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Recruiting the Talent Within

November 19, 2008
Your Speaker Today

                       Anne Nimke is a seasoned veteran in the world of RPO, talent 
                       strategy and performance improvement. Adept at creating staffing
                       models, Anne understands solutions need to align with the 
                       strategic objectives of the business to achieve an organization’s 
                       maximum performance capacity.  She has an extensive experience 
                       developing talent lifecycle strategies, driving employment branding 
                       and positioning, aligning recruitment and on‐boarding initiatives, 
                       and ensuring sustainable performance through process change, 
Anne Nimke
                       integrated technology and metric development.  
Co‐founder & 
Executive Consultant   Anne is a cum laude graduate of Marquette University. She is past 
                       president of HRMA, SHRM State Conference Chair, and currently 
                       Vice Chair of RPO Alliance and member of SHRM Staffing Special 
                       Expertise Panel and HROA.




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Pinstripe, Inc. designs, builds and manages high‐performance, large scale talent
               acquisition solutions. For clients in industries that include financial services,
               technology, telecommunications, healthcare and others, Pinstripe’s innovative
               approach to Recruitment Process Outsourcing (RPO) integrates sourcing,
               recruiting, hiring, on‐boarding, and engagement into a complete, end‐to‐end
               outsourced acquisition and retention solution. For healthcare organizations,
               Pinstripe’s Healthcare Group offers the provider‐side experience it takes to help
               clients reduce their recruitment and labor costs while continuing to provide the
               highest quality of patient care.  

                                   More information is available at 
                       www.pinstripetalent.com or www.pinstripehealthcare.com




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                                                                                                   3
Polling Question



               Please describe your current role…
               Recruiter or Recruiting Leader – 29%

               HR Manager / Director or above- 42%

               HR Generalist / HR Specialist (non recruiting) – 20%

               Hiring Manager / Executive - <1%

               Other – 8%




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Recruiting the Talent Within
is NOT about a better 
internal posting process!
Agenda – Recruiting the Talent Within

  • Business Case – Why bother?
  • Internal Recruiting
  • High Potential & Engaged Employees 
  • Talent Management
  • Be a Choice Employer & Talk About It!
  • What Gets Measured Gets Done!
  • Question and Answer



                                            For a copy of the presentation –
                                            Email: animke@pinstripetalent.com
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Business Case
      • Domestic and Global War for Talent
               – Offshoring; Remote workers to electronic; Immigrants; Working 24x7; Job 
                 migration; Global talent supply chain
      • Cost of Replacing Talent
               – Retiring Talent; Turnover; # years of work experience lost
               – It takes 2 new employees to replace 1 skilled worker – Forrester
      • Demographic Trends Point to a 11m worker shortfall
               – 15% fewer 35 to 45 year olds; Baby boomer retirements
               – Vacated jobs + newly created jobs = 33 to 55m open positions
               – 11m to 23m person talent shortage by turn of the decade
      • Reengineering and automation has run its course in many firms
      • Net:  The market is tough…and getting tougher
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                                                                                            7
Talent Impacts Financial Performance
      • Talent is strongly linked to superior financial performance

      • A Fortune 500 company can realize a $70m‐160m bottom line increase, 
        with a 10 point increase in its Talent Quotient

      • 70% of value of NASDAQ is Intellectual or Intangible Asset Value (IAV) a 
        complete reversal from just over a decade ago; 50% of total American 
        capital markets
                           Source of Value                                                Comparing the Best and 
                            Source of Value                                                 Worst HR Systems
     120%
       120%                                                                                             Bottom 10%     Top 10%
     100%
       100%                            15%
      80%                   38%          15%                           Employee Turnover               34.09%                   20.87%
        80%    62%            38%
                                                Tangible Assets        Sales Per Employee           $158,101           $617,576
      60%        62%                               Tangible Assets
        60%                                     Intangible Assets
                                                   Intangible Assets
                                                                       Market Value to Book Value       3.64                   11.06
      40%                              85%
        40%                 62%          85%                           % Jobs filled from within        31%                    53%
      20%      38%            62%                                      % with formal staffing plan       3%                      48%
        20%      38%
       0%
                                                                       % qualified for >1 job             2%                     63%
         0%
               1982        1992        1998
                                                                       # Hrs training for new EEs          3                       5
                 1982        1992        1998



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                        Hewitt Study                                                              Huselid Study                          8
                                                                                                                                         8
Polling Question


               Are any of your company's dealing with
               issues related to...(check all that apply)*
               Skill Shortages - 186

               Multi-generations in the workforce - 138

               Economic downturn - 186

               Globalization - 25

               Increasingly aggressive competition -125

               *Responses are actual numbers, not percentage)



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Retention is the #1 Concern




                                DDI/Sheffield Survey
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Does your organization have …
  A Vicious Talent Cycle … a revolving door
        Where top performers and high potentials are finding it easier and 
        easier to find new opportunities (leave) while underperforming 
        employees will stay because they have no choice (unless 
        terminated).


                                      OR?


  A Virtuous Talent Cycle … a safe and dynamic culture
       Where top performers and high potential employees are engaged
       and encouraged to grow within your company and contribute to its
       culture and success while achieving personal goals.

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Internal Recruiting
               Reduce:
               • Cost Per Hire
               • Time to Fill
               Improve:
               • Talent Pool
               • Engagement and Employee Relations
               • Retain Intellectual Property


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What are we talking about?


                                   Re‐recruit
                       Internal                 Promote
                      Recruiting                  From
                                                 within

                                   Keeping
                 Talent              The                Career
                 Mgmt               Talent              Pathing
                                   Within

                       Reduce                   Succession
                      Turnover                   Planning
                                   Retention
                                   Programs




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Your Talent Pool
    No doubt you are doing more than the “Post and Pray”
                   for external candidates
               Active Candidates
               Qualify job search criteria and ensure robust recruitment marketing to 
               candidates looking for a job now ‐ online and off on web and in your 
               current ATS & CRM

               Selective Candidates
               Research and mine resume/ candidate database for candidates  
               actively…daily


               Passive Candidates
               Find and maintain relationships with currently employed talent that might 
               not be looking to change jobs today
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Your Talent Pool
               Internal Candidates
               Create robust communication to current employee database and insure 
               employees in (or out) of the career path are recruited

               Active Candidates
               Qualify job search criteria and ensure robust recruitment marketing to 
               candidates looking for a job now ‐ online and off on web and in your 
               current ATS & CRM

               Selective Candidates
               Research and mine resume/ candidate database for candidates  
               actively…daily


               Passive Candidates
               Find and maintain relationships with currently employed talent that might 
               not be looking to change jobs today
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Your Talent Pool
               Internal Candidates
               Create robust communication to current employee database and insure 
               employees in career path are recruited

               You need to do more than the “Post and Pray”
                          for internal candidates




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If you feel your employees won’t 
  leave…think again!




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What does “Internal Recruiting” look like?
  Basics
  • Open positions available to all 
    employees
      – Intranet
      – Career site
  • The process is published
  • “Next opportunity” is part of 
    performance mgmt discussions
  • Current “promoted from within”
    employee stories known widely
  • Culture of “promote from within”
  • Less‐restrictive “time in current job”
  • Employee Referral Programs



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What does “Internal Recruiting” look like?
  Basics                                     Proactive
  • Open positions available to all          • Basics + …
    employees                                • Internal job fairs
      – Intranet                             • Recruiters “find/recruit” internal 
      – Career site                            candidates
  • The process is published                 • Strong internal “candidate care”
  • “Next opportunity” is part of            • Process is robustly marketed
    performance mgmt discussions             • Career Paths are published
  • Current “promoted from within”           • Posting for lateral moves and job 
    employee stories known widely              shadowing available
  • Culture of “promote from within”         • Next job self‐service training 
  • Less‐restrictive “time in current job”   • New EE Orientation includes how 
  • Employee Referral Programs                 to post for next job
                                             • Re‐recruit your lost employees –
                                               exit interviews
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Polling Question


               Please describe your current internal
               recruiting practice…
               Post and Pray with no plans to enhance - 10%

               Post and Pray with plan to improve – 35%

               Basic with no plans to enhance – 10%

               Basic with plan to improve – 33%

               Proactive – 12%




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Retain High Potential and 
               Engaged Employees
               Improve:
               • Quality of Workforce
               • Bench
               • Productivity
               • Engagement
               Reinforce:
               • Performance Culture
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The old adage about people being your
                     greatest asset is not true. 


                 People aren’t your greatest asset. 
                      The RIGHT PEOPLE are!

                                Jim Collins, Good to Great




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                                                             22
High Performers vs. High Potential

 • Only 28% of high performers are also high potential
 • High Potential = High Performer PLUS
               – Learning Agility
               – Leadership Ability
               – Desire to Advance
               – Breadth of Experience
               – Not Risk Averse
               – Interpersonal Skills
               – High Engagement and Motivation

                                                  Corporate Leadership Council



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Good People are Great for Business




                                       McKinsey and Co.

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                                                          24
Engaged Employees




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Engaged Employees are MORE LIKELY to:

               • Stay with your organization despite competitive offers

               • Demonstrate alignment between their individual goals 
               and organizational success

               • Express a consistently positive viewpoint

               • Exert discretionary effort that contributes exponentially 
               to business results




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Workforce Surveys
      Only 20% of employees are highly engaged; A recent Gallup Index reveals that, 
      on average, about 70% of US workers are “not engaged” or are “actively 
      disengaged” with their work.




                       Engaged employees are more likely to “learn and change”,
                                       offer creative ideas and
                     involve customers in innovation and improvement processes.
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Workforce Survey ‐ Gallup Poll
      1. Do I know what is expected of me at work?
      2. Do I have the materials and equipment I need to do my work right?
      3. At work, do I have the opportunity to do what I do best everyday?
      4. In the last week, have I received recognition or praise for doing great work?
      5. Does my supervisor, or someone at work, seem to care about me as a person?
      6. Is there someone at work who encourages my development?
      7. At work do my opinions seem to count?
      8. Does the mission/purpose of my company make me feel my job is important?
      9. Are my co‐workers committed to doing quality work?
      10. Do I have a best friend at work?
      11. In the last six months, has someone at work talked to me about my progress?
      12. This last year, have I had opportunities at work to learn and grow?

               “The only way to generate enduring profits is to begin by building the kind of 
               work environment that attracts, focuses, and keeps talented employees.”


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7 Drivers of Employee Engagement
               • Opportunity             • Leadership
                  – Growth/Development      – Credibility
                  – Advancement             – Trust
                  – Interaction          • Culture & Purpose
               • Job Tasks                  – Sense of Purpose
                  – Impact                  – Organizational
                  – Challenge/Interest      – Values & Behaviors
                  – Status/Pride         • Total Compensation
               • Relationships              – Pay/Financial
                  – Co‐workers              – Recognition
                  – Managers             • Quality of Work Life
                  – Customers               – Physical Environment
                                            – Work/Life Practices
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Talent Management
               Improve:
               • Talent Trajectory
               • Retention
               Create or Reinforce
               • Choice Employer Status
               • High Performance Culture


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Talent Trajectory ‐ Now and Future
                                    TODAY        2009   2010
                 # OF EMPLOYEES




                                                                                                ** # of Standard 
                                                                                                Deviations from mean 
                                                                                                performance levels




                                      mean 
                                  performance 
                                   level today          PERFORMANCE & PRODUCTIVITY

    Quality of Hire                               The Talent Within                Challenge & Opportunity
    The single biggest determinant of             Development of the diverse and  The challenge and the opportunity  
    departmental and organizational               high performing employees at    is for organizations to move their 
    performance.                                  each level.                     curve to the right.


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Talent Management
    Traditional Talent Management:
               • Endpoints of traditional talent management process
                  – Hiring 
                  – Performance Management
                  – Turnover
               • PAST focused
               • Measures goals and behavior




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Talent Management
    Traditional Talent Management:
               • Endpoints of traditional talent management process
                  – Hiring 
                  – Performance Management
                  – Turnover
               • PAST focused
               • Measures goals and behavior
    Today’s Talent Management MUST:
               • Integrate with the business 
               • Link Business Priorities + Critical Workforce Issues
               • Drive results by enhancing organization’s
                   – Capability
                   – Commitment and
                   – Alignment
               • FUTURE focused
               • Measures performance, EMPLOYEE INTERESTS and POTENTIAL

Confidential
               A cultural mindset - Talent Mindset vs. Labor Mindset      33
Polling Question


               Our organization’s focus on
               talent management is:

               Very uninvolved – 6%

               Uninvolved – 15%

               Informed but not involved – 44%

               Involved - 29%

               Very involved - 6%




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Be a Choice Employer and 
               Talk About It!
               Improve:
               • Organization’s Brand Equity
               • Customer Impact
               • Recruitment Marketing Success
               • Morale
               Reduce:
               • Voluntary Turnover

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Your Workforce Has Changed –
 Has Your Organization?
    OLD PARADIGM                                 NEW PARADIGM
               • Job Security                       • Employability is security
               • Longitudinal Career Paths          • Alternate career paths
               • Job/Person Fit                     • Person/Organization fit
               • Organization Loyalty               • Job/Career Loyalty
               • Career Success                     • Work/Life Balance
               • Academic Degree                    • Continuous Learning
               • Position & Title                   • Competency Development
               • Full Time Employment               • Flexibility in Employment
               • Retirement                         • Career Sabbaticals
               • Single Jobs/Careers                • Multiple Jobs/Careers
               • Change in jobs based on fear       • Change in jobs based on growth
               • Promotion highly tenure based      • Promotion highly performance based
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Job Dissatisfaction
  Employees are:
  • Fearful about losing their jobs

  • Overworked due to the large number of cutbacks

  • Unappreciated for the hard work and stress that they are enduring

  • Resentful about the lack of respect they are receiving
                                                         Bruce Katcher – The Survey Doctor
                                  Author of 30 Reasons Why Employees Hate Their Managers 




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First Impressions DO Count!


    • 4% left their job after a disastrous first  day
    • 9% seriously considered quitting
    • 54% believe “first impressions”
    affect performance
    • 60% report “losing sleep” before 
    the first day

                                                        Improved Performance
                                                        Impaired Performance
                                                        No Effect




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So What’s Love Got to Do With It?

               Your employees are getting oriented to your company whether you 
                                   have a program or not!  

                              The orientation they are getting 
                           MAY NOT be the one you want or intend.




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So What’s Love Got to Do With It?

               Your employees are getting oriented to your company whether you 
                                   have a program or not!  

                               The orientation they are getting 
                            MAY NOT be the one you want or intend.


       • Employees who complete orientation reach full 
                productivity 60 days faster and they found they reduced 
                their turnover by 40%
       • 69% more likely to stay employed after 3 years if they 
         completed orientation
                      Research has confirmed employees that connect with the company 
                      within the first 90 days, stay with the company significantly longer.
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Tools to Identify Potential* and Interest
 • Training and Education                             • Company Processes
               – Internal and External Training          – Succession Planning
                                                         – Internal Hiring Priority
               – Tuition reimbursement
                                                         – High Potential* Tracking  & Development
               – Learning Management Systems             – Talent Assessments and Talent Review 
                                                           Meetings
 • Learning from Others
               – Performance Appraisals*              • Experiences and Opportunities
               – Non‐profit Boards                       – On the job training
               – Mentor Programs                         – Job shadowing request process
               – Talent review meetings                  – Simulations
               – Career Development Plans                – Project Assignments /Task Force
               – Executive Involvement                   – Cross Training
               – Encourage Informational Interviews      – Job Rotation/Mgmt Tracking

                                                                 Corporate Leadership Council

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Employment Branding
     • Branding ‐ A way to differentiate the employment experience
               –   An emotional connection with internal/external audiences
               –   Highlighting ‘points of difference’
               –   Branding should be consistent with the consumer brand/culture

     • Guiding Principles of branding
               –   COGNITIVE:  Understand ‐ Believe ‐ Engaged
               –   BEHAVIORAL:  Deliver ‐ Tell the story ‐ Link to HR Systems




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Internal Branding




                     Core Creative


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What Gets Measured 
               Gets Done!
               • Know Your Organization
               • Identify Where Change is Needed
               • Build Business Case
               • Communicate Impact and ROI




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We Know….
  • How every dollar is spent…
  • Where our product inventory is…
  • Where every computer, printer, copier and phone is located…
  • Everything about all our leases and contracts…
  • Customer and prospect contact information and more…
  • BUT….how well do we know the talents and career interests of our 
    current employees?
                                            Doris Sims, SPHR
                                            www.SuccessionBuilders.com




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Do you have internal hiring metrics?




               • Segment your hiring statistics Internal vs External
                  –   Quality of Hire        – Demographics
                  –   Time to Productivity      – Age
                  –   Time to Fill              – Geography
                  –   Cost per Hire             – Diversity
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Improved Ramp‐up Time




Confidential             47
What Impacts Engagement? 

   • Find the triggers that make your employees stay/leave
   • Utilize turnover stats, exit interviews, employee and 
     management surveys




                                                              Saratoga
Confidential                                                             48
Cost of Turnover
  Costs include:
  • Lost productivity during a vacancy
  • Diminished productivity of the team and managers          Average turnover 
    who are covering for a vacant position                  cost equals one year's 
  • Diminished productivity of the team and managers         salary and benefits. 
    who are training the new hire
  • Increased labor costs due to overtime or contractors    Average of 12 to 40% 
    needs                                                        of pre‐tax 
  • Hiring and on‐boarding costs                             company earnings
  • Other more difficult to quantify impacts:
      – Decreased customer satisfaction                            Average
      – Increased future turnover                             1.5 – 2.5 x salary
      – Loss of institutional knowledge
                                         Saratoga

                               TURNOVER CALULATORS
               http://www.blr.com/landingPR/index.aspx?landingPRID=1
                    www.caliperonline.com/solutions/turnover.shtml
               http://acw.aon.com/wfs/Router?PAGE_NAME=TCE_INPUT
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Measuring Turnover
  • If you are loosing High Potentials, High Performers and Great 
    Experience – The first step is acknowledging the problem.
  • Turnover ‐ % of employees leaving the organization
                     total number of employees
  • Retention Index – rate of turnover within a “group/category” as 
    compared to average turnover 
  • Segment your turnover statistics and compare to the average to 
    identify talent gaps and leaks
               – Job family/title            – Demographics
               – Longevity                      – Age
                                                – Geography
               – High performers                – Diversity
               – Level within organization


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Hewitt's Talent Quotient 
 • Prioritization of investment dollars in people programs 
 • An objective ranking of the firm's track record in attracting 
   and retaining pivotal employees compared with other 
   organizations 
 • An understanding of flight risk of pivotal employees based 
   on demographics and diversity factors 
 • Fact‐based evaluation of people programs to bolster 
   information from employee opinion surveys




Confidential                                                        51
Recruiting the Talent Within

                                           CONCERNS
     Self‐nomination process may be unsatisfactory to all stakeholders
     You have no “bench”
     Current employee talent pool may not have the what is needed
     Filling one gap may create another
     May inhibit new ideas/diversity within org.
     Lower morale for those not selected
     Attention needed to curb tendency toward “favorites” or incumbent
     Waste of time if the manager already knows who they want to hire
     Process not defined or implemented well
     Internal “candidate care” is as important as external candidate care – if you aren’t doing 
     it well for external candidates you might not for internal


Confidential                                                                                       52
Recruiting the Talent Within

                                            BENEFITS
    Capitalizes past investments in recruiting & training current employees
    Reinforces “culture” of retention and career opportunities
    Rewards performance and potential
    Reinforces employee engagement
    Improves morale and promotes positive employee relations
    Allows hiring managers data on current employee which is more likely to be more reliable 
    than info on external candidates
    Usually is a lower overall cost per hire: CPH & pay of external usually greater than internal
    Usually faster Time to Fill than hiring externally
    Pro‐active internal recruiting may create greater success. Why? Current post and 
    pray/self‐nomination process can be unsatisfactory to all stakeholders



Confidential                                                                                        53
Summary

                                      Re‐recruit
                          Internal                 Promote
                         Recruiting                  From
                                                    within

                                      Keeping
                    Talent              The                Career
                    Mgmt               Talent              Pathing
                                      Within

                          Reduce                   Succession
                         Turnover                   Planning
                                      Retention
                                      Programs



               If you aren’t recruiting your current talent –
                you may be the only company who isn’t!
Confidential                                                         54
Are you

               of the talent you want to attract
               and retain?

Confidential                                       55
Thank You – Any questions?

  If you would like a copy of the
  presentation or have individual 
  questions – contact:

  Anne Nimke
  262‐754‐5060
  animke@pinstripetalent.com


  Join Pinstripe for Future Webinars!
      Visit www.pinstripetalent.com/events for more information

Confidential                                                      56

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Recruiting From Within

  • 2. Your Speaker Today Anne Nimke is a seasoned veteran in the world of RPO, talent  strategy and performance improvement. Adept at creating staffing models, Anne understands solutions need to align with the  strategic objectives of the business to achieve an organization’s  maximum performance capacity.  She has an extensive experience  developing talent lifecycle strategies, driving employment branding  and positioning, aligning recruitment and on‐boarding initiatives,  and ensuring sustainable performance through process change,  Anne Nimke integrated technology and metric development.   Co‐founder &  Executive Consultant Anne is a cum laude graduate of Marquette University. She is past  president of HRMA, SHRM State Conference Chair, and currently  Vice Chair of RPO Alliance and member of SHRM Staffing Special  Expertise Panel and HROA. Confidential 2
  • 3. Pinstripe, Inc. designs, builds and manages high‐performance, large scale talent acquisition solutions. For clients in industries that include financial services, technology, telecommunications, healthcare and others, Pinstripe’s innovative approach to Recruitment Process Outsourcing (RPO) integrates sourcing, recruiting, hiring, on‐boarding, and engagement into a complete, end‐to‐end outsourced acquisition and retention solution. For healthcare organizations, Pinstripe’s Healthcare Group offers the provider‐side experience it takes to help clients reduce their recruitment and labor costs while continuing to provide the highest quality of patient care.   More information is available at  www.pinstripetalent.com or www.pinstripehealthcare.com Confidential 3 3
  • 4. Polling Question Please describe your current role… Recruiter or Recruiting Leader – 29% HR Manager / Director or above- 42% HR Generalist / HR Specialist (non recruiting) – 20% Hiring Manager / Executive - <1% Other – 8% Confidential 4
  • 6. Agenda – Recruiting the Talent Within • Business Case – Why bother? • Internal Recruiting • High Potential & Engaged Employees  • Talent Management • Be a Choice Employer & Talk About It! • What Gets Measured Gets Done! • Question and Answer For a copy of the presentation – Email: animke@pinstripetalent.com Confidential 6
  • 7. Business Case • Domestic and Global War for Talent – Offshoring; Remote workers to electronic; Immigrants; Working 24x7; Job  migration; Global talent supply chain • Cost of Replacing Talent – Retiring Talent; Turnover; # years of work experience lost – It takes 2 new employees to replace 1 skilled worker – Forrester • Demographic Trends Point to a 11m worker shortfall – 15% fewer 35 to 45 year olds; Baby boomer retirements – Vacated jobs + newly created jobs = 33 to 55m open positions – 11m to 23m person talent shortage by turn of the decade • Reengineering and automation has run its course in many firms • Net:  The market is tough…and getting tougher Confidential 7 7
  • 8. Talent Impacts Financial Performance • Talent is strongly linked to superior financial performance • A Fortune 500 company can realize a $70m‐160m bottom line increase,  with a 10 point increase in its Talent Quotient • 70% of value of NASDAQ is Intellectual or Intangible Asset Value (IAV) a  complete reversal from just over a decade ago; 50% of total American  capital markets Source of Value Comparing the Best and  Source of Value Worst HR Systems 120% 120% Bottom 10%     Top 10% 100% 100% 15% 80% 38% 15% Employee Turnover 34.09%  20.87% 80% 62% 38% Tangible Assets Sales Per Employee  $158,101           $617,576 60% 62% Tangible Assets 60% Intangible Assets Intangible Assets Market Value to Book Value       3.64                   11.06 40% 85% 40% 62% 85% % Jobs filled from within 31%                    53% 20% 38% 62% % with formal staffing plan 3%           48% 20% 38% 0% % qualified for >1 job 2%                     63% 0% 1982 1992 1998 # Hrs training for new EEs 3                       5 1982 1992 1998 Confidential Hewitt Study Huselid Study 8 8
  • 9. Polling Question Are any of your company's dealing with issues related to...(check all that apply)* Skill Shortages - 186 Multi-generations in the workforce - 138 Economic downturn - 186 Globalization - 25 Increasingly aggressive competition -125 *Responses are actual numbers, not percentage) Confidential 9
  • 10. Retention is the #1 Concern DDI/Sheffield Survey Confidential 10
  • 11. Does your organization have … A Vicious Talent Cycle … a revolving door Where top performers and high potentials are finding it easier and  easier to find new opportunities (leave) while underperforming  employees will stay because they have no choice (unless  terminated). OR? A Virtuous Talent Cycle … a safe and dynamic culture Where top performers and high potential employees are engaged and encouraged to grow within your company and contribute to its culture and success while achieving personal goals. Confidential 11
  • 12. Internal Recruiting Reduce: • Cost Per Hire • Time to Fill Improve: • Talent Pool • Engagement and Employee Relations • Retain Intellectual Property Confidential 12
  • 13. What are we talking about? Re‐recruit Internal Promote Recruiting From within Keeping Talent  The  Career Mgmt Talent Pathing Within Reduce Succession Turnover Planning Retention Programs Confidential 13
  • 14. Your Talent Pool No doubt you are doing more than the “Post and Pray” for external candidates Active Candidates Qualify job search criteria and ensure robust recruitment marketing to  candidates looking for a job now ‐ online and off on web and in your  current ATS & CRM Selective Candidates Research and mine resume/ candidate database for candidates   actively…daily Passive Candidates Find and maintain relationships with currently employed talent that might  not be looking to change jobs today Confidential 14
  • 15. Your Talent Pool Internal Candidates Create robust communication to current employee database and insure  employees in (or out) of the career path are recruited Active Candidates Qualify job search criteria and ensure robust recruitment marketing to  candidates looking for a job now ‐ online and off on web and in your  current ATS & CRM Selective Candidates Research and mine resume/ candidate database for candidates   actively…daily Passive Candidates Find and maintain relationships with currently employed talent that might  not be looking to change jobs today Confidential 15
  • 16. Your Talent Pool Internal Candidates Create robust communication to current employee database and insure  employees in career path are recruited You need to do more than the “Post and Pray” for internal candidates Confidential 16
  • 18. What does “Internal Recruiting” look like? Basics • Open positions available to all  employees – Intranet – Career site • The process is published • “Next opportunity” is part of  performance mgmt discussions • Current “promoted from within” employee stories known widely • Culture of “promote from within” • Less‐restrictive “time in current job” • Employee Referral Programs Confidential 18
  • 19. What does “Internal Recruiting” look like? Basics Proactive • Open positions available to all  • Basics + … employees • Internal job fairs – Intranet • Recruiters “find/recruit” internal  – Career site candidates • The process is published • Strong internal “candidate care” • “Next opportunity” is part of  • Process is robustly marketed performance mgmt discussions • Career Paths are published • Current “promoted from within” • Posting for lateral moves and job  employee stories known widely shadowing available • Culture of “promote from within” • Next job self‐service training  • Less‐restrictive “time in current job” • New EE Orientation includes how  • Employee Referral Programs to post for next job • Re‐recruit your lost employees – exit interviews Confidential 19
  • 20. Polling Question Please describe your current internal recruiting practice… Post and Pray with no plans to enhance - 10% Post and Pray with plan to improve – 35% Basic with no plans to enhance – 10% Basic with plan to improve – 33% Proactive – 12% Confidential 20
  • 21. Retain High Potential and  Engaged Employees Improve: • Quality of Workforce • Bench • Productivity • Engagement Reinforce: • Performance Culture Confidential 21
  • 22. The old adage about people being your greatest asset is not true.  People aren’t your greatest asset.  The RIGHT PEOPLE are! Jim Collins, Good to Great Confidential 22 22
  • 23. High Performers vs. High Potential • Only 28% of high performers are also high potential • High Potential = High Performer PLUS – Learning Agility – Leadership Ability – Desire to Advance – Breadth of Experience – Not Risk Averse – Interpersonal Skills – High Engagement and Motivation Corporate Leadership Council Confidential 23
  • 24. Good People are Great for Business McKinsey and Co. Confidential 24 24
  • 26. Engaged Employees are MORE LIKELY to: • Stay with your organization despite competitive offers • Demonstrate alignment between their individual goals  and organizational success • Express a consistently positive viewpoint • Exert discretionary effort that contributes exponentially  to business results Confidential 26
  • 27. Workforce Surveys Only 20% of employees are highly engaged; A recent Gallup Index reveals that,  on average, about 70% of US workers are “not engaged” or are “actively  disengaged” with their work. Engaged employees are more likely to “learn and change”, offer creative ideas and involve customers in innovation and improvement processes. Confidential 27
  • 28. Workforce Survey ‐ Gallup Poll 1. Do I know what is expected of me at work? 2. Do I have the materials and equipment I need to do my work right? 3. At work, do I have the opportunity to do what I do best everyday? 4. In the last week, have I received recognition or praise for doing great work? 5. Does my supervisor, or someone at work, seem to care about me as a person? 6. Is there someone at work who encourages my development? 7. At work do my opinions seem to count? 8. Does the mission/purpose of my company make me feel my job is important? 9. Are my co‐workers committed to doing quality work? 10. Do I have a best friend at work? 11. In the last six months, has someone at work talked to me about my progress? 12. This last year, have I had opportunities at work to learn and grow? “The only way to generate enduring profits is to begin by building the kind of  work environment that attracts, focuses, and keeps talented employees.” Confidential 28
  • 29. 7 Drivers of Employee Engagement • Opportunity • Leadership – Growth/Development – Credibility – Advancement – Trust – Interaction • Culture & Purpose • Job Tasks – Sense of Purpose – Impact – Organizational – Challenge/Interest – Values & Behaviors – Status/Pride • Total Compensation • Relationships – Pay/Financial – Co‐workers – Recognition – Managers • Quality of Work Life – Customers – Physical Environment – Work/Life Practices Confidential 29
  • 30. Talent Management Improve: • Talent Trajectory • Retention Create or Reinforce • Choice Employer Status • High Performance Culture Confidential 30
  • 31. Talent Trajectory ‐ Now and Future TODAY 2009 2010 # OF EMPLOYEES ** # of Standard  Deviations from mean  performance levels mean  performance  level today PERFORMANCE & PRODUCTIVITY Quality of Hire The Talent Within Challenge & Opportunity The single biggest determinant of  Development of the diverse and  The challenge and the opportunity   departmental and organizational  high performing employees at  is for organizations to move their  performance. each level. curve to the right. Confidential 31
  • 32. Talent Management Traditional Talent Management: • Endpoints of traditional talent management process – Hiring  – Performance Management – Turnover • PAST focused • Measures goals and behavior Confidential 32
  • 33. Talent Management Traditional Talent Management: • Endpoints of traditional talent management process – Hiring  – Performance Management – Turnover • PAST focused • Measures goals and behavior Today’s Talent Management MUST: • Integrate with the business  • Link Business Priorities + Critical Workforce Issues • Drive results by enhancing organization’s – Capability – Commitment and – Alignment • FUTURE focused • Measures performance, EMPLOYEE INTERESTS and POTENTIAL Confidential A cultural mindset - Talent Mindset vs. Labor Mindset 33
  • 34. Polling Question Our organization’s focus on talent management is: Very uninvolved – 6% Uninvolved – 15% Informed but not involved – 44% Involved - 29% Very involved - 6% Confidential 34
  • 35. Be a Choice Employer and  Talk About It! Improve: • Organization’s Brand Equity • Customer Impact • Recruitment Marketing Success • Morale Reduce: • Voluntary Turnover Confidential 35
  • 36. Your Workforce Has Changed – Has Your Organization? OLD PARADIGM NEW PARADIGM • Job Security • Employability is security • Longitudinal Career Paths • Alternate career paths • Job/Person Fit • Person/Organization fit • Organization Loyalty • Job/Career Loyalty • Career Success • Work/Life Balance • Academic Degree • Continuous Learning • Position & Title • Competency Development • Full Time Employment • Flexibility in Employment • Retirement • Career Sabbaticals • Single Jobs/Careers • Multiple Jobs/Careers • Change in jobs based on fear • Change in jobs based on growth • Promotion highly tenure based • Promotion highly performance based Confidential 36
  • 37. Job Dissatisfaction Employees are: • Fearful about losing their jobs • Overworked due to the large number of cutbacks • Unappreciated for the hard work and stress that they are enduring • Resentful about the lack of respect they are receiving Bruce Katcher – The Survey Doctor Author of 30 Reasons Why Employees Hate Their Managers  Confidential 37
  • 38. First Impressions DO Count! • 4% left their job after a disastrous first  day • 9% seriously considered quitting • 54% believe “first impressions” affect performance • 60% report “losing sleep” before  the first day Improved Performance Impaired Performance No Effect Confidential 38
  • 39. So What’s Love Got to Do With It? Your employees are getting oriented to your company whether you  have a program or not!   The orientation they are getting  MAY NOT be the one you want or intend. Confidential 39
  • 40. So What’s Love Got to Do With It? Your employees are getting oriented to your company whether you  have a program or not!   The orientation they are getting  MAY NOT be the one you want or intend. • Employees who complete orientation reach full  productivity 60 days faster and they found they reduced  their turnover by 40% • 69% more likely to stay employed after 3 years if they  completed orientation Research has confirmed employees that connect with the company  within the first 90 days, stay with the company significantly longer. Confidential 40
  • 41. Tools to Identify Potential* and Interest • Training and Education • Company Processes – Internal and External Training – Succession Planning – Internal Hiring Priority – Tuition reimbursement – High Potential* Tracking  & Development – Learning Management Systems – Talent Assessments and Talent Review  Meetings • Learning from Others – Performance Appraisals* • Experiences and Opportunities – Non‐profit Boards – On the job training – Mentor Programs – Job shadowing request process – Talent review meetings – Simulations – Career Development Plans – Project Assignments /Task Force – Executive Involvement – Cross Training – Encourage Informational Interviews – Job Rotation/Mgmt Tracking Corporate Leadership Council Confidential 41
  • 42. Employment Branding • Branding ‐ A way to differentiate the employment experience – An emotional connection with internal/external audiences – Highlighting ‘points of difference’ – Branding should be consistent with the consumer brand/culture • Guiding Principles of branding – COGNITIVE:  Understand ‐ Believe ‐ Engaged – BEHAVIORAL:  Deliver ‐ Tell the story ‐ Link to HR Systems Confidential 42
  • 43. Internal Branding Core Creative Confidential 43
  • 44. What Gets Measured  Gets Done! • Know Your Organization • Identify Where Change is Needed • Build Business Case • Communicate Impact and ROI Confidential 44
  • 45. We Know…. • How every dollar is spent… • Where our product inventory is… • Where every computer, printer, copier and phone is located… • Everything about all our leases and contracts… • Customer and prospect contact information and more… • BUT….how well do we know the talents and career interests of our  current employees? Doris Sims, SPHR www.SuccessionBuilders.com Confidential 45
  • 46. Do you have internal hiring metrics? • Segment your hiring statistics Internal vs External – Quality of Hire – Demographics – Time to Productivity – Age – Time to Fill – Geography – Cost per Hire – Diversity Confidential 46
  • 48. What Impacts Engagement?  • Find the triggers that make your employees stay/leave • Utilize turnover stats, exit interviews, employee and  management surveys Saratoga Confidential 48
  • 49. Cost of Turnover Costs include: • Lost productivity during a vacancy • Diminished productivity of the team and managers  Average turnover  who are covering for a vacant position cost equals one year's  • Diminished productivity of the team and managers  salary and benefits.  who are training the new hire • Increased labor costs due to overtime or contractors  Average of 12 to 40%  needs of pre‐tax  • Hiring and on‐boarding costs company earnings • Other more difficult to quantify impacts: – Decreased customer satisfaction Average – Increased future turnover 1.5 – 2.5 x salary – Loss of institutional knowledge Saratoga TURNOVER CALULATORS http://www.blr.com/landingPR/index.aspx?landingPRID=1 www.caliperonline.com/solutions/turnover.shtml http://acw.aon.com/wfs/Router?PAGE_NAME=TCE_INPUT Confidential 49
  • 50. Measuring Turnover • If you are loosing High Potentials, High Performers and Great  Experience – The first step is acknowledging the problem. • Turnover ‐ % of employees leaving the organization total number of employees • Retention Index – rate of turnover within a “group/category” as  compared to average turnover  • Segment your turnover statistics and compare to the average to  identify talent gaps and leaks – Job family/title – Demographics – Longevity – Age – Geography – High performers – Diversity – Level within organization Confidential 50
  • 51. Hewitt's Talent Quotient  • Prioritization of investment dollars in people programs  • An objective ranking of the firm's track record in attracting  and retaining pivotal employees compared with other  organizations  • An understanding of flight risk of pivotal employees based  on demographics and diversity factors  • Fact‐based evaluation of people programs to bolster  information from employee opinion surveys Confidential 51
  • 52. Recruiting the Talent Within CONCERNS Self‐nomination process may be unsatisfactory to all stakeholders You have no “bench” Current employee talent pool may not have the what is needed Filling one gap may create another May inhibit new ideas/diversity within org. Lower morale for those not selected Attention needed to curb tendency toward “favorites” or incumbent Waste of time if the manager already knows who they want to hire Process not defined or implemented well Internal “candidate care” is as important as external candidate care – if you aren’t doing  it well for external candidates you might not for internal Confidential 52
  • 53. Recruiting the Talent Within BENEFITS Capitalizes past investments in recruiting & training current employees Reinforces “culture” of retention and career opportunities Rewards performance and potential Reinforces employee engagement Improves morale and promotes positive employee relations Allows hiring managers data on current employee which is more likely to be more reliable  than info on external candidates Usually is a lower overall cost per hire: CPH & pay of external usually greater than internal Usually faster Time to Fill than hiring externally Pro‐active internal recruiting may create greater success. Why? Current post and  pray/self‐nomination process can be unsatisfactory to all stakeholders Confidential 53
  • 54. Summary Re‐recruit Internal Promote Recruiting From within Keeping Talent  The  Career Mgmt Talent Pathing Within Reduce Succession Turnover Planning Retention Programs If you aren’t recruiting your current talent – you may be the only company who isn’t! Confidential 54
  • 55. Are you of the talent you want to attract and retain? Confidential 55
  • 56. Thank You – Any questions? If you would like a copy of the presentation or have individual  questions – contact: Anne Nimke 262‐754‐5060 animke@pinstripetalent.com Join Pinstripe for Future Webinars! Visit www.pinstripetalent.com/events for more information Confidential 56