ACHIEVE TALENTMANAGEMENT SUCCESS
Talent Acquisition Systems: Industry Trends and Best Practices
Presented by: Ed Newman
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Agenda
• Shift from Applicant Tracking to Talent Acquisition
• The Selection Process• Research Methodology• Customer Satisfaction/Market Landscape• Key Players
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Ten Year Technology Market Evolution
WorkforceManagement
CandidateManagement
ApplicantTracking
Contact ManagementSocial NetworkingContingent workers
Performance Mgmt.Succession Planning
Learning/Development
Profiling/Job Seeker Mgmt
HRIS-Total Solution
Talent Management
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
More than just tracking an applicant
• Corporate career site presence and branding• Job postings to 3rd party boards• Candidate search and data mining• Prescreening questionnaires• Testing and assessment• Interview management• Candidate relationship management• Employee referral program• Integration with third party services (background,
reference, etc.)• Reporting, metrics and analytics
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Technology Selection Methodology
Phase I - Planning• Prioritized business
requirements• Process mapping and
alignmentPhase II - Analysis• RFI/RFP• Finalist Demonstrations• Usability testingPhase III - Selection• Final selection and contract
negotiation• Gap analysis• Pre-implementation planning
Technical
Functionality
Focus
Capability
CostService
BusinessGoal
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Sample list of requirementsCategory Sub Category Priority Score
Applicant Experience Allows for applicant logins high
Applicant Experience Applications can be saved by the applicant so that they can come back later and finish
High
Applicant Experience allow candidates to go back and check their statusHigh
Document Storage & Collection Ability to attach multiples types of documents to a candidate record (resumes, CL, portfolio, phone screen, etc.)
High
Document Storage & Collection Ability to easily download, print, save, and manipulate documents
High
Document Storage & Collection Multiple formats supported (word, pdf, text, html) High
Document Storage & Collection Resume keywords High
Document Storage & Collection Unlimited document storage for each candidate High
Managing applications Ability to attach and detach groups of candidates to a requisition
High
Managing applications Ability to edit the records of a group of candidates simultaneously
High
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Sample of List of requirements (Continued)
Publicizing Job Openings Open positions can be posted to job boards through the system High
Publicizing Job Openings Ability to track effectiveness of our sources Medium
Reporting Ability to apply date parameters to criteria High
Reporting Ability to export reports into excel High
Reporting Ability to report on groups of candidates, as well as the pool overall. i.e. Be able to slice and dice data in different ways
High
Reporting Ability to separate out the different phases of the process High
Reporting Robust capability with customizable parameters High
Reporting Can the system incorporate satisfaction survey data into the records; can surveys be completed in the system?
Low
Reporting Allows access to the SQL database so that we can create custom reports
med
Reporting Works with Crystal Reports Med
Search Requisition data, both general and candidate specific, is maintained even after a requisition is closed
High
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Vendor Evaluation: Demo/Summit Agenda
8:30 – 10:00 Executive Presentation and Company Overview (Main Room)Agenda: Market Strategy Presentation and Overview of vendor business strategies, mission, financial position, market penetration, and support model
10:15 – 12:00 Vendor Product Overview and Demo (Main Room)Agenda: Product overview – all modules, current and proposed, product demonstration of all functionality.
12:00 – 1:00 Lunch Buffet1:00 – 3:30 Functional Product Evaluation (Computer Lab)
Agenda: Hands on application testing/evaluation, scripted recruiter, manager, candidate activities to measure usability and navigation.
1:00 – 3:30 Technical Product Demo/Evaluation (Main Room)Agenda: Detailed technical product discussion, integration to HRMS, migration path for current data, Implementation services, support requirements, etc.
4:00 – 5:30 Summit Debrief (Main Room)Agenda: Review Summit activities, collect summaries, summarize questions, concerns, next steps
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Vendor Evaluation Form (Sample)
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Vendor Evaluation Matrix (Sample)
Category
Weight Category Score
Weighted Score
Category Score
Weighted Score
Category Score
Weighted Score
Category Score
Weighted Score
Category Score
Weighted Score
5 0 0 0 0 0 0 0 0 0 0
5 0 0 0 0 0 0 0 0 0 0
10 0 0 0 0 0 0 0 0 0 0
20 0 0 0 0 0 0 0 0 0 0
30 0 0 0 0 0 0 0 0 0 0
30 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0
100 0 0 0 0 0Totals
CapabilityFocus
Service
Cost
Technical
FunctionalityRFI - Questions
Vendor 5
Company NameVendor 1 Vendor 2 Vendor 3 Vendor 4
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Vendor Evaluation Matrix - Detailed
Functionality
Weight Raw Score
Weighted Score
Raw Score
Weighted Score
Raw Score
Weighted Score
Financial Cash Position 5 0 0 0Revenue and Profit Growth 5 0 0 0Management Track Record 5 0 0 0Stable workforce (percentage turn 5 0 0 0Product Release Schedule History 5 0 0 0Market Commitment 5 0 0 0Market position/share 5 0 0 0Other 5 0 0 0
Vendor Viability Total 40 0 0 0
Credible Market Vision 5 0 0 0Path to profitability 5 0 0 0R & D Investment strategy 5 0 0 0Customer Support Investment 5 0 0 0Advisory Board/Customer Board of 5 0 0 0Strong Partnership Strategy 5 0 0 0
Vendor Vision Total 30 0 0 0
Capability
Focus
Service
Company Name
Vendor Requirements
Vendor 1 Vendor 2 Vendor 3
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Talent Acquisition Systems 2007
• Industry Analysis and Buyers Guide• Trends shaping the market• Vendor company profiles
– Background– Recent changes; Future Plans– Implementation Methodology– Pricing– Product highlights
• Detailed product functionality matrix
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
New this year
• Two international players were profiled - MrTed and Jobpartners. Both looking to expand in APAC and US.
• Closer look at Integration with HRMS and third-party recruiting services
• Reporting and analytics was added as a key product – all vendors profiled offer or plan to offer both ad hoc and standard reports
• Contact Management is examined more closely as vendors are announcing this new product
• Hourly/high-volume – the benefits of a separate module vs. the same module. Defining the difference between high-volume and hourly
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Research Methodology
• Quantitative Analysis: 554 survey respondents including corporations, educational institutions, governmental agencies and non-profit organizations with internal recruiting functions
• Qualitative Analysis: Follow-up interviews with companies currently using a TAS and companies in the selection process
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Most Companies are Satisfied
30%
42%
14%
9%
4%
Very Satisfied Satisfied Neutral Unsatisfied Very Unsatisfied
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Lifecycle of a TAS
• 65% of companies surveyed have been using their TAS for over a year
• Over the past 5 years, 65% of companies have invested in only one TAS system; 32% have invested in two systems and 3% have invested in three solutions
• 60% of companies surveyed expect the lifecycle of their TAS to last for 5 years or more
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Likelihood of Recommending…
34%
16%20%
13%
7% 8%
AlreadyRecommended
It
Very Likely Likely Neutral Unlikely Very Unlikely
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
But What About Customer Support?…
How Often Do You Communicate with Your Vendor Representative
12%
31%
17%19%
9%
1% 1%5%
Every day Once aweek
Every 2weeks
Once amonth
Every 6months
Once ayear
Longer thana year
Never
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Pricing
• 50% of companies surveyed indicated that the extra costs associated with their TAS are minimal; 20% indicated that there were no unexpected costs and 16% indicated more costs than expected.
• 37% of respondents did not know how much they were paying for their TAS.
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Does Integration Matter?
9%
18%14%
8%5% 6%
40%
7%
17%11%
7% 5% 7%
47%
VerySatfisfied
Satisfied Neutral Unsatisfied VeryUnsatisfied
Don't Know Have notIntegrated
Integration with Third Party Recruiting Services Integration with HRMS
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
What Else Can My TAS Do?
• 56% of companies surveyed indicated that they use their TAS to track candidates supplied by third party staffing agencies.
• 54% of companies use their TAS provider for contact management.
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
KPI’s…Who’s Measuring What?
• Time to hire……………………………..77%• Time to fill ………………………………76%• Job vacancies…………………………..73% • Total acquisition cost per hire…………50%• % of applicants that turn into hires……31% • Quality per hire………………………….27%• Average new hire tenure……………….21% • % of clicks that turn into applicants…...12%
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Vendors Profiled
• Active Recruiter – Job Partners• ADP- Virtual Edge • ATSmart - HRSmart• Authoria Recruiting 2007• First Advantage HMS• Hodes iQ• iCIMS - iRecruiter• Kenexa BrassRing• Kenexa Recruiter• Mr. Ted• OpenHire - Silkroad• Peopleclick
• Peoplefilter• PCRecruiter• Smartsearch Online• SonicRecruit• TMS – by Monster• Taleo Business Edition• Taleo Enterprise• Vurv - CE• Workstream• Kronos/Unicru• Oracle – iRecruitment• Peoplesoft TAM, by Oracle
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Key trends to watch
• Commoditization– Race to deliver features and functions– It appears all vendors have all features– Trend can be deceptive
• For smaller and less complicated environments– Needs are basic (web site to post jobs, central repository, email
communications– Lots of choices – Evaluate on price and quality of service
• For larger and more complex organizations– Features vary in depth and flexibility– Just because they have it does not mean it will fit– Evaluate on detailed business requirements and value creation
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Key trends to watch
• Consolidation– Talent Management vision is driving consolidation– Vertical vs. Horizontal consolidation– Acquisition vs. Organic development– Consolidation may cause proliferation– Integration will be key
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Key trends to watch
• Integration– HRMS and 3rd party service providers pretty well established– Seamless integration between functional area is hard to find– Will it be a single suite, or integration of niche players?– Competency management to become the common language
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Key trends to watch
• Innovation– New innovations have been few and far between– There needs to be a focus on delivering value with what exists
today (recruiters use a fraction of the capability of most systems)
– Some areas to look for advances:• Contact management• SMS Text messaging• Web Services integration• Analytics
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Having a system only half the battle
• Every application and vendor in the market has gaps
• Expect and anticipate challenges
• Success is 10% decision and 90% execution
• Strong relationship between HR, IT and the Vendor is imperative
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
TNG Operational Excellence Model
• Critical Success Factors– Technical Infrastructure
– Process Alignment
– Information Management
– Change Management
– Operational Support
• Operational support is the core driver
• Continuous cycle
Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
ACHIEVE TALENTMANAGEMENT SUCCESS
Thank you!
Questions?
www.tng.futurestep.com