Trends in Talent Management and Recruiting - 2012 predictions

The Top 10 Trends In Recruiting And Talent

Management with 2012

Predictions 12/11

© Dr John Sullivan [email protected]

www.drjohnsullivan.com

“It's always better to be prepared… than surprised”

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The basic premise for planning ahead

Let’s take a minute and look at the “big picture view” of the

environment we must work in.

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Big picture

If you could use just one word or phrase to describe

what we’ve been going through over the last few

years, what would be?

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Are you prepared for a VUCA environment? The new normal

Does VUCA describe the business world that you compete in?Volatility – you frequently and suddenly encounter

major change Uncertainty – there are many surprises. Change

and it’s causes are hard to predict and they do not follow an easy to predict pattern

Complexity – problems & opportunities are complex & they include many different elements

Ambiguity – cause and effect are difficult to connect. There is contradictory information/data and advice, making mis-reads likely. It appears to be confusing and chaotic

Why must you know the trends?

It is easy to get caught up in day-to-day activities

to the point where you don’t look ahead for

upcoming problems and opportunities

Everyone strives to be more strategic but being

strategic requires that you… look forward and

identify trends, opportunities and threats (SWOT)

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Why must you know the trends?

Unfortunately, if you don’t identify them in time

the problems / threats may get bigger and the

opportunities may have passed

By at least becoming aware of these trends… you

can avoid “surprises” and you may be able to

turn them into a competitive advantage

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What keeps CEO’s up at night?

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Let’s answer another important question

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What are the business areas where CEO’s expect the most change during the next twelve months?

1. Engagement with the Board of Directors

2. Capital structure

3. Focus on corporate reputation & rebuilding trust

4. Organizational structure (including M&A)

5. Investment decisions

6. Approaches to managing risk

7. Strategies for managing talent

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CEO’s expect the most change over the next 12 months… in talent management strategy

PwC 14th annual global CEO survey 2011

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Conclusion - Because CEO’s now know our importance

If you are not currently getting a boatload of money

from your executives… something is wrong!

Realize that…TM is where CEO’s expect the most change

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A quick snapshot so you know

where the leading edge is

How does your firm compare to

the leading edge websites in 9

slides!

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Marriott – “how would you operate in our kitchen” a game on Facebook - My Marriott Hotel

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Career control room – Set your skills & find your job

Forecaster, trend setter, numbers whiz, people person, wordsmith, quick thinker

If you say you are a deadline person, a problem solver and a people person

Then… it recommends the right job for you

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Simulations on today’s challenges excite and assess

KPMG offers a job problem simulation to 2nd round candidates and college prospects (for brand & assessment)

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Deloitte – creates mass personalized webpages

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VCA Vet Hospitals - Recruiting using technical contests

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Diagnose this coughing, 7-year-old miniature poodle

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UK intelligence offers an agent cover story test to attract and excite

Cover story test

USAF - Build an airplane and see if it will fly

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Zappos – Cover letters are sooooo old fashioned

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If these examples = an

excitement score of 10

How many excitement points would your site rate?

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Now shifting to trends…

How would you characterize

last year (2011) in recruiting?

Many have designated last year as…

2011 was “The Year of Social Media” Social media usage was involved in nearly every

high level functional discussion It’s clear that Facebook, LinkedIn and Twitter

will play a dominate role in recruiting and development best practices for years to come

Social media linked to referrals - 2011 saw 40 new venders emerge to help organizations leverage social media to attract referrals

Social media for talent assessment – we started to see early stage tools to leverage social media in talent assessment (pre/post hire) > 24

Last year was…

2011 also saw an emphasis on: Beginning to re-examine how we measure and

improve the candidate experience With decreased hiring levels, there was an

increased focus on… how to attract “purple squirrels” including pioneers, game changers and innovators

Firms like Facebook, Google, Zappos, CACI, DaVita, Intel continued to raise the definition of what is considered to be world-class talent management

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Now let’s shift to…

The 10 major trends that you can

expect during 2012

2012 will be “the year of the mobile platform”

The most prominent trend - the mobile platform By year’s end, even the skeptics will admit that

the mobile platform (smart phones and tablets) will be the dominant communications and interaction platform among best practice organizations

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2012 will be “the year of the mobile platform”

Factors that make the platform powerful include: Almost every professional will have a smart phone They carry it with them 24/7 It has an amazing response rate It can carry every type of message and interaction

including voice, text, e-mail, video, websites, social media, music, games etc.

It is global In addition to recruiting, the platform will become

a significant tool in… learning, collaboration, feedback and leadership development

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Let’s look at 9 additional

major trends for 2012

Do you agree that this is a major trend?

1) Intense hiring competition will return in selected areas

Even though global economic issues will persist for years… the global war for talent will continue spiking in key regions and industries

While growth has slowed somewhat in China… areas like Australia and Southeast Asia including India will continue to see dramatic demand for skilled talent

In the US and Europe demand is still largely limited to certain industries where skills shortages have been an issue for years >

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Intense hiring competition in selected areas High tech will see a significant escalation in the

war for top talent As innovators and game changers leave established

tech firms like Facebook, Apple, Google, Twitter,

and Zynga… a whole new breed of tech start-ups

will be born each vying for the best of the best Competition will force recruiting to innovate at a

breathtaking pace

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2) Retention issues will increase dramatically Almost every survey shows that despite high

engagement scores, more than a majority of employees are willing to quit their current job as soon as a better opportunity comes along

I am predicting that turnover rates in high demand occupations will increase by 25% during the next year… and thus, so will your recruiting load

Because most retention programs have been so severely degraded, retention could turn out to be the highest economic impact area in all of TM

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Retention issues will increase dramatically Rather than the traditional “one-size-fits-all”

retention strategy, a targeted personalized approach will be required if you expect to have a reasonable chance to retain your top talent

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3) Social media increases its impact by becoming more data-driven

Most firms jumped on the social media bandwagon but unfortunately, the trial-and-error approach used by most has produced only mediocre results

Adapting social media approaches from the business coupled with strong analytics will allow a more focused approach that harnesses and directs the efforts of all employees on social media

Talent leaders will increasingly see the value of a combination of internal and external social media approaches for managing / developing talent

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4) Remote work changes everything in TM The continued growth of technology, social media

and easy communications now makes it possible for most knowledge work and team activities to occur remotely

Allowing top talent to work “wherever they want to work” improves retention and makes recruiting dramatically easier

Unfortunately, even though it’s possible for 50% of a firm's jobs be done remotely, manager and HR resistance has limited the trend >

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Remote work changes everything in TM Fortunately, most leaders have begun to realize

that teamwork, learning, development, recruiting and best practice sharing can now successfully be accomplished using remote methods

Firms like IBM, SUN and Cisco have led the way in reducing and eliminating barriers to remote work

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5) The need for speed shifts the balance between development and recruiting

Historically, the best practice has been to develop and select primarily from within

More firms have begun to copy the “Apple model” (where a firm is continually crossing traditional industry boundaries)

As the speed of change in business increases… there simply isn’t time to develop

When the business requires “brand-new skills” instantly… the balance shifts towards recruiting (vs. development) > 37


A shift in the balance between development and recruiting As a result, the trend will be to continually shift the

balance towards recruiting for immediate needs

And the use of contingent labor for short duration opportunities and problems >

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More productiveMake internal talent more productive

RetainRetain key internal talent

MoveRedeploy internal talent

BorrowBorrow contingent labor

HR has 8 options for increasing productivity

Release Weak & excess labor

Use substitutes (Tech, outsource, cust.)

Buy Recruit regular employees

BuildDevelop internal talent


6) Employee referrals are coupled with social media The employee referral program in many

organizations are operated in isolation… as are the firm’s social media efforts

Talent managers are beginning to realize that the real strength of social media is relationship building by your employees

With proper coordination, employee relationships can easily be turned into high quality employee referrals >

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Employee referrals are coupled with social media This realization will lead to a shift away from

recruiters and towards relying on employees to build social media contacts and relationships

The net result will be that as many as 60% of all hires will come from the combined efforts

The strength of these relationships will lead to better assessment and the highest quality hires (with no diversity issues) from employee referrals

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7) Employer branding returns Employer branding and building talent

communities are the only long-term strategies in recruiting

True branding is rarely practiced (hint: it’s not recruitment advertising / marketing) especially in the cash strapped function of today

Years of layoffs, cuts in compensation and generally bad press for business in general may force firms to invest in true branding >

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Employer branding returns Your brand is now owned and communicated by

others You can no longer control your brand but you can

monitor and influence it in a direction that isn’t catastrophic to recruiting and retention

The increased use of social media and frequent visits to employee criticism sites, make managing brand perception difficult

Are you aware of the impact of glassdoor.com on your brand and recruiting?

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8) The candidate experience is finally getting the attention it deserves

The high jobless rate has allowed corporations to essentially abuse some applicants

Organizations usually don’t treat candidates as well as they did their customers

As competition for talent increases, talent leaders will be forced to modify their approach >

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The candidate experience Leaders must realize that treating applicants poorly

can not only drive away other high-quality applicants but it can also lose them sales and customers

At the very least, firms must more closely monitor candidate experience metrics

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9) Forward-looking metrics begin to dominate Almost all current TM and recruiting metrics are

backward looking, in that they tell you what happened in the past

Other business functions have long championed the use of "forward-looking" or predictive metrics (i.e. supply chain, production and finance)

Forward-looking metrics can improve decision-making and they can also help to prevent or mitigate future talent problems >

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Examples of forward-looking metrics and CI Is the unemployment rate trending up or down? Will there be periods where your competitors are

not recruiting? Are their times in the year when there are an

abundance of candidates? Can trends in the number of applicants or offer

acceptance rates forecast the future? What will “next year’s” turnover rate be?

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Finally, let’s shift to…

Some additional “lesser” trends

that you should prepare for

Some other “lesser trends” to consider

Talent communities/ Professional communities Talent communities are really active candidate/

prospect communities… that you send job announcements to

Professional communities include no applicants and the goal is long term relationship building based on learning and professional growth… that subtly evolves into recruiting

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Additional trends

Prioritization – continued budget and resource pressure will force talent management leaders to prioritize their services, business units, key jobs and high-value manager/employees

Integration – there will be increasing pressure for talent management functions to more closely integrate and work seamlessly

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Additional trends

Competitive analysis for a competitive advantage The increasingly competitive bus. world has forced

every function to be more externally focused HR has a long history of being internally focused

and not being “highly competitive” There is pressure to become more businesslike and

to adopt an “us versus them” perspective That means conducting competitive analysis, CI

and making sure that every key TM function produces results that are superior to those of our competitors

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Additional trends

Contingent workers – as continuous business volatility becomes the “new normal,” the increased use and the improved management of contingent workers will become essential for agility and flexibility (approaching 50%)

Recruiting at industry events – as industry events return to popularity, recruiting at them will again become an effective tool for recruiting top and diverse talent

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Additional trends

Assessment continues to improve – vendors, software and tools continue to improve in this area that will become increasingly important

Hire before they do – most firms will restrict their hiring until the turnaround actually begins. However, it is critical that your firm has a talent pool or pipeline developed, so that you can hire immediately and get top talent “right before” your competitors realize the downturn is over

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Some other major trends to consider

Prepare for a permanent skill gap The skills required by organizations will

continually upgrade, while the available labor with those skills will continue to decline

Location software – talent managers will begin to realize that software that allows you to check-in and see who is within close geographic proximity has great value and many still unidentified uses

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Additional trends

Expedited leadership development As more “baby boom” leaders and managers

actually begin to retire, there will be increased pressure for expedited leadership development

What is needed are solutions that develop talent remotely using social media tools… and within months rather than years (more levels, entire teams, agility)

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Some other major trends to consider

Risk identification Almost every other business function has already

adopted a risk management strategy and soon talent management will be forced to adopt a similar strategy and set of metrics

This risk assessment/management program will not only cover HR legal issues but also… the economic “risk” associated with weak hiring, slow hiring, the absence of developed leaders and the cost of turnover of key talent

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Additional trends

Speed up internal movement through proactive internal placement - few things increase productivity, retention and development faster than rapid, proactive, directed and “accurate” internal movement

College recruiting needs to be reengineered – on college campuses, communications and job seeking approaches have changed dramatically but college recruiting programs have been stagnant for years

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And the last “minor trend”

Directly increase corporate revenues by focusing on revenue generating and rev. impact jobs Talent management should work with the COO to

identify the jobs that generate significant amounts of revenue or that directly impact revenue generation

TM must then prioritize its resources and people so that they focus on hiring, retaining, developing etc. the areas that have a high revenue impact

Work with the CFO in order to develop metrics that demonstrate the $ increase in revenues

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Well if CEO’s expect major changes…

There are two basic ways to dramatically change recruiting

1. Do more of the smart things

2. Stop doing the dumb things

The top 10 dumb things recruiters do

10. Not identifying job acceptance criteria (Consequences - hurts marketing/ attracting & selling passives)9. Not prioritizing jobs (Consequences - lost rev, low budgets, perceived as not

bus. like) 8. Using active approaches for passive candidates (Consequences – never see postings, lose top candidates)

9. Assuming interviews are accurate (Consequences – bad hires, more turnover, no forward thinkers)

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The top 10 dumb things recruiters do

6.Making slow hiring decisions (Consequences – those with multi-offers gone, frustrated mgrs., rev. loss)

7. Using the same rec. process for different level jobs(Consequences – no returned calls, slow hiring & low qual. hires)

8.Not learning the business(Consequences – mgrs. & candidates ignore you, low

bus. impact)61

The top 3 dumbest things that recruiters do

3.Not taking advantage of EE referrals(Consequences – loss of volume, quality, assessment &

selling)

4.Expecting dull position descriptions to attract(Consequences – competitors get the best, mgrs.

frustrated)

5.Not managing the candidate experience (Consequences – hurt brand, lose customers, they extrapolate)

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Did this make you think?

Business

Trends in Talent Management and Recruiting - 2012 predictions