OFCCP and Recruiting: How can you innovate and regulate?

Knowledge Infusion & ERE OFCCP and Recruiting How can you innovate and regulate? August 2009 Cassie Fireman, Chief Performance Officer Elaine Orler, Consultant

About Knowledge Infusion •  Leader in human capital Knowledge management, talent management & social collaboration consulting, advisory and intelligence services Passion Talent •  Ranked #3 fastest growing private companies in region Partnership Celebration Trust •  Headquartered in Minneapolis, Minnesota with offices throughout US •  Over 200 global customers including MetLife, Turner Broadcasting (CNN), Luxottica Group (Sunglass Hut), Intuit, Fairmont Raffles Hotels, Clorox, Target •  Largest online human capital management community…with over 2,500 members Knowledge Infusion Proprietary and Confidential, Copyright 2009 2

Agenda • Understand the balance of recruiting and compliance by: •  Defining the current market challenges •  Reviewing the definition for internet applicant •  Understanding how the technology offered today has addressed that definition •  Provide options for how you can continue innovation within regulation and still identify the right talent for your organization Knowledge Infusion Proprietary and Confidential, Copyright 2009 4

Polling Question: How long have you been in the recruiting profession? A.  Less than 1 year B.  1 - 3 years C.  3 - 5 years D.  More than 5 years Knowledge Infusion Proprietary and Confidential, Copyright 2009 5

Recruiter time in position consistently under 3 years 2008 2009 Source: Knowledge Infusion & ERE - The Future of Recruiting & Sourcing Survey 2008 N = 678 2009 N = 200 Knowledge Infusion Proprietary and Confidential, Copyright 2009 6

Recession Impact on Recruiting External Forces Internal Forces   Increased volume of inquires   Reduction in resources related to opportunities dedicated to external recruiting   Increased applicants applying   “Freeze”, “Chill”, in mass hiring for opportunities they are not efforts qualified for   Greater exposure to regulatory   Redistribution of work related to requirements HR, TM and TA   Hesitation in relocation based   Prioritization and Process on global economy Analysis Business Impact   Slower execution of business strategy and operating plans   Delayed and loner processes to make talent decisions   Increased transaction based activities with non-qualified applicants Knowledge Infusion Proprietary and Confidential, Copyright 2009 8

Recruiter Role Consistently Changing Hunter Farmer Sous Chef •  Specialized, targeted •  General area of discipline •  Aligns the efforts within the •  Variable processes •  Consistent process for overall business based on type of talent identifying talent •  Understands broad •  Few qualified active •  Harvest candidates from resource objectives, needs candidates – stronger broad categories of and gaps sourcing efforts qualified resumes/ profiles •  Expert in pinpointing the •  Strong social networking, •  Strong relationship with need and the sourcing plan relationship building with line mgmt for continuous •  Strategic alignment of external talent recruiting talent across the business Knowledge Infusion Proprietary and Confidential, Copyright 2009 9

Today’s Enterprise Recruiting Models Centralized Decentralized •  Dedicated staff •  Various roles participating in recruiting •  Recruiter team work •  Individualistic recruitment •  Standard processes •  Localized processes •  Standard reports/metrics •  Varied reports/metrics •  Position volume shared across the team •  Position volume varied •  Direct line reporting structure •  Consensus voting with participation optional Generalist Outsourced •  Multiple job responsibilities •  Multiple companies supported •  Employee Relations critical •  Recruiter team work •  Limited recruiting experience •  Process ownership and accountability •  Individualistic recruitment •  Standard reporting/ metrics •  Varied reports/metrics •  Position volume varied Knowledge Infusion Proprietary and Confidential, Copyright 2009 10

Definition of an Applicant

OFCCP’s Four Point Internet Definition 1.  Individual submits an expression of interest in employment through the Internet or related electronic data technologies 2.  Employer considers the individual for employment in a particular position 3.  Individual’s expression of interest indicates the individual possesses the basic qualifications for the position 4.  At no point during the selection process prior to offer of job, does the individual remove themselves from further consideration from the position Knowledge Infusion Proprietary and Confidential, Copyright 2009 13

Recruiting Applicant Examples Resume and Evaluation of Company Job profile basic Posting on submission qualifications Career Site for = meets consideration Reviews Reviews all Recruiter search results results searches TAS and refines to meeting basic database basic qualifications qualifications Requests Recruiter Identifies talent Resume and Searches based on basic profile external qualifications submission for database consideration Knowledge Infusion Proprietary and Confidential, Copyright 2009 14

Evolution of Recruiting Process and Technology •  Social Collaboration Strategic Sourcing ‘Edge’ •  Dynamic Communications •  Predictive Analytics •  Career Portals/Branding •  Assessments/Screening Talent Acquisition •  CRM/Sourcing •  Onboarding •  Metrics •  Requisition Management •  Job Distribution ATS •  Applicant Management •  Offer Management Core •  New Hire Management •  Reporting Knowledge Infusion Proprietary and Confidential, Copyright 2009 15

Applicant Tracking Technology Impact •  Late Majority Market •  Late Majority Technology •  10 – 20 years old •  Enterprise TA Suite Solutions •  First ATS announced in 1988 •  Enterprise TM Suite Solutions •  Transitioning from a late adopter •  ERP Modules market into a legacy market •  V5 – v8 for core ATS applications •  Compliance Impact •  Internet Definition Adopted •  Focused on the ‘big picture’ •  Expanded footprint in: services, •  Search results systematized technology or partnerships •  Reduced flexibility in aggregated definition Knowledge Infusion Proprietary and Confidential, Copyright 2009 16

Talent Acquisition Systems Impact •  Early Majority Market •  Early Majority Technology Modules •  5 – 10 years •  Core ATS w/ TA Modules •  Candidate Relationship Management •  Transitioning to Late Majority •  Job Distribution Tools •  Module Revolution •  Assessments/Verifications Providers •  CRM •  Compliance Impact •  Onboarding •  Internet definition supported •  Reporting •  Search results systematized •  High Volume •  Dependency on company process adherence Knowledge Infusion Proprietary and Confidential, Copyright 2009 17

Strategic Sourcing “Edge” Technology Impact •  Emerging Market •  Emerging Technology •  0 - 5 years old •  Talent Profiling •  Proof of concept transitioning to Early •  Targeted Recruitment Advertising Adopters •  Video Interviewing •  Mobile Recruiting •  First Generation applications •  Beta – v2 of application development •  Compliance Impact •  Agile development strategy •  Undefined territory/exploration •  Visual identification •  Increased exposure Knowledge Infusion Proprietary and Confidential, Copyright 2009 18

Compliance in the Future Social Networking

What is Social Collaboration Portals/Self- Intellectual Service Communication Capital Knowledge Social Sharing Networking Collaboration Profiles & Conversations Expertise Knowledge Infusion Proprietary and Confidential, Copyright 2009 20

Social Networking gaining momentum in Recruiting Source: Knowledge Infusion & ERE - The Future of Recruiting & Sourcing Survey 2008 N = 678 2009 N = 200 Knowledge Infusion Proprietary and Confidential, Copyright 2009 21

Things to do right now to ensure you’re compliant: • Talk to your employment counsel representative and Affirmative Action stakeholders about the definition and the systems/tools you use in recruiting • Create a process flow visual guide of your recruiting process •  Understand where there is consistency and variance in the process •  Review how your process is managed through each of the four (4) requirements for the internet applicant pool •  Review job descriptions and postings for consistency and alignment of “basic qualifications.” •  Review your sourcing and screening processes, determine if applicants are being considered differently vs. equal consideration •  Consider process changes to neutralize screening techniques you might use to limit review of submissions •  Review how “withdrawals” due to candidate disinterest are managed and recorded Knowledge Infusion Proprietary and Confidential, Copyright 2009 22

OFCCP and Recruiting: How can you innovate and regulate?

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