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Winning the Human Capital War by Don W. Gee
Winning the Human Capital War by Effective Recruiting By Don W. Gee Enclosed are highlights and methodologies of my background in Recruiting, Talent Strategy, Recruiting & Sales Management, Training and Model Implementation
2008
Don W. Gee DonGee@onebox.com Phone: 213.716.5563
Winning the Human Capital War by Don W. Gee
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Management & Training Achievements &
Highlights
As a Sr. Manager with Hall Kinion-Chicago,
created a Recruiting Training curriculum for
new hires. Due to its success, was retained by
the Corporate Office to conduct a formal
training program at the Global Headquarters,
which was videotaped & instituted company-
wide as the new recruiting methodology.
As a Sr. Manager with Hall Kinion, grew the
Chicago location from $1.7MM to $10MM in
two years. Also produced two Recruiters that
were globally ranked #2 and #5, and produced
the #4 Sales Executive in the company. Also
produced the “Rookie of Year,” and yielded the
highest bill-rate than another office in the
company world-wide.
With Esquire Deposition Services, re-engineered
the Midwest regions sales methodology. Also
implemented a 52-page sales guidebook, which
outlined Esquire’s new sales methodology,
scripts, checklists and tactical strategies for
Account Retention & Growth and Business
Development. Hired, trained and produced
three sales executives that yielded 190%, 300%
& 181% territory growth (all within their first
year of employment, all with no industry
experience).
With Essential Insight (subsidiary of Escendent)
designed an Organization Evaluation model for
performance-based companies. With Escendent
designed a recruiting model & delivery program
& a comprehensive Human Capital delivery &
fulfillment model for Project-based Human
Capital engagements. With Essential Insight,
designed an Organizational Evaluation Model for
Performance-based companies
Recruiting Achievements
& Highlights
Have implemented Talent Strategy standards,
metrics and training programs for various
organizations throughout the U.S. which has
included the following; talent strategy audits,
reducing CPH & TPH, vendor evaluation and
consolidation, employer branding, retention &
recruiting strategies, CRM implementations,
compensation surveys while spearheading
Talent Fulfillment delivery
With Escendent, designed a Human Capital
Solutions Fulfillment Model & implemented an
Organizational Design Model for consulting
engagements for Essential Insight (subsidiary of
Escendent)
As the Lead Sales Recruiter for Business.com,
2nd month on contract, enabled Business.com
to exceed their hiring goals for the first time in
the companies history
As a Corporate Contract Recruiter for Amdocs
(world’s largest telecom-billing software
company) I streamlined their hiring process and
saved Amdocs over $360,000 by reducing
vendor utilization and reducing TPH from 8
weeks to 3 weeks. Was also responsible for
staffing 7 locations throughout the US, including
solely staffing one of the most prominent Fraud
Detection software development projects in the
industry
As a Project Recruiting lead for ITG, staffed a
web based/OO project headed by Ivar Iacobson
(author of Iacobson use case methodology) for
Icon Nicholson in New York
With Hall Kinion, I headed up a Recruiting Team
that staffed one of the first project teams for
Motorola for their StarTec/Webphone project.
I have recruited in the following industries/domains; Retail, Technology, Consumer Products, Financial,
Telecommunications, Government, Entertainment, Manufacturing, Semi-Conductor, Online Advertising,
Advertising, Professional Services, Banking, Financial Services, Legal (Including Litigation Support,
Document Management & Litigation Technology) and Insurance
Winning the Human Capital War by Don W. Gee
Background & Services Provided:
Talent Strategy Consulting - Streamline an
organizations talent acquisition function
through audits, talent acquisition organization
design, strategy development, e-Talent
acquisition strategy, hiring process consulting,
employer branding, vendor management, and
training
Hiring Audits – I have provided detailed audits
of a talent acquisition function to maximize the
efficiencies and costs as well as providing
detailed reviews of a clients function in
comparison with industry leading best-practices
Organization Design – I have developed talent
acquisition strategies and organization models
for organizations to properly structure and have
the capacity to organically build an organization
to support efficient, timely, and cost-effective
growth
Internal Recruiting Design – I have hired,
trained and assembled extremely successful
recruiting programs, as well as training
programs on industry leading best practices in
employer branding, creative direct candidate
sourcing, organizational design, etc.
Employment Branding - I have worked with
companies to build employee commitment and
position organizations as an employer of choice.
Vendor Management – Have worked with
various organizations by implementing
evaluation and measurement criteria to ensure
potential vendors will be a strategic resource,
for current vendors they will be measured to
ensure their performance justifies their costs.
Competitive Intelligence, Research, & Name
Generation – I have provided research for my
clients’ competitors; utilize the power of the
internet to mine for the best possible talent,
and utilize direct recruiting techniques to
deliver perfectly matched passive candidates
for our clients needs
Recruiting Services
I have fulfilled
various positions in
various industries
(both contract and
employment) by
utilizing my personal
database, my
network of contacts,
leveraging the power
of the internet, direct
sourcing & referrals. I
have placed
contract/temp
resources from $8.00
per hour, up to
$275.00 per hour. I
have placed full-time
resources from $28K
to $225K a year.
Winning the Human Capital War by Don W. Gee
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Common Recruiting Downfalls
Corporations
In most companies (both large and small) a traditional HR Department is tasked with the recruiting function which is often too reactive
Time per hire is too long
Cost per hire (in both soft and hard cost) are too high
Too much dependence on recruiting agencies
Lack of employer branding/competitive positioning
Effective negotiating
Too many consultants, not enough employees
Lack of Proactive Recruiting Campaigns
Lack of Competitive Intelligence
Recruiting Agencies
Recruiting Model is inferior to an agencies sales efforts
Recruiting is reactive vs. proactive
Recruiters often do not know how to utilize behavioral interviewing
Too much dependence on Job Boards
Lack of recruiting life cycle integrity
Body Shop tactics
Lack of quality screening
Recruiting one dimensional candidates, seeking candidates with a specific skill set only vs. seeking candidates with strong skill sets, strong domain experience and a high degree of business acumen
89-90% of Recruiting Agencies have an interior model that defies the rules and conditions of the marketplace
Agency Sales/Recruiting Cycles Most “Recruiting Agencies” divide their organizations into two divisions, sales and recruiting. 80-90% of Recruiting Agencies have an internal hierarchy that places more significance on sales and not recruiting. Recruiting Agencies that are potential vendors will assault clients with sales calls, hefty promises and eloquent sales presentations. However once a client agrees to utilize a Recruiting Agencies services, their internal recruiting efforts fall short by one or more of the following: leaving the position open or unfilled, providing candidates that are poorly screened and bombarding the client with a mountain of resumes to sift through (these are just to name a few). Traditionally there are two sides of the business, each having representation by the following, Sales Function (Client Side) and Recruiting Function (Candidate Side). The levels of difficulty for the Sales Executive and Recruiter change throughout the Sales/Recruiting cycle.
Sales Cycle (Client Segment)
Sales Executives are assigned to acquire new clients with endless promises of excellent candidates and stellar services. There is no refuting the level of difficulty for the SE in the beginning of the Sales/Recruiting Cycle. Landing an account, opening a new one, establishing a new relationship can be extremely difficult, especially in the current market conditions. However, once a “client/potential client” sees the value in our services and agrees to a potential relationship, the level of difficulty for the SE significantly declines, now it’s the responsibility for the Recruiting Team to deliver the candidate.
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Recruiting Cycle (Candidate Segment)
In the beginning of the Recruiting/Sales Cycle,
the level of difficulty for the Recruiter is exactly
the opposite. To call a candidate who is seeking
an opportunity is not that challenging for a
Recruiter. There is very little, if no sales
resistance, whereas for the Account Executive,
it’s the exact opposite in the beginning of a
cycle. However, once a candidate (especially a
marketable one) begins a pre-submission phase,
the Recruiters job becomes substantially more
challenging; therefore the level of difficulty rises
sharply.
To continue to pre-close a candidate and re-
close a candidate once an offer is extended
becomes even more challenging. Often times,
candidates will have other offers, other
opportunities in the works to continue to
manage this process prompts the level of
difficulty to rise substantially.
Here is an example of what a typical agency
cycle looks like.
0
2
4
6
8
10
12
Recruiting
Sales
Starting in the late 90’s to
2001, after spending massive
amounts of capital on
staffing agency outsourcing,
high agency attrition and
poor service, organizations
began to shift their models
to a more “organic” hiring
structure by separating HR
and Recruiting into
separate entities within HR.
This trend continues
however most organizations
design & methodology for an
internal recruiting function
is not as effective as it could
be. As a business cycle begins, levels of difficulty swap from sales to
recruiting; sales faces a higher level of difficulty & complexity, but as
the cycle moves forward recruiting faces a higher level of intricacy.
Winning the Human Capital War by Don W. Gee
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Vendor Management
Companies that need to hire difficult to find candidates or have an internal recruiting function that does not have the capacity to fulfill them, staffing agencies can be a resource that can be helpful to compliment an organizations efforts. It is often prohibitive for companies to maintain the level of recruiting organization necessary to consistently find some of these positions. Outsourcing should be strategic and vendors/staffing agencies should be utilized if there isn’t an internal capacity sufficient to fulfill the needed resources. In other words, it should be a last resort. It is common (and recommended) to utilize a vendor/staffing agency for temporary resources. The particular positions being referred to
staffing agencies will dictate the type of
companies able to find these people. A
combination of search firms the company has
worked with in the past and others providing
similar services should comprise the evaluated
group. Historical hiring data is collected and
examined to determine the current levels of
service enjoyed by the company. Service levels
will be determined for the types of recruiting
services required.
If an agency utilization historical data shows
above 15% attrition, low resume submission,
low interview volume, above 60% offer
rejection it may be time to re-evaluate that
respective vendor/vendors.
What is the vendors’ internal process to source,
evaluate a candidate’s skills, background and
overall professionalism?
During the evaluation process, it is imperative
to understand how an agency manages their
candidate screening process. Do they provide
values in areas such as; direct sourcing passive
job seekers, niche’ focus into a specific
candidate competency/skill set or industry and
leverage a quality large database. What is the
quality of their internal recruiting function? Is
there recruiting process thorough? Lastly,
what is the agencies recruiting personnel
turnover? If a vendor claims to be experts in
the human capital business, however, their
internal recruiting function has a high
turnover, question their process, model and
quality.
Basic Vendor Utilization Criteria:
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Escalation Process
After determining the number and types of candidates that need to be hired, an assessment must be made regarding the company’s ability to hire them. Once that determination is made, another assessment must be made to determine an escalation process to determine if a respective requisition/requisitions need to be outsourced. First and foremost, the goal of any organization is to fulfill their requisitions organically, this will enable an organization to maintain a lower CPH and reduce attrition (that national average for agency attrition is 20% and above). It can be common place to utilize agencies for temp/contract positions, however, for full-time positions; agency utilization should be a last resort. It is recommended an escalation process be created to determine whether or not more time is needed to continue internally recruiting or outsource the position/positions to a vendor.
Metrics to Consider Before a requisition is outsourced to a vendor,
first of all how well is the internal recruiting
function performing? Once a requisition is
approved and opened, evaluate the
marketplace and determine how difficult the
position will be to fill.
Within the first 2 weeks of the opening, if there
isn’t at least 3 candidates that have moved from
a recruiter pre-screen to a face to face
interview (or at least a hiring manager phone
screen), that could be the first indicator that
outsourcing to a vendor might be the best
course of action. Also, after 15 business days,
if there hasn’t been at least one face to face
interview, it might be time to outsource to a
vendor.
Process Centralization
All vendor activity (outsourcing requisitions, vendor evaluation, and vendor selection) should be centralized and supervised by the HR/Recruiting department. Department heads or hiring managers may have pre-existing loyalties or relationships with certain agencies; however these agencies should be evaluated and held to the same standards as other agencies. A centralized vendor process ensures better quality control, accurate performance and accountability tracking. This process needs to be centrally managed by the HR/Recruiting Department.
Outsourcing Process
When a position remains unfilled,
it would be recommended to
evaluate the compensation
package of the role and evaluate
if it is competitive. With skill sets
that are in high demand,
compensation variances can vary
from quarter to quarter.
Winning the Human Capital War by Don W. Gee
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The Cost of Outsourcing To ensure a client understands the cost of outsourcing (both in hard and soft costs) they need to fully understand in “black and white” the costs and risks that are associated with excessive outsourcing. Outsourcing to agencies can be costly. If a thorough process has not been implemented to evaluate and re-evaluate vendor processes, vendor standards and performance the cost can be devastating to an organizations bottom line.
Snapshot of Averages: On average IT positions are outsourced more than any other skill set, and the national average for base salary for an IT professional is $70,000. In the Chicago marketplace, the average IT salary is $71,400.
Most agencies charge a fee on the first year’s salary between 15-25%.
To fulfill individual requisitions, most organizations under $500MM outsource over 50% their hires
Agency attrition averages above 20% If an agency hire voluntarily resigns from a position within the first 90 days, an agency should refund the fee or given a chance to refill the position at no charge.
Request for Proposal Based upon examination of the historical data and consultation with company leaders, a Request for Proposal (RFP) should be constructed. Weighting of factors important to the company will be given and the RFP will be sent to the prospective vendor pool. Upon receipt of the results a list of companies to be interviewed will be determined and the results of those interviews will finalize the selections.
For every 100 positions
that are outsourced, the
hard cost of agency
utilization can exceed
$1.4 Million.
Add the soft cost of
agency attrition, which
averages over 20%, the
total cost of agency
utilization can exceed
$2.2 Million.
Most organizations
don’t do enough to
investigate the
capabilities of the
vendors they select.
Outsourcing hiring
needs to an ill-equipped
staffing agency can be a
financial disastrous
option.
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Prime Vendor Outsourcing certain or all hiring to a Prime Vendor enables a company to appoint one vendor to manage the entire human capital process. Outsourcing the entire process can relieve a company from having to maintain staff dedicated to vendor management. Fluctuations in hiring needs can leave a company with people responsible for agency hiring when no hiring is needed. A prime vendor assumes responsibility for managing all hiring done with any agency and allows a company to ratchet up their hiring capability at will with out the cost of internal staff.
Retention Evaluation
Most organizations have a sound recruiting
process but do not take an honest look at their
attrition and evaluate what more they can do to
improve employee retention.
To evaluate an organizations attrition
percentage, this will require intensive research.
The following data will be evaluated to analyze
the variables that can contribute to high
attrition:
Cost of Attrition As a rule of thumb, when an employee resigns that can cost the company 1.5 -2 times of the vacated salary. The hard and soft cost includes time and money spent on refilling the position, advertising fees, agency fees, employee development and training. This does not include other hard and soft costs such as lower productivity, company morale and the impact this could have on customers/clients. When an organization loses someone, they are also losing revenue and profitability.
New Hire Onboarding Minimizing attrition starts on day one. It is crucial when an employee first starts, there is NO DOWN TIME. There needs to be a clear program for new hires, orientation and transition. Not only should a structured, meticulous orientation be created, but once an orientation is completed there is a system in place to plug the employees into their position and begin their knowledge curve. Orientation is important, but there must be other activities after orientation to ensure the candidate is welcomed such as; introductions to their managers and team, site tours to internal training.
Employee Communication
Communicating with employees can accomplish more than meets the eye. Keep the company up to date with company news, key new hires, significant company accomplishments and other news that will keep employees in the loop.
Benefits Ensure you’re providing a good benefit plan. Also, offer the best vacation package you can. If your competitors are offering two weeks, offer 3-4 weeks.
Awards Recognition is another way to raise performance. You can have awards for “Best Employee Award,” or “Best Turnaround,” or whatever highlights your company culture. If you want to tie in a bonus to this award, that can further compel individuals to exceed expectations, but not necessary.
On Going Training Offer your employees opportunities to further their respective skill sets through training. Depending on the cost of the training, you can either reimburse them or pay for the training directly.
Winning the Human Capital War by Don W. Gee
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Talent Strategy Delivery
Recruiting Cycle
This is my basic 4 step recruiting cycle. This model may change, depending on the environment or
domain, but this is a basic blueprint I adhere to. In my 7 page Recruiting Cycle; each step is outlined in
precise detail. My Recruiting process is strict, thorough and precise. This cycle acts as a “filter,” to
ultimately identify several key candidates out of many that will ultimately be a fit for what my client is
looking for.
Winning the Human Capital War by Don W. Gee
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Case Study
This is a case study that highlights my results as a Contract Recruiter/HR Consultant for Amdocs (the
world’s largest Telecommunications software billing company).
One of the world’s largest
telecom billing software
companies
Proj. Employee growth of
over 75+% per year
HR had little recruiting
experience and was
relying heavily on outside
search firms
Average Cost per hire was
$11,700
Client Create a strong brand Create a high volume growth
strategy and build an engine to fuel the explosive growth
Reduce the cost per hire to create substantial cost savings
Reduce the hiring cycle time substantially to grow quickly
Challenge Audit of hiring practices
Branding campaign to
position the client as an
employer of choice
Designed a recruiting
strategy
Designed a new hiring
process
Consolidate vendor list
Solution
• Successfully filled positions in St. Louis, Chicago and Portland with little vendor assistance
• Reduced the hiring cycle time from 6 weeks to 2 weeks, resulting in bottom line impact of increased project delivery and completion
• Total Savings of over $360,000 in recruiting costs
• Reduced CPH from per hire from $11,700 to $3,200
RESULTS