Copyright 2000. All Rights Reserved. HR Connections & Consulting, Inc. Strictly Confidential....

Copyright 2000. All Rights Reserved. HR Connections & Consulting, Inc. Strictly Confidential.

Presented ByPresented By

Tom DarrowTom DarrowApril 2, 2001April 2, 2001

Improving the Recruiting ProcessImproving the Recruiting ProcessSHRM-Atlanta Employment and High Tech PEGsSHRM-Atlanta Employment and High Tech PEGs


Audience SurveyAudience Survey

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

What are your challenges in recruiting?


AgendaAgenda

Recruiting Infrastructure Models

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

Your Challenges

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 How to Elevate Your Recruiting ProgramProgram

Step 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. Decentralized- Centralized 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 Alignment- Recruiter 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)



Step 2 – Employee Referral ProgramStep 2 – Employee Referral Program

World class employee referral program

How many recruiters do you have?


Employee Referral Program — Employee Referral Program — Why?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 Primary Management ConcernConcern

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 What Positions are Eligible?Eligible?

ManagementManagement

AdministrativeAdministrative

Hi-TechHi-Tech

Entry LevelEntry LevelAllAll


Communicating OpeningsCommunicating Openings

IntranetIntranetIntranetIntranet

WeeklyWeeklyE-mailE-mail

WeeklyWeeklyE-mailE-mail

NewsletterNewsletterNewsletterNewsletter

CompanyCompanyBulletinBulletinBoardsBoards

CompanyCompanyBulletinBulletinBoardsBoards

CompanyCompanyMeetingsMeetingsCompanyCompanyMeetingsMeetings


Requirements & DocumentationRequirements & Documentation 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



Step 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 ChannelsPrior

Employers

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????

Money

Develop Skills

Peer Group

Company Dynamics

Creative Challenge



Step 4 – Enhance Your Sourcing Step 4 – Enhance Your Sourcing StrategyStrategy

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

Strategies



Step 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



Step 6 – Reference and Background ChecksStep 6 – Reference and Background Checks

Must be done for ALL candidates who receive an offer



Step 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!



Step 8 – AutomateStep 8 – Automate

Applicant Tracking

ASP’s

Employee Referrals

Streamline communications



Step 9 – Assess Areas the Impact RecruitingStep 9 – Assess Areas the Impact Recruiting

Compensation Program Benefits Training Branding/Image Morale



Step 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


What Doesn’t Work WellWhat Doesn’t Work Well



Finding Qualified Candidates - Shortage of Talent! ??? Circle of Influence vs. Circle of Concern Investigate best practices and implement

them! Increase the number of sourcing channels Make Better Use of Search Firms

• Increase Fee• Open House

Make your own candidates• Training• Contractors or contract to perm.• Internal Transfers



Inconsistent Processes Across Enterprise Develop best practice process for

enterprise• Recruiting Process Audit• Involve Hiring Managers in development

Top Down buy-in

Implement quickly

Automate



Inconsistent Assessments Job Analysis

• Competencies• Skills

Interview Methodology• Questions• Interview team• Assessment criteria

Interview Training Interview Documentation Consensus Decision-making



Managers Unwilling to Pay Top $$$$ Acquire salary surveys Compile metrics of declines Develop business case for increased salary

ranges• Promote new hire as revenue enhancement instead of

cost increase

Get creative• Signing bonuses, 3 month salary review after hire,

vacation adjustment

Cater to candidate’s primary job satisfaction need



Communication to Management Develop metrics

• Ask management what they want to know• Tell management what they should want to

know Develop communications plan

• What to report• Who to report to• How often to report

“Recruiting is just marketing on a cheap budget.”



Insufficient Recruiting Headcount Develop a business case

• Potential agency fees saved Use Contract recruiters Use interns

• Devry• GA State HR program• Inroads

Tour of Duty from department experiencing a slow period



Slow Time to Fill (often attributed to the Hiring Manager) Metrics

• By Department and by Hiring Manager Escalation process

• 3 day turnaround? Prioritize openings

• Don’t expect Hiring Managers to act with the same sense of urgency for all openings

Improve communication• How does the Hiring Manager want to receive resumes?

Updates? E-mail vs. voicemail vs. paper


Your Challenges


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

HR Connections & Consulting, Inc.HR Connections & Consulting, Inc.

602 Gettysburg Place602 Gettysburg Place

Dunwoody, GA 30350Dunwoody, GA 30350

(770) 992-3701(770) 992-3701

[email protected]@mindspring.com

www.hrconnections.netwww.hrconnections.net

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