Talent Acquisition Challenges: Recruitment Trends and Issues Facing Today’s Leading Organizations - Presentation Transcript
Talent Acquisition Challenges:
Recruitment Trends & Issues
Facing Today’s Leading
Organizations
February 25, 2009
Recruitment and Hiring
Challenges and Solutions
February 25, 2009
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Our Speakers Today
Hary Bottka provides TPI’s clients with expert human resources outsourcing
advisory services benefiting from Hary’s experience. Hary is the Recruitment
and Staffing Advisory Leader where he provides thought leadership and
guidance regarding the RPO and Managed Service Provider (MSP) markets and
service providers. Clients value Hary’s strong insight into industry trends and his
experience with service provider human resources issues. He specialized in
identifying process and organizational gaps within human resource
organizations and developed future state HR service delivery models. Prior to
joining TPI, he was employed by Deloitte, where he utilized his knowledge of
ERP systems and HR applications to assist top tier corporations to facilitate
Hary Bottka large‐scale change HR initiatives.
HR Global
Practice Director Hary holds a Bachelor of Arts in International Studies from Virginia Polytechnic
Institute and State University. He also is a member of the Human Resources
Outsourcing Association and where he serves on the RPO Tools Committee.
About TPI
• Worldwide sourcing advisory firm
• Nearly 400 advisors. Completely independent and unbiased
• Provide sourcing advisory services in:
– IT, HR, Finance, All other business functions
• Our goal is to help our clients optimize their business operations through a combination of
insourcing, shared services, outsourcing and offshoring.
Our Speakers Today
Richard Crespin is the Global Executive Director of the HROA and the
President of Membership Services for SharedXpertise. In his role for the
HROA, Richard oversees all association activities and membership
services, including the HROA’s Americas, Asia‐Pacific, and European
Chapters as well as its many interest groups, including the RPOA. He also
oversees membership services for the SharedXpertise Forums which
manages the HROA, the Finance & Accounting Officers Association
(FAOA), and the Corporate Responsibility Officers Association (CROA).
Richard is an alumnus of both the George Washington University and the
Richard Crespin Harvard Business School. He currently serves as President of the George
Global Executive Washington Alumni Association and is active member of the American
Director Society of Association Executives.
About HROA
• The HROA is the definitive independent organization for all those who purchase, provide, or
participate in HR transformation and outsourcing. Our membership encompasses over 7,500
HR executives, including the largest 50 buyers, the top 30 providers, the leading sourcing
advisors and attorneys, and the best thought leaders in HR Transformation.
• The HROA brings its diverse membership together to set standards and practices, provide
peer networking, and maintain a robust curriculum.
Our Speakers Today
Anne Nimke brings almost 30 years of experience in both human
resources and staffing to Pinstripe. She is a recognized leader in the RPO arena
seasoned veteran in world of talent strategy. She has lead strategic client
engagements including RPO Solutions that are the flagship programs in the
industry, Anne has also lead Long term outsourced talent acquisition programs
for professional, non exempt and hourly staffing needs and consulting projects
including applicant Tracking selection and implementation, employment agency
RFP and Contract negotiation, and HR/Recruitment Department realignment
and reorganization.
She graduated from Marquette University with honors and is currently a
Anne Nimke Member of the HR Outsourcing Association (HROA), is Vice Chair of the RPO
Co‐founder and Association, is a member of SHRM’s National Staffing Special Expertise Panel
Exec. Consultant and is former President of the MMSHRM Chapter and co‐chair of the WI
State SHRM Conference.
About Pinstripe
• Known for innovative & uniquely effective sourcing of talent and executing on customer‐
focused process improvements servicing Global 5000 & Domestic Healthcare Systems
• Founded: April 2005 by an experienced team of HR, HRO and RPO leaders and industry
veterans Headquartered in Brookfield WI
• Total Employees: 136 FTE’s; Average Recruiter experience is 5 1/2 years; Pinstripe
Leadership Team (12) average HR Leadership experience is over 12 years
Polling Question
Please describe your current role…
Recruiting Manager / Recruiter – 56%
HR Manager / Director or above – 11%
HR Generalist / HR Specialist (non recruiting) – 3%
Hiring Manager / Executive – 0%
Other – 31%
Agenda
• HROA Survey ‐ Recruiting Challenges and Opportunities
• The Time is Now!
• Questions
Discussion Input Points
• HROA/Pinstripe/TPI survey
– Global Survey administered in Fall of 2008
– Input from HR leaders and providers of recruitment services
• TPI data – TPI Prevalence DatabaseTM
– Fact‐based research, supporting the HRO needs of the Forbes
Global 1000
– Clear framework for apples‐to‐apples comparison of diverse
HRO data points
– All HRO Functions: WFA, Payroll, Benefits, RPO, Learning,
Compensation, Performance
• Pinstripe data
– Recruiting Leaders Poll gathered monthly from predominately
mid‐side organizations
Now!
Optimists see job growth as soon as spring,
With the economy losing only about 750,000
more jobs between now and then.
Pessimists predict the economy will keep
losing jobs until late next year or 2010, with
additional losses of well over 2 million jobs,
bringing the peak‐to‐trough decline to more
than 4 million.
‐ BusinessWeek, “Is the Jobs Panic Justified?”
12/10/2008
Now!
• First level, Calibri 24pt, gray
10
2009 Forecast Change in Jobs
Source: Moody’s Economy.com, Feb 2009
11
Impact of Economic Downturn
• Harmed Impact of Economic Downturn
– Limited resources
– Uncertainty, both for organizations
seeking to hire and prospective
employees seeking change
– Relocation problems – home sales impact
employee willingness/ability to move 18%
26%
– Increasingly poor quality of candidates
• Helped
– More talent available; “their loss is our
gain”
– Less competition enables organizations to
56%
better position to attract talent
– Uncertainty decreases attrition Harmed No impact Helped
Now…is the Time!
A downturn can give smart companies
a chance to upgrade their talent!
McKinsey
• Redesign jobs (even as you execute headcount reductions)
• Protect your training and development programs
• Measure and make decisions based on talent needed now and in
three years
• Invest in maintaining internal brand – no matter what
• Even though hiring may decline, quality of hire increases during a
recession
Polling Question
What recruitment metrics do you
measure now? (check all that apply)
Cost per hire – 33%
Time to fill – 77%
Candidate source analysis – 67%
Quality of hire – 23%
Candidate and/or Hiring Manager satisfaction – 30%
Measuring Recruiting Effectiveness
Most Important to Measuring Recruiting Effectiveness
0% 10% 20% 30% 40% 50% 60%
Quality of candidate
Time to productivity
Job vacancies
outstanding
Cost per hire
Time to hire
S P
F 208
Why RPO?
Most Common Reasons to Outsource Recruitment Processes
0% 10% 20% 30% 40% 50%
Decrease the time to hire
Lower the cost of recruitment
Improve candidate quality
Increase candidate volume
Gain access to technology
Improve market outreach
Drivers of Provider Selection
RPO Defined
Recruitment Process Outsourcing is a form of business process
outsourcing where an employer transfers all or part of its
recruitment processes to an external service provider.
An RPO provider can provide their own or may assume the
company’s staff, technology, methodologies and reporting.
In all cases, RPO differs greatly from providers such as staffing
companies and contingent/ retained search providers in that it
assumes ownership of the design and management of the
recruitment process and the responsibility of results.
Polling Question
How concerned are you about effectively
recruiting the best talent right now? (pick one)
Not concerned at all – 4%
Moderately concerned in all job/skill areas – 19%
Some areas very concerned & in other areas NOT concerned – 50%
Very concerned in all job/skill areas – 27%
Current Market Behaviors
• Organizations are in cost cutting mode – focus is clearly on 2009
• Large‐scale strategic initiatives are being deferred due to the cost
of investment
• Organizations are focused on addressing specific and immediate
problems ‐ targeted solutions or outsourcing
• Drivers for evaluating a Recruitment Process Outsourcing solution
remain the same
– Variable cost structure, improve candidate quality, and shorter time to fill
• There is less urgency to address the recruiting challenges of 2007
and 2008
What to do now?
• With hiring volumes down, organizations should be looking at
their Recruiting and Staffing delivery model for the future
• Determine if your processes and systems environment support the
needs of your hiring managers
• Calculate the current cost of administration – Are you surprised at
the cost
• Seek to reduce the complexity of your environment by
consolidating systems and vendors
• Identify strategic alternatives to the status quo
– Model business case for each alternative
– Analyze feasibility/attractiveness of options
• Evaluate potential sourcing options – RPO
is one of the most proven area of HR
Outsourcing success
Impact of RPO
0% 20% 40% 60% 80% 100%
Improves quality of candidates our organization attracts
Helps my organization gain a competitive advantage
Brings about positive change to my organization
Is part of our talent management strategy
Benefits candidates as well as hiring manager
Helps my organization reduce costs
Strengthens the role of HR with senior management
Is necessary for my organization to operate in today’s
economic climate
Is the solution to the managing the fluctuations in
staffing demands
Strongly Agree Agree Neutral Disagree Strongly Disagree
What to do now?
4 Things to Start Today
1.Enhance your brand
2.Innovate your process and mobilize technology
3.Measure your results
4.Be Nimble – change when it is necessary
What can you do now?
1. Enhance your brand
– Use Web 2.0 to promote your unique employee relations,
culture, investments
– Know what the public knows about you
– Insure exceptional candidate care & communication
throughout the process
Social Networking Usage Trends
• We have found that current employees are the most widely used
and are by far the most trusted source of information about
organizations for candidates. Unfortunately, only 24% of
employees actively promote their organization in the labor market.
Corporate Leadership Council
• Trust in “a person like me” has more than tripled, from 20% in 2000
to 68% in 2006. Edelman Trust Barometer
UniversalMcCanm
26
Web 2.0 Taxonomy
• Level 1: Minimal collaboration. Density creates value.
• Level 2: Collaboration adds value, which drives traffic and adds
density
• Level 3: Collaboration creates value, which drives traffic and
density.
27
Companies don’t control the message
What to do now?
2. Innovate your process and mobilize technology
– Utilize the functionality you already have
• Only 12% of ATS’s have their “auto‐emails” turned on
• Retrain staff on current & new ATS functionality
• Enhance your career site
– Know and deploy new options available in automation and self‐
service
• eQuest/JobViper (Automated Job Posting Distribution)
• Jobs2Web (Requisition SEO)
• SkillSurvey (Automated Pre‐hire 360 Reference Checking)
• TalentDrive (Sourcing and TRM System)
Accelerate Your Process
All done faster, cheaper, and with a great candidate experience
Dramatic increase in job seekers –
Adjust your posting/adv strategy &
Increase pro‐active “sourcing Active & Passive Leads
strategy” for hard to fill positions
Candidate Application Review knock‐outs in
screening questions.
Increase selectivity.
Refine validated/other Online Assessment
assessments &
move earlier in the process Automate screen/interview
scheduling & customize screening
Recruiter Phone questions to the position
Screen/interview
Hiring Manager Interviews
Cascade Background Checking
Improve interview‐to‐offer ratio Automate Reference Checking
Offers
saving hiring managers time
Starts
Begin new employee engagement on “start
date” with automated on‐boarding
Recruitment and Staffing Metrics
• Cost per hire
• Volume Analyze effectiveness regularly…make it routine!
• Time to fill • What you measured annually do quarterly…
• Source analysis • What you measure quarterly do monthly!
• Funnel ratios
– (leads to interview, interview to hire etc.)
• Satisfaction of new employees/hiring managers
• Recruitment Efficiency Ratio
– (Total staffing costs/total compensation of new hires) x 100
• Quality of Hire = PR + HP + HR / N
– PR = Average job performance rating of new hires
– HP = % of new hire reaching acceptable productivity with
acceptable time frame
– HR = % of new hires retained after 1 year
– N = number of indicators
Be Nimble
evolve or transform.
status quo is not an option.
now is the time.
Final Comments
Attendee Takeaways
Executive Summary
TALENT ACQUISITION CHALLENGE REPORT:
Recruitment Trends and Issues Impacting
Today’s Leading Organizations
Any questions?
Hary Bottka
TPI
770 719 2405
Hary.bottka@tpi.net
www.tpi.com Anne Nimke
Pinstripe, Inc
877.797.3379
animke@pinstripetalent.com
www.pinstripetalent.com
Richard Crespin
HROA
202.905.0351
richard.crespin@hroa.org
www.hroa.org Thank you!
As the world faces unprecedented demographic, econo more
As the world faces unprecedented demographic, economic and competitive challenges, recruitment and retention remains a top concern. Recognizing the critical role talent acquisition plays, leading organizations are maintaining focus on attracting and retaining talented people. Finding, hiring, and retaining the right people remains a challenge through all economic climates and are presenting new and even paradoxical challenges. less
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