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Chris hood 360 feedback

  1. 1. 360⁰ Talent Acquisition Increasing Involvement Increasing Influence Maximizing Investment Improvement proposal to target financial and efficiency improvements to create a fully integrated 360⁰ RPO talent acquisition strategy Chris Hood November 2009 University of Dallas - GSM
  2. 2. Table of Contents Proposal Topic………………………………………………………..3 Course Applications……………………...…………………………..4 Client Profile……………………………...…………………………...9 Goals of Improvement Implementation.........................................11 Current Process and Performance Measures.............................. 13 Improvement Opportunities...........................................................15 360⁰Improvement Approach..........................................................17 Implementation Plan...................................................................... 22 Action Plan and Cost Analysis....................................................... 25 Return On Investment.................................................................... 28 References and Works Cited......................................................... 30 2
  3. 3. Proposal Topic Summary • Client is a global leader in their industry. Recent review has shown an opportunity to decrease hiring expense while increasing the efficiency and quality of hire. • An RPO Provider has been retained to provide such a solution • While effective, opportunity still exists to optimize the process and enhance its value • Application of course material from MANA6305 provides a strong framework for the following Improvement Proposal • The attached proposal is based on the following: • Mission/Values (Unit 4) • Organizational Process (Unit 6) • Strategic HRM (Unit 7) • Selection and Retention (Unit 8) • Organizational Change (Unit 11) 3
  4. 4. Course Application – Unit 4 Mission / Vision • Client has clearly defined mission, vision and goals stated on their corporate website • Compliance to the above not strictly adhered to within scope of talent acquisition process • Client’s mission, vision and other corporate statements are well represented on corporate web site • Client strives to maintain a high performance culture. • Very close to achieving Wriston’s 4 components within talent acquisition process1 • A collaborative environment • A culture of accountability • Focus • Robust processes • While achieving strong results in these areas, opportunities for valuable improvement exist to improve in all 4 areas 4
  5. 5. Course Application – Unit 6 Organizational Process • Talent acquisition process requires high reliance on quick decision making • Conversely, the decision to retain an RPO provider on a multi-year engagement requires cross-functional, highly involved decision making • Breakdown arises from agreeing to process in principle, but not executing in accordance with parameters • Teams are disaligned - they often insulate themselves from process • Rational decision making process used effectively – but undocumented 7th 2 step not followed • “Ladder of Inference” system often accompanies interview and candidate 2 selection process • Decisions not always made on most pertinent data 5
  6. 6. Course Application – Unit 7 Hiring and Retention • Client offers exceptional benefits to all employees • Examples include: • PPO health insurance at very low premium • Stock discount / Retirement account / Profit sharing • Tuition reimbursement • Focus on health and wellnessOn-site fitness facility /Company subsidized • Reward system not as robust in remote locations; Primarily manufacturing facilities • Uniquely qualified, technical candidates continually receive offers that fall below industry standard • Salary offers not objectively based – rather driven by perceived merit • Highest offer decline rate in the company • Opportunity exists to equalize financial reward system to be consistent throughout the company from an intrinsic and extrinsic standpoint3 6
  7. 7. Course Application – Unit 8 Employee Life Cycle / Hiring Procedure • Employee selection process is a work in progress. • Changes in timing, budget, scope and geographies influence hiring needs • Consistent selection process will increase functionality and help uncover hiring opportunities • Employing a selection tool to objectively assess performance • Subjective interviewing still vital to determine “fit” 4 • Challenge is to achieve buy-in from all stakeholders to adhere to consistent process 7
  8. 8. Course Application – Unit 11 Leading Change • The end goal of this proposal is to drive change that is valuable from financial and efficiency-based perspectives • Application of multi-value based initiatives will drive change in the following: • Attitude towards hiring • Change in hiring practice • Greatly reduce hiring expenditure • Heightened appreciation for true value of time • Enhancement from proposed re-engineering of hiring process will: • Factor directly with decision making in other areas • Generate logical thought when assessing perceived value of comparable costs 8
  9. 9. Client Profile • Client is the world’s leading provider of intelligent industry specific hardware and software solutions, with nearly 8,000 corporate and municipal entities worldwide relying on our technology to optimize the delivery and use of essential services. • 2008 Revenues: $1.91 billion • Customers: More than 8,000 in 130 countries • Stock: NASDAQ: Client • Office Locations: More than 80 locations globally with headquarters in USA and Belgium (E) • Markets: Hi-Tech, Environmental, Essential, Smart 9
  10. 10. Client’s Corporate Culture and Hiring Vision At Our Company, “Knowledge to Shape Our Future” describes the value we provide to our many customers. It also describes the value that we provide to our own employees. Our Company’s management is committed to providing employees with opportunities and resources that they can utilize to shape their own future.” 10
  11. 11. Proposed Goal of Program Implementation • 360⁰ Talent Acquisition is a dual function of internal (Corporate / Human Resources - HR) recruiting and external (Agency / RPO “Recruitment Process Outsourcing”) functions • Root issue is decentralization and hiring practice consistency within corporate staffing leaders • Retained RPO and HR consultants not used to full capability • RPO provider not used on specific requisitions – hiring managers choose local contingent agencies for recruiting support • Client spent $475K for FY 2008 on RPO retainer • 75 hires allocated to this number – 47 realized • Additional $396K spent on additional contingent hiring resources 11
  12. 12. Implementation Goals (cont’d) • Decrease key hiring metrics by increasing management level responsibility in centralized hiring process • Time to fill • Cost per hire • Quality of hire • Recruiting costs • Achieve buy-in from key stakeholders and influential hiring managers • Result is exclusive, dedicated e external hiring partner • Eliminate recruiting redundancies and avoidable recruiting costs by establishing credibility of retained RPO Provider 12
  13. 13. Current Talent Acquisition Process External Candidate Interview Scheduled Hiring Manager Kick Resume Submission Hiring Manager Interview Feedback / Offer Approval Sourcing, Screening (Pending Resume Candidate Hire off Meeting Review Hiring Decision Process and Review Review) Historical - Position Cycle Time (in days) 8 9 8 13 9 10 12 6 Current - Position Cycle Time (in days) 7 7 6 9 7 8 8 4 Goal - Position Cycle Time (in days) 6 6 5 5 5 5 5 1 Key process improvement opportunities in exist steps 3 – 7 • Improvement will result from more efficient hiring manager review • Expedited interview scheduling • Efficient transfer of feedback • Streamlining of offer approval process 13
  14. 14. Metrics: History vs. Current Performance vs. Stated Goals Metric Pre-RPO Current RPO Stated Goal Time to Fill 75 Days 56 days 40 days Interview to Hire Ratio 17% 29% 40% Submission to Hire Ratio 8% 13% 20% Cost per Hire $14,290 $8,260 $5,600 Interview to hire ratio represents number of candidates interviewed in FY 2008 by actual hires Submission to hire ratio equals number of candidates submitted for review by YTD actual hires Pre-RPO cost per hire calculated by accessing disclosed company information during pre-launch discovery. Current CPH equals current RPO billing and adding fees associated with additional 3rd party agencies. Resulting cost figure is divided by hires to date. 14
  15. 15. Improvement Opportunities • Time to fill • Key opportunities for improvement exist in steps 3-7 of hiring process • Hiring manager participation and accountability contribute to fall-off in goal attainment • Interview/Submittal to hire ratios • Improvement plan focus targets hiring managers and stakeholders • 12% of submitted candidates remove themselves from consideration prior to receipt of feedback • 75% of candidate drop off in steps leading up to hire results from delay in decision process (candidate loses interest or receives a competing offer) • Dialogue and rapport between RPO provider and hiring managers needs improvement • More efficiency in gaining trust of hiring manager • Garner better understanding of position requirements • Consistent feedback is crucial 15
  16. 16. Improvement Opportunities (Cont’d) • Cost per hire • Intermittent use of contingent recruiting agencies causing CPH to trend above goal • Agencies still engaged due to relationships and perceived trust by hiring manager • 3rd party agencies (aside from RPO provider) average $9K+ per hire over RPO engagement contract 16
  17. 17. Improvement Approach Internal Deliverables • Create and enforce corporate mandate terminating usage of non-approved agencies • Create systemic barriers to prevent agency from submission of unsolicited resumes • Create open dialogue between hiring authorities and HR to survey perceived shortfalls in RPO/HR talent acquisition execution • Champion cultural change in hiring perceptions • Detail consistent hiring methodology across company verticals 17
  18. 18. Improvement Approach External (RPO) Deliverables • Engage in exhaustive industry and company research • Develop ideal profile of candidates across verticals • Become familiar with standardized job descriptions and position qualifications • Conduct regional assessment of hiring data • Utilize advanced research methodology to uncover potential candidate sources 18
  19. 19. Improvement Approach 360⁰ Talent Acquisition Team Stakeholders • Begin new relationship with agreeing on: • Process • Communication standards • Build confidence amongst 360⁰ Talent Acquisition Team • Know the job • Understand the industry and marketplace • Teach and promote objective assessment • Be prepared to justify candidate submissions • Be a partner to the hiring manager • Team with managers to make this a mutual process 19
  20. 20. Improvement Approach 360⁰ Talent Acquisition Team Stakeholders • Partner with managers to encourage an open minded approach to hiring • Build confidence in recruiting expertise and industry knowledge • Establish open communication to ensure clear, objective feedback and timely response • Teach hiring managers to uncover useful data through effective interviewing • Create relationship where hiring manager feels like a top priority 20
  21. 21. Improvement Approach Holistic Diagram Result of implementation is a true “360⁰ Talent Acquisition Team” Hiring Managers Client RPO HR Provider 360⁰ Talent Acquisition Team 21
  22. 22. Implementation Plan Talent Acquisition Process • Process improvement strategy focus on stages 3-7 of recruiting and hiring cycle • Stakeholder deliverables detailed below in sequential order 22
  23. 23. Implementation Plan Process Training / Program Evaluation Implementation plan consists of 4 components • Training • Immersion • Execution • Evaluation Train Hiring Managers New on Process Current mgrs train on new process Participate in Immersion with Talent Acquisition Group company value focus group Kick-off calls occur New Process Execution First time hiring mgrs Initial Search executed with detailed participate in web- Agreement reached On-going evaluation and tweaking of documentation of improvements and based process on process for each process to ensure maximum efficiency missed opportunities training requisition 23
  24. 24. Implementation Plan 360⁰ Improvement Model Anticipated Result – Continuity of process will ensure constant focus on company values, strategy and hiring effectiveness within a collaborative, team-based network Training 360 ⁰ Evaluation Talent Immersion Acquisition Execution 24
  25. 25. Action Plan and Cost Analysis Start End Estimated Item Description Duration Units Date Date Cost Conduct and assess hiring value proposition focus groups 3 Weeks 1/2/2009 1/20/2009 $27,500 Create web-based training seminars for all hiring authorities to complete prior to receiving approval to hire new headcount 3 Weeks 1/23/2009 2/3/2009 $19,120 Implement web-based process training for new and current hiring managers 1 Week 2/6/2009 2/10/2009 $15,000 Immersion will be primarily virtual - cost associated with RPO Provider creating and delivering immersion and best practice documents 1 Week 2/13/2009 Ongoing $18,000 Tracking and process assessment surveys - 1 for each initial search by any hiring manager. Subsequent assessments to be assigned at random 1 Week 2/20/2009 Ongoing $10,000 Total $89,620 25
  26. 26. Action Plan and Cost Analysis Costing Assumptions • Value proposition focus groups to be conducted by 3rd party Talent Consulting Agency (TCA) • Proven research and interview methodologies uncover unbiased and useful results • Cost based on industry research and internal data • Example – The Newman Group, Taleo, Kenexa • Web-Based Training Seminars • Created by TCA • Company focused and branded online webinar created to convey company standards, values, missions, beliefs and expectations related to talent acquisition • Cost defined as function of consultant time and creative fees 26
  27. 27. Action Plan and Cost Analysis Costing Assumptions (cont’d) • Immersion activities include on-site introductory meetings between RPO Provider and internal stakeholders • Costs calculated as function of travel and creation of additional process documents and collateral • Performance Tracking • Quality management initiative designed to uncover breakdowns in process and overall satisfaction with RPO Provider • Costs based on 50 hiring managers completing 2 assessments in FY 2009 • Assessment fee: $50 per report 27
  28. 28. Return on Investment Metric Pre- Current Stated Return on RPO RPO Goal Investment Time to Fill 75 Days 56 days 40 days $10,546 per hire Interview to Hire Ratio 17% 29% 40% $28,750 per 100 IV’s Submission to Hire Ratio 8% 13% 20% Performance Metric Cost per Hire $14,290 $8,260 $5,600 $8690 per hire ROI Assumptions: • Time to fill ROI computed by taking net revenue per employee (less average cost of employment from average daily revenue) and converting it under new process. Placement fee and interview cost subtracted yield ROI • Interview to Hire ROI calculated by multiplying average interview cost by difference in volume for every 100 interviews • Cost per hire ROI represents difference between Pre-RPO CPH and goal CPH multiplied by projected number of hires for FY2009 (placement fee) 28
  29. 29. Return on Investment (cont’d) Anticipated ROI based on 100 Hires by RPO Provider Time to Fill Interview Agency vs. RPO Initial Return on ROI cost ROI Cost ROI Investment Investment $1,054,600 $28,750 $869,000 $89,260 $1,865,090 29
  30. 30. Works Cited / References 1 Wriston, Michael J. "Creating a High-Performance Culture." Organization Development Journal 25.1 (2007): 8-16. Business Source Complete. EBSCO. Web. 2 Nov. 2009. 2 University of Dallas – E-College, MANA6305, e-Lecture, Unit 6 3 Ryan, Ann Marie, and Nancy T. Tippins "ATTRACTING AND SELECTING: WHAT PSYCHOLOGICAL RESEARCH TELLS US." Human Resource Management 43.4 (2004): 305-318. Business Source Complete. EBSCO. Web. 2 Nov. 2009. 4 University of Dallas – E-College, MANA6305, e-Lecture, Unit 8 5 University of Dallas – E-College, MANA6305, e-Lecture, Unit 11 Note: Financial figures and performance metrics were researched and presented based on the performance, goals and costs associated with verified RPO services, and tested implementation schema. 30