Why the Dot-com Boom/Bust Was Just a Warmup for Recruiting Leaders (Alan Fluhrer)


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Presentation from ERE Recruiting Conference 2013 by Alan Fluhrer

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Why the Dot-com Boom/Bust Was Just a Warmup for Recruiting Leaders (Alan Fluhrer)

  1. 1. The Talent Cliff© -How bad could it really get. -What it’s costing your company -What you can do about it
  2. 2. The Talent Cliff© Who is Alan Fluhrer ??? 1>Director, National Recruiting Marcus & Millichap Assisting with defining & building new recruiting team Negotiated nearly a 7 figure LinkedIn Package Helping to evaluate next ATS 2> 20 years recruiting, internal, external, & 3rd party. Retained, contingent, project, hourly, and more. Finance, Tech, Engineering, Gov’t, Manufacturing, on- and-on …there’s not much I haven’t seen.
  3. 3. The Talent Cliff©-“The Talent Crisis” / “The War For Talent” - Blah...Blah...Blah- Talking the Talk for 20+ Yrs. and, really not walking the walk @ all. START WORRYING ABOUT THE REAL CHALLENGE What your recruiting is lacking, is costing you tens, to hundreds of millions $$$ in lost profits Solutions you can use today, and for the long-run
  4. 4. The Talent Cliff©
  5. 5. The Talent Cliff© Example #1: A Big 4 consulting firm (1 position):- Sr. Manager selling $3-$5 Mil/yr., Base pay approx. 175k- Called in January, we sent 2 sample candidates, who were really available. No reply/feedback after multiple attempts- Called me again in Sept- Had interviewed 14 candidates and not made any offers (Direct lost cost of over $20k)- Showed them the same 2 resumes, they were interested- Both candidates off the market- Provable loss of approx. $1.2 mil- Potential long term loss of over $5-$10mil over 2-3 years Real lost cost of over $1million. Long term loss > $10+Mil
  6. 6. The Talent Cliff© Example #2: Calculating Lost Costs:Lost CostsFigure out a lost cost per 1> Employee 2> Hour 3> Day…Whatever.Then figure the restHourly Net Profit Per Employee $55Daily Lost Net Profit ( x 8) $440Weekly Lost Net Profit ( x 5) $2,200Monthly Lost Net (x 4) $8,800Annual Lost Net Profit ( x 52) $105,600EG - If you have 50 openings, open for 60 days avg, then the totallost cost is the daily cost X the # of openings X the # of days open.$440 day x 50 openings x 60 Days Open $1,320,000
  7. 7. The Talent Cliff© One Way to Calculate Costs:
  8. 8. The Talent Cliff© Solutions Good Better Best
  9. 9. The Talent Cliff© Best 1> Toss out your org chart & start over Have recruiting report into 2nd area: CFO/COO as well as HR 2> Tie part of all hiring manager’s bonus to recruiting Skin in the game3> Model recruiters compensation similar to an outside agency This will prove recruiting is a profit center & increases retention
  10. 10. The Talent Cliff© Disney Apple Creative Collaborative Connecting the Dots
  11. 11. The Talent Cliff© HR CFO/COO Recruiters Sourcers Admin
  12. 12. The Talent Cliff© Better 1> Hire relationship recruiters and let them do their job Every Co. needs relationship & transaction recruiting 2> Pay recruiters & vendors more &/or bonus them Skin in the game 3> Train/Have the right tools for your recruiting needs ATS, LinkedIn, AIRS, Etc…. (let them test and report out what works for your company)
  13. 13. The Talent Cliff© Good1> Make sure CFO/COO know & understand what $$$ recruiting is saving and earning for the company 2>BRAND > BRAND > BRAND Low to no cost, huge paybacks. Find your company’s value and have every recruiter & employee contribute to branding3> Have Sr. Recruiters Train/Share with others. Make it worth their while Everyone wins, promotes teams, collaboration and increases retention
  14. 14. The Talent Cliff© Free Tips Your Team Can Use Now Phone Tip Branding Tip