Networks and resourcing white paper by Business360 and TFPL December 2013

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In recent years we have seen the growth of networks both as a means of locating talented professionals and also as a means for individuals to locate work opportunities

Building on prior studies, Business360 and TFPL decided to undertake some research to better understand how these networks are changing the interface between professionals and organizations

Our fields of work (Business360 as a provider of professional services delivered remotely, and TFPL as a provider of talent location, learning and consultancy services) means we have very different perspectives on this change:

Business360 has seen a growing acceptance by companies of the provision of professional services using individuals working remotely, with whom the companies often have limited communication

TFPL has seen the growing pressure that organizations face in trying to locate the talent they need, with highly specialized skills and competencies, as well as the innovations applied as they try to secure their ideal candidate

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Networks and resourcing white paper by Business360 and TFPL December 2013

  1. 1. THE RISE OF PROFESSIONAL NETWORKS AS A RESOURCE A Report by Business360 and TFPL DECEMBER 2013 © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  2. 2. RATIONALE FOR THE STUDY • In recent years we have seen the growth of networks both as a means of locating talented professionals and also as a means for individuals to locate work opportunities • Building on prior studies, Business360 and TFPL decided to undertake some research to better understand how these networks are changing the interface between professionals and organizations • Our fields of work (Business360 as a provider of professional services delivered remotely, and TFPL as a provider of talent location, learning and consultancy services) means we have very different perspectives on this change: o Business360 has seen a growing acceptance by companies of the provision of professional services using individuals working remotely, with whom the companies often have limited communication o TFPL has seen the growing pressure that organizations face in trying to locate the talent they need, with highly specialized skills and competencies, as well as the innovations applied as they try to secure their ideal candidate • To build our understanding: we conducted some secondary source research; ran a survey with a view to capturing how people and organizations use networks; and supplemented these findings with a number of client and professional interviews • This document presents our core findings • If you have questions or comments, or would like more details about any parts of our work, do not hesitate to contact us © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  3. 3. CONTENTS I. CONTEXT II. INSIGHTS INTO PROFESSIONAL NETWORKS III. IMPLICATIONS © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  4. 4. CONTENTS I. CONTEXT II. INSIGHTS INTO PROFESSIONAL NETWORKS III. IMPLICATIONS © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  5. 5. CONTEXT SERVICES ARE DRIVING ECONOMIC GROWTH Economies globally are shifting to services The changing structure of employment during economic development • Look at the US: in 1900, 33% of workers were in services; by 1999 it was 78% • While in agriculture the share fell from 41% in 1900 to less than 2% by 2000 We are becoming a knowledge economy and we no longer touch what we sell • Think banking, web services, insurance, design, IT, consulting, research, media, law… Employers have a growing need for talent to manage their information and knowledge-based services ★ The knowledge economy will continue to drive employment © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  6. 6. CONTEXT TECHNOLOGY IS MAKING US CONNECTED TECHNOLOGY IS ENABLING A SEISMIC CHANGE IN THE WAY PEOPLE CONNECT Degrees of separation falling • Once near 6, but averaged 5.27 on Facebook in 2008 and 4.74 in 2011 (some estimates now say around 3) Professional details open • LinkedIn already makes available ~250 million resumes of professionals worldwide ‘Ready resource’ already massive • Contractor networks like Elance, Guru, ClickNwork and others make available millions of ‘skilled freelancers’ via the web ★ Levels of connectedness will continue to rise © Copyright TFPL and Business360, Inc. 2013. All rights reserved. Up & Up Social Media Growth
  7. 7. CONTEXT PROFESSIONAL NETWORKS ARE EXPLODING THIS IS THE MOMENT FOR PROFESSIONAL NETWORKS Individuals like them • Chance to build a platform, showcase skills/experience, abilities, increase their reach into organizations, tap a support network… Organizations like them • Easier access to a larger number of possible candidates, low cost and efficient means to screen large numbers of candidates, easy to place work with experienced professionals without having to increase headcount or ‘onboard’ people, gives the organization more flexibility… Employer hold on employees will fall • Employers and their recruiters can now get ready access to competitors’ employees, meaning even trusted employees are always ‘on the market’ PROFESSIONAL SOCIAL NETWORKS ARE THE FASTEST GROWING SOURCE OF “QUALITY HIRES”: “Compared to two years ago, 17% more recruiters find quality talent on professional social networks.” The 2013 Global Recruiting Trends Report, LinkedIn, July 2013 ★ Large professional networks to change employer-employee relationship © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  8. 8. CONTEXT PROFESSIONAL NETWORKS SCALING AS TALENT GAPS EMERGE There is shortage amidst plenty and companies are struggling to get the people they need McKinsey: The world is likely to have too few high-skill workers and not enough jobs for low-skill workers McKinsey Global Institute: • By 2020 the global economy could face 38-41 million fewer workers with tertiary education (college or postgraduate degrees) than employers will need, or 13% of the demand for such workers • At the same time, there will be 90-95 million more low-skill workers than employers will need, or 11% oversupply of such workers Manpower: • “35 percent of employers on average report having difficulty filling jobs due to a lack of available talent. This is the highest shortage since the start of the global recession” ★ Today’s professional networks will be used to help fill these talent gaps © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  9. 9. CONTENTS I. CONTEXT II. INSIGHTS INTO PROFESSIONAL NETWORKS III. IMPLICATIONS © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  10. 10. INSIGHTS OUR SURVEY LOOKED AT HOW PROFESSIONAL NETWORKS ARE USED AND PERCEIVED • Our goal was to understand how professionals in the knowledge economy are using professional networks • In addition to people seeking work opportunities, we also sought the opinion of organizations seeking talent • We dispatched invitations to participate to ~3,000 individuals, mainly drawn from TFPL’s database of contacts, but also from ClickNwork and Business360 contacts (roughly 70% TFPL, 25% ClickNwork, 5% Business360) • Responses came from 49 industry sectors and 26 countries • The following section provides some summary highlights; if you want to clarify anything, please contact us © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  11. 11. INSIGHTS 46% OF RESPONDENTS SAY NETWORKS ARE KEY IN HELPING ORGANIZATIONS AND INDIVIDUALS CONNECT There appears to be wide appreciation of the value that today’s professional networks bring to the process of matching talent with talent need How important do you think today's professional networks are in helping organizations and individuals connect to meet resource requirements? Roughly 70% of respondents believe they are either essential or very important Just 8% believe that they aren’t that important © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  12. 12. INSIGHTS LINKEDIN IS BY FAR THE DOMINANT PROVIDER BUT OTHERS ALL RESPONDENTS ARE SEEN TO DELIVER IMPORTANT BENEFITS LinkedIn is the standout most popular professional network with nearly 35% of all respondents joining it. For those looking to locate work opportunities, the figure jumps to 64% Comments by respondents show a few patterns: • People tend to find networks that work for them and their needs • LinkedIn is by far and away the most useful site for contacting people and keeping in touch, although others (oDesk, Elance, ClickNwork…) are valued for providing access to real work opportunities RESPONDENTS INTERESTED IN LOCATING WORK OPPORTUNITIES • A significant minority don’t find online networks of any use WHAT NETWORKS HAVE YOU FOUND THE MOST VALUABLE FOR PROFESSIONAL REASONS, AND WHY? • LinkedIn, because I've found it the easiest way to keep track of my professional contacts and it offers some very useful groups • LinkedIn. You can connect to all sorts of people in a professional manner. Plus, interested employers can view your resume and reach out to you • Business360 and ClickNwork provide all the work I am doing right now • It is hard to get work on these types of sites • None of them • Elance has worked well for me to find jobs. • oDesk, because it gives me a lot of work options • All of the above are very important. The more folks you can get your information out to the more you can profit from it. © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  13. 13. INSIGHTS JOB SEEKERS WANT TO STAY IN TOUCH, GET ACCESS TO WORK; TALENT SEEKERS WANT TO ACCESS TALENT For individuals interested in locating work opportunities, online networks mainly supplement existing functions of: When organizations use these networks to locate talent, they are: • Staying in touch with professionals in particular fields • Providing access to work • Mainly looking to connect with specialists (75%) or keeping up with news and developments (71%) • Building a platform where individuals can present themselves professionally • Looking to resource occasional or part-time projects (67% agree or strongly agree) or finding experts (58%) • Enabling idea and information exchange • Less likely to be directly recruiting (54%) WHAT USEFUL FUNCTION DO YOU DERIVE FROM THESE NETWORKS? STAYING IN TOUCH • Keeping up-to-date with current issues within the financial sector and more general 'gossip‘ • Access to individuals I know and exposure to groups and individuals I want to know A PLATFORM • Building a branding and "getting your name out there“ • Getting endorsements and recommendations • Public profile and links to new people with similar interests WHAT DO YOU USE THESE NETWORKS FOR WHEN LOCATING TALENT? ACCESS TO WORK • I gain the ability to grow as a writer and make money to assist with my family's financial well-being • Finding opportunities for professional development outside of work IDEA EXCHANGE • Exchange of ideas, how to grow my business, learning new skills, meeting people • Valuable connections with people across continents and business types, to generate ideas through conversation and shared insights © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  14. 14. INSIGHTS USERS SEE SIGNIFICANT SHORTCOMINGS WITH EXISTING PROFESSIONAL NETWORKS People seeking work opportunities were bothered by shortfalls (although a sizable minority didn’t see any disadvantages): • Time required to interact and deal with spam and communications is wasteful (excessive and irrelevant updates and alerts were especially annoying) • Some networks don’t provide a reliable stream of work • Dealing with the networks can be impersonal, soulless WHAT DISADVANTAGES ARE THERE TO THE NETWORKS YOU HAVE JOINED? TIME SINK/SPAM • There seems to be an increase in spammers who create "useless noise“ • I often can't keep up with the amount of alerts I get • They take up too much time for the benefit IMPERSONAL LACK OF WORK/LOWER EARNINGS • As with the case with oDesk, the feeling that I have to lower my rate in order to get a job. Feeling like I am more in a fish market than professional market Organizations believe networks have various disadvantages: • Lost time – dealing with them is time-consuming and inefficient, especially for marketplaces (oDesk, Guru, Elance…), which require a lot of effort to select and manage vendors • Quality – some organizations get poor quality results • The growth of impersonal, screen-based relationships and the loss of human contact is missed by some WHAT DISADVANTAGES ARE THERE TO THE NETWORKS YOU HAVE JOINED? TIME INEFFICIENCY • Too many unwelcome, unsolicited invitations to connect, especially by those seeking employment or experience • Can waste a lot of time • No definite work LOST PRIVACY • Sometimes the information they send is not at all relevant to me • You need to be cautious of what you put out there! • Mostly online, so limited opportunities for face-to-face networking • Personally invasive • All your info is very public QUALITY • It can be hard getting people that really know your business and quality can suffer • One can get an incompetent person to do the work thus at the end of the day the work is not done in the right way IMPERSONAL WORK • Sometime it's difficult to communicate with people we know only on the internet • These networks cut down on face to face contact, so networking is a bit of guessing game © Copyright TFPL and Business360, Inc. 2013. All rights reserved. NONE • Cannot think of any • None • No disadvantages
  15. 15. INSIGHTS BUT THEY ALSO BRING NOTABLE ADVANTAGES People seeking work opportunities are overwhelmingly positive about the benefits of professional networks: Primary benefits for organizations are access to skilled resource and the ability to get work done easily: • 76% agree or strongly agree that they are good at keeping them connected and informed; 71% believe they are valuable to their careers • Some organizations have obtained better/easier access to needed skills • 55% agree that they have helped them find work, against 24% who say that they haven’t • Only 43% believe that the networks are good at promoting them HOW HELPFUL ARE PROFESSIONAL NETWORKS TO YOU? THEY… • Some have managed to get work completed more easily or more cheaply But, some have yet to realize any benefits WHAT ADVANTAGES HAVE YOU BEEN ABLE TO REALIZE FOR YOUR ORGANIZATION FROM THESE NETWORKS? BETTER ACCESS TO SKILLS AND IDEAS EASIER WAYS TO COMPLETE WORK • They find experts to provide solutions to my organization • Work is done in the right way without having to spend a lot • Especially useful when creating teams for large projects • It’s useful to be able to parcel work out to manage peaks better • Identifying people and skills for specific areas of requirement & make direct approach with minimal cost • Getting things done overnight is a benefit © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  16. 16. INSIGHTS USERS IDENTIFIED A NUMBER OF THINGS THEY’D LIKE NETWORKS TO OFFER Individuals seeking work opportunities mainly wanted better options for work, but other needs emerged: • Work, more of it, more reliably and more easily secured • Some want things beyond work (better navigation, better personal interaction…) • Most people that expressed a view don’t want more, seemingly accepting the deficiencies of online networks as a function of what’s available at this stage of their development Organizations primarily want an improved user experience: • Easier use, including better and more powerful search • Better information; information is often inaccurate or misleading and this makes networking sites harder to use • Some commentators did not see a need for anything more from existing networking sites WHAT DO YOU WANT MOST FROM THESE NETWORKS THAT THEY ARE NOT ALREADY PROVIDING IN TERMS OF RESOURCING TALENT? WHAT DO YOU WANT MOST FROM THESE NETWORKS THAT THEY ARE NOT PROVIDING? WORK EASIER USE SOMETHING OTHER THAN WORK BETTER QUALITY INFORMATION • More work • Access to meetings • Jobs that are available for telecommuting • Stronger protection of information • Less choice - overwhelming number of networks to chose from - lots of noise at times • The ability to collaborate on work online with other professionals • Better targeting ability • An inspiring job • Direct links to applications to apply for jobs and having the open communication with the employer • Consistent job offers is most important for me • Easier navigation for maintenance • Greater levels of engagement on the rich content and ideas made available in these channels • Training Reduction in 'echo chamber' sense where everyone's friends rec him whether they've worked together or not • Relevant Information • • Quality people that match search criteria • Accurate info • Easier ways to search for what you want. Better ways to contact candidates NOTHING NOTHING • Sometimes the information they send is not at all relevant to me • Everything is here in these networks • Mostly online, so limited opportunities for face-to-face networking • Nothing needed © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  17. 17. INSIGHTS COMPANIES WANT GREATER TRUST IN INDIVIDUALS THAN NETWORKS CAN (CURRENTLY) PROVIDE Recruiters, Hiring Managers and HR professionals say that while professional networks help them locate talent, they remain inadequate for building trust in individuals: • Technology plays to, and fosters, ‘weak ties’, but recruitment decisions rely mainly on ‘strong ties’, predominantly with an underpinning personal relationship • Hiring managers and HR professionals point out that personal recommendations are much more effective because there is a higher chance people will ‘fit’ and be a successful placement since the recommender understands the organization’s culture and needs HIRING MANAGERS & HR PROFESSIONALS SAID: “Traditional face to face networks where relationships have been established and built up over time provided added validation and expertise that is not easily achieved through electronic networks.” “Challenge with specialized and senior roles with fewer potential candidates is that the terminology and language used to describe experience is less defined and more wide ranging and so online searching is more difficult. Personal contacts/talking to recruiters can therefore be more beneficial.” “When not possible to meet, electronic networks fill the gap and allow new connections to be built and networks to grow where it may not have been possible just through face to face connections” © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  18. 18. INSIGHTS OPINION IS MIXED ON HOW NETWORKS WILL DEVELOP IN THE FUTURE Respondents provided a range of fascinating forecasts on how professional networks will develop. The only consistent theme is that online networks will grow in scope and power: • Most expect networks to offer more functionality, greater interactivity, verified information, auxiliary services (search, interviewing, vetting…) • Some foresee a merging of online and offline networks; others see a proliferation of virtual gatherings via video chat, or the emergence of online courses and other training • Opinion is mixed on whether the market will consolidate (with smaller providers falling by the wayside) or fragment as specialist providers emerge (perhaps undercutting the hegemony of today’s heavy hitters) • Almost all believe that in the future, organizations and individuals will be more reliant on professional networks for recruiting talent and obtaining work • A few people pondered the broader implications of a rise in distance work and general de-personalization of the work environment (mostly seen as a negative, but being able to work from home is seen to have many benefits) HOW DO YOU SEE THESE NETWORKS DEVELOPING OVER THE NEXT DECADE? GROWTH FUNCTIONALITY • Networks are fast growing currently and can only grow larger in the future and progress to a level where face to face interaction in business would become secondary • I see a mix of online and offline communities, which at a local level could involve face-to-face meetings/workshops to share knowledge and best practice • Growing like topsy and distracting people • More choices, interactivity… videoconferencing CONSOLIDATING FRAGMENTING • There will be a consolidation, I hope, and some of the smaller networks will be swallowed up. Less choice, but will hopefully mean more focus for those networks that remain • More specialisation and fragmentation into smaller groups of 'known' experts making it harder for the inexperienced and selfpromoting to get connected • Unfortunately, I can see them becoming more dilutive and generalist • …growth in smaller industryspecific professional networks © Copyright TFPL and Business360, Inc. 2013. All rights reserved. CHANGING SOCIETY • The network will become our essential thing in our life • As white collar work gets less tied to full time work onsite, and swings more toward telecommuting, freelance, etc, these networks should become more important • …part of a booming outsourcing industry
  19. 19. INSIGHTS TECHNOLOGY PERMITS GREATER FLEXIBILITY Beyond the survey, we conducted interviews that yielded insights in to how organizations value the flexibility and the expanded pool of talent afforded by digital networks The reach of networks is seen to provide a much richer and more flexible source of skills and talent, not limited by geographic location It is clear that many companies today are not only attracted by this, they increasingly need it SOME QUOTES: “There is variable predictability in the amount and flow of work coming through and so a flexible and reliable option was needed. We set up a virtual contractor network to do this.” “Contractors are available when they want to be. They choose when they want to do work and may accept or reject work based on their other client workload” “Use of the skills network allows the company to increase or decrease their capacity thereby providing them with greater flexibility“ “Electronic networks help to meet challenges of staying connected with an increasingly mobile workforce. It is much easier to keep in contact with selection of people who may be based in different time zones” “I value the electronic networks for the immediacy of the response I can get. My projects are typically short and need a quick turnaround therefore being able to get a quick response whenever I might need it is important” © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  20. 20. CONTENTS I. CONTEXT II. INSIGHTS INTO PROFESSIONAL NETWORKS III. IMPLICATIONS © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  21. 21. IMPLICATIONS HOLD ON TO YOUR SEATS! Building on our view of major economic drivers laid out in the context, as well as the insights emerging from our survey, supplementary research and interviews, we have identified a number of implications for the field of recruitment, and resourcing more generally Business360 and TFPL look at some areas through different lenses and in these implications we draw on each company’s sector expertise to inform our assessment Implications include: 1. Continued improvements in online networks will supercharge uptake and relevance 2. Recruiters will depend on professional networks (and today, that means LinkedIn) 3. Open professional networks mean recruiters will need new ways to add value 4. More functions will be completed at distance, boosting outsourcing and offshoring 5. Companies need to be proactive to tap emerging opportunities 6. Individuals need to build, own and manage their online equity 7. TFPL sees an upside for recruiters 8. Business360 believes professional networks will create new ways of resourcing © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  22. 22. IMPLICATIONS THE FUTURE OF PROFESSIONAL NEWORKS: BETTER AND MORE CONTINUED IMPROVEMENTS IN ONLINE NETWORKS WILL SUPERCHARGE UPTAKE AND RELEVANCE Improvements will keep coming Online networks will continue to enhance functionality and this will continue to deliver important benefits. Expect these soon: • Intelligent search (by skill, attitude, cultural suitability…) • Greater interactivity • Information verification • Auxiliary services for search (interviewing and vetting…) • Dynamic profiles/resumes (aggregating information from around the web) Connectedness will be the norm: Benefits will be significant • Connectedness will contribute to (and possibly correlate with) potential value • Unconnected professionals will be regarded as quaint, unambitious, and perhaps even treated with suspicion © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  23. 23. IMPLICATIONS PROFESSIONAL NETWORKS WILL BE AN ESSENTIAL TOOL FOR RECRUITERS RECRUITERS WILL DEPEND ON PROFESSIONAL NETWORKS (AND TODAY, THAT MEANS LINKEDIN) WE’RE ALREADY SEEING THIS PLAY OUT Recruiting as we currently know it will not be possible without leveraging professional networks: A 2013 Society for Human Resource Management study found: • 77% of employers already use social networks to recruit, up from 56% just two years earlier • Recruiters will increasingly rely on technology to trawl networks for candidates, as well as sifting and ranking them • By far and away the dominant provider is LinkedIn. Among the recruiters using social tools, 94% say they use LinkedIn (Facebook 54% and Twitter 39%) • In this environment, search technologies and networks with the largest number of candidates will secure material advantage • As costs to locate candidates online fall, traditional talent search and ad-based recruitment will decline • 80% of organizations say the primary reason for using social networking sites is the ability to recruit ‘passive’ job candidates • A 2012 survey from Jobvite found that 93% of job recruiters use LinkedIn to find qualified candidates (from 87% in 2011 and 78% in 2010). 66% used Facebook (from 55% in 2011) • Pfizer reportedly gets up to 40% of its candidates via LinkedIn © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  24. 24. IMPLICATIONS RECRUITERS MUST FIND INNOVATIVE WAYS TO ENHANCE THEIR SERVICES OPEN PROFESSIONAL NETWORKS MEAN RECRUITERS WILL NEED NEW WAYS TO ADD VALUE As technology facilitates connections, recruiters need to enhance their service to become trusted advisors, working more closely with clients: • Recruiters will need to understand culture and personality to make suitable, sustainable matches - something so far that technology is not yet able to provide (an October 2013 article in Bloomberg shows how fast this is changing) • Having more connectivity and interaction with the talent base is where recruitment consultants will excel • It’s early in this revolution, but likely paths include: o Focusing on specific sectors or roles o Adding services, such as suitability guarantees, agreeing to service level agreements o Competing through the use of ever more sophisticated software and talent selection algorithms SOME COMPANIES IN THE VANGUARD © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  25. 25. IMPLICATIONS COMPANIES WILL LOOK EXTERNALLY FOR COST AND QUALITY IMPROVEMENTS MORE FUNCTIONS WILL BE COMPLETED AT DISTANCE, BOOSTING OUTSOURCING AND OFFSHORING Easier access to credible, proven talent sources outside the firm will boost outsourcing: ACCENTURE SEES A SHIFT FROM INTERNAL EMPLOYEES TO OUTSOURCING BUSINESS PROCESSES • As it becomes easier to locate and manage qualified individuals overseas, more functions will be completed at distance, boosting outsourcing and offshoring • Key requirements will be: o Ease of tapping relevant individuals with verified credentials o Management relaxing constraints on corporate use of thirdparties o Secure systems and networks to ensure data security • Taken together, these changes will greatly lower transaction costs of drawing on external talent and allow companies to operate with materially lower headcount © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  26. 26. IMPLICATIONS COMPANIES NEED TO TAKE CHARGE AND BE PROACTIVE COMPANIES NEED TO BE PROACTIVE TO TAP EMERGING OPPORTUNITIES As competition for talent intensifies and professional networks become better established, organizations must: • Be proactive and creative – it’s a competition for talent and it takes work to win • Assess alternative sourcing strategies – with the proliferation of professional networks, organizations can locate talent from a growing range of routes, bringing cost, resiliency and quality advantages • Identify functions that are suitable for completion remotely – as it gets easier to locate and manage professionals remotely, companies stand to benefit by outsourcing/offshoring a greater range of business functions. Some, like payroll and data entry, have already mostly been outsourced, but going forward, more central business functions, like brand management, financial analysis and more forms of business research, will be conducted remotely Organizations need to be responsible when using social media networks in the recruitment process. There should be a respect for privacy and guidance on what to consider and what to disregard in the recruitment process. Interview comment – Megan Jenkins Head of Central KM - Markets, Training and Research At DLA Piper “There should be a distinction between personal social networks and professional social networks. Currently the technology is creating a blur between the two, causing concerns for privacy and discrimination and HR Issues as seen in recent cases in tribunals.” © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  27. 27. IMPLICATIONS INDIVIDUALS WILL BE RESPONSIBLE FOR THEIR ONLINE PRESENCE AND EQUITY INDIVIDUALS NEED TO BUILD, OWN AND MANAGE THEIR ONLINE EQUITY As organizations increasingly rely on online professional networks and the web generally to locate talent, individuals will need to ensure they are well represented online SERVICES ARE ALREADY EMERGING THAT SORT THROUGH ONLINE INFORMATION TO SPOT PROMISING CANDIDATES: • TalentBin claims to be The talent search engine for the entire web that enables users to Find passive candidates where they are active online, based on their skills, interests and actions Individuals need to: • Build their online profile and presence • Own and actively manage their information, including emerging technologies (e.g. see visual resumes at Pinterest or visualize.me) • Provide a mix of online presence that matches the likely search strategy of target employers • Establish a network that will facilitate their career goals • Make sure to invest sufficient effort in both online and offline networks • Entelo claims to help users find the right candidates at the right time And specialized metrics are emerging that will help employers screen individuals for very precise attributes. Klout, for instance, measures an individual’s social influence • Ensure that information about them online is accurate (or at least reflects positively on them) and current © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  28. 28. IMPLICATIONS PROACTIVE RECRUITERS CAN BENEFIT FROM THESE CHANGES TFPL SEES AN UPSIDE FOR RECRUITERS RECRUITING IS A COMPLEX BUSINESS WILL THIS CHANGE IN THE FUTURE? People-to-people connections, recognizing and dealing with the subtleties of personality and culture, needs a level of interaction and understanding that technology alone cannot deliver; technology is a facilitator of communication We probably overestimate the ability of technology to make judgements on human interactions Recruitment companies can flourish by: • Utilizing their strong understanding of a client’s requirements and culture in making the most suitable recommendations • Leveraging a whole host of media to develop new connections and use more traditional communication methods to enhance their knowledge and understanding of that person It is very difficult to emulate the level of connectedness and understanding about a person one can achieve through reading facial expressions, body language and tone of voice. All these go towards building strong trusted connections; a machine does not have emotional intelligence Technology will help identify more and better candidates, leaving recruiters free to focus on making quality selections © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  29. 29. IMPLICATIONS PROFESSIONAL NETWORKS WILL INCREASINGLY BE USED FOR RESOURCING BUSINESS360 BELIEVES PROFESSIONAL NETWORKS WILL CREATE NEW WAYS OF RESOURCING INCREASING RESOURCING OPTIONS AVAILABLE TO CORPORATIONS The basic human drive to connect, which today is building open professional networks at scale, will change the employee-employer relationship In-house recruitment Recruitment agencies Talent marketplaces Networks will become another resourcing option available to organizations: instead of using employees or traditional outsourcing vendors, companies may choose to outsource functions to network providers that will leverage talent within the network for fulfillment Outsource vendors Crowd sourcing Curated networks ‘Network resourcing’ will bring significant advantages: Talent networks • Better verification of talent, skills and credentials • Just emerging • Better access to niche skills • Greater redundancy (easier to get replacements) • Greater flexibility (permanent, temporary, casual, remote…) More resourcing options enabled by: • Improving technology • Greater connectedness • Potentially greatest scope • Scalable • Shifts from fixed to variable costs • Plays to global organizations • Lower overheads, lower unit rates • Frees employees to focus on higher level functions Time © Copyright TFPL and Business360, Inc. 2013. All rights reserved.
  30. 30. CONTACT US ANY QUESTIONS, COMMENTS? We’d love to hear from you… John Marchant Claire Valentine john.marchant@business360.com claire.valentine@tfpl.com +1 212 866 4680 +44 207 751 7161 www.business360.com www.tfpl.com © Copyright TFPL and Business360, Inc. 2013. All rights reserved.

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