Boardroom recruiting report webinar

988 views

Published on

It’s no secret that one of the biggest expenses and assets for an organization are employees. From recruiting and hiring to training and retaining, managing human resources is a huge cost. If done well, it can also be the biggest asset.

According to a recent study (August 2012), the Boston Consulting Group found that out of all HR functions, recruiting has the highest impact on revenue growth and profit margins. In this session, we explore the hidden earning potential of recruiting.

Join Mike Mayeux, Founder and CEO of Novotus as he provides information that helps talent acquisition leaders share the impact of recruiting. As a leader in the recruiting industry, Mike uses nearly 20 years’ experience in the talent acquisition industry to steer employees, clients, and candidates toward success. With his unique understanding of technology, consulting, and recruiting, Mayeux leads the Novotus team to accomplish the goal of reinventing talent acquisition. Always on the cutting edge of interactive technology, Mayeux allows Novotus to lead the industry in tools and best practices that improve clients recruiting results.

In this webinar, you will learn:

1) Methods of establishing quantitative results to show the business impact of recruiting.
2) Examples of the potential cost savings associated with recruiting.
3) A method for calculating the true cost of turnover.
4) Metrics to link lost revenue associated with recruiting and speed of hire.
5) A method to measure the revenue impact associated with quality of hire

Published in: Technology, Business
  • Be the first to comment

Boardroom recruiting report webinar

  1. 1. The Boardroom Recruiting ReportThe Boardroom Recruiting Report The stats every recruiting leader needs to know. Presented by: Mike Mayeux, Founder & CEO, Novotus Wednesday, September 25, 2013 An RPOA Leadership Forum Presentation
  2. 2. About RPOA • Nonprofit 501(3) organization founded in 2005 • Mission to “educate the market about RPO” • RPOA Leadership Forum, Blog, Newsletter, Social Networks • Follow us on @rpoassociation and LinkedIn group
  3. 3. RPOA Leadership Forum • Educational online presentations lead by RPOA Members and Business Leaders • Download presentations and signup for upcoming events
  4. 4. The Boardroom Recruiting ReportThe Boardroom Recruiting Report The stats every recruiting leader needs to know.
  5. 5. Introductions Mike Mayeux Founder & CEO Novotus Lamees Abourahma Executive Director RPOA
  6. 6. About Novotus • Founded in 2002, located in Austin, Texas with remote recruiters located throughout the U.S. • Largest Texas-based RPO provider • Management Team = 100 plus years experience • Founding Member of the Recruitment Process Outsourcing Association (RPOA) • Consistent 35% annual growth with placements in 39 states and 10 countries in 2012. • Inavero/CareerBuilder’s Best of Staffing™ Client Satisfaction award 3 years running • Telly Award™ winner for creation and production of corporate career site video
  7. 7. Agenda • Setting the Stage • Cost of Turnover • Speed of Hire Impact • Candidate Quality Impact • True Recruiting Cost • Set Up for Success
  8. 8. Talent Acquisition - Assumptions • Many leaders would agree that their people are: – The greatest differentiator – A key to competitive advantage – Central to achieving key business goals – Are the “face” to the market
  9. 9. Recruiting has 5.5 times the revenue and profit impact of other HR functions. Source: http://www.ere.net/2012/09/04/news-flash-recruiting-has-the-highest-business-impact-of-any-hr-function/
  10. 10. How do we share information that helps executives understand these assumptions?
  11. 11. How do we demonstrate so that we can: • Gain more credibility with our organization’s leadership? • Gain headcount and budget dollars that we need to improve results? • Deliver the talent our organization needs?
  12. 12. Speak the language of your business • Understand business imperatives • Present those goals in a language that matters most to the senior leadership team. Days Territories are open for sales reps (lost revenue) Days Territories are open for sales reps (lost revenue) Replacement costs for open nursing positions using higher cost temp agencies Replacement costs for open nursing positions using higher cost temp agencies Lost billable hours for oilfield service workers Lost billable hours for oilfield service workers Delayed Projects and business impact of lacking IT resources Delayed Projects and business impact of lacking IT resources EXAMPLES:
  13. 13. Do the math. • Partner with finance to build the ROI to support your objectives. Requesting 2 more recruiters to handle ongoing open sales reps positions (average 50 open positions). Requesting 2 more recruiters to handle ongoing open sales reps positions (average 50 open positions). This? Increase Speed to Fill open Sales Reps = $2,500,000 revenue increase. Need – 2 Recruiters Increase Speed to Fill open Sales Reps = $2,500,000 revenue increase. Need – 2 Recruiters That?or
  14. 14. Cost of turnover is underestimated. Turnover Cost of Non-Exempt Workers _______________ % of base salary Turnover Cost of Non-Exempt Workers _______________ % of base salary Turnover Cost of Middle Managers _______________ % of base salary Turnover Cost of Middle Managers _______________ % of base salary Turnover Cost of Upper-Level Managers _______________ % of base salary Turnover Cost of Upper-Level Managers _______________ % of base salary 5050 100100 toto 150150 200200 toto 250250 Source: Staffing.org 201 0 C orporate Recruiting Report Actual Average Turnover Cost
  15. 15. Speed of Hire Profitability Impact Company Highlights Annual Revenue: $1.34 Billion # of Employees: 8,791 # of Open Positions:1,318 Age of Open Reqs Age 1 – 29 days: 758 Age 30 – 58 days: 244 Age 60-119 days: 145 Age 120 days +: 171 Company Highlights Annual Revenue: $1.34 Billion # of Employees: 8,791 # of Open Positions:1,318 Age of Open Reqs Age 1 – 29 days: 758 Age 30 – 58 days: 244 Age 60-119 days: 145 Age 120 days +: 171 Example: 244 x 30 days x $418 daily rev = $3.06 million 145 x 60 days x $418 daily rev = $3.64 million 171 x 120 days x $418 daily rev = $8.58 million Lost revenue of open positions over30 days old = $15.3 million ($1.34 billion ÷8,791) ÷ 365 days = $418 daily revenue
  16. 16. Candidate Quality Profit Impact Cost per hire can be 8-12% of first year compensation Cost per hire can be 8-12% of first year compensation Turnover can be 50 – 250% of first year compensation. Turnover can be 50 – 250% of first year compensation. Poor performance is a multiple of compensation over the entire employee lifecycle. Poor performance is a multiple of compensation over the entire employee lifecycle. Assume revenue for average performing employee = $418 per day. Underperformer = $210 per day. Assume revenue for average performing employee = $418 per day. Underperformer = $210 per day. In just two years, the underperformer can cost the company $152,570. In just two years, the underperformer can cost the company $152,570. Cost to hire approximately $9,000 Cost to hire approximately $9,000 Cost to lose (150%) $112,500 Cost to lose (150%) $112,500 Example: $75,000 base salary, middle manager
  17. 17. Ability to source high quality candidates quickly can have high impact. Do you want it: goodgood fastfast cheapcheap Pick two. Reduce poor performance. Increase organizational value. Measure Quality of Hire Reduce lost revenue / lost productivity. Measure Time to Fill
  18. 18. Calculate Recruiting Costs: CPH vs. RCR RecruiterX RecruiterY # of Hires 15 Engineers 7 Senior Managers Total Comp of Hires: $750,000 $980,000 Recruiting Expense: $66,000 $84,000 CPH Calculation = $66,000 ÷ 15 = $84,000 ÷ 7 Cost PerHire (CPH) $4,400 $12,000 RCR Calculation = $66,000 ÷ $750,000 = $84,000 ÷ $980,000 Recruiting Cost Ratio (RCR) 8.8% 8.6% At a glance, it may seem as though recruiter X is a more efficient and effective recruiter both in volume of hires and CPH metrics. In reality, they are almost even in productivity and resource utilization. RCR is a better metric to use for comparison.
  19. 19. Use industry data to add perspective - U.S. DepartmentofLabor YoungerYounger workersworkers will havewill have 10+ jobs10+ jobs by theby the time theytime they turn 30.turn 30. Job hopping will continue to increase:
  20. 20. Use industry data to add perspective PerceivedPerceived CandidateCandidate AvailabilityAvailability Source: 2010 Corporate Recruiting Report
  21. 21. Create a Talent Brief • This is an executive-level overview of talent acquisition for the organization. • Highlight: – Talent Acquisition Strategic Initiatives – Industry Landscape – Key Metrics – Difficult to Fill Positions • Produce Semi-Annually
  22. 22. Example Talent Brief
  23. 23. Let the Numbers Tell The Story • Implement Metrics • Create quarterly, annual benchmark reports along with real- time daily dashboard reporting. Source: 2010 Corporate Recruiting Report
  24. 24. QuestionsQuestions
  25. 25. Where to find RPO providers? • RPO Buyer’s Guide: non-paid to play, free, searchable list of verified RPO companies provided by RPOA. • Buyer: Find qualified RPO providers: http://resources.rpoassociation.org/rpo-companies-buyers-guide • Provider: Add your company: http://rpoassociation.org/add-your-company
  26. 26. Register for next Webinar The Unique Challenges and Solutions to IT Recruiting October 23 1:00-2:00 PM EST
  27. 27. RPOA Resources • Fifty Shades of RPO: Loving your RPO partner after the sexy sales tam leaves town [webinar] • Recruitment Process Outsourcing – The Good, the bad, and the ugly [white paper] • Ten Things you need to know before you choose a recruitment process outsourcing partner [white paper] • Skip this step and kill your brand – recruiting etiquette 101
  28. 28. Thank you! Contact us at info@rpoassociaton.org Online: www.rpoassociation.org Twitter: @rpoassociation LinkedIn Recruitment Process Outsourcing Association

×