quality can be increased, cost reduced, and
employees rewarded, isn’t that a good thing?
Copyright 2005 Talent Connections. All Rights Reserved.
Management Concern #2
• Employee referral candidates are hired more
because of relationships and less because of
skills and fit.
• Consideration:
– Assessment process should be the same for
candidates from all sources
Copyright 2005 Talent Connections. All Rights Reserved.
Management Concern #3
• Hiring too many employees from referrals will
lead to an adverse impact problem.
• Considerations:
– Assessment process should screen for job related
factors
– Develop diversity initiatives to counter tendency to
refer “people just like us.”
Copyright 2005 Talent Connections. All Rights Reserved.
Referral Program Overview
•
•
•
•
•
•
Who is eligible?
What positions are eligible?
Communicating openings
Referral process and documentation
Communicating candidate status
Incentives - Rewards and Recognition
Copyright 2005 Talent Connections. All Rights Reserved.
Who is Eligible?
•
•
•
•
•
•
Management?
HR/Recruiting?
Contractors/Temporaries?
Alumni?
Vendors?
Others?
Copyright 2005 Talent Connections. All Rights Reserved.
What Positions are Eligible?
Hi-Tech
Administrative
All
Entry Level
Management
Copyright 2005 Talent Connections. All Rights Reserved.
Communicating Openings
Weekly
E-mail
Intranet
Company
Meetings
Newsletter
Company
Bulletin
Boards
Copyright 2005 Talent Connections. All Rights Reserved.
Requirements & Documentation
• Form to be completed by referrer
• Resume required? (with advanced
consent of candidate)
• Application completed?
• Does the referrer need to know and
have contacted the referred
candidate?
• Are clients/customers off limits?
Copyright 2005 Talent Connections. All Rights Reserved.
Requirements & Documentation
• Does candidate need to have minimal requirements?
• Do referrals of alumni, contractors, temporaries
qualify?
• Does the referrer get credit only if referral is hired?
• Duplicate referrals
– split rewards between all referring employees
– From different sources: resume that generates interest gets credit
• Referrals do not qualify if they were discovered while
attending company recruiting functions (i.e. job fairs,
open houses)
Copyright 2005 Talent Connections. All Rights Reserved.
Recruiting Department To-Do’s
• Treat referred candidates the same as
candidates from other sources
except…. move more quickly!
• Reject Candidate
• Phone Interview
• Office Interview
• Referrer will not be involved in the
assessment process
Copyright 2005 Talent Connections. All Rights Reserved.
Incentives — Rewards
•
•
•
•
•
•
Cash*
Car
Stock
Vacation
Frequent Flyer
Performance
Evaluation note
• Drawing*
• Logo merchandise*
*More details on following slides
• Parking Privileges
• Training course
reimbursement
• Equipment
– Computer
– Palm Pilot
– Home office
• Exclusive tickets,
restaurants, country clubs
Copyright 2005 Talent Connections. All Rights Reserved.
Cash
• Set a level that will INCENT
– Vary by position level and/or urgency
– Set short term additional incentives
– Increase incentives for multiple referrals in a
year
• Gross up for taxes
• Pay out
– On start date?
– After 90 days?
– More paid after length of service of referred
employee?
Copyright 2005 Talent Connections. All Rights Reserved.
Drawing
• Hype!
• Chances
– 10 for every referral hired
– 1 for every referral
• Timing
– Each company meeting?
– Annually
• Prizes
– Trips, Cars, Stock, Vacation
Copyright 2005 Talent Connections. All Rights Reserved.
Program Slogan
• Create special slogan for program:
–
–
–
–
–
–
–
Shaping Our Future
Bank$Shot
Bird Dog
PERSonnel (Personal Employee Referral System)
Quest for the Best
Planes Trains and Automobiles ERP
Spotters
• Involve your Advertising Agency, Marketing and
sampling of employees
Copyright 2005 Talent Connections. All Rights Reserved.
Program Logo
• Develop special Program Logo
• Give items that can be worn and seen around
the office: t-shirts, polo shirts, pens, caps,
gym bags, portfolio’s, coozies, etc.
• At a minimum, give company logo
merchandise
• Give for referrals AND hires
Copyright 2005 Talent Connections. All Rights Reserved.
Incentives — Recognition
• Mention in new hire welcome e-mail
• Performance Evaluation
• $$$$$$/merchandise presented at
company meeting
– Or….hand delivered by CEO.
• Logo clothing for display in the office
Copyright 2005 Talent Connections. All Rights Reserved.
Marketing — Hype
Kick off
Slogan
Recruiting
Process
& Interview
Skills training
Open
Houses
Incentives
Copyright 2005 Talent Connections. All Rights Reserved.
Marketing — Visibility
• Logo
• Regular Communication
– Cover openings, incentives, and payouts
– Intranets, bulletin boards, program brochures,
benefits brochures, newsletters, banners,
paycheck inserts
• Program letter to new hires (be careful of
contracts with prior employers)
• Program letter to employees’ homes
Copyright 2005 Talent Connections. All Rights Reserved.
Buy-In from Employees
Advisory
Team
ERP
Training
Program
• Create advisory team of employees to help
develop program
• Develop training program that must be
completed for employees to be eligible for
employee referral program involvement
– Get key leadership to first sessions!
Copyright 2005 Talent Connections. All Rights Reserved.
How to Elevate Your Recruiting Program
Step 3 - Training Employees
• Prerequisite for employee referral
program involvement
– Recruiting Process workshop
– Interview Skills workshop
– Negotiation and Sales for Managers
Copyright 2005 Talent Connections. All Rights Reserved.
Teach Employees
• How and where to source/network
• How to build relationships
• How to assess potential of
candidates
• How to sell
• Importance of confidentiality
• How to work within the corporate
process
Copyright 2005 Talent Connections. All Rights Reserved.
Employee Referral Program —
Sourcing Channels
Prior
Employers
Country Clubs/
Community
Organizations
Conferences/
Seminars
Professional
Associations
Children’s
Friend’s Parents
Commuter
Trains/Buses
Alma Mater
Family and
Church
Copyright 2005 Talent Connections. All Rights Reserved.
Recruiting Process Workshop
• Develop a game
– “Recruitopoly™”
– “Recruit or Consequences”
• Teach the philosophy, techniques and
tools for recruiting
– Sourcing, assessing, selling
– Employee referral program
Copyright 2005 Talent Connections. All Rights Reserved.
Interview Skills Workshop
• Recruiting Process and Interview Preparation
• Types of Interviews
–
–
–
–
•
•
•
•
Screening
Skills
Behavioral
Confirming/Selling
Managing the interview
Making the decision
Documentation
Legal Issues
Copyright 2005 Talent Connections. All Rights Reserved.
Other Training
• Negotiation
– How to respond to the candidate
– Who to get approval from for changes to the offer
– How to give a little but not give the farm
• Selling
– Understanding the candidates key decision factors
– Promoting the company and position accordingly
– Combating the competition
Copyright 2005 Talent Connections. All Rights Reserved.
Selling
Research has shown that people
accept a job because of????
Money
Develop Skills
Peer Group
Company Dynamics
Creative Challenge
Copyright 2005 Talent Connections. All Rights Reserved.
How to Elevate Your Recruiting Program
Step 4 – Enhance Your Sourcing Strategy
• Sourcing strategies
– Internet
• Job Boards
• Spiders
• Research
– Creative strategies
•
•
•
•
What do candidates read?
Where do candidates hang out?
Skill challenge
Create your own user group
Strategies
Copyright 2005 Talent Connections. All Rights Reserved.
How to Elevate Your Recruiting Program
Step 5 – Implement Metrics
“What gets measured, gets improved.”
Recruiting Metrics
Quality
of Hire
Time
to Fill
Cost
Per Hire
Process
Efficiency
•
•
•
•
•
Resumes
Screens
Interviews
Offers
Accepts
Acceptance
Rate
Recruiter
Production
• Fills
• Use of
system
Source
Channels
• Efficiency
• Cost by
source
channel
Copyright 2005 Talent Connections. All Rights Reserved.
How to Elevate Your Recruiting Program
Step 6 – Reference and Background Checks
• Must be done for ALL candidates who receive
an offer
Copyright 2005 Talent Connections. All Rights Reserved.
How to Elevate Your Recruiting Program
Step 7 – Candidate Management
• Candidate Management
–
–
–
–
Make it PERSONAL!
Communicate openly and often
Find our their needs and expectations
Ask them how to communicate with them
• Phone (Home/Work/Cell)
• E-mail (Personal/Work)
– Treat them like a superstar during the process they think they are!
Copyright 2005 Talent Connections. All Rights Reserved.
How to Elevate Your Recruiting Program
Step 8 – Automate
• Applicant Tracking
• ASP’s
• Employee Referrals
• Streamline communications
Copyright 2005 Talent Connections. All Rights Reserved.
How to Elevate Your Recruiting Program
Step 9 – Assess Areas the Impact Recruiting
•
•
•
•
•
Compensation Program
Benefits
Training
Branding/Image
Morale
Copyright 2005 Talent Connections. All Rights Reserved.
How to Elevate Your Recruiting Program
Step 10 – Turn Recruiting into a Business Partner
•
•
•
•
•
Manage recruiting like a business unit
Have dotted line reporting relationship to business units
Understand company financial statements
Attend industry/trade shows and training
Push to have lead recruiter (VP or Director) attend Senior
Management meetings
• Utilize Contract Recruiters to flex up and down with
recruiting cycles
• Volunteer for company initiatives outside of recruiting
– Community Contributions efforts
– Company sponsored events
– Employee Relations programs
Copyright 2005 Talent Connections. All Rights Reserved.
What Doesn’t Work Well
Copyright 2005 Talent Connections. All Rights Reserved.
What Doesn’t Work Well
• Finding Qualified Candidates - Shortage of
Talent! ???
–
–
–
–
Circle of Influence vs. Circle of Concern
Investigate best practices and implement them!
Increase the number of sourcing channels
Make Better Use of Search Firms
• Increase Fee
• Open House
– Make your own candidates
• Training
• Contractors or contract to perm.
• Internal Transfers
Copyright 2005 Talent Connections. All Rights Reserved.
What Doesn’t Work Well
• Inconsistent Processes Across Enterprise
– Develop best practice process for enterprise
• Recruiting Process Audit
• Involve Hiring Managers in development
– Top Down buy-in
– Implement quickly
– Automate
Copyright 2005 Talent Connections. All Rights Reserved.
What Doesn’t Work Well
• Inconsistent Assessments
– Job Analysis
• Competencies
• Skills
– Interview Methodology
• Questions
• Interview team
• Assessment criteria
– Interview Training
– Interview Documentation
– Consensus Decision-making
Copyright 2005 Talent Connections. All Rights Reserved.
What Doesn’t Work Well
• Managers Unwilling to Pay Top $$$$
– Acquire salary surveys
– Compile metrics of declines
– Develop business case for increased salary ranges
• Promote new hire as revenue enhancement instead of cost
increase
– Get creative
• Signing bonuses, 3 month salary review after hire, vacation
adjustment
– Cater to candidate’s primary job satisfaction need
Copyright 2005 Talent Connections. All Rights Reserved.
What Doesn’t Work Well
• Communication to Management
– Develop metrics
• Ask management what they want to know
• Tell management what they should want to know
– Develop communications plan
• What to report
• Who to report to
• How often to report
“Recruiting is just marketing on a cheap budget.”
Copyright 2005 Talent Connections. All Rights Reserved.
What Doesn’t Work Well
• Insufficient Recruiting Headcount
– Develop a business case
• Potential agency fees saved
– Use Contract recruiters
– Use interns
• Devry
• GA State HR program
• Inroads
– Tour of Duty from department experiencing a slow
period
Copyright 2005 Talent Connections. All Rights Reserved.
What Doesn’t Work Well
• Slow Time to Fill (often attributed to the Hiring
Manager)
– Metrics
• By Department and by Hiring Manager
– Escalation process
• 3 day turnaround?
– Prioritize openings
• Don’t expect Hiring Managers to act with the same sense of
urgency for all openings
– Improve communication
• How does the Hiring Manager want to receive resumes?
Updates? E-mail vs. voicemail vs. paper
Copyright 2005 Talent Connections. All Rights Reserved.
Your Challenges
Copyright 2005 Talent Connections. All Rights Reserved.
Q&A
Copyright 2005 Talent Connections. All Rights Reserved.
Homework
• How many recruiters do you have?
– Action steps to turn every employee into a recruiter
• What recruiting metrics are in place? How will you measure
quality of hire?
• What percent of your interviewers have been trained by
your company on how to interview?
• Develop a list of creative sourcing strategies
• Develop a communications plan
– Management, Hiring Managers, Candidates, Vendors
Copyright 2005 Talent Connections. All Rights Reserved.
Thank You!
Tom Darrow
Principal
Talent Connections, LLC
602 Gettysburg Place
Atlanta, GA 30350
(770) 992-3701
TomDarrow@talentconnections.net
www.talentconnections.net
Copyright 2005 Talent Connections. All Rights Reserved.