5 To Dos for Recruiters in a Weak Economy

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A presentation used on hr.com talking about HR\'s contribution to a business during a weak or recessionary economy. The recorded audio is on hr.com.

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5 To Dos for Recruiters in a Weak Economy

  1. 1. Jeremy Shapiro Senior Vice President Hodes iQ Five To Dos in a Weak Economy
  2. 2. Jeremy Shapiro <ul><li>About Jeremy </li></ul><ul><ul><li>Co-Author, Ultimate Performance , Wiley, 2007 </li></ul></ul><ul><ul><li>Frequent speaker on BI and human capital at SHRM, state events, SAPHR2008 </li></ul></ul><ul><ul><li>SVP, Hodes iQ Talent Management System </li></ul></ul><ul><li>About Hodes iQ, www.hodesiq.com </li></ul><ul><ul><li>Leading Talent Acquisition & Management System </li></ul></ul><ul><ul><li>Thousands of recruiters, covering 1.5M employees </li></ul></ul><ul><ul><li>Gartner rated “Visionary” </li></ul></ul>
  3. 3. Agenda <ul><li>Please Avoid Following… </li></ul><ul><li>Dynamics of Business Cycles </li></ul><ul><li>Business Cycle Takeaways </li></ul><ul><li>Five Things to Do During a Dip </li></ul>
  4. 4. Please Avoid the Following… <ul><li>Outright Panic </li></ul>
  5. 5. Please Avoid the Following… <ul><li>Closely Monitoring Stock Tickers </li></ul>
  6. 6. Please Avoid the Following… <ul><li>Rewriting your resume, now focused on organic farming. </li></ul>
  7. 7. Dynamics of Business Cycles <ul><li>Recession = Two or more quarters of economic contraction. </li></ul><ul><ul><li>While the aggregate economy may be contracting, this does not mean that all companies are impacted in the same way. </li></ul></ul>
  8. 8. Dynamics of Business Cycles <ul><li>Employment usually is a lagging indicator. </li></ul><ul><ul><li>Economists believe this is less true in this cycle, but we don’t know yet. </li></ul></ul>Source: BLS
  9. 9. Dynamics of Business Cycles Source: BLS
  10. 10. Dynamics of Business Cycles <ul><li>Labor Market Pattern </li></ul><ul><ul><li>Supply vs. Demand </li></ul></ul><ul><ul><ul><li>The supply of available staff does increase in aggregate in weak parts of cycles. </li></ul></ul></ul><ul><ul><ul><li>Increases volume of applicants (becomes a selection problem). </li></ul></ul></ul><ul><ul><li>But, skill set alignment vs. available talent pool are never matched exactly. </li></ul></ul>
  11. 11. Dynamics of Business Cycles <ul><li>Takeaway #1 </li></ul><ul><li>Recessions = less hiring, not 0 hiring </li></ul><ul><ul><li>Unemployment % = natural rate of unemployment + involuntary unemployment </li></ul></ul><ul><ul><li>Some industries in aggregate retain positive growth (ex. Health care) </li></ul></ul><ul><ul><li>Different regions are impacted differently. </li></ul></ul><ul><ul><li>www.bls.gov </li></ul></ul>
  12. 12. Dynamics of Business Cycles <ul><li>Takeaway #2 </li></ul><ul><li>It’s easier to recruit any warm body in a recession, but about as hard to hire the right talent during one. </li></ul><ul><ul><li>Many of the people you want, are still currently employed. Who is going to pull them away from their jobs? </li></ul></ul><ul><ul><ul><li>Anyone tried to hire a .NET developer this month? </li></ul></ul></ul><ul><ul><ul><li>Sales people? </li></ul></ul></ul><ul><ul><li>93% of the US that wants to work, IS working. </li></ul></ul>
  13. 13. Dynamics of Business Cycles <ul><li>Takeaway #3 </li></ul><ul><li>Some businesses will outlast the downward motion, recover, and thrive. Some will not. </li></ul><ul><ul><li>Some keep the faucet on and acquire A players </li></ul></ul><ul><ul><li>Some turn it off </li></ul></ul><ul><ul><ul><li>The valve gets rusty when you turn it on again </li></ul></ul></ul>
  14. 14. Five To Dos for Recruiting <ul><li>Save the company serious money. Be the strategic partner to management. </li></ul><ul><ul><li>Obvious factors </li></ul></ul><ul><ul><ul><li>Be a hunter </li></ul></ul></ul><ul><ul><ul><ul><li>Eliminate/reduce third party recruiters </li></ul></ul></ul></ul><ul><ul><ul><li>Examine competitive compensation patterns. </li></ul></ul></ul><ul><ul><ul><li>Recruit more heavily locally. </li></ul></ul></ul><ul><ul><li>Understand your company’s business, what management’s priorities are. </li></ul></ul>
  15. 15. Five To Dos for Recruiting <ul><li>Save the company serious money (cont.) </li></ul><ul><ul><li>Less obvious factors </li></ul></ul><ul><ul><ul><li>Use HR metrics obsessively to change recruiting through </li></ul></ul></ul><ul><ul><ul><ul><li>Source effectiveness </li></ul></ul></ul></ul><ul><ul><ul><ul><li>New hire quality </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Top pick offer/accept ratios </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“ A Player” turnover data. </li></ul></ul></ul></ul>
  16. 16. Five To Dos for Recruiting Metric Name Goal Recruiters CXO Hiring Mgrs Source Effectiveness Top pick offer/accept ratio “ A Player” turnover
  17. 17. Five To Dos for Recruiting
  18. 18. Five To Dos for Recruiting
  19. 19. Five To Dos for Recruiting <ul><li>Learn new skills </li></ul><ul><ul><li>When do we ever have time to learn new things to make our recruiting better? Never. </li></ul></ul><ul><ul><ul><li>Are you recruiting via Linked In? Facebook? </li></ul></ul></ul><ul><ul><ul><li>Are the terms SEM, SEO, ROI, and TCO worth understanding? </li></ul></ul></ul><ul><ul><ul><li>Participate in Sourcecon? </li></ul></ul></ul><ul><ul><li>Lowers recruiting costs in short and medium terms. </li></ul></ul>
  20. 20. Five To Dos for Recruiting <ul><li>Learn new skills </li></ul><ul><ul><li>If you do nothing else for yourself during this down cycle, do this one thing: </li></ul></ul><ul><ul><ul><li>Learn about Pivot Tables in Excel </li></ul></ul></ul><ul><ul><ul><ul><li>If you don’t know them at all, start. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>If you use them a lot, learn about other options, or how to use them more craftily. </li></ul></ul></ul></ul>
  21. 21. Five To Dos for Recruiting
  22. 22. Five To Dos for Recruiting <ul><li>Help keep staff focused on executing on their objectives </li></ul><ul><ul><li>Your employees are just (or more) freaked out than you are. Help Employee Relations out! </li></ul></ul><ul><ul><ul><li>Looking at 401k balances is a huge source of anxiety for staff. </li></ul></ul></ul>
  23. 23. Five To Dos for Recruiting <ul><li>Use the time to build the infrastructure we never have time for during booms. </li></ul><ul><ul><li>What is it you can do today, that will </li></ul></ul><ul><ul><ul><li>Lower the structural costs of recruiting in the future </li></ul></ul></ul><ul><ul><ul><li>Allow your company to hire more of their first picks </li></ul></ul></ul><ul><ul><ul><li>Fix the leaky pipes </li></ul></ul></ul>
  24. 24. Five To Dos for Recruiting <ul><li>Use the time to build the infrastructure we never have time for during booms. (cont) </li></ul><ul><ul><li>Ideas </li></ul></ul><ul><ul><ul><li>Improve Talent Management systems and processes </li></ul></ul></ul><ul><ul><ul><li>Build your future pipeline </li></ul></ul></ul><ul><ul><ul><li>Revise Performance Management criteria to focus on A & B players </li></ul></ul></ul><ul><ul><ul><li>Create a better employee referral process </li></ul></ul></ul><ul><ul><ul><li>Create a better internal mobility process </li></ul></ul></ul><ul><ul><ul><li>Change hiring manager (bad?) habits </li></ul></ul></ul><ul><ul><ul><ul><li>Job Requirements definition </li></ul></ul></ul></ul>
  25. 25. Five To Dos for Recruiting <ul><li>Use the time to build the infrastructure we never have time for during booms. (cont) </li></ul><ul><ul><li>Don’t just talk about your ideas, get them seen up the chain of management! </li></ul></ul>
  26. 26. <ul><li>Help ensure positive separations when RIFs are necessary. </li></ul><ul><ul><li>Does anyone else remember why many candidates didn’t want anything to do with professional services firms in the mid-90s? </li></ul></ul><ul><ul><ul><li>We treated them terribly on the way out. </li></ul></ul></ul><ul><ul><ul><li>They remembered their treatment a few years later. </li></ul></ul></ul><ul><ul><ul><li>But companies didn’t. </li></ul></ul></ul>Five To Dos for Recruiting
  27. 27. Five To Dos for Recruiting <ul><li>Help ensure positive separations when RIFs are necessary. </li></ul><ul><ul><li>Create online alumni groups on </li></ul></ul><ul><ul><ul><li>Facebook </li></ul></ul></ul><ul><ul><ul><li>Linked In </li></ul></ul></ul><ul><ul><ul><li>Ning </li></ul></ul></ul>
  28. 28. The 5 To Do Summary <ul><li>Save the company serious money. Be the strategic partner to management. </li></ul><ul><li>Learn new skills </li></ul><ul><li>Help keep staff focused on executing on their objectives </li></ul><ul><li>Use the time to build the infrastructure we never have time for during booms. </li></ul><ul><li>Help ensure positive separations when RIFs are necessary. </li></ul>
  29. 29. Resources <ul><li>Ultimate Performance , Wiley </li></ul><ul><li>The Black Swan , Random House </li></ul><ul><li>Competing on Analytics , HBR </li></ul><ul><li>The Workforce Scorecard , HBR </li></ul><ul><li>The HR Scorecard , HBR </li></ul><ul><li>More whitepapers posted at: www.hodesiq.com </li></ul><ul><li>www.hr.com (Metrics Formulas) </li></ul>

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