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Winning the Human Capital War by Don W. Gee
2008



        Winning the Human
        Capital War by
        Effective Recruiting
            By Don W. Gee
        Enclosed are highlights and methodologies of my background in Recruiting, Talent
        Strategy, Recruiting & Sales Management, Training and Model Implementation




                                                                  Don W. Gee
                                                         DonGee@onebox.com
                                                          Phone: 213.716.5563
Winning the Human Capital War by Don W. Gee


                                                              




    Management & Training Achievements &                                 Recruiting Achievements
                Highlights                                                     & Highlights
     As a Sr. Manager with Hall Kinion-Chicago,                 Have implemented Talent Strategy standards,
      created a Recruiting Training curriculum for                metrics and training programs for various
      new hires. Due to its success, was retained by              organizations throughout the U.S. which has
      the Corporate Office to conduct a formal                    included the following; talent strategy audits,
      training program at the Global Headquarters,                reducing CPH & TPH, vendor evaluation and
      which was videotaped & instituted company-                  consolidation, employer branding, retention &
      wide as the new recruiting methodology.                     recruiting strategies, CRM implementations,
     As a Sr. Manager with Hall Kinion, grew the                 compensation surveys while spearheading
      Chicago location from $1.7MM to $10MM in                    Talent Fulfillment delivery
      two years. Also produced two Recruiters that               With Escendent, designed a Human Capital
      were globally ranked #2 and #5, and produced                Solutions Fulfillment Model & implemented an
      the #4 Sales Executive in the company. Also                 Organizational Design Model for consulting
      produced the “Rookie of Year,” and yielded the              engagements for Essential Insight (subsidiary of
      highest bill-rate than another office in the                Escendent)
      company world-wide.                                        As the Lead Sales Recruiter for Business.com,
     With Esquire Deposition Services, re-engineered             2nd month on contract, enabled Business.com
      the Midwest regions sales methodology. Also                 to exceed their hiring goals for the first time in
      implemented a 52-page sales guidebook, which                the companies history
      outlined Esquire’s new sales methodology,                  As a Corporate Contract Recruiter for Amdocs
      scripts, checklists and tactical strategies for             (world’s largest telecom-billing software
      Account Retention & Growth and Business                     company) I streamlined their hiring process and
      Development. Hired, trained and produced                    saved Amdocs over $360,000 by reducing
      three sales executives that yielded 190%, 300%              vendor utilization and reducing TPH from 8
      & 181% territory growth (all within their first             weeks to 3 weeks. Was also responsible for
      year of employment, all with no industry                    staffing 7 locations throughout the US, including
      experience).                                                solely staffing one of the most prominent Fraud
     With Essential Insight (subsidiary of Escendent)            Detection software development projects in the
      designed an Organization Evaluation model for               industry
      performance-based companies. With Escendent                As a Project Recruiting lead for ITG, staffed a
      designed a recruiting model & delivery program              web based/OO project headed by Ivar Iacobson
      & a comprehensive Human Capital delivery &                  (author of Iacobson use case methodology) for
      fulfillment model for Project-based Human                   Icon Nicholson in New York
      Capital engagements. With Essential Insight,               With Hall Kinion, I headed up a Recruiting Team
      designed an Organizational Evaluation Model for             that staffed one of the first project teams for
      Performance-based companies                                 Motorola for their StarTec/Webphone project.



I have recruited in the following industries/domains; Retail, Technology, Consumer Products, Financial,
Telecommunications, Government, Entertainment, Manufacturing, Semi-Conductor, Online Advertising,
Advertising, Professional Services, Banking, Financial Services, Legal (Including Litigation Support,
Document Management & Litigation Technology) and Insurance




                                                     Page 2
Winning the Human Capital War by Don W. Gee



       Background & Services Provided:

Talent Strategy Consulting - Streamline an                                Recruiting Services
organizations talent acquisition function
through audits, talent acquisition organization                            I have fulfilled
design, strategy development, e-Talent                                    various positions in
acquisition strategy, hiring process consulting,
                                                                          various industries
employer branding, vendor management, and
training                                                                  (both contract and
                                                                          employment) by
Hiring Audits – I have provided detailed audits
                                                                          utilizing my personal
of a talent acquisition function to maximize the
efficiencies and costs as well as providing                               database, my
detailed reviews of a clients function in                                 network of contacts,
comparison with industry leading best-practices                           leveraging the power
                                                                          of the internet, direct
Organization Design – I have developed talent
acquisition strategies and organization models                            sourcing & referrals. I
for organizations to properly structure and have                          have placed
the capacity to organically build an organization
                                                                          contract/temp
to support efficient, timely, and cost-effective
growth                                                                    resources from $8.00
                                                                          per hour, up to
Internal Recruiting Design – I have hired,
                                                                          $275.00 per hour. I
trained and assembled extremely successful
recruiting programs, as well as training                                  have placed full-time
programs on industry leading best practices in                            resources from $28K
employer branding, creative direct candidate                              to $225K a year.
sourcing, organizational design, etc.

Employment Branding - I have worked with
companies to build employee commitment and
position organizations as an employer of choice.
                                                    Competitive Intelligence, Research, & Name
Vendor Management – Have worked with                Generation – I have provided research for my
various organizations by implementing               clients’ competitors; utilize the power of the
evaluation and measurement criteria to ensure       internet to mine for the best possible talent,
potential vendors will be a strategic resource,     and utilize direct recruiting techniques to
for current vendors they will be measured to        deliver perfectly matched passive candidates
ensure their performance justifies their costs.     for our clients needs
Winning the Human Capital War by Don W. Gee



       Common Recruiting Downfalls

                 Corporations                                     Agency Sales/Recruiting Cycles
   In most companies (both large and small) a           Most “Recruiting Agencies” divide their
    traditional HR Department is tasked with             organizations into two divisions, sales and
    the recruiting function which is often too           recruiting. 80-90% of Recruiting Agencies have
    reactive                                             an internal hierarchy that places more
   Time per hire is too long                            significance on sales and not recruiting.
                                                         Recruiting Agencies that are potential vendors
   Cost per hire (in both soft and hard cost)
                                                         will assault clients with sales calls, hefty
    are too high
                                                         promises and eloquent sales presentations.
   Too much dependence on recruiting
                                                         However once a client agrees to utilize a
    agencies
                                                         Recruiting Agencies services, their internal
   Lack of employer branding/competitive
                                                         recruiting efforts fall short by one or more of
    positioning
                                                         the following: leaving the position open or
   Effective negotiating
                                                         unfilled, providing candidates that are poorly
   Too many consultants, not enough                     screened and bombarding the client with a
    employees                                            mountain of resumes to sift through (these are
   Lack of Proactive Recruiting Campaigns               just to name a few).
   Lack of Competitive Intelligence
                                                         Traditionally there are two sides of           the
               Recruiting Agencies                       business, each having representation by        the
   Recruiting Model is inferior to an agencies          following, Sales Function (Client Side)        and
    sales efforts                                        Recruiting Function (Candidate Side).          The
   Recruiting is reactive vs. proactive                 levels of difficulty for the Sales Executive   and
   Recruiters often do not know how to utilize          Recruiter       change       throughout        the
    behavioral interviewing                              Sales/Recruiting cycle.
   Too much dependence on Job Boards
   Lack of recruiting life cycle integrity                        Sales Cycle (Client Segment)
   Body Shop tactics                                    Sales Executives are assigned to acquire new
   Lack of quality screening                            clients with endless promises of excellent
   Recruiting one dimensional candidates,               candidates and stellar services. There is no
    seeking candidates with a specific skill set         refuting the level of difficulty for the SE in the
    only vs. seeking candidates with strong skill        beginning of the Sales/Recruiting Cycle.
    sets, strong domain experience and a high            Landing an account, opening a new one,
    degree of business acumen                            establishing a new relationship can be
   89-90% of Recruiting Agencies have an                extremely difficult, especially in the current
    interior model that defies the rules and             market conditions. However, once a
    conditions of the marketplace                        “client/potential client” sees the value in our
                                                         services and agrees to a potential relationship,
                                                         the level of difficulty for the SE significantly
                                                         declines, now it’s the responsibility for the
                                                         Recruiting Team to deliver the candidate.




                                                Page 4
Winning the Human Capital War by Don W. Gee




            Recruiting Cycle (Candidate Segment)
      In the beginning of the Recruiting/Sales Cycle,
                                                                                     Starting in the late 90’s to
      the level of difficulty for the Recruiter is exactly
      the opposite. To call a candidate who is seeking
      an opportunity is not that challenging for a
                                                                                     2001, after spending massive
      Recruiter. There is very little, if no sales
      resistance, whereas for the Account Executive,                                 amounts of capital on
      it’s the exact opposite in the beginning of a
      cycle. However, once a candidate (especially a                                 staffing agency outsourcing,
      marketable one) begins a pre-submission phase,
      the Recruiters job becomes substantially more                                  high agency attrition and
      challenging; therefore the level of difficulty rises
      sharply.                                                                       poor service, organizations
      To continue to pre-close a candidate and re-
      close a candidate once an offer is extended                                    began to shift their models
      becomes even more challenging. Often times,
      candidates will have other offers, other                                       to a more “organic” hiring
      opportunities in the works to continue to
      manage this process prompts the level of
                                                                                     structure by separating HR
      difficulty to rise substantially.

      Here is an example of what a typical agency                                    and Recruiting into
      cycle looks like.
                                                                                     separate entities within HR.

12                                                                                   This trend continues
10

  8                                                                                  however most organizations
  6

  4
                                                                      Recruiting     design & methodology for an
                                                                      Sales

  2
                                                                                     internal recruiting function
  0

                                                                                     is not as effective as it could

As a business cycle begins, levels of difficulty swap from sales to
                                                                                     be.
recruiting; sales faces a higher level of difficulty & complexity, but as
the cycle moves forward recruiting faces a higher level of intricacy.




                                                                            Page 5
Winning the Human Capital War by Don W. Gee



            Vendor Management                             What is the vendors’ internal process to source,
                                                          evaluate a candidate’s skills, background and
Companies that need to hire difficult to find             overall professionalism?
candidates or have an internal recruiting
function that does not have the capacity to               During the evaluation process, it is imperative
fulfill them, staffing agencies can be a resource         to understand how an agency manages their
that can be helpful to compliment an                      candidate screening process. Do they provide
organizations efforts. It is often prohibitive for
                                                          values in areas such as; direct sourcing passive
companies to maintain the level of recruiting
                                                          job seekers, niche’ focus into a specific
organization necessary to consistently find
some of these positions.                                  candidate competency/skill set or industry and
                                                          leverage a quality large database. What is the
Outsourcing should be strategic and                       quality of their internal recruiting function? Is
vendors/staffing agencies should be utilized if           there recruiting process thorough?          Lastly,
there isn’t an internal capacity sufficient to            what is the agencies recruiting personnel
fulfill the needed resources. In other words, it
                                                          turnover? If a vendor claims to be experts in
should be a last resort. It is common (and
recommended) to utilize a vendor/staffing                 the human capital business, however, their
agency for temporary resources.                           internal recruiting function has a high
                                                          turnover, question their process, model and
The particular positions being referred to                quality.
staffing agencies will dictate the type of
companies able to find these people. A                           Basic Vendor Utilization Criteria:
combination of search firms the company has
worked with in the past and others providing
similar services should comprise the evaluated
group. Historical hiring data is collected and
examined to determine the current levels of
service enjoyed by the company. Service levels
will be determined for the types of recruiting
services required.

If an agency utilization historical data shows
above 15% attrition, low resume submission,
low interview volume, above 60% offer
rejection it may be time to re-evaluate that
respective vendor/vendors.




                                                 Page 6
Winning the Human Capital War by Don W. Gee



                                                               marketplace and determine how difficult the
                                                               position will be to fill.
    When a position remains unfilled,
           it would be recommended to                          Within the first 2 weeks of the opening, if there
             evaluate the compensation                         isn’t at least 3 candidates that have moved from
     package of the role and evaluate                          a recruiter pre-screen to a face to face
                                                               interview (or at least a hiring manager phone
    if it is competitive. With skill sets
                                                               screen), that could be the first indicator that
               that are in high demand,
                                                               outsourcing to a vendor might be the best
    compensation variances can vary
                                                               course of action. Also, after 15 business days,
                from quarter to quarter.                       if there hasn’t been at least one face to face
                                                               interview, it might be time to outsource to a
                                                               vendor.

                  Escalation Process
                                                                             Process Centralization
After determining the number and types of
                                                               All vendor activity (outsourcing requisitions,
candidates that need to be hired, an
                                                               vendor evaluation, and vendor selection) should
assessment must be made regarding the
                                                               be centralized and supervised by the
company’s ability to hire them. Once that
                                                               HR/Recruiting department. Department heads
determination is made, another assessment
                                                               or hiring managers may have pre-existing
must be made to determine an escalation
                                                               loyalties or relationships with certain agencies;
process to determine if a respective
                                                               however these agencies should be evaluated
requisition/requisitions need to be outsourced.
                                                               and held to the same standards as other
First and foremost, the goal of any organization
                                                               agencies. A centralized vendor process ensures
is to fulfill their requisitions organically, this will
                                                               better quality control, accurate performance
enable an organization to maintain a lower CPH
                                                               and accountability tracking.
and reduce attrition (that national average for
agency attrition is 20% and above). It can be
                                                               This process needs to be centrally managed by
common place to utilize agencies for
                                                               the HR/Recruiting Department.
temp/contract positions, however, for full-time
positions; agency utilization should be a last
                                                                                  Outsourcing Process
resort.       It is recommended an escalation
process be created to determine whether or
not more time is needed to continue internally
recruiting or outsource the position/positions to
a vendor.

               Metrics to Consider
Before a requisition is outsourced to a vendor,
first of all how well is the internal recruiting
function performing? Once a requisition is
approved and opened, evaluate                the




                                                      Page 7
Winning the Human Capital War by Don W. Gee



                                                         The Cost of Outsourcing
                                             To ensure a client understands the cost of
                                             outsourcing (both in hard and soft costs) they
                                             need to fully understand in “black and white”
                                             the costs and risks that are associated with
For every 100 positions                      excessive outsourcing.
that are outsourced, the
                                             Outsourcing to agencies can be costly. If a
hard cost of agency                          thorough process has not been implemented to
                                             evaluate and re-evaluate vendor processes,
utilization can exceed                       vendor standards and performance the cost can
$1.4 Million.                                be devastating to an organizations bottom line.

                                                          Snapshot of Averages:
Add the soft cost of                         On average IT positions are outsourced more
agency attrition, which                      than any other skill set, and the national
                                             average for base salary for an IT professional is
averages over 20%, the                       $70,000. In the Chicago marketplace, the
                                             average IT salary is $71,400.
total cost of agency
utilization can exceed                          Most agencies charge a fee on the first
                                                 year’s salary between 15-25%.
$2.2 Million.                                   To fulfill individual requisitions, most
                                                 organizations under $500MM outsource
Most organizations                               over 50% their hires
                                                Agency attrition averages above 20%
don’t do enough to
investigate the                              If an agency hire voluntarily resigns from a
                                             position within the first 90 days, an agency
capabilities of the                          should refund the fee or given a chance to refill
                                             the position at no charge.
vendors they select.
Outsourcing hiring                                         Request for Proposal
                                             Based upon examination of the historical data
needs to an ill-equipped                     and consultation with company leaders, a
                                             Request for Proposal (RFP) should be
staffing agency can be a                     constructed. Weighting of factors important to
financial disastrous                         the company will be given and the RFP will be
                                             sent to the prospective vendor pool. Upon
option.                                      receipt of the results a list of companies to be
                                             interviewed will be determined and the results
                                             of those interviews will finalize the selections.




                                    Page 8
Winning the Human Capital War by Don W. Gee



               Prime Vendor                                              New Hire Onboarding
Outsourcing certain or all hiring to a Prime                Minimizing attrition starts on day one. It is
Vendor enables a company to appoint one                     crucial when an employee first starts, there is
vendor to manage the entire human capital                   NO DOWN TIME. There needs to be a clear
process.                                                    program for new hires, orientation and
                                                            transition. Not only should a structured,
Outsourcing the entire process can relieve a                meticulous orientation be created, but once an
company from having to maintain staff                       orientation is completed there is a system in
dedicated to vendor management. Fluctuations                place to plug the employees into their position
in hiring needs can leave a company with                    and begin their knowledge curve. Orientation is
people responsible for agency hiring when no                important, but there must be other activities
hiring is needed. A prime vendor assumes                    after orientation to ensure the candidate is
responsibility for managing all hiring done with            welcomed such as; introductions to their
any agency and allows a company to ratchet up               managers and team, site tours to internal
their hiring capability at will with out the cost of        training.
internal staff.
                                                                       Employee Communication
                                                            Communicating with employees can accomplish
           Retention Evaluation
                                                            more than meets the eye. Keep the company
                                                            up to date with company news, key new hires,
Most organizations have a sound recruiting                  significant company accomplishments and
process but do not take an honest look at their             other news that will keep employees in the
attrition and evaluate what more they can do to             loop.
improve employee retention.
                                                                                 Benefits
                                                            Ensure you’re providing a good benefit plan.
To evaluate an organizations attrition                      Also, offer the best vacation package you can. If
percentage, this will require intensive research.           your competitors are offering two weeks, offer
The following data will be evaluated to analyze             3-4 weeks.
the variables that can contribute to high
attrition:                                                                      Awards
                                                            Recognition is another way to raise
                                                            performance. You can have awards for “Best
                Cost of Attrition
                                                            Employee Award,” or “Best Turnaround,” or
As a rule of thumb, when an employee resigns
                                                            whatever highlights your company culture. If
that can cost the company 1.5 -2 times of the
                                                            you want to tie in a bonus to this award, that
vacated salary. The hard and soft cost includes
                                                            can further compel individuals to exceed
time and money spent on refilling the position,
                                                            expectations, but not necessary.
advertising fees, agency fees, employee
development and training.         This does not
                                                                          On Going Training
include other hard and soft costs such as lower
                                                            Offer your employees opportunities to further
productivity, company morale and the impact
                                                            their respective skill sets through training.
this could have on customers/clients. When an
                                                            Depending on the cost of the training, you can
organization loses someone, they are also losing
                                                            either reimburse them or pay for the training
revenue and profitability.
                                                            directly.




                                                   Page 9
Winning the Human Capital War by Don W. Gee



                                     Talent Strategy Delivery




                                          Recruiting Cycle

This is my basic 4 step recruiting cycle. This model may change, depending on the environment or
domain, but this is a basic blueprint I adhere to. In my 7 page Recruiting Cycle; each step is outlined in
precise detail. My Recruiting process is strict, thorough and precise. This cycle acts as a “filter,” to
ultimately identify several key candidates out of many that will ultimately be a fit for what my client is
looking for.




                                                 Page
                                                 10
Winning the Human Capital War by Don W. Gee



                                                 Case Study

This is a case study that highlights my results as a Contract Recruiter/HR Consultant for Amdocs (the
world’s largest Telecommunications software billing company).



           Client                             Challenge                               Solution
 One of the world’s largest           Create a strong brand                  Audit of hiring practices
   telecom billing software           Create a high volume growth            Branding campaign to
                                        strategy and build an
   companies                                                                   position the client as an
                                        engine to fuel the
 Proj. Employee growth of               explosive growth                       employer of choice
   over 75+% per year                 Reduce the cost per hire to            Designed a recruiting
 HR had little recruiting               create substantial cost                strategy
   experience and was                   savings                              Designed a new hiring
                                      Reduce the hiring cycle time
   relying heavily on outside                                                  process
                                        substantially to grow
   search firms                         quickly                              Consolidate vendor list
 Average Cost per hire was
   $11,700
                                             RESULTS
    • Successfully filled positions in St. Louis, Chicago and Portland with little vendor
      assistance
    • Reduced the hiring cycle time from 6 weeks to 2 weeks, resulting in bottom line impact
      of increased project delivery and completion
    • Total Savings of over $360,000 in recruiting costs
    • Reduced CPH from per hire from $11,700 to $3,200




                                                     Page
                                                     11

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Recruiting & Talent Strategy Summary

  • 1. Winning the Human Capital War by Don W. Gee 2008 Winning the Human Capital War by Effective Recruiting By Don W. Gee Enclosed are highlights and methodologies of my background in Recruiting, Talent Strategy, Recruiting & Sales Management, Training and Model Implementation Don W. Gee DonGee@onebox.com Phone: 213.716.5563
  • 2. Winning the Human Capital War by Don W. Gee  Management & Training Achievements & Recruiting Achievements Highlights & Highlights  As a Sr. Manager with Hall Kinion-Chicago,  Have implemented Talent Strategy standards, created a Recruiting Training curriculum for metrics and training programs for various new hires. Due to its success, was retained by organizations throughout the U.S. which has the Corporate Office to conduct a formal included the following; talent strategy audits, training program at the Global Headquarters, reducing CPH & TPH, vendor evaluation and which was videotaped & instituted company- consolidation, employer branding, retention & wide as the new recruiting methodology. recruiting strategies, CRM implementations,  As a Sr. Manager with Hall Kinion, grew the compensation surveys while spearheading Chicago location from $1.7MM to $10MM in Talent Fulfillment delivery two years. Also produced two Recruiters that  With Escendent, designed a Human Capital were globally ranked #2 and #5, and produced Solutions Fulfillment Model & implemented an the #4 Sales Executive in the company. Also Organizational Design Model for consulting produced the “Rookie of Year,” and yielded the engagements for Essential Insight (subsidiary of highest bill-rate than another office in the Escendent) company world-wide.  As the Lead Sales Recruiter for Business.com,  With Esquire Deposition Services, re-engineered 2nd month on contract, enabled Business.com the Midwest regions sales methodology. Also to exceed their hiring goals for the first time in implemented a 52-page sales guidebook, which the companies history outlined Esquire’s new sales methodology,  As a Corporate Contract Recruiter for Amdocs scripts, checklists and tactical strategies for (world’s largest telecom-billing software Account Retention & Growth and Business company) I streamlined their hiring process and Development. Hired, trained and produced saved Amdocs over $360,000 by reducing three sales executives that yielded 190%, 300% vendor utilization and reducing TPH from 8 & 181% territory growth (all within their first weeks to 3 weeks. Was also responsible for year of employment, all with no industry staffing 7 locations throughout the US, including experience). solely staffing one of the most prominent Fraud  With Essential Insight (subsidiary of Escendent) Detection software development projects in the designed an Organization Evaluation model for industry performance-based companies. With Escendent  As a Project Recruiting lead for ITG, staffed a designed a recruiting model & delivery program web based/OO project headed by Ivar Iacobson & a comprehensive Human Capital delivery & (author of Iacobson use case methodology) for fulfillment model for Project-based Human Icon Nicholson in New York Capital engagements. With Essential Insight,  With Hall Kinion, I headed up a Recruiting Team designed an Organizational Evaluation Model for that staffed one of the first project teams for Performance-based companies Motorola for their StarTec/Webphone project. I have recruited in the following industries/domains; Retail, Technology, Consumer Products, Financial, Telecommunications, Government, Entertainment, Manufacturing, Semi-Conductor, Online Advertising, Advertising, Professional Services, Banking, Financial Services, Legal (Including Litigation Support, Document Management & Litigation Technology) and Insurance Page 2
  • 3. Winning the Human Capital War by Don W. Gee Background & Services Provided: Talent Strategy Consulting - Streamline an Recruiting Services organizations talent acquisition function through audits, talent acquisition organization I have fulfilled design, strategy development, e-Talent various positions in acquisition strategy, hiring process consulting, various industries employer branding, vendor management, and training (both contract and employment) by Hiring Audits – I have provided detailed audits utilizing my personal of a talent acquisition function to maximize the efficiencies and costs as well as providing database, my detailed reviews of a clients function in network of contacts, comparison with industry leading best-practices leveraging the power of the internet, direct Organization Design – I have developed talent acquisition strategies and organization models sourcing & referrals. I for organizations to properly structure and have have placed the capacity to organically build an organization contract/temp to support efficient, timely, and cost-effective growth resources from $8.00 per hour, up to Internal Recruiting Design – I have hired, $275.00 per hour. I trained and assembled extremely successful recruiting programs, as well as training have placed full-time programs on industry leading best practices in resources from $28K employer branding, creative direct candidate to $225K a year. sourcing, organizational design, etc. Employment Branding - I have worked with companies to build employee commitment and position organizations as an employer of choice. Competitive Intelligence, Research, & Name Vendor Management – Have worked with Generation – I have provided research for my various organizations by implementing clients’ competitors; utilize the power of the evaluation and measurement criteria to ensure internet to mine for the best possible talent, potential vendors will be a strategic resource, and utilize direct recruiting techniques to for current vendors they will be measured to deliver perfectly matched passive candidates ensure their performance justifies their costs. for our clients needs
  • 4. Winning the Human Capital War by Don W. Gee Common Recruiting Downfalls Corporations Agency Sales/Recruiting Cycles  In most companies (both large and small) a Most “Recruiting Agencies” divide their traditional HR Department is tasked with organizations into two divisions, sales and the recruiting function which is often too recruiting. 80-90% of Recruiting Agencies have reactive an internal hierarchy that places more  Time per hire is too long significance on sales and not recruiting. Recruiting Agencies that are potential vendors  Cost per hire (in both soft and hard cost) will assault clients with sales calls, hefty are too high promises and eloquent sales presentations.  Too much dependence on recruiting However once a client agrees to utilize a agencies Recruiting Agencies services, their internal  Lack of employer branding/competitive recruiting efforts fall short by one or more of positioning the following: leaving the position open or  Effective negotiating unfilled, providing candidates that are poorly  Too many consultants, not enough screened and bombarding the client with a employees mountain of resumes to sift through (these are  Lack of Proactive Recruiting Campaigns just to name a few).  Lack of Competitive Intelligence Traditionally there are two sides of the Recruiting Agencies business, each having representation by the  Recruiting Model is inferior to an agencies following, Sales Function (Client Side) and sales efforts Recruiting Function (Candidate Side). The  Recruiting is reactive vs. proactive levels of difficulty for the Sales Executive and  Recruiters often do not know how to utilize Recruiter change throughout the behavioral interviewing Sales/Recruiting cycle.  Too much dependence on Job Boards  Lack of recruiting life cycle integrity Sales Cycle (Client Segment)  Body Shop tactics Sales Executives are assigned to acquire new  Lack of quality screening clients with endless promises of excellent  Recruiting one dimensional candidates, candidates and stellar services. There is no seeking candidates with a specific skill set refuting the level of difficulty for the SE in the only vs. seeking candidates with strong skill beginning of the Sales/Recruiting Cycle. sets, strong domain experience and a high Landing an account, opening a new one, degree of business acumen establishing a new relationship can be  89-90% of Recruiting Agencies have an extremely difficult, especially in the current interior model that defies the rules and market conditions. However, once a conditions of the marketplace “client/potential client” sees the value in our services and agrees to a potential relationship, the level of difficulty for the SE significantly declines, now it’s the responsibility for the Recruiting Team to deliver the candidate. Page 4
  • 5. Winning the Human Capital War by Don W. Gee Recruiting Cycle (Candidate Segment) In the beginning of the Recruiting/Sales Cycle, Starting in the late 90’s to the level of difficulty for the Recruiter is exactly the opposite. To call a candidate who is seeking an opportunity is not that challenging for a 2001, after spending massive Recruiter. There is very little, if no sales resistance, whereas for the Account Executive, amounts of capital on it’s the exact opposite in the beginning of a cycle. However, once a candidate (especially a staffing agency outsourcing, marketable one) begins a pre-submission phase, the Recruiters job becomes substantially more high agency attrition and challenging; therefore the level of difficulty rises sharply. poor service, organizations To continue to pre-close a candidate and re- close a candidate once an offer is extended began to shift their models becomes even more challenging. Often times, candidates will have other offers, other to a more “organic” hiring opportunities in the works to continue to manage this process prompts the level of structure by separating HR difficulty to rise substantially. Here is an example of what a typical agency and Recruiting into cycle looks like. separate entities within HR. 12 This trend continues 10 8 however most organizations 6 4 Recruiting design & methodology for an Sales 2 internal recruiting function 0 is not as effective as it could As a business cycle begins, levels of difficulty swap from sales to be. recruiting; sales faces a higher level of difficulty & complexity, but as the cycle moves forward recruiting faces a higher level of intricacy. Page 5
  • 6. Winning the Human Capital War by Don W. Gee Vendor Management What is the vendors’ internal process to source, evaluate a candidate’s skills, background and Companies that need to hire difficult to find overall professionalism? candidates or have an internal recruiting function that does not have the capacity to During the evaluation process, it is imperative fulfill them, staffing agencies can be a resource to understand how an agency manages their that can be helpful to compliment an candidate screening process. Do they provide organizations efforts. It is often prohibitive for values in areas such as; direct sourcing passive companies to maintain the level of recruiting job seekers, niche’ focus into a specific organization necessary to consistently find some of these positions. candidate competency/skill set or industry and leverage a quality large database. What is the Outsourcing should be strategic and quality of their internal recruiting function? Is vendors/staffing agencies should be utilized if there recruiting process thorough? Lastly, there isn’t an internal capacity sufficient to what is the agencies recruiting personnel fulfill the needed resources. In other words, it turnover? If a vendor claims to be experts in should be a last resort. It is common (and recommended) to utilize a vendor/staffing the human capital business, however, their agency for temporary resources. internal recruiting function has a high turnover, question their process, model and The particular positions being referred to quality. staffing agencies will dictate the type of companies able to find these people. A Basic Vendor Utilization Criteria: combination of search firms the company has worked with in the past and others providing similar services should comprise the evaluated group. Historical hiring data is collected and examined to determine the current levels of service enjoyed by the company. Service levels will be determined for the types of recruiting services required. If an agency utilization historical data shows above 15% attrition, low resume submission, low interview volume, above 60% offer rejection it may be time to re-evaluate that respective vendor/vendors. Page 6
  • 7. Winning the Human Capital War by Don W. Gee marketplace and determine how difficult the position will be to fill. When a position remains unfilled, it would be recommended to Within the first 2 weeks of the opening, if there evaluate the compensation isn’t at least 3 candidates that have moved from package of the role and evaluate a recruiter pre-screen to a face to face interview (or at least a hiring manager phone if it is competitive. With skill sets screen), that could be the first indicator that that are in high demand, outsourcing to a vendor might be the best compensation variances can vary course of action. Also, after 15 business days, from quarter to quarter. if there hasn’t been at least one face to face interview, it might be time to outsource to a vendor. Escalation Process Process Centralization After determining the number and types of All vendor activity (outsourcing requisitions, candidates that need to be hired, an vendor evaluation, and vendor selection) should assessment must be made regarding the be centralized and supervised by the company’s ability to hire them. Once that HR/Recruiting department. Department heads determination is made, another assessment or hiring managers may have pre-existing must be made to determine an escalation loyalties or relationships with certain agencies; process to determine if a respective however these agencies should be evaluated requisition/requisitions need to be outsourced. and held to the same standards as other First and foremost, the goal of any organization agencies. A centralized vendor process ensures is to fulfill their requisitions organically, this will better quality control, accurate performance enable an organization to maintain a lower CPH and accountability tracking. and reduce attrition (that national average for agency attrition is 20% and above). It can be This process needs to be centrally managed by common place to utilize agencies for the HR/Recruiting Department. temp/contract positions, however, for full-time positions; agency utilization should be a last Outsourcing Process resort. It is recommended an escalation process be created to determine whether or not more time is needed to continue internally recruiting or outsource the position/positions to a vendor. Metrics to Consider Before a requisition is outsourced to a vendor, first of all how well is the internal recruiting function performing? Once a requisition is approved and opened, evaluate the Page 7
  • 8. Winning the Human Capital War by Don W. Gee The Cost of Outsourcing To ensure a client understands the cost of outsourcing (both in hard and soft costs) they need to fully understand in “black and white” the costs and risks that are associated with For every 100 positions excessive outsourcing. that are outsourced, the Outsourcing to agencies can be costly. If a hard cost of agency thorough process has not been implemented to evaluate and re-evaluate vendor processes, utilization can exceed vendor standards and performance the cost can $1.4 Million. be devastating to an organizations bottom line. Snapshot of Averages: Add the soft cost of On average IT positions are outsourced more agency attrition, which than any other skill set, and the national average for base salary for an IT professional is averages over 20%, the $70,000. In the Chicago marketplace, the average IT salary is $71,400. total cost of agency utilization can exceed  Most agencies charge a fee on the first year’s salary between 15-25%. $2.2 Million.  To fulfill individual requisitions, most organizations under $500MM outsource Most organizations over 50% their hires  Agency attrition averages above 20% don’t do enough to investigate the If an agency hire voluntarily resigns from a position within the first 90 days, an agency capabilities of the should refund the fee or given a chance to refill the position at no charge. vendors they select. Outsourcing hiring Request for Proposal Based upon examination of the historical data needs to an ill-equipped and consultation with company leaders, a Request for Proposal (RFP) should be staffing agency can be a constructed. Weighting of factors important to financial disastrous the company will be given and the RFP will be sent to the prospective vendor pool. Upon option. receipt of the results a list of companies to be interviewed will be determined and the results of those interviews will finalize the selections. Page 8
  • 9. Winning the Human Capital War by Don W. Gee Prime Vendor New Hire Onboarding Outsourcing certain or all hiring to a Prime Minimizing attrition starts on day one. It is Vendor enables a company to appoint one crucial when an employee first starts, there is vendor to manage the entire human capital NO DOWN TIME. There needs to be a clear process. program for new hires, orientation and transition. Not only should a structured, Outsourcing the entire process can relieve a meticulous orientation be created, but once an company from having to maintain staff orientation is completed there is a system in dedicated to vendor management. Fluctuations place to plug the employees into their position in hiring needs can leave a company with and begin their knowledge curve. Orientation is people responsible for agency hiring when no important, but there must be other activities hiring is needed. A prime vendor assumes after orientation to ensure the candidate is responsibility for managing all hiring done with welcomed such as; introductions to their any agency and allows a company to ratchet up managers and team, site tours to internal their hiring capability at will with out the cost of training. internal staff. Employee Communication Communicating with employees can accomplish Retention Evaluation more than meets the eye. Keep the company up to date with company news, key new hires, Most organizations have a sound recruiting significant company accomplishments and process but do not take an honest look at their other news that will keep employees in the attrition and evaluate what more they can do to loop. improve employee retention. Benefits Ensure you’re providing a good benefit plan. To evaluate an organizations attrition Also, offer the best vacation package you can. If percentage, this will require intensive research. your competitors are offering two weeks, offer The following data will be evaluated to analyze 3-4 weeks. the variables that can contribute to high attrition: Awards Recognition is another way to raise performance. You can have awards for “Best Cost of Attrition Employee Award,” or “Best Turnaround,” or As a rule of thumb, when an employee resigns whatever highlights your company culture. If that can cost the company 1.5 -2 times of the you want to tie in a bonus to this award, that vacated salary. The hard and soft cost includes can further compel individuals to exceed time and money spent on refilling the position, expectations, but not necessary. advertising fees, agency fees, employee development and training. This does not On Going Training include other hard and soft costs such as lower Offer your employees opportunities to further productivity, company morale and the impact their respective skill sets through training. this could have on customers/clients. When an Depending on the cost of the training, you can organization loses someone, they are also losing either reimburse them or pay for the training revenue and profitability. directly. Page 9
  • 10. Winning the Human Capital War by Don W. Gee Talent Strategy Delivery Recruiting Cycle This is my basic 4 step recruiting cycle. This model may change, depending on the environment or domain, but this is a basic blueprint I adhere to. In my 7 page Recruiting Cycle; each step is outlined in precise detail. My Recruiting process is strict, thorough and precise. This cycle acts as a “filter,” to ultimately identify several key candidates out of many that will ultimately be a fit for what my client is looking for. Page 10
  • 11. Winning the Human Capital War by Don W. Gee Case Study This is a case study that highlights my results as a Contract Recruiter/HR Consultant for Amdocs (the world’s largest Telecommunications software billing company). Client Challenge Solution One of the world’s largest Create a strong brand Audit of hiring practices telecom billing software Create a high volume growth Branding campaign to strategy and build an companies position the client as an engine to fuel the Proj. Employee growth of explosive growth employer of choice over 75+% per year Reduce the cost per hire to Designed a recruiting HR had little recruiting create substantial cost strategy experience and was savings Designed a new hiring Reduce the hiring cycle time relying heavily on outside process substantially to grow search firms quickly Consolidate vendor list Average Cost per hire was $11,700 RESULTS • Successfully filled positions in St. Louis, Chicago and Portland with little vendor assistance • Reduced the hiring cycle time from 6 weeks to 2 weeks, resulting in bottom line impact of increased project delivery and completion • Total Savings of over $360,000 in recruiting costs • Reduced CPH from per hire from $11,700 to $3,200 Page 11