Copyright 2008 Talent Connections. All Rights Reserved. Presented By Tom Darrow May 13, 2008 Improving the Recruiting Process SHRM – NW Georgia

Copyright 2008 Talent Connections. All Rights Reserved.

Presented ByPresented By

Tom DarrowTom DarrowMay 13, 2008May 13, 2008

Improving the Recruiting ProcessImproving the Recruiting ProcessSHRM – NW GeorgiaSHRM – NW Georgia


Audience SurveyAudience Survey

• Who are you?– Corporate Recruiters– Contract Recruiters– HR Generalists– Agencies– Others

• What are your challenges in recruiting?


AgendaAgenda

• How to elevate your recruiting program– Recruiting Infrastructure Models– Employee Referral Programs– Training your employees– Sourcing– Metrics– What doesn’t work well?

• Q&A

• Homework


To PonderTo 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


To PonderTo 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 SullivanSan Francisco State University


How to Elevate Your Recruiting ProgramHow to Elevate Your Recruiting ProgramStep 1 – Ensure Proper InfrastructureStep 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


Recruiting Infrastructure Models - Recruiting Infrastructure Models - Centralized vs. DecentralizedCentralized 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


Recruiting Infrastructure Models - Recruiting Infrastructure Models - Recruiter AlignmentRecruiter Alignment

GeographyGeography BusinessBusinessUnitUnit

FunctionFunction

•Positions are very location dependent

•Skills very different between business units

•Each location has critical mass

•There is high volume within each function & activity is location independent

LevelLevel(Executive, (Executive,

Managerial, Support, Managerial, Support, Entry/Campus)Entry/Campus)


How to Elevate Your Recruiting ProgramHow to Elevate Your Recruiting ProgramStep 2 – Employee Referral ProgramStep 2 – Employee Referral Program

World class employee referral program

How many recruiters do you have?


Employee Referral Program — Why?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


Primary Weaknesses of Primary Weaknesses of Employee Referral Employee Referral ProgramsPrograms

• 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


Buy-In from ManagementBuy-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


Primary Management ConcernPrimary 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?


Management Concern #2Management 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


Management Concern #3Management 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.”


Referral Program OverviewReferral Program Overview

• Who is eligible?• What positions are eligible?• Communicating openings• Referral process and

documentation• Communicating candidate status• Incentives - Rewards and

Recognition


Who is Eligible?Who is Eligible?

• Management?• HR/Recruiting?• Contractors/Temporaries?• Alumni?• Vendors?• Others?


What Positions are Eligible?What Positions are Eligible?

ManagementManagement

AdministrativeAdministrative

Hi-TechHi-Tech

Entry LevelEntry LevelAllAll


Communicating OpeningsCommunicating Openings

IntranetIntranetIntranetIntranet

WeeklyWeeklyE-mailE-mail

WeeklyWeeklyE-mailE-mail

NewsletterNewsletterNewsletterNewsletter

CompanyCompanyBulletinBulletinBoardsBoards

CompanyCompanyBulletinBulletinBoardsBoards

CompanyCompanyMeetingsMeetingsCompanyCompanyMeetingsMeetings


Requirements & Requirements & DocumentationDocumentation

• 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?


Requirements & Requirements & DocumentationDocumentation

• 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)


Recruiting Department To-Recruiting Department To-Do’sDo’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


• Parking Privileges• Training course

reimbursement• Equipment

– Computer– Palm Pilot– Home office

• Exclusive tickets, restaurants, country clubs

Incentives — RewardsIncentives — Rewards

• Cash*• Car• Stock• Vacation• Frequent Flyer• Performance

Evaluation note• Drawing*• Logo

merchandise**More details on following

slides


CashCash

• 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?


DrawingDrawing

• Hype!• Chances

– 10 for every referral hired– 1 for every referral

• Timing– Each company meeting?– Annually

• Prizes– Trips, Cars, Stock, Vacation


Program SloganProgram 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


Program LogoProgram 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


Incentives — RecognitionIncentives — 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


Marketing — HypeMarketing — Hype

IncentivesIncentives

SloganSloganKick offKick off

OpenOpenHousesHouses

RecruitingRecruitingProcessProcess

& Interview& InterviewSkills trainingSkills training


Marketing — VisibilityMarketing — 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


Buy-In from EmployeesBuy-In from Employees

• 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!

AdvisoryAdvisoryTeamTeam

AdvisoryAdvisoryTeamTeam

ERPERPTrainingTrainingProgramProgram

ERPERPTrainingTrainingProgramProgram


How to Elevate Your Recruiting ProgramHow to Elevate Your Recruiting ProgramStep 3 - Training EmployeesStep 3 - Training Employees

• Prerequisite for employee referral program involvement– Recruiting Process workshop– Interview Skills workshop– Negotiation and Sales for Managers


Teach EmployeesTeach 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


Employee Referral Program Employee Referral Program ——

Sourcing ChannelsSourcing Channels

PriorEmployers

Conferences/Seminars

Professional Associations

Alma Mater

Family and Church

Children’s Friend’s Parents

Country Clubs/ Community

Organizations

Commuter Trains/Buse

s


Recruiting Process Recruiting Process WorkshopWorkshop

• Develop a game– “Recruitopoly™”– “Recruit or Consequences”

• Teach the philosophy, techniques and tools for recruiting– Sourcing, assessing, selling– Employee referral program


Interview Skills WorkshopInterview Skills Workshop

• Recruiting Process and Interview Preparation

• Types of Interviews– Screening– Skills– Behavioral– Confirming/Selling

• Managing the interview• Making the decision• Documentation• Legal Issues


Other TrainingOther 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


SellingSelling

Research has shown that people accept a job because of????

MoneyDevelop Skills

Peer GroupCompany Dynamics

Creative Challenge


How to Elevate Your Recruiting ProgramHow to Elevate Your Recruiting ProgramStep 4 – Enhance Your Sourcing StrategyStep 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• Social Networking

Strategies


How to Elevate Your Recruiting ProgramHow to Elevate Your Recruiting ProgramStep 5 – Implement MetricsStep 5 – Implement Metrics

“What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics

• Resumes• Screens• Interviews• Offers• Accepts

• Fills• Use of

system

• Efficiency• Cost by

source channel


How to Elevate Your Recruiting ProgramHow to Elevate Your Recruiting ProgramStep 6 – Reference and Background ChecksStep 6 – Reference and Background Checks

• Must be done for ALL candidates who receive an offer


How to Elevate Your Recruiting ProgramHow to Elevate Your Recruiting ProgramStep 7 – Candidate ManagementStep 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!


How to Elevate Your Recruiting ProgramHow to Elevate Your Recruiting ProgramStep 8 – AutomateStep 8 – Automate

• Applicant Tracking

• Employee Referrals

• Streamline communications


How to Elevate Your Recruiting ProgramHow to Elevate Your Recruiting ProgramStep 9 – Assess Areas that Impact RecruitingStep 9 – Assess Areas that Impact Recruiting

• Compensation Program• Benefits• Training• Branding/Image• Morale


How to Elevate Your Recruiting ProgramHow to Elevate Your Recruiting ProgramStep 10 – Turn Recruiting into a Business Step 10 – Turn Recruiting into a Business PartnerPartner

• 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


Q&A


Homework 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


Thank You!Thank You!

Tom DarrowTom Darrow

PrincipalPrincipal

Talent Connections, LLCTalent Connections, LLC

175 Inverness Approach175 Inverness Approach

Roswell, GA 30075Roswell, GA 30075

(770) 552-1550(770) 552-1550

[email protected]@talentconnections.net

www.talentconnections.netwww.talentconnections.net

Documents

Copyright 2008 Talent Connections. All Rights Reserved. Presented By Tom Darrow May 13, 2008 Improving the Recruiting Process SHRM – NW Georgia