The Surprising Disconnects Between Corporate Recruiting and Candidate Behaviors
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Today’s unemployment numbers should make this a recruiters’ market, but the truth is that the many knowledge workers are currently employed and extremely passive and risk-averse when it comes to ...

Today’s unemployment numbers should make this a recruiters’ market, but the truth is that the many knowledge workers are currently employed and extremely passive and risk-averse when it comes to making a job change. As a company in need of experienced and proven talent, you can’t afford to use old-school recruiting techniques to connect with today’s top candidates. You need to understand how candidates are—and aren’t—investigating career options, and the steps that can help you uncover and recruit stellar talent. This presentation draws from The Novo Group’s Benchmark Survey of candidates and companies from across the country. It’s an insightful, practical analysis of both market factors and internal recruiting techniques and processes that might be hampering the effectiveness of your recruiting efforts, plus critical changes that can improve your recruiting success.

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  • The Surprising Disconnects Between Corporate Recruiting and Candidate Behaviors Today's unemployment numbers should make this a recruiters' market, but the truth is that the many knowledge workers are currently employed and extremely passive and risk-averse when it comes to making a job change. As a company in need of experienced and proven talent, you can't afford to use old-school recruiting techniques to connect with today's top candidates. You need to understand how candidates are-and aren't-investigating career options, and the steps that can help you uncover and recruit stellar talent. This presentation draws from The Novo Group's Benchmark Survey of candidates and companies from across the country. It's an insightful, practical analysis of both market factors and internal recruiting techniques and processes that might be hampering the effectiveness of your recruiting efforts, plus critical changes that can improve your recruiting success.
  • Cindy Lu is an innovator in her field and thrives on carving out new categories in professional services businesses. As President, CEO and co-founder of The Novo Group, a Milwaukee-based professional services firm providing custom corporate recruiting solutions, Cindy has been a tireless advocate for a revolutionary approach to recruiting. Recently, The Novo Group was awarded the Alfred P. Sloan Award for workplace flexibility, in Chicago and Milwaukee (2011 and 2012); Also The Novo Group is ranked one of The Best Places to Work, by The Milwaukee Business Journal.
  • Cindy : After talking to hundreds of companies across the country we have seen consistent corp recruiting challenges with atracting knowledge workers and executives even given the relatively high unemployment rates. Today we will review some of these theories and the data from our surveys including: surprising external factors that are impacting your recruiting Internal dynamics that create a viscous cycle of inefficient talent acquisition spend AND Proven principals of good corporate TA – and what you should be doing now to build a business case for your recruitment spending
  • Before we get started let ’s take a quick poll of the make-up of our group
  • Based on our poll it looks like we have a majority in the HR profession. From what we have seen and heard each area has its unique challenges in Corp TA HR Generalist – wears too many hr hats and recruiting tends to be cyclical TA Recruiters and Director – in today ’s environment of changing candidate behavior and demanding hiring managers most are not set up to succeed CHRO – we will discuss an invisible or shadow spend issue and how lack of customized process and technology make it challenging to gather the data you need to build a case to help your HRG or TAS be successful creating a vicious never ending circle Hiring Executive – you have limited headcount and wonder why it is so hard to recruit quality candidates given the relatively high unemployment rates Problem they all face…lack of resources to be able to respond to the rapidly changing candidate behavior in today ’s uncertain economic environment
  • Cindy: let ’s start by examine surprising external factors that could be impacting your recruiting
  • So how did we get here? Think about it 2009 – horrible 2010 – we thought it would get better 2011 – there was light but for only a short time 2012 – more political and economic uncertainty Although the stock market is at a high of 15,000…. ”The biggest speed bump slowing down corporate hiring is uncertainty over the cost government policies rather than a lack of access to capital or other factors”, according to research by the University of Colorado Boulder's Leeds School of Business. As a result you have some people who are underemployed or working part-time and this doesn ’t help with consumer confidence AND you have others who are working 2-3 jobs and don’t have the time to look for a job and with the uncertainty in the market the saying “ the devil I know is better than the devil I don’t” http://www.bizjournals.com/denver/news/2013/05/03/business-uncertainty-costs-us-335.html So what did our survey say?
  • Only 9% of the 1062 candidates we survey nationwide are happy and not looking to make a move and 46% who were not looking but would consider a new opportunity if approached…which lines up the Corp exec board (CEB) ’s active passive candidate index which is just below 50% now vs 22% in 2006 More details of the specifics of who we surveyed can be found in the candidate survey but at a high level here is a brief overview: 15% of the survey respondents were not employed and this falls right in line with the U6 unemployment statistics vs the 7.5% the govt is reporting Industry: FS, HC, IT, Mfg, PS and OTHER Level: c, vp, dir, mgr, consultant and other Funtion: ACCT, Eng, HR, IT, Mktg Sales , other SO WHAT DOES ……THIS MEAN TO YOU>>>> Date pulled from https://lh3.googleusercontent.com/-KxgRroZCULw/TzkzgYmc7dI/AAAAAAAAcAw/_Yy4Y9WI8f4/s800/TM0212_Feature1_Fig1.jpg
  • 55% of the candidates are considered passive candidates – professionals who are not reaching out to your companies to apply for a job. This was pretty consistent range across industries So let ’s exam how the passive candidates stay in touch with what is going on in the job market?
  • As you can see over 70% are using linked in for staying in touch with referrals and personal recommendations coming in second and use of recruiters 3 rd . However 71% of the unemployed are using the big job boards and their number one way to search for a job and the active candidates are using linked in as #1 source and then big job boards. It was eye opening to see the variation in behaviors of passive, active and the unemployed which leads me to examining what is going on in corp recruiting departments give the dramatic increase in passive behavior.>>>
  • Before we look at the internal dynamics, let ’s take a quick look at who we surveyed:
  • In our survey we had over 312 corp executives respond with 60% at the c level, vp and directors Revenue – even mix of companies up to 100 mil, 100-1 bil and and 1 bil over And an even mix of industries with an exceptional high response rate from MFG At the time of the survey last winter, 71% of the companies were hiring and only 7% had no plans to hire Now, let take a look in more detail at the inefficiencies in corp America>>>>
  • Time and time again we see pain that is invisible to most corporations and what we call a vicious cycle and then we will review some suggestions on how to stop this cycle Let ’s take a closer look at the cycle…
  • When there is turnover of critical knowledge worker roles often HR or TA is overwhelmed with too many positions - in fact in our study 65% of companies had 2 recruiters or less and Only 5% of the companies we surveyed had time to source more than 20 hours a week and a majority of the req load was over 20 positions. So knowing what we know about candidate behaviors we have seen the BU engaging with search firms>>>>
  • IN fact our study shows that 80% of companies still paid search fees to external traditional search and contingent firms with…. 60% of these fees have being paid by the business unit bc… Then HM finds the budget in another category like professional services or consulting and that is how the recruiting fees then get categorized
  • So often, the accounting dept doesn ’t have a specific GL code for recruiting fees we see that these expenses are hidden and the companies doesn’t know what the pain is…this is what IT calls “shadow budgets” So if these costs aren ’t on the record executives aren’t aware of the pain and will continue to leave recruiting out of the budget or if a company is looking to centralize they will have a hard time building a business case.
  • In fact only 52% of the companies that were 1 billion in revenue understood their spend even less which is not surprising because as companies get larger more is decentralized and
  • When we asked the group what metrics they track, it is not surprising that time to hire and cost per hire were the top metrics tracked at 53 and 36% But I ask you – what this has to do with the quality of the hire or process? At the end of the day the most important thing to the hiring mgr is the right hire and the best hire for the role bc we all know the cost of a bad hire far exceeds the dollars spent on a search and the time to hire can be a counter productive measure to quality of hire especially now given the high number of passive candidates in this uncertain marketplace
  • Without tracking the Quality of hire which is the ultimate measure of success how do you know if what you are doing even works? The other important factor of measuring a Quality process is time savings – so if you don ’t track the quality of your process, how do you track true cost per hire? Alright, >>>>
  • let ’s review some of our recommendations and 4 principals of Good Corp Talent Acquisition>>>
  • The 4 principals we will cover today are the: Leadership challenge in corp recruiting today – which we will spend quite a bit of time on Then we will just skim over the other three principals of educating hiring mgrs., the internal seach proess and finally technologies role in total transparency and accountability for all involved in the process Let ’s take a look at one of our first survey questions….
  • Concerns = what ’s keeping you up and night Priorities = part of your strategic plan You can see the two don ’t line up Why you ask? Well I asked some of my CHRO friends and it seems succession planning is top to the CEOs mind and the pain of corp recruiting creates immediate pain for all. If you think about it why wouldn ’t recruiting be the top Human capital priority? Bc No amount of training and development, succession planning or retention strategies will resolve not getting the right people in the pipeline first. In fact… BCG conducted a series of studies wih with WFPMA of F500 companies they showed that a companies ability to deliver of recruiting was their #1 lever for growth – infact 3.5x on revenue and over 2x for profit margin. With onboarding and manging talent coming in 2 nd and 3 rd . HOWEVER, when they surveyed how HR felt they performed on recruitment vs how the non hr exec thought they performed this was the topic with the largest gap in how they performed
  • So what do we do about this? We ’ll unfortunately there is not a one size fits all program esp as it relates to your more critical, in high demand knowledge workers. However these are some common assumptions companies have about their TA challenges NEEDS WORK – on easy action Many companies say “We don’t measure quality bc it is too hard and we can’t control what he hiring mgrs. do after they are hired” What we say There is no metric more important than quality – if you don ’t measure quality, you will never make the business case for a more holistic corp rec process bc in the end what really matters to an executive isn’t the time or the cost but the measure of value the hire will contribute to the organization ThePaying too many fees- A dedicated TA team will save us money (in fees) We say: Turnover – we need better interview tools What we say Selection tools and exp is only as good as the pipeline of potential candidates being sources – you can be great at interviewing but it won ’t matter What we say Need better quality candidates – we need better recruiters or hire a recruiters who can do it all or call a search firm What we say Need to architect the a proactive process that allows for recruiters to be successful and technology to track the data ACTION – It all gets down to creating an environment with the right resource allocation. Think about it. If your TA folks have 40 reqs how can they go digging for the 55% of the passive candidates? All they can do is be reactive and post and pray right? AS AN EXAMPLE…TJHALE STORY AND NOVO STORY? Our next principal…
  • No reason to instantly make sweeping corp wide changes overnight if you don ’t have the data to completely centralize – it can be an iterative process Start with a simple measuring quality based on what is important to your hiring mgrs in both the process and the hires. It could be a simple 3 point survey after 90 days with your hiring mgrs. How would you rate the overall fit between the employee's abilities against the job requirements discussed at the start of the search? How would you rate Culture fit Would you make the same decision to hire this person? We will be posting blogs on our website on this topic but also our next benchmark survey will focus on this specific topic so please take part on that. Our next principal…
  • We now understand that the passive candidate population is growing Part of our job is then to educate Hiring mgr – how long it takes to reach passive – And the role they also have to play, This is a cumulative chart over 5 years of what it takes to get to 50% passive candidates and the activity required Next time you work on a tough search you can can share our data but also try putting together a simple Dashboard like the one on the next page
  • What you see on the screen is a sample dashboard that has some of the information you may want to share on a weekly basis with your HMs Show a summary each week for your activity such as: numbers of candidates sourced, numbers contacted, number of phone screens, # of interviews…etc you get the picture – so the next time you are working on a challenging search, this tool will help illustrate in the short-run how many people you have to reach out to make a hire to educate the HM and in the long run builds a business case for change. Getting the right data to tell you the story you is more powerful than saying it “feels like a tough search”
  • Designing a process that allows for proactive outreach to these passive candidates is critical On this slide, You will find a retained search process that is a departure from the “post and pray” approach This slide alone is would take an entire class to deliver so we won ’t get into the details today From a big picture perspectives>>>>
  • … map out your internal process with your constituents ….now this is not easy to do but we do recommend you: Study the amount of time needed to be proactive with your searches – esp the most mission critical positions. Rethink workload for those who are doing the day to day recruiting to allow for proactive outreach You will find that it seems you won ’t have the budget dollars to do all this at once but you can start small and pilot a small program with a willing HM with the guts to try something different. You can do this even if you don’t have the title of CHRO or VP of HR. As we shared earlier 60% of the budget is with your hiring managers! It is important to note that the process precede technology and technology can ’t do its job if you don’t have a good efficient process lined up
  • One interesting 30% of companies are not tracking any metrics with a strong correlation that companies that track metrics tend to spend more time sourcing proactively
  • More importantly tracking KPIs or key performance indicators in order to better help coach your team and start to gather the data to show what it truly takes to get at the large passive candidates population Here are some you may want to track with your /CRM system for those of you who have one. Start with KPI Call to response ratio Submittal to interview ratio Close ratio Results Metrics Active/Passive Candidate Quality of hire Cost per hire (including opportunity cost) In order to get to the most important KPIs and metrics, designing the process first. On the next slide….
  • Wow, so I have given you a lot of data, food for thought and action items. I would like to take one last poll from the group on how you would prioritize your actions items from today
  • The Surprising Disconnects Between Corporate Recruiting and Candidate Behaviors Today's unemployment numbers should make this a recruiters' market, but the truth is that the many knowledge workers are currently employed and extremely passive and risk-averse when it comes to making a job change. As a company in need of experienced and proven talent, you can't afford to use old-school recruiting techniques to connect with today's top candidates. You need to understand how candidates are-and aren't-investigating career options, and the steps that can help you uncover and recruit stellar talent. This presentation draws from The Novo Group's Benchmark Survey of candidates and companies from across the country. It's an insightful, practical analysis of both market factors and internal recruiting techniques and processes that might be hampering the effectiveness of your recruiting efforts, plus critical changes that can improve your recruiting success.

The Surprising Disconnects Between Corporate Recruiting and Candidate Behaviors Presentation Transcript

  • 1. The Corporate Recruiting Challenge Disconnects Between Corporate Recruiting and Candidate Behavior 2013 1
  • 2. 2 Cindy Lu Cindy Lu is an innovator in her field and thrives on carving out new categories in professional services businesses. As President, CEO and co-founder of The Novo Group, a Milwaukee-based professional services firm providing custom corporate recruiting solutions, Cindy has been a tireless advocate for an integrated corporate recruitment process within companies to make better use of their dollars. The Novo Group was rated #43 in HR on Inc. Magazine's "Inc5000" list and was awarded the Alfred P. Sloan Award for workplace flexibility, in Chicago and Milwaukee (2011 and 2012); Also The Novo Group is ranked one of The Best Places to Work, by The Milwaukee Business Journal. .
  • 3. What will you learn? External Factors 3 Internal Dynamics Principals
  • 4. 4 First Poll Question What category best describes your current role Corporate Talent Acquisition Specialist or Director  HR Generalist  HR Executive  Hiring Exec – non HR  Other
  • 5. 5 Who and Why?
  • 6. 6 External Factors
  • 7. Candidate Behaviors 7 Business Uncertainty Passive Candidates
  • 8. 8
  • 9. 46%+9% = 55% 9
  • 10. 10 of passive candidates use LinkedIn for job openings70%
  • 11. 11 Internal Dynamics
  • 12. 12 Who We Surveyed
  • 13. Invisible Pain – A Vicious Cycle 13 Unexpected Turnover or Need Outside Firms/Shadow Budget Recruitment Spend
  • 14. 14 Unexpected Turnover or Need
  • 15. 15 Outside Firms/Shadow Budget
  • 16. 16 Recruitment Spend
  • 17. 17
  • 18. 18
  • 19. 19 Without visibility how can you manage costs and make the most of your recruiting investments?
  • 20. 20 Principals of Excellence for Corporate Talent Acquisition
  • 21. 21
  • 22. Popular View vs. Novo View 23
  • 23. Action 24 IMPLEMENT CANDIDATE QUALITY SURVEY Simple 3 point survey after 90 days with your hiring managers: 1.How would you rate the overall fit between the employee's abilities against the job requirements discussed at the start of the search? 2.How would you rate Culture fit 3.Would you make the same decision to hire this person?
  • 24. 25
  • 25. Action 26 Create your own dashboard
  • 26. 27
  • 27. Action – Map Process 28
  • 28. 29
  • 29. Action – Track KPIs 30
  • 30. 31 What will you take action on? A.Map out a proactive recruitment process B.Implement a dashboard C.Look for an ATS/CRM D.GL code for accounting for just recruiting fees E.All of the above F.None – we are already doing all the things you recommended
  • 31. 32 Q&A Corporate Recruitment Benchmark Survey http://thenovogroup.com/wp-content/uploads/2013/02/Recruitment-Benchmark- Survey-2012_v2.pdf Candidate Behavior Survey http://thenovogroup.com/wp-content/uploads/2013/06/2013-Candidate- Survey_PDF-FINAL.pdf Or follow me on twitter and I will tweet out the links @TheNovoGroup Corporate Recruitment Benchmark Survey http://thenovogroup.com/wp-content/uploads/2013/02/Recruitment-Benchmark- Survey-2012_v2.pdf Candidate Behavior Survey http://thenovogroup.com/wp-content/uploads/2013/06/2013-Candidate- Survey_PDF-FINAL.pdf Or follow me on twitter and I will tweet out the links @TheNovoGroup
  • 32. The Corporate Recruiting Challenge Disconnects Between Corporate Recruiting and Candidate Behavior 2013 33