Social Hiring 4.0 What very executive needs to know about talent sourcing and hiring to stay competitive
THE ROLE OF FACEBOOK IN FINDING AND HIRING GREAT PEOPLE WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT TALENT SOURCING AND HIRING TO STAY COMPETITIVE Ranjan Sinha email@example.com
THE ROLE OF SOCIAL MEDIA IN FINDING AND HIRING GREAT PEOPLE 1) Social hiring methods are twice more effective than job boards and consultants. Employee’s social network (employee referrals) and referrals generated by recruiters talking to candidates (candidate referrals) combined generated 2 out of every 3 hires for the top employers1. Social Hiring Applications (SHAs) are built on social media platforms like Facebook, that provide a systematized way of utilizing the Social Graph2 of employees (employee referral) or candidates (candidate referral) to source and hire candidates. 2) Researchi shows top employers intend to further increase social hiring budgets in 2012/13. An increasing number of companies are prioritizing this spend over other media like newspapers and job boards. The HR innovators have moved from this being experimentation to more regular spending. Are you an Innovator or Laggard? 3) Facebook is the dominant social media platform in India. Facebook has 35 million active profiles in India and is 4X larger than LinkedIn and is growing 100% faster. Social Hiring Applications that utilize Facebook’s social graph will become the dominant source of candidates overtaking many job boards and LinkedIn in size by end of 2012 3 . There are 15X more business software applications being developed on Facebook than LinkedIn, driven primarily by the technology superiority and open architecture of Facebook platform. Social Hiring Applications like MyParichay developed on Facebook keep personal and professional information segregated on Facebook giving a user professional 1 Source: Global Talent Metrics/PeopleMatters Magazine Social Hiring Survey 2011 2 The Social Graph is the representation of our relationships. Today, these graphs define our personal, family, or business communities on Facebook 3 MyParichay -‐ Facebook based SHA adds 16,000 profiles a day compared to 9,000 new profiles on Naukri
THE ROLE OF SOCIAL MEDIA IN FINDING AND HIRING GREAT PEOPLE look and feel environment to network ensuring privacy and confidentiality of a career related communications. 4) Today Facebook is the #1 place candidates look for information about a company followed by company career sites followed by Google. Companies, especially those that hire talent between the age of 19-‐30, need to invest in a high quality, SHA powered Facebook career page. Ideally the company should have two separate Facebook pages – one focused on prospective talent, the other on customers and prospects. This provides for more focused engagement across the two segments. HR should be responsible for the Career Facebook page while marketing should own the Corporate Facebook page. 5) Smartphones, driven by lower device prices and lower cost data plans, will become the dominant way people will access internet and social media, especially from work where companies may restrict Facebook access. Already India has overtaken US in terms of percentage usage of smartphones to access the Internet. Companies must adopt a SHA that provides secure, quality user experience that is seamlessly integrated between the mobile application and the desktop application. Recruiters should be able to connect and network with candidates on their smartphones and vice versa. 6) SHA will become the platform of choice for candidates passively looking for a job as SHAs provide higher privacy to candidates vs. posting resumes on job boards. Candidates will become more empowered “customers”. She/he will have increased access to jobs and more “insider” information on those jobs, salary and benefits.
THE ROLE OF SOCIAL MEDIA IN FINDING AND HIRING GREAT PEOPLE 7) 4 out of 5 top employers in India are “using” social media to recruit4. Social Hiring is fast becoming the leading source for talent, eventually will supplant traditional job board model and consultants. Most leads for quality candidates will come from your employees and will extend beyond your employees to include your company’s alumni, your employees’ and your alumni’s “extended social network” expanding the reach of your company by 100X. 8) Job boards will have to reinvent themselves to define value for their customers, both in terms of quality and financial cost. Recruitment companies will have to become more quality focused versus throwing resumes at clients hoping some will stick. 9) Companies that empower their Facebook page with a SHA like MyParichay™ and their employees through social hiring technology and exciting referral marketing programs and rewards will provide significant advantage to their HR department to win the war for talent. 10) Companies will start getting rated by their candidate community about their hiring process and culture compelling them to manage their social media brand. They will need to work with specialist companies who can help them manage their social talent brand and traffic. EVOLUTION OF CANDIDATE SOURCING AND HIRING Until 1995 -‐Recruitment was relatively an inefficient market where companies and candidates had limited access to complete market information (Job openings 4 Source: Global Talent Metrics/PeopleMatters Magazine Social Hiring Survey 2011
THE ROLE OF SOCIAL MEDIA IN FINDING AND HIRING GREAT PEOPLE and candidates). Candidates relied on their connectivity with one or two recruiters and communicated primarily over faxes and postal mail for sharing resumes. Recruiters maintained rolodexes of candidates and having a Rolodex of 300 resumes was considered “large”. Companies ran print ads and waited for resumes to come over postal mail and faxes. Real time updating of jobs and resumes was impossible. 1995 – 2005-‐ Internet, browser and job boards commoditized access to talent and job opening information as companies and candidates uploaded job and CVs on paid job boards or free sites like Craigslist. The market became more efficient as candidates and recruiters could access job and candidate information in real time and connect in real time using cell phones and email. While technology evolved in this time period, the approach to sourcing and hiring stayed pretty much the same -‐ recruiters relying on active candidates that were either uploading their CVs on job boards or hoping for candidates to respond to online job postings or print ads and candidates hoping to get an email or call from a recruiter who searched his resume on a job board vs. a rolodex 2005 and the 2010 -‐ The emergence of Web 2.0 created technology that started revolutionizing how people created and shared information across wiki networks to meet their business and social research needs anytime anywhere. The participants of the network produced/contributed information that was consumed by other participants of the network for mutual benefit. Based on this simple principle Wikipedia revolutionized the concept of encyclopedia. LinkedIn started as a business networking platform that over couple of years morphed into a powerful
THE ROLE OF SOCIAL MEDIA IN FINDING AND HIRING GREAT PEOPLE tool for recruiters to connect with passive candidates and do effective recruitment research to find name and titles. THE FUTURE IS SOCIAL HIRING. Employee Referral is a powerful demonstration of “social hiring” concept where employers are leveraging the social network of employees to find high quality talent. Social Hiring is the natural progression of sourcing and hiring where majority of people will find jobs by using their social networks of friends and colleagues and their friends and their friends to get introduced to employers. Employers will find talent through leads being generated by members of their employees’ and alumni’s’ social media network for mutual benefit. This phenomenon of extended referrals is going to gather significant steam as Social Hiring Applications (SHAs) like MyParichay (built on top of Facebook) will empower employees, individuals and recruiters to interact in total privacy on Facebook. Business/workflow capabilities will allow recruiters to use it as a powerful business tool for sourcing, processing candidates and hiring. One of India’s largest IT/ITES Company has 16,000 of their employees on this Social Hiring platform. In 9 months, the employees have referred 84,000 candidates from their social network. Now these 84,000 candidates are referring candidates for a reward using the platform expanding the reach for candidates by over 5X in 9 months. In a recent survey of companies in India, 85% of them use employee referral programs to find people; one fourth of them fill more than 30% of their jobs through employee referrals; referred employees are significantly better in quality than
THE ROLE OF SOCIAL MEDIA IN FINDING AND HIRING GREAT PEOPLE candidates sourced through job boards or consultants; and 70% plan to step up their investment in Social Hiring and Social Hiring tools. Applications like MyParichay allow companies to precisely target 30 million white collar workers (growing at 50% annually) to promote their jobs by age, employer, city/town, college, degree to specific candidate groups and their extended social network. IGNORE FACEBOOK AND MOBILE AT YOUR OWN PERIL LinkedIn(((10(Million)( 35#44%yrs% Facebook((40(million)( Number(of(Proﬁles((in(lacs( 8%% 300( 14#17%yrs% 0%% 14#17%yrs% 12%% 35#44%yrs% 200( 22%% 18#24%yrs% 36%% 25#34%yrs% 31%% 25#34%yrs% 100( 42%% 18#24%yrs% 49%% 0( 2007% 2009% 2010% 2011% 2008% Age(( Facebook( LinkedIn( 14#17%yrs% 4.8%mil% 0.1%mil% JOB%BOARD% FACEBOOK( 18#24%yrs% 20%mil% 3.6mil% • Facebook%has%20%X%reach%of%Job%Boards% 25#34%yrs% 12%mil% 4.2%mil% • 1%M%%acIve%users*%on%Naukri% • 30%mil.%acIve%users%on%Facebook% 35#44%yrs% 3.2%mil% 2.2%mil% Total% 35%mil% 10%%mil% FACEBOOK(HAS(25(MILLION((MORE(PROFILES(IN( PRIME(HIRING(AGE(THAN(NAUKRI(OR(LINKEDIN( * Number of new resumes added in last 60 days.Facebook dominates social media in India, in terms of network members and reach across all age groups, richness of social networking features, and openness of platform for software developers and is Free. These attributes have made Facebook
THE ROLE OF SOCIAL MEDIA IN FINDING AND HIRING GREAT PEOPLE the platform of choice for software developers who are building 15X more business applications on Facebook than LinkedIn. Companies cannot ignore 25 million potential talents (Facebook users between the ages of 18-‐45) who are on Facebook but not LinkedIn. Companies should combine LinkedIn with a Facebook based Social Hiring Application (SHA) like MyParichay to ensure they are competitive and cost effective in their search for talent and hiring. MyParichay combines the professional look and feel of LinkedIn with the reach of 40 million users on Facebook to create the largest network of potential candidates in India. On an average, people between the ages of 18-‐34 spend more time on Facebook than LinkedIn and log in 300 days in a year compared to 56 days on LinkedIn in a year. LinkedIn is also finding it hard to attract application developers to write quality business applications on their platform because of cost and API limitations. Tools like BranchOut that are replicating professional networking on Facebook put more pressure on LinkedIn. In a May 2011 survey of 800 companies in the US, more employee referrals came from Facebook than Linked In. In an August 2011 survey, 60% of India’s top 300 private sector employers were using Facebook for hiring. Social Hiring Applications (SHAs) applications are optimized for social sourcing and hiring. Some of the key features that transform the underlying Facebook into a powerful business tool are: a) Privacy -‐ the ability for individuals to communicate, refer and get referred by their friends in complete private, secure and business professional fashion. Ability to find jobs without posting your resume on a job board.
THE ROLE OF SOCIAL MEDIA IN FINDING AND HIRING GREAT PEOPLE b) Mutual Benefit and Good Karma -‐ You help people find jobs and get cash compensation. c) Community Feedback -‐ Ability to get valuable information about the job, company and candidate from a trusted talent community. d) Professional Information -‐ Feature to capture business and professional information to help match people and jobs. Coupled with a powerful relevance algorithm to filter candidates by relevance and availability. Search for jobs across companies, receive inside information about companies and jobs. e) Simple but effective recruiter backend for process management -‐ It allows HR to post and manage jobs and referral awards through a simple but powerful web backend. SOCIAL MEDIA APPLICATION CATEGORIES There are four classes of applications being developed or available in the marketplace that leverage the Facebook network. I have categorized and ranked them based on their innovation to leverage the network and ability to transform candidate sourcing and hiring in India a) Social Hiring Applications -‐ e.g. myParichay ( www.myparichay.in) These are the most powerful and impactful category of applications that create a new mechanism for finding people and jobs by leveraging extended network and will be accretive to a company’s current tools. They have the ability to rapidly engage with a very large relevant network in a cost effective fashion to transform candidate sourcing just like job boards did 10 years ago. They are feature rich and incorporate most of the features of the other product categories. b) Job Board with Facebook Skin -‐ CareerBuilder has launched an application that allows employees to post jobs on the wall of their friends. It is a rudimentary application that can broadcast jobs on walls of friends and colleagues. Facebook users have been reluctant to adopt such applications that start “spamming” their personal wall with job postings.
THE ROLE OF SOCIAL MEDIA IN FINDING AND HIRING GREAT PEOPLE c) Job Boards on Facebook – Beknown from Monster have created a Facebook application that allows users to use Monster through their Facebook account. It is not a social hiring tool but provides access to Monster while you are logged into Facebook, eliminating the need to log into Monster in a separate window. **************************************************************************** How$is$your$company$changing$its$investment$on$$candidate$recrui5ng$sources$in$2012$compared$to$2012?$ Changes$in$Investement$on$Recrui5ng$Sources$ Spending$More$ No$Change$ Spending$Less$ Don’t$Know$NA$ Job$Boards$ 60%$ 5%$ 5%$ Campus$Recruitment$ 60%$ 10%$ Consultants$ 20%$ 60%$ Corporate$Careers$Site$ 60%$ 30%$ 5%$ 5%$ Social$Networks$ 55%$ 40%$ 5%$ 60%$ Direct$Sourcing$ 25%$ 10%$ 5%$ Internal$Transfers$ 50%$ 5%$ 10%$ 65%$ Employee$Referrals$ 35%$ Which%of%these%are%true%about%hires%from%social%media%and%referrals%compared%to%other%sources?% Fit%with%company%culture%and%values%is% be8er% Dura7on%of%employment%is%longer% Recrui7ng%process%is%shorter% Manager%sa7sfac7on%is%higher% Time%to%produc7vity%is%shorter% SOCIALHIRINGGENERATESBESTQUALITY EMPLOYEESAFTERINTERNALTRANSFERS. JOBBOARDSARERATEDWORSTATPAR Qualiﬁca7ons%are%be8er% WITHCONSULTANTS
THE ROLE OF SOCIAL MEDIA IN FINDING AND HIRING GREAT PEOPLE Ranjan Sinha has founded and directed number of award winning internet companies and service companies in India and the USA. Ranjan sits on boards and advisory boards of high growth human resource companies focused on transforming HR and talent supply chain in India. Ranjan founded Summit HR with the vision of helping CEOs and their teams win the war for talent. Summit HR is recognized as the Top HR Outsourcing Company by The Wall Street Journal®, International Association of Outsourcing Professionals, The Gartner Group and Fortune® magazine. Ranjan was selected as the “HR Outsourcing Superstar’ numerous times by HR Outsourcing Today magazine for his pioneering contributions to the HR Outsourcing industry in the US and India. He is a frequent speaker on various industry panels on Social Media in HR, Talent Management, Hiring Risk Management and HR Outsourcing. He is widely quoted in leading business newspapers and magazines. He writes column for The Financial Express, has written numerous articles on use of psychometric tools for improved hiring and Six Sigma applications in HR and Talent Supply Chain Management. Ranjan serves on the board of Summit HR Worldwide Inc., Global Talent Management, Greenwich Capital Venture Corporation and is an advisory board member of Peoplestrong. Ranjan “commutes” between India and California. He is a member of the Young Presidents Organization (YPO) Northern California Chapter. Ranjan is currently pursuing a Ph.D degree in industrial psychology from University of Utrecht, Netherlands. Ranjan has a Masters Degree from The Wharton School of Business and a MBA from the Indian Institute of Management, Bangalore. He has a B. Tech from the Indian Institute of Technology, Roorkee. i Peoplematter Global Talent Metrics 2012/11 Study of Top Employers