**Original Question “We are benchmarked at 60thIndustry Percentile in Recruitment. Whatshould be our Talent Strategy?”*The Correct Question - “Time For Some Math’sand Introspection on our Current Practices.Shall we?”
*#Employees 100000Employee Turnover/Year 30%30000#Resumes Screened/Position 100Average Normative Manual Resume Screening Time(Minutes) 20Total Screening Hours 1000000Recruiter Hours/Year 2000#Recruiters Worldwide 500Average Recruiter Salary $150,000Total Investment In Recruitment $75,000,000Against Estimated Corporate Revenue $4,000,000,000Against Estimated Profits $800,000,000Human Resource Cost %age of Revenue 40%$1,600,000,000Talent Sourcing Cost vs Human Resource Cost %age 5%Talent Sourcing Cost vs Revenue %Age 2%Cost of Employee Turnover (=1year Salary) $480,000,000Ratio of Talent Sourcing vs Employee Turnover Cost %age 16%Probability of Sourcing World Class Talent 15%Benefit Ratio for World Class Talent (e.g. 100x Source:Google Corp.) vs Average Employees 100Revenue per Employee (Base Case) $40,000Revenue per Employee (x% world class talent + (100-x)% average talent Case) $634,000Possible Revenue in Normative Case With World Class Talent $63,400,000,000Talent Sourcing Cost vs Normative Human Resource Cost %age 3.61%Talent Sourcing Cost vs Normative Revenue %Age 0.12%Required Billing Rate to Sustain Normative Revenues (80% Utilization) $396Billing Rate Required to Sustain Current Revenues (80% Utilization) $25Salary Premium for World Class Talent (e.g. 3x) 3Normative Case Salary Cost with x% World Class Talent $2,080,000,000That My Dear Friends Is The War For Talent Described in Mathematical TermsHow much would you spend to attract the best talent (branding/events)?
** All Recruiters Complain They Don’t Have The Time To Read a Resume and spend less than 30 seconds on Scanning Each and they expect 1 page or 2page and a summary at the top besides the cover letter.* This is what they do (i.e. Calculate) when they see a Resume (Taken from Observations from Actual Recruiters)* Professional Pic? (Marry Me Honey!!!)* Spelling Mistakes? (WTF????)* #Years Of Experience* #Job Changes (Stability/Loyalty or some $h!t)* #Years in the Last Job* Current Title* Current Company* Current Salary vs Budget* Notice Period (e.g. 3 months) vs Joining Time (e.g. 2 weeks)* Keyword Matching* Which part of this is about Getting The Best Talent Onboard?* Do you know even what Value that person brings to the table?* Can’t get over Management by Metrics?* Can’t seem to get over The Myth Of Human Resource Fungability?* Into The Business of Buying Wine? Or Potatoes?* The best companies Read every Resume they receive and try to understand what Value they can get from that person… That’s How They Compete InThe War For Talent. And they Respond to every resume they receive.* And what do you do? You spend your time discussing Non-Linear Business Models! (Interesting!!!) As if that will work Auto-Magically!!!
** Read and Understand Every Resume You Receive* Spend 20 minutes on an average per resume* DELETE every system or recruitment tool that “Filters!!!” resumes usingabsolutely any criteria. Doesn’t matter if the tool Filters then the toolshould be deleted. If it collects applicant resumes without filtering then itshould be ok. [Assuming you keep the Experience intact with One On OneContact and Discussions.]* Because with the current state of Technology there doesn’t exist a systemthat can filter resumes by optimizing Value and Talent* The Bottomline: The current recruitment practices Virtually Ensure thatthe Organization Loses out on The Best Talent* With the Right Talent you could do any thing better, be in any business,compete with any firm irrespective of having the Same Business Model asyour competitors in an otherwise Commodity Products & Services Market.* Human Talent makes the business work especially in Knowledge Work