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Employers Essential Guide to Best Recruitment Practise Mark Stephens – The F10 Group March 2010“99% of business owners state that the quality of candidates hired is the most important factor in effective company growth” CIPD 2008 Recruitment Report
Mark Stephens Expert in recruitment Process and StrategyExecutive Summary• Currently 50% shareholder and joint MD of the F10 GroupGroup interests• F10 Executive Search (Technical Recruitment Specialists)• Smart Recruit (Fixed Price Mainstream Recruitment Solutions)• F10 Mobile (Mobile Marketing Managed service)• Ask The Experts (Technology discussion forums)Achievements• Launched and sold for profit 3 companies• Recruited over 300 people for my own businesses• Recruited over 2000 people for other peoples businesses• Consulted with over 50 companies on Recruitment strategy• Consulted with the Government on Recruitment strategy for the e-Gov initiative• Generated combined savings of over £2m through improved processes
Today’s Presentation •Introduction •Recruitment Statistics •How do business’s recruit? •Monitoring Agency Performance (CIPD Survey) •Areas of Improvement •The Recruitment Process •Working with just 1 recruitment partner •Best Practise •Identifying the right Agency •Back up Strategy •Summary 2
The Importance of hiring the right peopleStats taken from the CIPD 2008 Recruitment survey of Business owners •99% state that the quality of candidates hired is the most important factor in effective company growth. •80% hiring companies stated that attracting the best staff was critical to their business •56% said that this was critical to their ability to achieve the organisations strategic goals and meet future skill requirements •84% state that they regularly experience difficulties recruiting the right people: 7
How do we recruit? How do Companies recruit and what is the cost? •80% of business’s use recruitment agencies to sources staff • Over70% of highly skilled staffing vacancies are filled by recruitment agencies •Average recruitment cost for filling a vacancy was £4,500 in 2008 •Total average recruitment cost when all additional costs are factored in £7,750 •72% said that they are pro-actively looking at reducing recruitment costs with their recruitment suppliers 8
Random facts? •Over 35% of companies do not adopt any PSL strategy •Over 60% do not monitor or evaluate agency performance •Over 80% of companies choose to work on a contingency basis with agencies •90% felt that the services provided by agencies was often the most determining factor •76% felt that the use of agencies significantly increased the cost of recruitment into the business •Over 90% of hiring managers from the technology sectors felt that the quality of staff from agencies was consistently higher than other sources •61% businesses said that key people involved in the recruitment process had no formal interview training and they did not have a formal internal recruitment process 9
Monitoring Agency Performance Key Criteria – (in order of importance to clients) •Quality of candidates submitted •Services received from agency •Value for money •Time taken to fill vacancies •Placement ratios •Feedback from candidates on the opportunity •Diversity of candidates •Feedback from candidates on the Agency Factors influencing the choice of recruitment agency – (in order of importance) •Relationship with an individual •Confidence in their process and obligations •Commercials terms •Agencies alignment with clients culture and values •Agencies track record/reputation/performance •Feedback from recruiting managers •Local/National coverage •Range of services 11
Areas of Perceived Improvement (In Order of Importance) •Reduction in costs •Better standardised process •Better relations with fewer agencies •Improved relationship between agencies and HR •Better communication between agencies and hiring managers •Better monitoring of activity and effectiveness •A range of solutions to best fit the requirement •Internet recruitment strategies need formalising •Brochures and Literature •Interview procedure (better strategy for rare skills) •Speed of turnaround 13
What does the Recruitment Industry look like? Generalist and Specialist recruitment companies • High Street • Agency • Consultancy / Executive Search 14
High Street recruitment •Generalist and Specialist •F2F interviews with local people •Walk ins off the street •Newspaper Adverts •Local online presence •Mainstream skills 15
Agency •Generalist and Specialist •Internet advertising & Database search •CV Screening/ Telephone interviews •70% active candidates •Limited networking of passive candidates •Quick turnaround on campaigns 16
Consultancy / Executive Search / Head Hunters •Generalist and Specialist •Detailed requirement capture phase •Research companies and Industry Sectors •Operate from a more targeted prospect list •Internet advertising and database searching to compliment •Strategic networking of candidates •Social media strategy •Dedicated days/weeks to the campaign •Sensitive consultancy recruitment process •Comprehensive search strategy and process •70% passive candidates •Retained business 17
Executive Search Recruitment Process STAGE 1 - Information Gathering & Requirement Capture Receiving the requirement Brainstorm and job clarification Complete The Requirement Capture form Trial search campaign Trial CV sent within 48 hours Agreement to proceed STAGE 2 – Candidate Selection and Qualification A comprehensive search criteria to form a list of prospective candidates Candidate Intro and Pre Qualification – Consultation phase Candidate Selection phase 1 – Selling the company and role Candidate Selection phase 2 – Telephone / skype interview. Networking and Information gathering Short listing and Candidate Submission to client STAGE 3 – Interview and Offer Management Arrange interviews Pre interview discussions Post interview evaluation Feedback and Offer management Counter offers and Acceptance 19
Best Practise Requirement Capture (Phase 1) •Do you provide the agency with a comprehensive profile on the organisation? (presentation/promotional docs) •Does the agencies you use know about the company history, awards won, recent contract wins, growth etc? •Do you check that the RCF will allow the agency to sell your job to anyone? •Do you check that the job description sounds sexy and exciting to potential recruits? •Does the role sound challenging •Do you provide details of the opportunities for potential development and growth? •Does the hiring manager get involved with the agencies to ask questions and discuss? •Do you always provide a list of companies that you would like to receive CV’s from? 20
Best PractiseThe Search (Phase 2) •Do you make arrangements to discuss feedback on the first 1 or 2 candidates with the agency? (If not why not?) •Do you set timescales for the agencies to work to, to get their shortlist to you? •Do you provide a standard cover sheet so that you always get the quality information that you want on each applicant?Interview (Stage 3) •Do you try and book all your interviews’ within 1 week of receiving the CV? •Do you adapt a different strategy for passive candidates? •Do you always provide the agency with an overview of interview process, attendees etc? •Do you always agree to discuss feedback at the earliest opportunity with the agency? •Do you get the agency and candidates to discuss feedback immediately after the interview? •Do you work together to secure acceptances and overcome counter offers ? 21
Why work with just One Agency? Typical Agency demographics for placement activity Other 20% Advertising Resonce 40% Database Search 40% 22
Multiple Agency activity demographics The effects of duplication: •Agencies use the same website databases •Results in a reduction in overall effort by agencies. Most noticeably within the passive market space. •Hastily worked campaigns do not encouraging a consultative approach. Other Database Search Advertising Response Duplication of effort 23
Blame Culture What winds us up the most about each other? Client/Hiring Manager Candidate Recruiter None or poor Job Poor CV Do not acknowledge specification emails Lacks commitment No or slow feedback Over exaggerate skills Overlook good Slow providing details and experience candidates Untruths on the CV – Send poor Quality CV’s HR no control over hiring inaccurate details managers Always chasing feedback Doesn’t return calls Internal applicants? Always putting on Let you down at the last pressure and selling Poor IV techniques minute Pushing the salary up Don’t sell the role well Change their mind at the end of the recruitment Charging too much Offer below requirement process Doesn’t return calls 24
Identifying the Right Agency Different requirements require different solutions! What type of role are you looking to fill? Generalist/specialist? High skilled/ low skilled? Low supply/ high supply? Where can you find the right agency to help you ? 1) Search Engines 2) Agency Central 3) Job Boards Identify up to 10 agencies and put them through a selection process. Provide agencies with a check list: Relevant domain knowledge and experience Provide a list of similar roles/ other clients they work with Ask to see their process for recruiting Their SLA’s Their rates (for perm and contract) and TOB Ask if they would consider working at lower rates in return for exclusivity? Compile a shortlist of the best 2 and send your own proposal. Advise them both that you are looking to draw up an agreement with one of them and that you have reached a decision on what you are ideally looking for..... 25
Your simple Agency Business proposal and SLA To work on your campaign exclusively at 15% for a period of 2 weeks (possibly retained) To arrange a conference call between the recruiters and hiring manager on day 1 to run through Your requirement capture form and JD Within the 1st 48 hours, you would like to see the 1 st qualified candidates. Immediate feedback will be provided to confirm if suitable, if not a telephone conversation with the hiring manager can be arranged. Once you are happy that the agent has fully understood the requirement and has submitted 1 suitable candidate, a period of 5 working days will be allowed to provide a short list of 3 or 4 more applicants Feedback and interview times will be provided with 2 working days of the deadline Provide the agency with your own candidate cover sheets and insist that they must be completed properly for every applicant. You can negotiate on rebate terms but most companies will refuse to extend beyond 3 months – so look to get an extra agreement to replace for a half price replacement for 1 st 12 months if the candidate leaves . 26
Simple agreement and SLA for Mainstream roles *Negotiate a fixed price for their service in return for exclusivity. Ask for a money back guarantee and multiple hires at no extra cost •5 Simple SLA’s •Provide a trial CV within the1st week •Cover sheets provided and to be completed •Insist on a Min – Max number of candidates (4 and 8) •Shortlist to be provided within 2 weeks •Interview feedback within 24 hours 27
Back-up Strategy •Other agencies to go to •Extend the deadline •Increase salary •Review essential criteria •Look further a-field and consider relocation •Recruit a less experienced prospect and train •Consider using a contractor •Change agencies and agency strategy 28
Summary 1) Choose the right recruitment provider for each campaign 2) Use only 1 or 2 suppliers for each job max 3) Dictate the process and SLA’s, (RCF’s and coversheets) 4) Negotiate fees in return for good communication, exclusivity and a quick turnaround. 5) Encourage a relationship between managers and the agency 6) Review results and metrics and act upon them 7) Build recruitment partnerships with the best agencies. Treat them like an extension to the company 8) Have a backup plan 9) Hold regular agency review meetings between the recruitment team and the hiring managers. Get Directors of the recruitment company involved. 29
Download our presentationA full copy of the 2010 Best practice report is available if you go to our website www.f10.co.uk And visit the Smart Recruit pageThis document will also include free templates forCover sheets Feedback formsRequirement Capture forms Agency measurement
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