Recruiting Strategy Analysis
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Presentation for Campus Recruiting Interview. I was asked to work as a consultant and advise a former employer on recruiting strategy utilizing the concepts found in the book Good to Great.
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Recruiting Strategy Analysis
- 1. GOOD TO GREAT ANALYSIS Campaign #HIREELLEINCHICAGO
- 2. Staffing Industry 1. Establish your niche 2. Become a leader within your Niche 3. Branch out to another specialty 4. Establish your firm as a leader in that specialty
- 3. Permanent & temporary clerical, administrative, and legal staffing. Based in the United States & Canada
- 4. TODAYS STAFFING HISTORY Mission Statement: To provide our clients with consistently reliable staffing assistance at a good value, while providing our temporary employees with convenient quality work at a competitive wage. To be a national supplier of responsive quality office support and professional staffing through company owned and franchised operations. To set both the trends and pace of the industry through innovation and by example. Mission Statement: To provide our clients with consistently reliable staffing assistance at a good value, while providing our temporary employees with convenient quality work at a competitive wage. To be a national supplier of responsive quality office support and professional staffing through company owned and franchised operations. To set both the trends and pace of the industry through innovation and by example. Founded in 1982 in Dallas Texas. Earnings at $50 Million Dollars Acquired by CDI in 1991
- 5. INTERNAL HIRES - RECRUITERS Limited Express GAP J. Crew Aeropostale
- 6. CDI CORPORATION Mission Statement: To help clients in targeted vertical markets improve their profitability and efficiency by providing professional project outsourcing, specialized temporary staffing and permanent placement, allowing them to focus on their core competencies. Mission Statement: To help clients in targeted vertical markets improve their profitability and efficiency by providing professional project outsourcing, specialized temporary staffing and permanent placement, allowing them to focus on their core competencies. Incorporated in 1950 Acquires MRI in 1972 Acquires Todays 1991
- 7. GOALS Professional Placement Lawyers Paralegals Clerks Administrative Clerical Legal National Contracts BRANCH LEADERSHIP PARENT COMPANY LEADERSHIP
- 8. GOOD TO NOT SO GOOD Individual Vs. Team In fighting - Cannibalization Net losses Company wide lay off’s Todays Staffing SOLD
- 9. GAME PLAN
- 10. Get The RIGHT people ON the BUS! Evaluate leadership Evaluate seating chart Create Level 5 Culture throughout Organization
- 12. CDI ~ GOOD TO GREAT PLAN
- 13. TODAYS OFFICE PROFESSIONALS In 2007 SFN Group purchases Todays Staffing New CEO David Neuberger Todays Staffing Dissolved Todays Office Professionals 2008
- 14. AREAS OF OPPORTUNITY Don’t Sell Off Your Best People When You Sell Off Your Problems Neuberger The “Gifted Genius” National Contract Goal. Doom Loop RIGHT PEOPLE HEDGE HOG CONCEPT
- 15. SFN Group In Conclusion: Does Todays Office Still get a seat on your bus? Realign Todays Hedge Hog Concept with your own Create Succession Plans for leadership Actively support Todays Hedge Hog Concept
- 16. Thank you for supporting Campaign #HireElleinChicago • Email Me • Tweet Me • Like me On FaceBook • Subscribe to my Blog Thank you!
Editor's Notes
- I will be discussing my former employer Todays Staffing and applying the Good to Great Principles by Jim Collins. Before going into my analysis I would like to introduce you to a Built To Last Company in the industry, Kelly Services Kelly Services initially established their niche in Office Staffing. Kelly followed this basic model of growth. Kelly established successful specialties such as Kelly Scientific, Kelly Professionals and so on. Note that every sector has its own dedicated recruiters, own mission statement, own vision. They are the same company but share an over all simple hedge hog concept. To be the best staffing company in the world.
- Lets Take a closer look @ Todays Staffing. Todays Staffing’s niche is Permanent and Temporary clerical administrative and legal staffing.
- A little background info on Todays. Founded in Dallas in 1982 Todays grew to more than 60 locations. Before it was acquired in 1991 by CDI Corp it was worth 50 Million Dollars. Direct your attention to the highlighted portion of Todays Mission Statement: To be a national supplier of responsive quality office support and professional staffing through company owned and franchised operations. Todays pledged to be the best administrative staffing company. Which is why the company was very attractive to Parent Company CDI. We will talk more about CDI goals but first lets discuss Todays recruiting model of “getting the right people” on the bus.
- Todays employed what is known as the puppy mill theory. This is a coach up or coach out environment versus selecting the right employee in the beginning. High turn over is expected and accepted. Recruiters were primarily sourced from popular clothing stores. The average life span of a recruiter is about 6 months to 1 year For the office staffing industry this is a sufficient recruiting strategy for a good company… not a great one.
- However, All of this was very attractive to CDI Corporation. Much like Kelly Services CDI also had a goal to be the Best Staffing Company in the World. They employed the same strategy as Kelly but in reverse: They incorporated in 1950 becoming a technical provider of temporary technical engineering positions. Purchased MRI in 1972 to conquer permanent placement of professionals & in 1992 they acquired Todays Staffing to gain market share in the administrative staffing sector.
- Todays Staffing was allowed to operate as its own company much like Kellys office sector. We had our own CEO, our own mission statement, our own goals. However CDI failed to incorporate Todays Staffing into its Hedge Hog Concept. In the absence of a cohesive vision Leadership at Todays communicated to their branch leaders to concentrate on salaried professional positions. We identified all of Kelly Services as our major competitor.
- This failure to base our goals on our parent companies hedge hog concept created mass confusion. Recruiters were encouraged to behave as scavengers and look for big ticket business. We did not share resources with each other or are sister companies. Recruiters were financially rewarded for acting independently This created infighting within CDI between sister companies. The company basically began to gnaw off its own arm. Todays began to throw CDI out of wack and the parent company experienced Net Losses. CDI cleaned house and got rid of Todays Staffing Senior leadership and dumped the company to save itself.
- Okay, lets talk about some of the opportunities of this venture. Ultimately responsibility lies with the Parent Company. CDI is responsible for communicating the company vision and incorporating Todays into the Hedge Hog Concept. Here is our game plan: Evaluate who at Todays fits into CDI’s bus. Communicate Hedge Hog Concept. We want to ensure that everyone understands their role in the Universal Goals.
- One message that really resonated with me in this book is to start with the RIGHT people. CDI saw a successful company and said you know what you’re great you made 50 mil. Keep doing what you’re doing and make me some money. Big Mistake. Most of Todays Leadership had done well as a stand alone company and was very cocky. Todays was never encouraged to be part of the CDI team. 1. First lets Evaluate who fits into CDI’s master plan and who does not. 2.Nest we examine our seating chart. Do we have people in the right spots? Did we make a mistake and let a wrong person on the bus? Have we properly challenged all of our right people? Maybe they need additional responsibilities??? 3. Lastly We need this structure to flow all the way down the ranks. Eliminate the coach up or out structure. When sourcing recruiters consider that persons promotability. Create succession plans. Encourage leadership to develop their subordinates. Create a Level 5 culture throughout Todays Staffing.
- Now lets establish Todays Hedge Hog Concept. If line with CDI’s Hedge Hog Concept Todays should focus on high end administrative positions, national contracts, and clerical assignments. That’s It! Todays should be encouraged to pass any other type of business to the appropriate sister company. Todays should also establish national contracts with large companies to staff for admin and clerical assignments. This can be a real cash cow and is still in line with the overall Hedge Hog Concept for both Todays and CDI. The fact is a talented Executive Assistant can make between $40,000 - $100,000 depending on the Executive they support. For instance the new President of UIC makes $610,000. Can you guess what his admin makes?? Any Guesses??? $195,000. Who does not want a piece of that business. Now a venture beyond that could eventually translate to Administrative Managers & Administrators. This is strategic area that Todays could have grown into all while supporting its Parent Companies vision.
- Once you have the right team on the bus the Parent Company must ensure that all entities have established cohesive goals, these right people must play their position and not stray from those goals, once you’ve created some stability for yourself and began to gain market share you can look around for other opportunities in line with the entire companies Mission statement, Vision, Goal, and Hedge Hog Concept.
- Now lets discuss what CDI actually did: In 2007 Spherion purchased Todays for the bargain price of $40 MIL remember CDI purchased the company with a net worth of $50 Million. So this was an attempt to dump a problem child. Spherion moved quickly. They dissolved Todays Staffing, layed off the entire staff, named David Neuberger CEO formerly of American Express, and renamed the company Todays Office Professionals. What Spherion did differently was that they hired the right people, communicated the overall hedge hog concept of the conglomerate to Todays, and even sealed this “fanatical” commitment to their goals by renaming the company “OFFICE PROFESSIONALS” which I believed created the “fly wheel effect” The Short version is: Todays Staffing gained a National Contract for Admin & Clerical Professionals with Southwest Airlines and went from one companies drain to a $150 Million Dollar company. The failure here is with CDI and if CDI does not recognize this failure it will happen again.
- Even with this success there are still other areas of opportunities that Jim Collins helped me to identify in other chapters of Good to Great. Between 2000 through 2007 all of Todays former leadership was let go. I would be willing to bet they got rid of some level 5 leaders who only needed their parent company to “communicate” and uphold what the company goal was and their role in it. Neuberger made Todays profitable but this success did not sustain past his leadership. Neuberger's reign is an example of what Collins classified as the Gifted Genius with a thousand helpers. There was no succession plan. Neuberger should have groomed an internal replacement. I consider this a failure of his illustrious reign. Gaining National Contracts for administrative positions fit within the Hedge Hog Concept nicely. Yet there is nothing to support any gains there. In 2010 the parent company moved some rather large clients from Todays to itself. This negatively impacted Todays earnings to the tune of $2.8 Million. I can’t imagine that move inspired Todays leadership to support SFN Group Hedge Hog Concept. This action creates a Doom Loop. I feel like they chopped the company up and took its profitable centers away. Therefore I can only imagine that at some point this company will dissolve at some point again.
- So if I were a consultant utilizing the tools taught to me by Mr. Collins I would advise Spherion to do the following: Make a decision if Todays Office still fits in your bus. If not dissolve and or dump it If it is than evaluate the members of staff and give them bus tickets or kick them off. Empower leadership to create Succession plans from the CEO down. Actively support Todays Hedge Hog Concept Often. Don’t steal their clients How about instead we promote a President from Todays leadership staff instead of yours… just a suggestion.