November 19, 2008

Recruiting the Talent Within

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Your Speaker Today

Anne Nimke is a seasoned veteran in the world of RPO, talent strategy and performance improvement. Adept at creating staffingmodels, Anne understands solutions need to align with the strategic objectives of the business to achieve an organization’s maximum performance capacity.  She has an extensive experience developing talent lifecycle strategies, driving employment branding and positioning, aligning recruitment and on‐boarding initiatives, and ensuring sustainable performance through process change, integrated technology and metric development.  

Anne is a cum laude graduate of Marquette University. She is past president of HRMA, SHRM State Conference Chair, and currently Vice Chair of RPO Alliance and member of SHRM Staffing Special Expertise Panel and HROA.

Anne NimkeCo‐founder & Executive Consultant

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Pinstripe, Inc. designs, builds and manages high‐performance, large scale talent

acquisition solutions. For clients in industries that include financial services,

technology, telecommunications, healthcare and others, Pinstripe’s innovative

approach to Recruitment Process Outsourcing (RPO) integrates sourcing,

recruiting, hiring, on‐boarding, and engagement into a complete, end‐to‐end

outsourced acquisition and retention solution. For healthcare organizations,

Pinstripe’s Healthcare Group offers the provider‐side experience it takes to help

clients reduce their recruitment and labor costs while continuing to provide the

highest quality of patient care.  

More information is available at 

www.pinstripetalent.com or www.pinstripehealthcare.com

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Please describe your current role…Recruiter or Recruiting Leader – 29%

HR Manager / Director or above- 42%

HR Generalist / HR Specialist (non recruiting) – 20%

Hiring Manager / Executive - <1%

Other – 8%

Polling Question

Recruiting the Talent Withinis NOT about a better internal posting process!

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• Business Case – Why bother?

• Internal Recruiting

• High Potential & Engaged Employees 

• Talent Management

• Be a Choice Employer & Talk About It!

• What Gets Measured Gets Done!

• Question and Answer

Agenda – Recruiting the Talent Within

For a copy of the presentation –Email: animke@pinstripetalent.com

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• Domestic and Global War for Talent

– Offshoring; Remote workers to electronic; Immigrants; Working 24x7; Job migration; Global talent supply chain

• Cost of Replacing Talent

– Retiring Talent; Turnover; # years of work experience lost

– It takes 2 new employees to replace 1 skilled worker – Forrester

• Demographic Trends Point to a 11m worker shortfall

– 15% fewer 35 to 45 year olds; Baby boomer retirements

– Vacated jobs + newly created jobs = 33 to 55m open positions

– 11m to 23m person talent shortage by turn of the decade

• Reengineering and automation has run its course in many firms

• Net:  The market is tough…and getting tougher

Business Case

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• Talent is strongly linked to superior financial performance

• A Fortune 500 company can realize a $70m‐160m bottom line increase, with a 10 point increase in its Talent Quotient

• 70% of value of NASDAQ is Intellectual or Intangible Asset Value (IAV) a complete reversal from just over a decade ago; 50% of total American capital markets

Talent Impacts Financial Performance

Source of Value

38%62%

85%

62%38%

15%

0%

20%

40%

60%

80%

100%

120%

1982 1992 1998

Tangible AssetsIntangible Assets

Source of Value

38%62%

85%

62%38%

15%

0%

20%

40%

60%

80%

100%

120%

1982 1992 1998

Tangible AssetsIntangible Assets

Comparing the Best and Worst HR Systems

Bottom 10%     Top 10%

Employee Turnover 34.09%  20.87%Sales Per Employee  $158,101           $617,576Market Value to Book Value       3.64                   11.06% Jobs filled from within 31%                    53%% with formal staffing plan 3%           48%% qualified for >1 job 2%                     63%# Hrs training for new EEs 3                       5

Hewitt Study Huselid Study8

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Are any of your company's dealing with issues related to...(check all that apply)*

Skill Shortages - 186

Multi-generations in the workforce - 138

Economic downturn - 186

Globalization - 25

Increasingly aggressive competition -125

*Responses are actual numbers, not percentage)

Polling Question

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Retention is the #1 Concern

DDI/Sheffield Survey

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Does your organization have …

A Vicious Talent Cycle … a revolving door

Where top performers and high potentials are finding it easier and easier to find new opportunities (leave) while underperforming employees will stay because they have no choice (unless terminated).

OR?

A Virtuous Talent Cycle … a safe and dynamic culture

Where top performers and high potential employees are engagedand encouraged to grow within your company and contribute to itsculture and success while achieving personal goals.

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Internal Recruiting

Reduce:

• Cost Per Hire

• Time to Fill

Improve:

• Talent Pool

• Engagement and Employee Relations

• Retain Intellectual Property

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What are we talking about?

Re‐recruitPromoteFromwithin

CareerPathing

SuccessionPlanning

RetentionPrograms

ReduceTurnover

Talent Mgmt

InternalRecruiting

KeepingThe 

TalentWithin

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Your Talent Pool

Active Candidates

Qualify job search criteria and ensure robust recruitment marketing to candidates looking for a job now ‐ online and off on web and in your current ATS & CRM

Selective Candidates

Research and mine resume/ candidate database for candidates  actively…daily

Passive Candidates

Find and maintain relationships with currently employed talent that might not be looking to change jobs today

No doubt you are doing more than the “Post and Pray”for external candidates

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Your Talent PoolInternal Candidates

Create robust communication to current employee database and insure employees in (or out) of the career path are recruited

Active Candidates

Qualify job search criteria and ensure robust recruitment marketing to candidates looking for a job now ‐ online and off on web and in your current ATS & CRM

Selective Candidates

Research and mine resume/ candidate database for candidates  actively…daily

Passive Candidates

Find and maintain relationships with currently employed talent that might not be looking to change jobs today

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Your Talent PoolInternal Candidates

Create robust communication to current employee database and insure employees in career path are recruited

You need to do more than the “Post and Pray”for internal candidates

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If you feel your employees won’t leave…think again!

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What does “Internal Recruiting” look like?

Basics• Open positions available to all employees

– Intranet– Career site

• The process is published• “Next opportunity” is part of performance mgmt discussions

• Current “promoted from within”employee stories known widely

• Culture of “promote from within”• Less‐restrictive “time in current job”• Employee Referral Programs

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What does “Internal Recruiting” look like?

Basics• Open positions available to all employees

– Intranet– Career site

• The process is published• “Next opportunity” is part of performance mgmt discussions

• Current “promoted from within”employee stories known widely

• Culture of “promote from within”• Less‐restrictive “time in current job”• Employee Referral Programs

Proactive• Basics + …• Internal job fairs• Recruiters “find/recruit” internal candidates

• Strong internal “candidate care”• Process is robustly marketed• Career Paths are published• Posting for lateral moves and job shadowing available

• Next job self‐service training • New EE Orientation includes how to post for next job

• Re‐recruit your lost employees –exit interviews

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Please describe your current internal recruiting practice…Post and Pray with no plans to enhance - 10%

Post and Pray with plan to improve – 35%

Basic with no plans to enhance – 10%

Basic with plan to improve – 33%

Proactive – 12%

Polling Question

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Retain High Potential and Engaged EmployeesImprove:

• Quality of Workforce

• Bench

• Productivity

• Engagement

Reinforce:

• Performance Culture

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The old adage about people being your

greatest asset is not true. 

People aren’t your greatest asset. 

The RIGHT PEOPLE are!

Jim Collins, Good to Great

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High Performers vs. High Potential

• Only 28% of high performers are also high potential

• High Potential = High Performer PLUS

– Learning Agility

– Leadership Ability

– Desire to Advance

– Breadth of Experience

– Not Risk Averse

– Interpersonal Skills

– High Engagement and Motivation

Corporate Leadership Council

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Good People are Great for Business

McKinsey and Co.

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Engaged Employees

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Engaged Employees are MORE LIKELY to:

• Stay with your organization despite competitive offers

• Demonstrate alignment between their individual goals and organizational success

• Express a consistently positive viewpoint

• Exert discretionary effort that contributes exponentially to business results

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Workforce Surveys

Only 20% of employees are highly engaged; A recent Gallup Index reveals that, on average, about 70% of US workers are “not engaged” or are “actively disengaged” with their work.

Engaged employees are more likely to “learn and change”, offer creative ideas and

involve customers in innovation and improvement processes.

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Workforce Survey ‐ Gallup Poll

1. Do I know what is expected of me at work?2. Do I have the materials and equipment I need to do my work right?3. At work, do I have the opportunity to do what I do best everyday?4. In the last week, have I received recognition or praise for doing great work?5. Does my supervisor, or someone at work, seem to care about me as a person?6. Is there someone at work who encourages my development?7. At work do my opinions seem to count?8. Does the mission/purpose of my company make me feel my job is important?9. Are my co‐workers committed to doing quality work?10. Do I have a best friend at work?11. In the last six months, has someone at work talked to me about my progress?12. This last year, have I had opportunities at work to learn and grow?

“The only way to generate enduring profits is to begin by building the kind of work environment that attracts, focuses, and keeps talented employees.”

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7 Drivers of Employee Engagement

• Opportunity– Growth/Development

– Advancement

– Interaction

• Job Tasks– Impact

– Challenge/Interest

– Status/Pride

• Relationships– Co‐workers

– Managers

– Customers

• Leadership– Credibility

– Trust

• Culture & Purpose– Sense of Purpose

– Organizational

– Values & Behaviors

• Total Compensation– Pay/Financial

– Recognition

• Quality of Work Life– Physical Environment

– Work/Life Practices

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Talent ManagementImprove:

• Talent Trajectory

• Retention

Create or Reinforce

• Choice Employer Status

• High Performance Culture

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Talent Trajectory ‐ Now and Future

Challenge & OpportunityThe challenge and the opportunity  is for organizations to move their curve to the right.

# OF EM

PLOYEES

PERFORMANCE & PRODUCTIVITY

Quality of HireThe single biggest determinant of departmental and organizational performance.

** # of Standard Deviations from mean performance levels

The Talent WithinDevelopment of the diverse and high performing employees at each level.

mean performance level today

TODAY 2009 2010

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Talent Management

Traditional Talent Management:• Endpoints of traditional talent management process

– Hiring – Performance Management– Turnover

• PAST focused• Measures goals and behavior

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Talent Management

Traditional Talent Management:• Endpoints of traditional talent management process

– Hiring – Performance Management– Turnover

• PAST focused• Measures goals and behavior

Today’s Talent Management MUST:• Integrate with the business • Link Business Priorities + Critical Workforce Issues• Drive results by enhancing organization’s

– Capability– Commitment and– Alignment

• FUTURE focused• Measures performance, EMPLOYEE INTERESTS and POTENTIAL

A cultural mindset - Talent Mindset vs. Labor Mindset

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Our organization’s focus on talent management is:

Very uninvolved – 6%

Uninvolved – 15%

Informed but not involved – 44%

Involved - 29%

Very involved - 6%

Polling Question

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Be a Choice Employer and Talk About It!

Improve:

• Organization’s Brand Equity

• Customer Impact

• Recruitment Marketing Success

• Morale

Reduce:

• Voluntary Turnover

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Your Workforce Has Changed –Has Your Organization?

OLD PARADIGM

• Job Security

• Longitudinal Career Paths

• Job/Person Fit

• Organization Loyalty

• Career Success

• Academic Degree

• Position & Title

• Full Time Employment

• Retirement

• Single Jobs/Careers

• Change in jobs based on fear

• Promotion highly tenure based

NEW PARADIGM

• Employability is security

• Alternate career paths

• Person/Organization fit

• Job/Career Loyalty

• Work/Life Balance

• Continuous Learning

• Competency Development

• Flexibility in Employment

• Career Sabbaticals

• Multiple Jobs/Careers

• Change in jobs based on growth

• Promotion highly performance based

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Job DissatisfactionEmployees are:

• Fearful about losing their jobs

• Overworked due to the large number of cutbacks

• Unappreciated for the hard work and stress that they are enduring

• Resentful about the lack of respect they are receivingBruce Katcher – The Survey Doctor

Author of 30 Reasons Why Employees Hate Their Managers 

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First Impressions DO Count!

• 4% left their job after a disastrous first  day

• 9% seriously considered quitting

• 54% believe “first impressions”affect performance

• 60% report “losing sleep” before the first day

Improved Performance

Impaired Performance

No Effect

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Your employees are getting oriented to your company whether you have a program or not!  

The orientation they are getting MAY NOT be the one you want or intend.

So What’s Love Got to Do With It?

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• Employees who complete orientation reach full productivity 60 days faster and they found they reduced their turnover by 40%

Your employees are getting oriented to your company whether you have a program or not!  

The orientation they are getting MAY NOT be the one you want or intend.

So What’s Love Got to Do With It?

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• 69% more likely to stay employed after 3 years if they completed orientation

Research has confirmed employees that connect with the company within the first 90 days, stay with the company significantly longer.

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Tools to Identify Potential* and Interest• Training and Education

– Internal and External Training

– Tuition reimbursement

– Learning Management Systems

• Learning from Others– Performance Appraisals*

– Non‐profit Boards

– Mentor Programs

– Talent review meetings

– Career Development Plans

– Executive Involvement

– Encourage Informational Interviews

• Company Processes– Succession Planning

– Internal Hiring Priority

– High Potential* Tracking  & Development

– Talent Assessments and Talent Review Meetings

• Experiences and Opportunities– On the job training

– Job shadowing request process

– Simulations

– Project Assignments /Task Force

– Cross Training

– Job Rotation/Mgmt Tracking

Corporate Leadership Council

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Employment Branding

• Branding ‐ A way to differentiate the employment experience– An emotional connection with internal/external audiences– Highlighting ‘points of difference’– Branding should be consistent with the consumer brand/culture

• Guiding Principles of branding– COGNITIVE:  Understand ‐ Believe ‐ Engaged– BEHAVIORAL:  Deliver ‐ Tell the story ‐ Link to HR Systems

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Internal Branding

Core Creative

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What Gets Measured Gets Done!

• Know Your Organization

• Identify Where Change is Needed

• Build Business Case

• Communicate Impact and ROI

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We Know….

• How every dollar is spent…

• Where our product inventory is…

• Where every computer, printer, copier and phone is located…

• Everything about all our leases and contracts…

• Customer and prospect contact information and more…

• BUT….how well do we know the talents and career interests of our current employees?

Doris Sims, SPHRwww.SuccessionBuilders.com

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Do you have internal hiring metrics?

• Segment your hiring statistics Internal vs External– Quality of Hire– Time to Productivity– Time to Fill– Cost per Hire

– Demographics– Age– Geography– Diversity

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Improved Ramp‐up Time

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What Impacts Engagement? 

• Find the triggers that make your employees stay/leave

• Utilize turnover stats, exit interviews, employee and management surveys

Saratoga

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Cost of TurnoverCosts include:• Lost productivity during a vacancy• Diminished productivity of the team and managers who are covering for a vacant position

• Diminished productivity of the team and managers who are training the new hire

• Increased labor costs due to overtime or contractors needs

• Hiring and on‐boarding costs• Other more difficult to quantify impacts:

– Decreased customer satisfaction– Increased future turnover– Loss of institutional knowledge

Saratoga

Average turnover cost equals one year's salary and benefits. 

Average of 12 to 40% of pre‐tax 

company earnings

Average 1.5 – 2.5 x salary

TURNOVER CALULATORShttp://www.blr.com/landingPR/index.aspx?landingPRID=1

www.caliperonline.com/solutions/turnover.shtmlhttp://acw.aon.com/wfs/Router?PAGE_NAME=TCE_INPUT

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Measuring Turnover

• If you are loosing High Potentials, High Performers and Great Experience – The first step is acknowledging the problem.

• Turnover ‐ % of employees leaving the organizationtotal number of employees

• Retention Index – rate of turnover within a “group/category” as compared to average turnover 

• Segment your turnover statistics and compare to the average to identify talent gaps and leaks

– Job family/title

– Longevity

– High performers

– Level within organization

– Demographics– Age– Geography– Diversity

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Hewitt's Talent Quotient 

• Prioritization of investment dollars in people programs 

• An objective ranking of the firm's track record in attracting and retaining pivotal employees compared with other organizations 

• An understanding of flight risk of pivotal employees based on demographics and diversity factors 

• Fact‐based evaluation of people programs to bolster information from employee opinion surveys

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Recruiting the Talent Within

Internal “candidate care” is as important as external candidate care – if you aren’t doing it well for external candidates you might not for internal

Process not defined or implemented well

Waste of time if the manager already knows who they want to hire

Attention needed to curb tendency toward “favorites” or incumbent

Lower morale for those not selected

May inhibit new ideas/diversity within org.

Filling one gap may create another

You have no “bench”Current employee talent pool may not have the what is needed

Self‐nomination process may be unsatisfactory to all stakeholders

CONCERNS

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Recruiting the Talent Within

Pro‐active internal recruiting may create greater success. Why? Current post and pray/self‐nomination process can be unsatisfactory to all stakeholders

Usually faster Time to Fill than hiring externally

Usually is a lower overall cost per hire: CPH & pay of external usually greater than internal

Allows hiring managers data on current employee which is more likely to be more reliable than info on external candidates

Improves morale and promotes positive employee relations

Reinforces employee engagement

Rewards performance and potential

Reinforces “culture” of retention and career opportunities

Capitalizes past investments in recruiting & training current employees

BENEFITS

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Summary

If you aren’t recruiting your current talent –

you may be the only company who isn’t!

Re‐recruitPromoteFromwithin

CareerPathing

SuccessionPlanning

RetentionPrograms

ReduceTurnover

Talent Mgmt

InternalRecruiting

KeepingThe 

TalentWithin

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Are you

of the talent you want to attract and retain?

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Thank You – Any questions?

If you would like a copy of thepresentation or have individual questions – contact:

Anne Nimke262‐754‐5060animke@pinstripetalent.com

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