Recruiting & Talent Strategy Summary

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Recruiting & Talent Strategy Summary

  1. 1. Winning the Human Capital War by Don W. Gee 2008 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 Don W. Gee DonGee@onebox.com Phone: 213.716.5563
  2. 2. Winning the Human Capital War by Don W. Gee  Management & Training Achievements & Recruiting Achievements Highlights & Highlights  As a Sr. Manager with Hall Kinion-Chicago,  Have implemented Talent Strategy standards, created a Recruiting Training curriculum for metrics and training programs for various new hires. Due to its success, was retained by organizations throughout the U.S. which has the Corporate Office to conduct a formal included the following; talent strategy audits, training program at the Global Headquarters, reducing CPH & TPH, vendor evaluation and which was videotaped & instituted company- consolidation, employer branding, retention & wide as the new recruiting methodology. recruiting strategies, CRM implementations,  As a Sr. Manager with Hall Kinion, grew the compensation surveys while spearheading Chicago location from $1.7MM to $10MM in Talent Fulfillment delivery two years. Also produced two Recruiters that  With Escendent, designed a Human Capital were globally ranked #2 and #5, and produced Solutions Fulfillment Model & implemented an the #4 Sales Executive in the company. Also Organizational Design Model for consulting produced the “Rookie of Year,” and yielded the engagements for Essential Insight (subsidiary of highest bill-rate than another office in the Escendent) company world-wide.  As the Lead Sales Recruiter for Business.com,  With Esquire Deposition Services, re-engineered 2nd month on contract, enabled Business.com the Midwest regions sales methodology. Also to exceed their hiring goals for the first time in implemented a 52-page sales guidebook, which the companies history outlined Esquire’s new sales methodology,  As a Corporate Contract Recruiter for Amdocs scripts, checklists and tactical strategies for (world’s largest telecom-billing software Account Retention & Growth and Business company) I streamlined their hiring process and Development. Hired, trained and produced saved Amdocs over $360,000 by reducing three sales executives that yielded 190%, 300% vendor utilization and reducing TPH from 8 & 181% territory growth (all within their first weeks to 3 weeks. Was also responsible for year of employment, all with no industry staffing 7 locations throughout the US, including experience). solely staffing one of the most prominent Fraud  With Essential Insight (subsidiary of Escendent) Detection software development projects in the designed an Organization Evaluation model for industry performance-based companies. With Escendent  As a Project Recruiting lead for ITG, staffed a designed a recruiting model & delivery program web based/OO project headed by Ivar Iacobson & a comprehensive Human Capital delivery & (author of Iacobson use case methodology) for fulfillment model for Project-based Human Icon Nicholson in New York Capital engagements. With Essential Insight,  With Hall Kinion, I headed up a Recruiting Team designed an Organizational Evaluation Model for that staffed one of the first project teams for Performance-based companies 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 Page 2
  3. 3. Winning the Human Capital War by Don W. Gee Background & Services Provided: Talent Strategy Consulting - Streamline an Recruiting Services organizations talent acquisition function through audits, talent acquisition organization I have fulfilled design, strategy development, e-Talent various positions in acquisition strategy, hiring process consulting, various industries employer branding, vendor management, and training (both contract and employment) by Hiring Audits – I have provided detailed audits utilizing my personal of a talent acquisition function to maximize the efficiencies and costs as well as providing database, my detailed reviews of a clients function in network of contacts, comparison with industry leading best-practices leveraging the power of the internet, direct Organization Design – I have developed talent acquisition strategies and organization models sourcing & referrals. I for organizations to properly structure and have have placed the capacity to organically build an organization contract/temp to support efficient, timely, and cost-effective growth resources from $8.00 per hour, up to Internal Recruiting Design – I have hired, $275.00 per hour. I trained and assembled extremely successful recruiting programs, as well as training have placed full-time programs on industry leading best practices in resources from $28K employer branding, creative direct candidate to $225K a year. sourcing, organizational design, etc. Employment Branding - I have worked with companies to build employee commitment and position organizations as an employer of choice. Competitive Intelligence, Research, & Name Vendor Management – Have worked with Generation – I have provided research for my various organizations by implementing clients’ competitors; utilize the power of the evaluation and measurement criteria to ensure internet to mine for the best possible talent, potential vendors will be a strategic resource, and utilize direct recruiting techniques to for current vendors they will be measured to deliver perfectly matched passive candidates ensure their performance justifies their costs. for our clients needs
  4. 4. Winning the Human Capital War by Don W. Gee Common Recruiting Downfalls Corporations Agency Sales/Recruiting Cycles  In most companies (both large and small) a Most “Recruiting Agencies” divide their traditional HR Department is tasked with organizations into two divisions, sales and the recruiting function which is often too recruiting. 80-90% of Recruiting Agencies have reactive an internal hierarchy that places more  Time per hire is too long significance on sales and not recruiting. Recruiting Agencies that are potential vendors  Cost per hire (in both soft and hard cost) will assault clients with sales calls, hefty are too high promises and eloquent sales presentations.  Too much dependence on recruiting However once a client agrees to utilize a agencies Recruiting Agencies services, their internal  Lack of employer branding/competitive recruiting efforts fall short by one or more of positioning the following: leaving the position open or  Effective negotiating unfilled, providing candidates that are poorly  Too many consultants, not enough screened and bombarding the client with a employees mountain of resumes to sift through (these are  Lack of Proactive Recruiting Campaigns just to name a few).  Lack of Competitive Intelligence Traditionally there are two sides of the Recruiting Agencies business, each having representation by the  Recruiting Model is inferior to an agencies following, Sales Function (Client Side) and sales efforts Recruiting Function (Candidate Side). The  Recruiting is reactive vs. proactive levels of difficulty for the Sales Executive and  Recruiters often do not know how to utilize Recruiter change throughout the behavioral interviewing Sales/Recruiting cycle.  Too much dependence on Job Boards  Lack of recruiting life cycle integrity Sales Cycle (Client Segment)  Body Shop tactics Sales Executives are assigned to acquire new  Lack of quality screening clients with endless promises of excellent  Recruiting one dimensional candidates, candidates and stellar services. There is no seeking candidates with a specific skill set refuting the level of difficulty for the SE in the only vs. seeking candidates with strong skill beginning of the Sales/Recruiting Cycle. sets, strong domain experience and a high Landing an account, opening a new one, degree of business acumen establishing a new relationship can be  89-90% of Recruiting Agencies have an extremely difficult, especially in the current interior model that defies the rules and market conditions. However, once a conditions of the marketplace “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. Page 4
  5. 5. Winning the Human Capital War by Don W. Gee Recruiting Cycle (Candidate Segment) In the beginning of the Recruiting/Sales Cycle, Starting in the late 90’s to 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 2001, after spending massive Recruiter. There is very little, if no sales resistance, whereas for the Account Executive, amounts of capital on it’s the exact opposite in the beginning of a cycle. However, once a candidate (especially a staffing agency outsourcing, marketable one) begins a pre-submission phase, the Recruiters job becomes substantially more high agency attrition and challenging; therefore the level of difficulty rises sharply. poor service, organizations To continue to pre-close a candidate and re- close a candidate once an offer is extended began to shift their models becomes even more challenging. Often times, candidates will have other offers, other to a more “organic” hiring opportunities in the works to continue to manage this process prompts the level of structure by separating HR difficulty to rise substantially. Here is an example of what a typical agency and Recruiting into cycle looks like. separate entities within HR. 12 This trend continues 10 8 however most organizations 6 4 Recruiting design & methodology for an Sales 2 internal recruiting function 0 is not as effective as it could As a business cycle begins, levels of difficulty swap from sales to be. recruiting; sales faces a higher level of difficulty & complexity, but as the cycle moves forward recruiting faces a higher level of intricacy. Page 5
  6. 6. Winning the Human Capital War by Don W. Gee Vendor Management What is the vendors’ internal process to source, evaluate a candidate’s skills, background and Companies that need to hire difficult to find overall professionalism? candidates or have an internal recruiting function that does not have the capacity to During the evaluation process, it is imperative fulfill them, staffing agencies can be a resource to understand how an agency manages their that can be helpful to compliment an candidate screening process. Do they provide organizations efforts. It is often prohibitive for values in areas such as; direct sourcing passive companies to maintain the level of recruiting job seekers, niche’ focus into a specific organization necessary to consistently find some of these positions. candidate competency/skill set or industry and leverage a quality large database. What is the Outsourcing should be strategic and quality of their internal recruiting function? Is vendors/staffing agencies should be utilized if there recruiting process thorough? Lastly, there isn’t an internal capacity sufficient to what is the agencies recruiting personnel fulfill the needed resources. In other words, it turnover? If a vendor claims to be experts in should be a last resort. It is common (and recommended) to utilize a vendor/staffing the human capital business, however, their agency for temporary resources. internal recruiting function has a high turnover, question their process, model and The particular positions being referred to quality. staffing agencies will dictate the type of companies able to find these people. A Basic Vendor Utilization Criteria: 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. Page 6
  7. 7. Winning the Human Capital War by Don W. Gee marketplace and determine how difficult the position will be to fill. When a position remains unfilled, it would be recommended to Within the first 2 weeks of the opening, if there evaluate the compensation isn’t at least 3 candidates that have moved from package of the role and evaluate a recruiter pre-screen to a face to face interview (or at least a hiring manager phone if it is competitive. With skill sets screen), that could be the first indicator that that are in high demand, outsourcing to a vendor might be the best compensation variances can vary course of action. Also, after 15 business days, from quarter to quarter. if there hasn’t been at least one face to face interview, it might be time to outsource to a vendor. Escalation Process Process Centralization After determining the number and types of All vendor activity (outsourcing requisitions, candidates that need to be hired, an vendor evaluation, and vendor selection) should assessment must be made regarding the be centralized and supervised by the company’s ability to hire them. Once that HR/Recruiting department. Department heads determination is made, another assessment or hiring managers may have pre-existing must be made to determine an escalation loyalties or relationships with certain agencies; process to determine if a respective however these agencies should be evaluated requisition/requisitions need to be outsourced. and held to the same standards as other First and foremost, the goal of any organization agencies. A centralized vendor process ensures is to fulfill their requisitions organically, this will better quality control, accurate performance enable an organization to maintain a lower CPH and accountability tracking. and reduce attrition (that national average for agency attrition is 20% and above). It can be This process needs to be centrally managed by common place to utilize agencies for the HR/Recruiting Department. temp/contract positions, however, for full-time positions; agency utilization should be a last Outsourcing Process 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 Page 7
  8. 8. Winning the Human Capital War by Don W. Gee 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 For every 100 positions excessive outsourcing. that are outsourced, the Outsourcing to agencies can be costly. If a hard cost of agency thorough process has not been implemented to evaluate and re-evaluate vendor processes, utilization can exceed vendor standards and performance the cost can $1.4 Million. be devastating to an organizations bottom line. Snapshot of Averages: Add the soft cost of On average IT positions are outsourced more agency attrition, which than any other skill set, and the national average for base salary for an IT professional is averages over 20%, the $70,000. In the Chicago marketplace, the average IT salary is $71,400. total cost of agency utilization can exceed  Most agencies charge a fee on the first year’s salary between 15-25%. $2.2 Million.  To fulfill individual requisitions, most organizations under $500MM outsource Most organizations over 50% their hires  Agency attrition averages above 20% don’t do enough to investigate the If an agency hire voluntarily resigns from a position within the first 90 days, an agency capabilities of the should refund the fee or given a chance to refill the position at no charge. vendors they select. Outsourcing hiring Request for Proposal Based upon examination of the historical data needs to an ill-equipped and consultation with company leaders, a Request for Proposal (RFP) should be staffing agency can be a constructed. Weighting of factors important to financial disastrous the company will be given and the RFP will be sent to the prospective vendor pool. Upon option. receipt of the results a list of companies to be interviewed will be determined and the results of those interviews will finalize the selections. Page 8
  9. 9. Winning the Human Capital War by Don W. Gee Prime Vendor New Hire Onboarding Outsourcing certain or all hiring to a Prime Minimizing attrition starts on day one. It is Vendor enables a company to appoint one crucial when an employee first starts, there is vendor to manage the entire human capital NO DOWN TIME. There needs to be a clear process. program for new hires, orientation and transition. Not only should a structured, Outsourcing the entire process can relieve a meticulous orientation be created, but once an company from having to maintain staff orientation is completed there is a system in dedicated to vendor management. Fluctuations place to plug the employees into their position in hiring needs can leave a company with and begin their knowledge curve. Orientation is people responsible for agency hiring when no important, but there must be other activities hiring is needed. A prime vendor assumes after orientation to ensure the candidate is responsibility for managing all hiring done with welcomed such as; introductions to their any agency and allows a company to ratchet up managers and team, site tours to internal their hiring capability at will with out the cost of training. internal staff. Employee Communication Communicating with employees can accomplish Retention Evaluation more than meets the eye. Keep the company up to date with company news, key new hires, Most organizations have a sound recruiting significant company accomplishments and process but do not take an honest look at their other news that will keep employees in the attrition and evaluate what more they can do to loop. improve employee retention. Benefits Ensure you’re providing a good benefit plan. To evaluate an organizations attrition Also, offer the best vacation package you can. If percentage, this will require intensive research. your competitors are offering two weeks, offer The following data will be evaluated to analyze 3-4 weeks. the variables that can contribute to high attrition: Awards Recognition is another way to raise performance. You can have awards for “Best Cost of Attrition Employee Award,” or “Best Turnaround,” or As a rule of thumb, when an employee resigns whatever highlights your company culture. If that can cost the company 1.5 -2 times of the you want to tie in a bonus to this award, that vacated salary. The hard and soft cost includes can further compel individuals to exceed time and money spent on refilling the position, expectations, but not necessary. advertising fees, agency fees, employee development and training. This does not On Going Training include other hard and soft costs such as lower Offer your employees opportunities to further productivity, company morale and the impact their respective skill sets through training. this could have on customers/clients. When an Depending on the cost of the training, you can organization loses someone, they are also losing either reimburse them or pay for the training revenue and profitability. directly. Page 9
  10. 10. Winning the Human Capital War by Don W. Gee 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. Page 10
  11. 11. Winning the Human Capital War by Don W. Gee 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). Client Challenge Solution One of the world’s largest Create a strong brand Audit of hiring practices telecom billing software Create a high volume growth Branding campaign to strategy and build an companies position the client as an engine to fuel the Proj. Employee growth of explosive growth employer of choice over 75+% per year Reduce the cost per hire to Designed a recruiting HR had little recruiting create substantial cost strategy experience and was savings Designed a new hiring Reduce the hiring cycle time relying heavily on outside process substantially to grow search firms quickly Consolidate vendor list Average Cost per hire was $11,700 RESULTS • 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 Page 11

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