The Real ROI of Internal Headhunting

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The Real ROI of Internal Headhunting

  1. 1. Beyond the Dollar: The Real ROI of Internal Headhunting Presented by Fraser Hill,Founder of Headhuntin.com, Bremnus, and Pure Recruitment Training.
  2. 2. Direct Sourcing Value ModelInternal Headhunt StrategyThe Headhunt Process
  3. 3. Background
  4. 4. Defining Headhunting In The Internal Context
  5. 5. Headhunting is any effort to proactively seek Resourcer/ Administrator Recruiter out and make verbal contact with a potential Headhunter Researcher candidate, establish if they’re open to a conversation about a potential career move,Managing diariesthe conversation therein. and for Creating/Posting job Creating/Posting job Competitor organisationinterviews, posting jobs, ads, sourcing candidates ads, sourcing candidates mapping, directdealing with job board through job boards, CV through job research, cold call headsuppliers, managing screening . boards/online, CV hunting, interviewing,invoices, general admin. screening, Interviewing, shortlist preparation. process management. Competitor intelligence.
  6. 6. Why Headhunt?
  7. 7. Widening The Talent Pool“Have we truly done everything we can to market best IN the market versus ON the find thecandidate in the market and not just the best available candidateon the market?” Direct Sourcing Active Candidates
  8. 8. 100 Number ofroles worked per year 0 Internal Internal Recruiter Headhunter
  9. 9. Headhunter Recruiters
  10. 10. Direct Sourcing Value Model
  11. 11. Internal Headhunt Strategy
  12. 12. 100 Number ofroles worked per year 0 Internal Internal Recruiter Headhunter
  13. 13. Internal Bench AdvertiseHeadhunt Internally Candidate SourcingAdvertise EmployeeExternally Referrals External Pipeline
  14. 14. Advertise Internal Employee Advertise External Bench Referrals Pipeline HeadhuntInternally Externally Do we need to headhunt? The more senior the role the more likely it will be the preferred method. The more niche the role is the more likely it is that it will be the preferred method. When the role cannot be advertised for confidentiality reasons. When all other methods have failed, headhunting will be the next default method.
  15. 15. Gather historic data from last year How many How many How much What direct How many senior roles confidential did we spend market data niche rolesdid we have? roles did we on did we did we have? have? headhunters? retain? $562,500 9 6 1 ($150k x 15 Not much! @25%)
  16. 16. Think about the year ahead How many What market How many What will we What will itroles will we data do we headunters spend cost headhunt? want to will we need? externally? internally? gather? Mapping and 16 competitor 1 0 $150,000 intelligence on all roles
  17. 17. Last year we spent $562,500 on headhunters for our 15 most senior, niche or confidential roles. We didn’t retain anysignificant market data or relationships with key people in the external market.This year with the same demand we can save 73% on costs by hiring an internal headhunter for $150,000 and retain a significant amount of market data and competitor org chart information that we can make further future hires from.
  18. 18. The Headhunt Process
  19. 19. Preliminary Starts with a well written job spec Your internal clients market knowledge Your market knowledgeSecondary Online Research including Linked In Speaking to well known internal and external candidates Head Hunt calls
  20. 20. When we work on a search with typically 30 to 50 candidates to contact, only 3 to 5 ofthese will make it to a shortlist. That means that 90% of the people we speak to will not beright, but the conversations you have with the candidates who are not right are just asimportant. Three Headhunt Call ObjectivesFind out if they’re a suitable candidate and interested in a career move.Gather market intelligence and further understand our competition.Get referrals and further map out our competition.
  21. 21. Information to gatherGet a brief overview of their background and current role.Find out who they report to and where they sit in the organization structure.Find out what their salary and bonus is.Find out as much as you can about their business strategy.Get Referrals.
  22. 22. Building Org Charts – The Mapping ProcessBuilding complete org charts is probably the most challenging part of direct sourcing.You have to be consistent and diligent in asking all of the questions and pursuing your objectivesoutlined in the headhunting training.The only way to find out what the current structure looks like is to speak to the people that existwithin it.You have to become a refined head hunter, which like a hunter, has to be almost stealth like inyour approach.
  23. 23. Percentage of Candidates Names Identified Selected From These SourcesWhen conducting name gathering research, we must do more than just a LinkedIn search.Referrals are the most important source of quality candidates.
  24. 24. The importance of calling candidatesMarket Information – what’s happening at our competitors?Salary and bonus information.An understanding of what motivates them in their career – push and pull factors.Referrals – hugely valuable and often the source of the candidate that gets hired.The opportunity to build rapport, establish on-going relationships in the industry and haveopportunities to ask for favours in the future.Competitor organisation structures.Your job being a lot more fun and interesting.
  25. 25. If agencies are doing the work for youWho is actually sourcing for these roles? (Not the account manager, but the person doing theresourcing?What qualifies you (in the given product area or LOB) as an expert in talent in this space?Who are our top three competitors in this space?What can you tell me about their business, their strategy and their presence in our region?Who in your opinion are the key players in the organisations you mentioned?Who is your biggest competition in this market space? What makes you say that?How do you build your talent pipeline?
  26. 26. Beyond the Dollar: The Real ROI of Internal HeadhuntingSocial media is not the solution, it simply enables us to getcloser quicker to our target audience and limits our reliance onagencies. We still have to make the calls and build relationships.Market intelligence and relationshipsQuality of hire – is this the best candidate in the market (versus on themarket)
  27. 27. Fraser Hillfraser@headhuntin.com

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