Talent: what CEOs sayand what they doTreating recruitment as a strategicbusiness unit INSIGHT by Guy Rickett hiringsolutions.com
INSIGHT Talent: What CEOs say and what they do “People are our most important asset.” “Our growth is dependent on the quality of our team.” “The quality of our workforce is one of the top 5 drivers for business performance.” We read such statements from CEOs on corporate websites, annual reports and newsletters, but how many believe it enough to have taken the actions required to ensure their company can attract these high quality people? Do CEOs truly believe what they say?How many CEOs have These statements are undisputable, but the reason I question how many believe it to be so is based on years of analysing how companies go about acquiring one of their mosttaken the actions important business assets.required to ensure their To help a CEO understand if he or she is a believer, there are some simple questions one can ask:company can attract 1. Can you name at least two of your key recruiters?high quality talent? 2. Have they been made aware of the business strategy and plans for the coming period? 3. Over the last two years, how much has the business invested in this department? 4. Are your key business managers satisfied with the time it takes to hire and the quality of new recruits? If you’ve answered no to most of these questions, you might still consider employees to be important to your business, but you may not have connected the dots between hiring talented people and having a productive recruitment department at the heart of your strategy. 01
INSIGHT Talent: What CEOs say and what they do How do you make recruitment successful? In my experience, most recruitment departments are underfunded in terms of people and the tools needed to effectively do the job. The only way they can deliver is to rely onIn many organisations, recruitment agencies, which is an expensive and mostly unnecessary option in this day and age.recruiter salaries are too 1. Start by hiring great recruiterslow to attract high Although underfunding in terms of the number of people is an issue, the biggest problemquality team members, are the salaries. To hire good people, you need good recruiters. In many organisations recruiter salaries are too low to attract high quality team members, and many are staffedand many are staffed by by administrators rather than professional, skilled recruiters.administrators. What are great recruiters like? Their strengths are similar to that of sales peoples: they are excellent communicators, persistent, effective networkers, they are good at selling the company and the vacancy at every step of the talent acquisition process and strong negotiators. They also have solid industry knowledge and know where to source the right candidates. A recruiter is the first person a candidate interacts with in a company, and good quality applicants have a choice, so this touch point must be a positive experience, building desire and motivation to work for the organisation. Of course, money is not sufficient in getting good recruiters.Good quality recruitment professionals want to work for a company where management recognize the value they can deliver to the business. Ask for directions to the recruitment department in many companies and the answer is: “find HR, go to the back of the office, turn left and it’s the last door on the right”. When you enter, it is like going back to the dark ages – paper everwhere, little or no technology. This brings us to the next important point: getting rid of the paper environment.02
INSIGHT Talent: What CEOs say and what they do 2. Invest in the right tools Why the mass of paper? Simple: the general rule is that to find one high quality candidate you need to attract at least 100 applicants. Hiring managers want to interview at least 5If your accounting people for each job, which means recruiters need to read and process 500 applications per role. If they are hiring 200 people a year, that’s 100,000 individuals to process, and in mostwas all manual how organisations this is manual!many good Not only is that time-consuming, but it’s also ineffective and would probably drive away any forward-thinking recruiter, unless he was told he could automate everything. Ask yourselfaccountants would this: if your accounting was all done manually, how many good accountants would want towant to work for you? work for you? Recently, I was speaking with the Head of IT of a well known organisation who told me that recruitment is a low priority and they will not be looking at systems for at least another 2-3 years. Yet the same organisation is growing fast, is heavily advertising for staff and hiring through agencies because the CEO has publically stated that increasing customer service resources are a high priority to build their reputation, customer loyalty and brand. Somewhere there is a disconnect. New Internet-based technology now means that the entire recruitment process can be automated in only 6-8 weeks with minimal involvement and disruption to IT. Moreover, recruitment technology will reduce your overall costs, typically delivering 100% ROI in less than six months. 03
INSIGHT Talent: What CEOs say and what they do Change the way you look at recruitment If you really think that recruiting the right people at the right time is important and strategic for your organisation’s success, then you should act accordingly.“The definition of Sales and marketing are strategic for most companies because they generate leads andinsanity is to keep sales, so naturally, they are given the right tools to work effectively. Recruiters aredoing the same things responsible for sourcing your greatest asset: people. So why should you let them spend time looking through paper CVs when they could be doing more added-value work?and expecting a different Recruitment is a profession and a good recruitment team can deliver real long term value toresult.” the business. If you recognize this and truly want it to contribute in achieving your company’s goals, a few fundamental things may need to change. If your company has been hiring the same way for many years and you are not satisfied with the results, then consider Steven Covey’s good advice: “The definition of insanity is to keep doing the same things and expecting a different result.”04
About Hiring Solutions CompanyHiring Solutions Company has developed Sniperhire, an online recruitment managementsystem, to help clients automate every step of their recruitment function, from publishingvacancies on all their sourcing channels to on-boarding new employees. HSC consultantsare recruiting, technology and marketing professionals who help clients re-engineer theirrecruitment function while providing expertise at every stage of the hiring process.