Sourcing - Value & Impact by Adam Lawrence


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Sourcing - Value & Impact by Adam Lawrence

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  • Survey of room: Do you have a target CPH for the roles you fill?
  • It doesn’t get at the true value of a sourcer who builds good relationships, one of which is candidates who are completely engaged in your organisation before day 1.
  • Might consider adding something that captures readiness like talent pool health.
  • This model is about 15 years old but is still useful – It resonates within individual HR jobs as well as with the function as a whole.
  • Need to acknowledge:All of these roles are necessary in recruitmentMost of us aren’t fortunate enough to be Change Agents 100% of the timeBut most of us do have control over how we spend our time
  • Sourcing - Value & Impact by Adam Lawrence

    1. 1. Sourcing - Value & ImpactStrictly Confidential
    2. 2. What questions will we answer? What is the role of a Sourcer? What does good look like? What are the metrics that matter?Page 2
    3. 3. PerspectivePage 3
    4. 4. Talent Acquisition’s Top 3 Pain Points Consistent Delivery Page 4
    5. 5. Technology RecruitersPage 5
    6. 6. Channels Technology RecruitersPage 6
    7. 7. Sourcers Channels Technology RecruitersPage 7
    8. 8. Sourcers Channels Technology RecruitersPage 8
    9. 9. Page 9
    10. 10. Increased # hires from Sourcing Decreased Time to Fill Increased Candidate Satisfaction Market Mapping & Intelligence, Lower candidate attraction cost Sourcers Channels Technology RecruitersPage 10
    11. 11. PerceptionPage 11
    12. 12. Perception Hiring Manager Wants resources, and thinks candidates are lined up outside waiting for jobs Recruiter Wants the visibility and control Sourcer Wants acknowledgement and equality Candidate Wants a job (& a good experience)Page 12
    13. 13. Perceptions of Sourcing  Sourcers don’t consult with business leaders to bring market insights, supply & demand data, competitor EVP, pay parody and assumptions versus marketplace reality  Sourcing is perceived by stakeholders as largely, if not completely, tactical  Sourcing is often invisible…Page 13
    14. 14. What is the role of a Sourcer?Page 14
    15. 15. Sourcing DefinedPage 15
    16. 16. What do We Mean by Sourcing? External candidate focus Passive candidate identification Talent Pooling (build & manage) Specialist knowledge of industry and associated skills, nomenclature and competition Possess tools and capability to locate & engage talent Sells the client brand & engages with candidates Builds and executes a Sourcing strategy Understand and contextualizes requisition and candidate’s job qualifications Candidate Management – expectation management Brand champion – brand custodianPage 16
    17. 17. Sourcing is Not  Int Sched/ Admin  Responding to email queries  Not Dealing with Internal Candidates  Preparing reports & analysis  Not Respones mgt (job posting or career site  Posting & Praying responses)  “Faceless”  No competency-based  Doing a recruiters admin Interviews  An optional resource  Not Managing Agency CandidatesPage 17
    18. 18. What does good look like?Page 18
    19. 19. Recruitment Journey (Process) by KeyTasks, Including Sourcing 0 2 4 6 8 10 12 14 16 18 20Page 19
    20. 20. Who Should do What? Sourcing Selection Other Research Recruiter Both Sourcer No One 0 2 4 6 8 10 12 14 16 18 20Page 20
    21. 21. Task ownership by resource –Specialist process Sourcing Selection What Good Looks Like Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8 Company 9 Company 10 Company 11 Company 12 Company 13 Company 14 Company 15 Company 16 Company 17 Company 18 Company 19 Company 20 Map and compare Volume, Specialist & Internal processesPage 21
    22. 22. What are the metrics that matter?Page 22
    23. 23. Number of Requisitions Number of PositionsNumber of Key PositionsNumber of New RequisitionsNumber of Replacement RequisitionsNumber of Open RequisitionsNumber of Open Aged Requisitions (0-30 days)Number of Open Aged Requisitions (30-60 days)Number of Open Aged Requisitions (60-90 days)Number of Open Aged Requisitions (90-120 days)Number of Open Aged Requisitions (120+ days)Number of Open Aged Requisitions (0-30 days) (%)Number of Open Aged Requisitions (30-60 days) (%)Number of Open Aged Requisitions (60-90 days) (%)Number of Open Aged Requisitions (90-120 days) (%)Number of Open Aged Requisitions (120+ days) (%)Number of "On-hold" RequisitionsNumber of Cancelled RequisitionsNumber of Pending RequisitionsNumber of Filled RequisitionsNumber of Remaining Positions to FillRequisitions-To- Recruiter ratio (%)Number of RecruitersNumber of Offers ExtendedNumber of Offers AcceptedNumber of Offers Declined by CandidateDeclined Offers Reasons Mix (%)Number of Offers Cancelled by Hiring CompanyNumber of Offers "On-hold" by Hiring CompanyInterview-to-Offer ratio (%)Offers-to-Recruiter ratio (%)Offer Acceptance rate (%)Number of HiresNumber of "no-shows"Number of Pending HiresNumber of Pending Hires (<1 month)Number of Pending Hires (1-2 months)Number of Pending Hires (3+ months)Number of Starters (Contingent)Number of Finishers (Contingent)Number of Extensions (Contingent)Number of CandidatesNumber of Internal CandidatesNumber of External CandidatesNumber of Contract Extensions (Contingent)Number of Activities Number of Applications Number of Sourcing & screening activities Number of HM (Hiring Manager) review Number of First Interviews Number of Second Interviews Number of InterviewsNumber of Offers Requested Number of Offers Extended (** included in Offers **) Number of Offers Accepted (** included in Offers **) Number of Hires (** included in Hires **)Applications-to- Hiring Manager review ratio (%)HM review-to-First Interview ratio (%)First-to-Second Interview ratio (%)Second Interviews-to-Offers extended ratio (%)Offer Requests-to-Offer Extended ratio (%)CVs-to-First Interviews ratio (%)First Interviews-to-Verbal Offer Accepted ratio (%)Candidates per Hire ratio (%)Interviews per Hire ratio (%)Hires-to-Recruiter ratio (%)Source Mix of Candidates (%)Source Mix of Internal Candidates (%)SourceMetrics = Mix of External Candidates (%)Source Mix of Agency Candidates (%)Source Mix of Hires(%)Number of ReferralsNumber of Sourced CandidatesReferral Conversion Rate (%)Referral Rate (%)Volume Source MixDirect Mix (%)Sourcing Channel CostSourcing Channel Cost Mix (%)Sourcing Channel UsageSourcing Channel-to-Hire ratio (%) Sourced Candidate Acceptance ratio (%)Sourcing Pipeline Average Agency Costs/FeesAMS Costs/FeesRequisition CostCost-per-CandidateAverage Cost-per-HireCost on "empty seat"Total Hiring CostsCost per Candidate per Recruitment StepRecruitment Expense BreakdownAverage Hire Starting SalaryContractor Salary (Contingent)Contractor Daily Rate (Contingent)Fees billed against cancelled requisitionsApplication Cycle TimeRequisition Cycle timeTime-To-SourceTime-to-ShortlistTime-to- ApproveTime-to-HireTime-to-OfferTime-to-StartTime-to-FillTime-to-First CSW ActionTime-to-accept (in working days)Time-to-accept (in calendar days)Time-to-Last Position AcceptedContracted Time to StartTime-to-Offer ApprovedTime-Interview-to-OfferTime-Offer-to-AcceptTime-Offer-to- ApproveTime-Offer-to-StartTime-to-First-CVTime-to-First-InterviewTime-to-First-Verbal-AcceptedTime-to-First-Verbal-OfferTime-Interview-to- OfferTime Requisition on holdHiring Manager Satisfaction Survey Response Rate (%)Internal Candidate Satisfaction Survey Response Rate (%)External Candidate Satisfaction Survey Response Rate (%)Hiring Manager Overall Satisfaction level (1-5 rating)Internal Candidate Overall Satisfaction level (1-5 rating)External Candidate Overall Satisfaction level (1-5 rating)Employee Retention (%)> Employee Retention (at 3 months service) (%)> Employee Retention (at 6 months service) (%)> Employee Retention (at 9 months service) (%)> Employee Retention (at 12 months service) (%)> Employee Retention (at 24 months service) (%)Employee Promotion Rate (%)Number of Candidates: WomenNumber of Candidates: MenNumber of Hires: WomanNumber of Hires: MenAverage Starting Salary: WomenAverage Starting Salary: MenNumber of Offers Extended: WomenNumber of Offers Extended: MenNumber of Reports DeliveredNumber of Automated Delivered ReportsNumber of Partial Automated Delivered ReportsNumber of Manual Delivered Reports% Manual Reports delivered% Automated Reports delivered% Partial Automated Reports deliveredNumber of Ad-Hoc Reports DeliveredNumber of Report Changes RequiredNumber of Team Members producing reportsAverage Report LoadingNumber of Complaints Received% Complaints ReceivedNumber of Reports Delivered within SLA (date defined reports)Number of Simple Ad-hoc Reports Delivered (<1 day)Number of Complex Ad-hoc Reports Delivered (<3 days)Number of Highly Complex Ad-hoc Reports Delivered (<5 days)% Number of Complaints (< 1%) Employee HeadcountEmployee Average Tenure in Company (in years)Employee Average Tenure in Position (in years)Employee Average Tenure in Job (in years)Employee Average Tenure in Grade (in years) Talent Group HeadcountTalent Group Headcount (%)Talent Headcound: WomenTalent Headcound: Women (%)Number fo Key PositionsTalent Group ResignationsTalent Group Involuntary TerminationsTalent Achieving PromotionExpatriate TalentTalent "Ready for International Assignement"Key Positions filledKey Positions filled (by identified Successors)Key Positions filled (by external Candidates)SuccessorsSuccessors for Key PositionsSuccessors: Ready NowSuccessors: Ready in 1 yearSuccessors: Ready in 2+ yearsSuccessors for Key Positions: Ready NowSuccessors for Key Positions: Ready in 1 yearSuccessors for Key Positions: Ready in 2+ yearsTalent Gender DiversityTalent Average TenureTalent PromotionsTalent Demotions Learning & Development HoursLearning & Development Hours (in-house hours)Learning & Development Hours (external hours)Learning & Development Hours per FTELearning & Development Hours (in-Page 23 house hours) per FTELearning & Development Hours (external hours) per FTEEmployees attending at least 2 training daysNumber of PromotionsNumber of Demotions Performance Rating Distribution (%)Mid-Year Performance Reviews Conducted (%)Year-End Performance Reviews Conducted (%)
    24. 24. Cost Per Hire Cost-Per-Hire (CPH) is a measure of the effort exerted, defined in financial terms, to staff an open position in an organization. In February, 2012 the American National Standards Institute (ANSI) in partnership SHRM defined COST-PER- HIRE for several key hiring categories, Including External, Internal and Contingent hiresPage 24
    25. 25. Sourcing: By the NumbersQuestion:Great salespeople — and great Sourcers — know theirconversion rates. At minimum, they know: % of suspects they are able to convert to become prospects; % of prospects they are able to convert to become candidates; % of candidates they are able to convert to being sent to hiring managers; % of candidates sent to hiring managers receive offers; and, % of candidates who receive offers accept and become employeesPage 25
    26. 26. Sourcing Funnel Source: Mary Parks. EREPage 26 Article
    27. 27. Know your conversion rates Cold Calls: N Qualified Candidates Total Dials Total Call Backs (30%) (33%) 10 3 1 100 30 10 200 60 20 300 90 30 Example: Cold Call conversion rates show  A 30% call back rate &  33% net of qualified candidatesPage 27
    28. 28. Other Important MetricsQualitative: Weekly submittalsQuantitative Percentage of candidates accepted Talent Pool health Hires (value)Page 28
    29. 29. Value and ImpactPage 29
    30. 30. The Original Ulrich ModelHR Concept: Differentiates between transactional andtransformational. Emphasizes understanding the businessagenda and how your skills can help deliver it. Process People Strategic 3 4 Where do you spend your time? Transactional 1 2Page 30
    31. 31. Transactional vs.Transformational Sourcing Process People Every role is Strategic Strategic Expert: Change Agent: necessary but – Adept with tools Finds and Which person has and techniques engages talent the most direct hires? Who has the most Transactional Admin Expert: impact? Completes Champion: Strong Who is perceived tasks as adding the most efficiently relationships value?Page 31
    32. 32. Impact Process People Strategic Expert Change Agent No real Strategic surprises here. How do we Admin Expert Champion make it happen? TransactionalPage 32
    33. 33. Ulrich Model and Sourcing Strategic Expert Change Agent  Identify and find sourcing tools  Build and execute strategy  Find passive candidates  Engage candidates  Know your industry  Personify the brand  Know the skills you source  Expert candidate matching  Gathers & Communicates market insight  Manages talent pool data –  Communicate honestly and Everything’s complete and manage expectations correct  Makes talent pool feel like a talent community Admin Expert ChampionPage 33
    34. 34. Value of Sourcing*channels: ROI by region, skill, industry, geography, devicePage 34
    35. 35. Channel Effectiveness: MediaPage 35
    36. 36. Channel Mix ComparisonBoth companies use the same media but their channel mix is very different Agency Job Board Careers Site Internal Referral Other Talent PoolPage 36
    37. 37. Levers to Improve PerformanceSet target to improve weekly outputExample 20+ 7+17= avg of 14.6 Submittals Per Week (SPW) 16+18+17= avg. 17.0 SPW [=120 MORE subs per year!]Must be measured in the context of “quality” [target +/- 85% Recruiter acceptance] If you work as part of a team, set a weekly team goal for submittals and have the team members flex to meet the goal each week; regardless of difficult requisitions or team members on sick leave or vacationPage 37
    38. 38. Levers to Improve Performance Really “know” the EVP of the company you represent (and your competitors) Know the competitive landscape of your industry; leverage the strong points and compensate for the weaker points Master the art of Engagement!!!  Drastically improve your candidate conversion rate  Drastically improve your networking Referrals  Build your pipeline Increase your sector & domain knowledge Remember: Consistently good wins!!!!Page 38
    39. 39. Levers to Improve Quality Understand ―what good looks like‖ in your environment Be present & take the lead in the Hiring Manager requisition briefing, and bring insight and data Improve your sector domain knowledge Work in partnership with your Recruiting counterparts and as strategic advisors to your stakeholdersPage 39
    40. 40. Levers to Control Cost HAVE A PLAN! Use a structured project plan for the roles you source and follow it Track and measure the ROI on the channels you use Impact the candidate experience (and measure it in surveys) **Capture relevant information from prospects and candidates (what’s going on out there? Who’s hiring? What is the competition paying? Why are/aren’t you interested in working here? What would need to change for you to become interested?Page 40
    41. 41. Dos and Don’ts Do Don’t Have a plan  Hide behind technology & email Pick up the phone and connect with people  Waste time and money on channels that don’t perform Change mind-set from one of “finding” to “engaging”  Waste your time Leverage market insights to  Act passively bring value to the conversations  Be invisible with stakeholders  Be lame Know the value you bring to the businessPage 41
    42. 42. Final thoughts….  Through the “glitz” of toys and tricks, we may have hidden the meaning and purpose of Sourcing  If Sourcing (and Sourcers) are so good, why are there still recruiting agencies [and new ones every day]?  We need to get back to basics  We, as a Sourcing community, need to ask “what can we do”?Page 42  What can be outsourced will be
    43. 43. Thank YouAdam