Developing the Employee R ecruiting and R etaining Process

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Developing the

Employee Recruiting

and Retaining Process

Group 12

Alexander HuynhChul Cho

Japneet KohliJea Hyul Lee

Judy Tan

2

Spectrum Financial Group Founded in 1901 Provides individuals and businesses with financial

products and services Registered Representatives of MassMutual Investors

Services, Inc., one of the leading mutual life insurance companies in the world

Spectrum Has Trouble Recruiting and Retaining

Salespeople

0

50

100

150

200

250

300

350

2011

2012

3

Nu

mb

er o

f P

eop

le

4We Recommend a Three-Part Plan for Improving the

Recruitment and Retention of Sales Employees at Spectrum

1. Employer branding

2. ERP (Employee Referral Program)

3. Enhance Advertisements

5

Employer Branding

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What is Employer Branding? Builds a unique employer identity, differentiating itself from the

competitors

Specific to employment, characterizing the firm’s identity as an

employer

Directed at both internal and external audiences

Projects employer’s image and brand to existing and prospective

staff as a desirable place to work

(Backhaus and Tikoo, 2004)

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Employer Branding is a Three-Step Process

1. Develop the value

proposition

2. Market the value proposition

3. Market the internal employer

brand(Backhaus and Tikoo, 2004)

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Employee Referral Program

(ERP)

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What is ERP?

Employees recommend qualified friends, relatives or colleagues for job openings.

If the lead is hired,

then the recommender

is rewarded.(Gaumond, 2006)

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Referrals take the Least Time to Fill Vacancies

Referrals Job Boards Career Sites0

10

20

30

40

50

Number of Days taken to Fill a Vacancy

Days

(Sullivan, 2012)

11Retention Rates from Referrals are Highest in the Industry

Referrals Career Sites Job Boards05

101520253035404550

Year 1Year 2

Percentage of Employees Retained

(Sullivan, 2012) (The Recruiters Lounge, 2012)

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ERP will Benefit Spectrum in Many Ways

Higher candidate quality with lower cost

1. 82% of employers rated ERP above all other sources for generating the best return on investment.

(Brown and Cober, 2006)

2. 88% of employers rated ERP above all other sources for generating quality of new hires. (Brown and Cober, 2006)

Low termination rates Faster time to initial productivity

(Sullivan, 2012)

13Spectrum can Implement ERP in 3

Steps

Plan the ERP

Allocate funds & decide rewards

Set protocols

(Gaumond, 2006)

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Enhance Advertiseme

nts

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Spectrum should Market Externally

1. Enter career fairs

and career expos

2. Improve PR

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Sources1. Backhaus, Kristin & Tikoo, Surinder. "Conceptualizing and

researching employer branding", Emerald 9, (2004) http://www.emeraldinsight.com/case_studies.htm/journals.htm?articleid=1509267&show=html&WT.mc_id=alsoread

2. Brown, Doug & Cober, Rich. “2006 DirectEmployers Association Recruiting Trends Survey”, 2006. http://www.jobcentral.com/desurvey.

3. Gaumond, Jacques. “How To Implement An Employee Referral Program”, 2006. http://www.go2hr.ca/articles/how-implement-employee-referral-program

4. Sullivan, John. “10 Compelling Numbers That Reveal the Power of Employee Referrals”, Ere.net, (2012)

5. Sullivan, John. “Employee Referral Program Killers”, ere.net. (2008) http://www.ere.net/2008/05/05/employee-referral-program-killers/

6. The Recruiters Lounge. “Implementing An Employee Referral Program In Your Organization” (2012) http://www.therecruiterslounge.com/2013/02/12/implementing-an-employee-referral-program-in-your-organization-infographic/