Strictly Confidential
Sourcing - Value & Impact
Page 2
What questions will we answer?
What is the role of a Sourcer?
What does good look like?
What are the metrics that matter?
Page 3
Perspective
Page 4
Talent Acquisition’s Top 3 Pain Points
Consistent Delivery
Page 5
Recruiters
Technology
Page 6
Recruiters
Technology
Channels
Page 7
Recruiters
Technology
Channels
Sourcers
Page 8
Recruiters
Technology
Channels
Sourcers
Page 9
Recruiters
Technology
Channels
Sourcers
Page 10
Increased # hires from SourcingDecreased Time to FillIncreased Candidate SatisfactionMarket Mapping & Intelligence,Lower candidate attraction cost
Recruiters
Technology
Channels
Sourcers
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Perception
Page 12
Perception
Hiring Manager Wants resources, and thinks candidates are lined up outside waiting for jobs
Recruiter Wants the visibility and control
Sourcer Wants acknowledgement and equality
Candidate Wants a job (& a good experience)
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Perceptions of Sourcing
Sourcers don’t consult with business leaders to bring market insights, supply & demand data, competitor EVP, pay parody and assumptions versus marketplace reality
Sourcing is perceived by stakeholders as largely, if not completely, tactical
Sourcing is often invisible…
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What is the role of a Sourcer?
Page 15
Sourcing Defined
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What do We Mean by Sourcing?
External candidate focus Passive candidate identification Talent Pooling (build & manage) Specialist knowledge of industry and associated skills, nomenclature
and competition Possess tools and capability to locate & engage talent Sells the client brand & engages with candidates Builds and executes a Sourcing strategy Understand and contextualizes requisition and candidate’s job
qualifications Candidate Management – expectation management Brand champion – brand custodian
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Sourcing is Not
Int Sched/ Admin Not Dealing with Internal
Candidates Not Respones mgt (job
posting or career site responses)
No competency-based Interviews
Not Managing Agency Candidates
Responding to email queries
Preparing reports & analysis
Posting & Praying “Faceless” Doing a recruiters admin An optional resource
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What does good look like?
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Recruitment Journey (Process) by Key Tasks, Including Sourcing
0 2 4 6 8 10 12 14 16 18 20
Requi
sitio
n Brie
fing
with
Hiri
ng M
anag
er
Posts
/Adv
ertis
es R
ole
or M
aint
ains
Pos
tings
Searc
h ATS
for C
andi
date
s
Exter
nal S
earc
h fo
r Can
dida
tes
Scree
ns fo
r min
imum
qua
lific
atio
ns
Build
s an
d m
aint
ains
CRM
Build
s an
d m
aint
ains
tale
nt p
ools
Rejec
ts c
andi
date
s w
ho d
on’t
qual
ify
Sched
ules
dee
p di
ve p
hone
scr
een
Condu
cts
deep
div
e ph
one
scre
en
Rejec
ts a
s ne
eded
afte
r pho
ne s
cree
n
Sends
can
dida
tes
to H
iring
Man
ager
Rejec
ts c
andi
date
s af
ter H
M R
evie
w
Sched
ules
F2F
inte
rvie
w
Rejec
ts c
andi
date
s af
ter F
2F in
terv
iew
Exten
ds o
ffer t
o ca
ndid
ate
Keeps
ATS
up
to d
ate
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Who Should do What?
Other
Research
Recruiter
Both
Sourcer
No One0 2 4 6 8 10 12 14 16 18 20
Sourcing Selection
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Task ownership by resource – Specialist process
Sourcing SelectionWhat Good Looks Like
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
Company 7
Company 8
Company 9
Company 10
Company 11
Company 12
Company 13
Company 14
Company 15
Company 16
Company 17
Company 18
Company 19
Company 20
Map and compare Volume, Specialist & Internal processes
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What are the metrics that matter?
Page 23
Number of Requisitions Number of PositionsNumber of Key PositionsNumber of New RequisitionsNumber of Replacement RequisitionsNumber of Open RequisitionsNumber of Open Aged Requisitions (0-30 days)Number of Open Aged Requisitions (30-60 days)Number of Open Aged Requisitions (60-90 days)Number of Open Aged Requisitions (90-120 days)Number of Open Aged Requisitions (120+ days)Number of Open Aged Requisitions (0-30 days) (%)Number of Open Aged Requisitions (30-60 days) (%)Number of Open Aged Requisitions (60-90 days) (%)Number of Open Aged Requisitions (90-120 days) (%)Number of Open Aged Requisitions (120+ days) (%)Number of "On-hold" RequisitionsNumber of Cancelled RequisitionsNumber of Pending RequisitionsNumber of Filled RequisitionsNumber of Remaining Positions to FillRequisitions-To-Recruiter ratio (%)Number of RecruitersNumber of Offers ExtendedNumber of Offers AcceptedNumber of Offers Declined by CandidateDeclined Offers Reasons Mix (%)Number of Offers Cancelled by Hiring CompanyNumber of Offers "On-hold" by Hiring CompanyInterview-to-Offer ratio (%)Offers-to-Recruiter ratio (%)Offer Acceptance rate (%)Number of HiresNumber of "no-shows"Number of Pending HiresNumber of Pending Hires (<1 month)Number of Pending Hires (1-2 months)Number of Pending Hires (3+ months)Number of Starters (Contingent)Number of Finishers (Contingent)Number of Extensions (Contingent)Number of CandidatesNumber of Internal CandidatesNumber of External CandidatesNumber of Contract Extensions (Contingent)Number of Activities Number of Applications Number of Sourcing & screening activities Number of HM (Hiring Manager) review Number of First Interviews Number of Second Interviews Number of InterviewsNumber of Offers Requested Number of Offers Extended (** included in Offers **) Number of Offers Accepted (** included in Offers **) Number of Hires (** included in Hires **)Applications-to-Hiring Manager review ratio (%)HM review-to-First Interview ratio (%)First-to-Second Interview ratio (%)Second Interviews-to-Offers extended ratio (%)Offer Requests-to-Offer Extended ratio (%)CV's-to-First Interviews ratio (%)First Interviews-to-Verbal Offer Accepted ratio (%)Candidates per Hire ratio (%)Interviews per Hire ratio (%)Hires-to-Recruiter ratio (%)Source Mix of Candidates (%)Source Mix of Internal Candidates (%)Source Mix of External Candidates (%)Source Mix of Agency Candidates (%)Source Mix of Hires(%)Number of ReferralsNumber of Sourced CandidatesReferral Conversion Rate (%)Referral Rate (%)Volume Source MixDirect Mix (%)Sourcing Channel CostSourcing Channel Cost Mix (%)Sourcing Channel UsageSourcing Channel-to-Hire ratio (%) Sourced Candidate Acceptance ratio (%)Sourcing Pipeline Average Agency Costs/FeesAMS Costs/FeesRequisition CostCost-per-CandidateAverage Cost-per-HireCost on "empty seat"Total Hiring CostsCost per Candidate per Recruitment StepRecruitment Expense BreakdownAverage Hire Starting SalaryContractor Salary (Contingent)Contractor Daily Rate (Contingent)Fees billed against cancelled requisitionsApplication Cycle TimeRequisition Cycle timeTime-To-SourceTime-to-ShortlistTime-to-ApproveTime-to-HireTime-to-OfferTime-to-StartTime-to-FillTime-to-First CSW ActionTime-to-accept (in working days)Time-to-accept (in calendar days)Time-to-Last Position AcceptedContracted Time to StartTime-to-Offer ApprovedTime-Interview-to-OfferTime-Offer-to-AcceptTime-Offer-to-ApproveTime-Offer-to-StartTime-to-First-CVTime-to-First-InterviewTime-to-First-Verbal-AcceptedTime-to-First-Verbal-OfferTime-Interview-to-OfferTime Requisition on holdHiring Manager Satisfaction Survey Response Rate (%)Internal Candidate Satisfaction Survey Response Rate (%)External Candidate Satisfaction Survey Response Rate (%)Hiring Manager Overall Satisfaction level (1-5 rating)Internal Candidate Overall Satisfaction level (1-5 rating)External Candidate Overall Satisfaction level (1-5 rating)Employee Retention (%)> Employee Retention (at 3 months service) (%)> Employee Retention (at 6 months service) (%)> Employee Retention (at 9 months service) (%)> Employee Retention (at 12 months service) (%)> Employee Retention (at 24 months service) (%)Employee Promotion Rate (%)Number of Candidates: WomenNumber of Candidates: MenNumber of Hires: WomanNumber of Hires: MenAverage Starting Salary: WomenAverage Starting Salary: MenNumber of Offers Extended: WomenNumber of Offers Extended: MenNumber of Reports DeliveredNumber of Automated Delivered ReportsNumber of Partial Automated Delivered ReportsNumber of Manual Delivered Reports% Manual Reports delivered% Automated Reports delivered% Partial Automated Reports deliveredNumber of Ad-Hoc Reports DeliveredNumber of Report Changes RequiredNumber of Team Members producing reportsAverage Report LoadingNumber of Complaints Received% Complaints ReceivedNumber of Reports Delivered within SLA (date defined reports)Number of Simple Ad-hoc Reports Delivered (<1 day)Number of Complex Ad-hoc Reports Delivered (<3 days)Number of Highly Complex Ad-hoc Reports Delivered (<5 days)% Number of Complaints (< 1%) Employee HeadcountEmployee Average Tenure in Company (in years)Employee Average Tenure in Position (in years)Employee Average Tenure in Job (in years)Employee Average Tenure in Grade (in years) Talent Group HeadcountTalent Group Headcount (%)Talent Headcound: WomenTalent Headcound: Women (%)Number fo Key PositionsTalent Group ResignationsTalent Group Involuntary TerminationsTalent Achieving PromotionExpatriate TalentTalent "Ready for International Assignement"Key Positions filledKey Positions filled (by identified Successors)Key Positions filled (by external Candidates)SuccessorsSuccessors for Key PositionsSuccessors: Ready NowSuccessors: Ready in 1 yearSuccessors: Ready in 2+ yearsSuccessors for Key Positions: Ready NowSuccessors for Key Positions: Ready in 1 yearSuccessors for Key Positions: Ready in 2+ yearsTalent Gender DiversityTalent Average TenureTalent PromotionsTalent Demotions Learning & Development HoursLearning & Development Hours (in-house hours)Learning & Development Hours (external hours)Learning & Development Hours per FTELearning & Development Hours (in-house hours) per FTELearning & Development Hours (external hours) per FTEEmployees attending at least 2 training daysNumber of PromotionsNumber of Demotions Performance Rating Distribution (%)Mid-Year Performance Reviews Conducted (%)Year-End Performance Reviews Conducted (%)
Metrics =
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Cost Per Hire
Cost-Per-Hire (CPH) is a measure of the effort exerted, defined in financial terms, to staff an open position in an organization.
In February, 2012 the American National Standards Institute (ANSI) in partnership SHRM defined COST-PER-HIRE for several key hiring categories, Including External, Internal and Contingent hires
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Sourcing: By the Numbers
Great salespeople — and great Sourcers — know their conversion rates. At minimum, they know:
% of suspects they are able to convert to become prospects; % of prospects they are able to convert to become candidates; % of candidates they are able to convert to being sent to hiring
managers; % of candidates sent to hiring managers receive offers; and, % of candidates who receive offers accept and become
employees
Question:
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Sourcing Funnel
Source: Mary Parks. ERE Article
Page 27
Know your conversion rates
Example: Cold Call conversion rates show A 30% call back rate & 33% net of qualified candidates
Total Dials Total Call Backs (30%)N Qualified Candidates
(33%)
10 3 1
100 30 10
200 60 20
300 90 30
Cold Calls:
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Other Important Metrics
Qualitative: Weekly submittals
Quantitative Percentage of
candidates accepted
Talent Pool health Hires (value)
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Value and Impact
Page 30
The Original Ulrich Model
HR Concept: Differentiates between transactional and transformational. Emphasizes understanding the business agenda and how your skills can help deliver it.
Where do you spend your time?
Strategic
Transactional
Process People
3 4
1 2
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Every role is necessary but –
Which person has the most direct hires?
Who has the most impact?
Who is perceived as adding the most value?
Transactional vs. Transformational Sourcing
Str
ate
gic
Tra
ns
act
ion
al
Process
Strategic Expert:Adept with tools and techniques
Admin Expert:Completes
tasksefficiently
People
Change Agent:Finds and
engages talent
Champion:Strong
relationships
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No real surprises here.
How do we make it happen?
ImpactS
tra
teg
icT
ran
sa
ctio
na
l
Process
Strategic Expert
Admin Expert
People
Change Agent
Champion
Page 33
Ulrich Model and Sourcing
Strategic Expert
Admin Expert
Change Agent
Champion
Identify and find sourcing tools
Find passive candidates Know your industry Know the skills you source
Build and execute strategy Engage candidates Personify the brand Expert candidate matching Gathers & Communicates
market insight
Communicate honestly and manage expectations
Makes talent pool feel like a talent community
Manages talent pool data – Everything’s complete and correct
Page 34
Value of Sourcing
*channels: ROI by region, skill, industry, geography, device
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Channel Effectiveness: Media
Page 36
Both companies use the same media but their channel mix is very different
Channel Mix Comparison
Agency Job Board Careers Site Internal Referral Other Talent Pool
Page 37
Levers to Improve Performance
Set target to improve weekly output
Example 20+ 7+17= avg of 14.6 Submittals Per Week (SPW) 16+18+17= avg. 17.0 SPW [=120 MORE subs per year!]Must be measured in the context of “quality” [target +/- 85% Recruiter acceptance]
If you work as part of a team, set a weekly team goal for submittals and have the team members flex to meet the goal each week; regardless of difficult requisitions or team members on sick leave or vacation
Page 38
Levers to Improve Performance
Really “know” the EVP of the company you represent (and your competitors)
Know the competitive landscape of your industry; leverage the strong points and compensate for the weaker points
Master the art of Engagement!!! Drastically improve your candidate conversion rate Drastically improve your networking Referrals Build your pipeline
Increase your sector & domain knowledge Remember: Consistently good wins!!!!
Page 39
Levers to Improve Quality
Understand “what good looks like” in your environment
Be present & take the lead in the Hiring Manager requisition briefing, and bring insight and data
Improve your sector domain knowledge
Work in partnership with your Recruiting counterparts and as strategic advisors to your stakeholders
Page 40
Levers to Control Cost
HAVE A PLAN! Use a structured project plan for the roles you source and
follow it Track and measure the ROI on the channels you use Impact the candidate experience (and measure it in
surveys) **Capture relevant information from prospects and
candidates (what’s going on out there? Who’s hiring? What is the competition paying? Why are/aren’t you interested in working here? What would need to change for you to become interested?
Page 41
Dos and Don’ts
Do Don’t Have a plan Pick up the phone and connect
with people Change mind-set from one of
“finding” to “engaging” Leverage market insights to
bring value to the conversations with stakeholders
Know the value you bring to the business
Hide behind technology & email
Waste time and money on channels that don’t perform
Waste your time Act passively Be invisible Be lame
Page 42
Final thoughts….
Through the “glitz” of toys and tricks, we may have hidden the meaning and purpose of Sourcing
If Sourcing (and Sourcers) are so good, why are there still recruiting agencies [and new ones every day]?
We need to get back to basics We, as a Sourcing community,
need to ask “what can we do”? What can be outsourced will be