Pinstripe Presents: Corporate Recruiting - How Does Your Organization Measure Up?

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Welcome & Introductions

Kim Lamoureux Senior Director, Research Practices and Principal Analyst, Talent Acquisition Bersin & Associates

Bersin & Associates is the leading global provider of best-practices, trends, and benchmarking research in talent management, learning, and strategic HR.

60% of the Fortune 100 are Bersin & Associates research members, with more than 17.5 million employees managed by HR teams using Bersin Research.


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Agenda

Business Challenges

Research Overview

Talent Acquisition Investments

Sourcing Strategies

Quality of Hire • The Role of Employment Brand

Wrap-Up and Q&A


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Business Challenges


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Top Business Challenges 40%

24%

23%

37%

25%

31%

31%

15%

11%

42%

35%

25%

24%

20%

19%

16%

16%

14%

0% 10% 20% 30% 40% 50%

Need to reduce operating expenses

Expansion into New Markets

Launching many new products andservices

Urgent need for innovation

Significant change in business strategy

Change in regulatory environment

New To Management Team

Severe market downturn

Major business Restructuring

Q4 2010Q3 2011

Source: Bersin & Associates TalentWatch Q4 2011, n-278


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Regional Leadership

Country Leadership

Middle Management

Entry Level

Global Talent Deficit India Graduates Millions, but Too Few Are Fit to Hire 75% of technical graduates and 85% of general graduates in India are unemployable by India’s high-growth industries, including IT and call centers.

“We are entering the era of unparalleled talent scarcity, which will put a brake on economic growth around the world, and will fundamentally change the way we approach workforce challenges.” China

The Cultural Revolution created a “missing

generation” of talent between 40-55, so expatriates fill most

jobs at the top

Young workers flooding the marketplace, yet most have

inferior preparation, language skills, and technical

skills.


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Top Challenges in Minds of HR

Reskilling of workforce for new business environment

56%

Desire to transform HR into a more strategic, business-driven operation

65%

Need to re-engage workforce to drive performance

60%

Difficulty filling key positions and reduction in quality of hire

44%

Need to improve skills of HR team and competencies in new disciplines/technologies

71%

Gaps in the leadership pipeline and need for new leadership models

74%


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Top Challenges in Minds of HR

Reskilling of workforce for new business environment

56%

Desire to transform HR into a more strategic, business-driven operation

65%

Need to re-engage workforce to drive performance

60%

Difficulty filling key positions and reduction in quality of hire

44%

Need to improve skills of HR team and competencies in new disciplines/technologies

71%

Gaps in the leadership pipeline and need for new leadership models

74%


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Research Overview


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Talent Acquisition Factbook Study

June-July 2011 survey of 414 U.S. organizations

Qualitative interviews to understand current practices

Key benchmarks and trends by company size and industry

Data for HR and recruiting managers to make investment decisions

Key Metrics

Cost per Hire

TA Staffing per Hire

Budget Allocations

Applicant Volumes

Recruiter workloads

Time-to-fill

Quality of Hire

http://www.bersin.com/Practice/Detail.aspx?id=15006

http://www.bersin.com/Practice/Detail.aspx?id=15006


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TA Spending & Staffing Rose in 2011 U.S. companies increased their recruiting budgets and headcount

Talent acquisition spending is up 6% over 2010 levels.

6%

Full-time staffing increased 11%. And approximately half of all companies hired additional

contractors.

11%


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Early Signs of Job Market Growth

Large provider of engineering an operations services doubles its talent acquisition spending –

adding 3,400 new hires globally.

Accenture’s hiring estimated to exceed

60,000 this year – a 28% increase in total staffing.


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Spending per New Hire Large companies leverage technology and size to lower costs.

Companies spend nearly $3,500* per new hire, on average.

* Spending figures include TA staff payroll, systems, advertising, sources, and travel.

Small = 100 to 999 employees Midsize = 1000 to 9,999 employees Large = 10,000+ employees


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Answer: Which industry has the highest cost-per-hire metric?

Manufacturing

Business services

Retail

Healthcare

Heavy spending on agencies, with hard to fill positions: engineers; technicians; skilled trade workers.


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Sourcing Strategies


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Where’s the Money Going? Agencies and job boards get the largest funding

Nearly 30% of the talent acquisition budget goes to agencies.


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Answer: What source is used to fill the most positions?

Employee referrals

Professional networking sites

Internal candidates

Job boards Each fills 19% of open job requisitions


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Where’s the Biggest Bang for the Buck?

Percent of spending…


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Where’s the Biggest Bang for the Buck?

Percent of spending… Percent of jobs filled…

Agencies take 29% of funding, but fill just 8% of positions.


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Changes in Sourcing Strategies

Agencies – ½ of US firms decreased their agency spending in 2011 Job boards – not dead, but at risk

Professional networking Social media Internal mobility Employee referral programs


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Tapping the Employee Base: Talent Mobility

DESIRED COMPETENCIES (KNOWLEDGE,

BEHAVIOR, SKILLS)

OPEN POSITIONS &

OPPORTUNITIES

INDIVIDUAL NEEDS / DESIRES

INDIVIDUAL DEVELOPMENT

PLAN (IDP)

VISION

STRATEGIC INITIATIVES

DESIRED BUSINESS

OUTCOMES

VALUES

MISSION

ORGANIZATION NEEDS

MOBILITY

STRENGTHS

DEVELOPMENT NEEDS

CAREER ASPIRATIONS

ANNUAL GOALS

Succession Management

Coaching Assessment

Strategic Competencies

Organizational Planning /

Restructuring Performance Management

Individual Development

Plan (IDP)

Career Management


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Tapping the Employee Base: Referrals All employees are ambassadors of your company

Benefits Generates higher quality candidates – employee’s

reputation on line Increases passive candidate pool Replaces more expensive recruitment channels Helps for highly specialized positions - source for

obtaining hard-to-find candidates

Referrals Are less expensive to recruit and more qualified Stay at your company longer Adapt to the company culture more quickly Take less time to find Accept offer more readily

Referral bonuses are $500 to $4,000 on

average


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Improving Quality of Hire


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Measuring Quality: New Hire Assessments

90-day assessments are the most common

Assessments provide insights into hiring quality and spotlight issues with onboarding, development and management processes.


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Measuring Quality: Manager Surveys

How well did candidates match the needs of the position?

How satisfied are you with the recruiting process?

How would you rate the new hire’s contribution to date?

How could the process be improved?

Would you rehire this candidate?


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Measuring Quality: Candidate Surveys

How well did the position match the job description?

How satisfied are you with the recruiting process?

How well were you kept informed throughout the process?

How could the process be improved?

Would you recommend this company to a friend?


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Measuring Quality: Turnover 1 in every 8 new hires leaves within the first 12 months.

Large businesses have highest new hire turnover at 17%.


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Improving Quality of Hire Doesn’t Start with Recruitment

Job Profiles

Recruitment Sourcing, Screening, Assessing,

Interviewing, Selecting, Hiring, Onboarding


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Improving Quality of Hire Starts with Understanding the Business

Recruitment Sourcing, Screening, Assessing,

Interviewing, Selecting, Hiring, Onboarding

Talent Acquisition Strategy

Employment Brand

Workforce Segments

Job Analysis

Labor Market

Candidate Audiences

Workforce Planning Business

Alignment

Metrics & Analytics

Tools & Technology

Outsourcing

Candidate Relationship Management

Succession Management

Transferrable Skills

Recruiting Culture

TA Org Structure

Training

Candidate Experience


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Improving New Hire Quality The Significance of the Employment Brand

Employment branding helps to attract the right candidates.

Employee value proposition (EVP) fosters recruitment AND retention.

Employees are your brand ambassadors.

Retail and healthcare have highest spend in this area.


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Improving New Hire Quality Now Look at Recruitment Practices

Large healthcare system implemented pre-hire assessments to improve productivity and quality –

cutting new hire turnover in half.

Multi-national food and agriculture distributor adopted reference checking

solution to improve hiring decisions – and reduced time spent from 5 days to 2 days.

R.J. Reynolds implemented video interviewing technology – and has improved candidate

quality, with no change in time-to-fill.


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Technology Trends

Mobile Collaboration

Social Performance Management

Big Data Analytics

Global Clouds Growth by Acquisition

Improving New Hire Quality Using Social Technology

Employee


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Technology Trends

Mobile Collaboration

Social Performance Management

Big Data Analytics

Global Clouds Growth by Acquisition

Job Candidate

Improving New Hire Quality Gamification in Interviewing


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Improving New Hire Quality Training Gives Quality a Boost

Most organizations teach hiring managers the do’s and don’ts.

Smart organizations provide interviewing tools, guides and training to hiring managers.

Many recruiters also need to build skills in using recruiting tools and systems effectively.


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Wrap- Up


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Closing Thoughts

Talent Acquisition is bigger than recruiting

Recruiting begins with your employment brand

Identify the right metrics and use them to continuously improve your recruiting practices

• Are your spending and staffing in line with industry standards?

• Are you investing in the most productive and cost-effective sources?

• Could recruiters be more productive with better tools, systems, training or compensation?

• If new hire quality is low, how can it be improved?


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Question & Answer Session

Download the complimentary Bersin & Associates Research Reports at pinstripetalent.com

Investments in Recruiting: Getting the Most of Your Sourcing Dollars

Recruiting Analytics: Key Metrics and Approaches for Improving Quality of Hire


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Pinstripe, recruiting, corporate recruiting, talent acquisition, talent managment, Bersin & Associates, Talent Acquisition Factbook, HR metrics, quality of hire