Employers Essential Guide to Best Recruitment Practise

Mark Stephens – The F10 Group

March 2010

“99% of business owners state that the quality of candidates hired is the most important factor in effective company growth”

CIPD 2008 Recruitment Report

Mark Stephens Expert in recruitment Process and Strategy

Executive Summary

• Currently 50% shareholder and joint MD of the F10 Group

Group interests

• F10 Executive Search (Technical Recruitment Specialists)

• Smart Recruit (Fixed Price Mainstream Recruitment Solutions)

• F10 Mobile (Mobile Marketing Managed service)

• Ask The Experts (Technology discussion forums)

Achievements

• Launched and sold for profit 3 companies

• Recruited over 300 people for my own businesses

• Recruited over 2000 people for other peoples businesses

• Consulted with over 50 companies on Recruitment strategy

• Consulted with the Government on Recruitment strategy for the e-Gov initiative

• Generated combined savings of over £2m through improved processes

Today’s Presentation

•Introduction

•Recruitment Statistics

•How do business’s recruit?

•Monitoring Agency Performance (CIPD Survey)

•Areas of Improvement

•The Recruitment Process

•Working with just 1 recruitment partner

•Best Practise

•Identifying the right Agency

•Back up Strategy

•Summary

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Stats taken from the CIPD 2008 Recruitment survey of Business owners

•99% state that the quality of candidates hired is the most important factor in effective company growth.

•80% hiring companies stated that attracting the best staff was critical to their business

•56% said that this was critical to their ability to achieve the organisations strategic goals and meet future skill requirements

•84% state that they regularly experience difficulties recruiting the right people:

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The Importance of hiring the right people

How do Companies recruit and what is the cost?

•80% of business’s use recruitment agencies to sources staff

• Over70% of highly skilled staffing vacancies are filled by recruitment agencies

•Average recruitment cost for filling a vacancy was £4,500 in 2008

•Total average recruitment cost when all additional costs are factored in £7,750

•72% said that they are pro-actively looking at reducing recruitment costs with their recruitment suppliers

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How do we recruit?

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•Over 35% of companies do not adopt any PSL strategy

•Over 60% do not monitor or evaluate agency performance

•Over 80% of companies choose to work on a contingency basis with agencies

•90% felt that the services provided by agencies was often the most determining factor

•76% felt that the use of agencies significantly increased the cost of recruitment into the business

•Over 90% of hiring managers from the technology sectors felt that the quality of staff from agencies was consistently higher than other sources

•61% businesses said that key people involved in the recruitment process had no formal interview training and they did not have a formal internal recruitment process

Random facts?

Monitoring Agency Performance

Key Criteria – (in order of importance to clients)

•Quality of candidates submitted•Services received from agency•Value for money•Time taken to fill vacancies•Placement ratios •Feedback from candidates on the opportunity•Diversity of candidates •Feedback from candidates on the Agency

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Factors influencing the choice of recruitment agency – (in order of importance)

•Relationship with an individual•Confidence in their process and obligations•Commercials terms•Agencies alignment with clients culture and values•Agencies track record/reputation/performance•Feedback from recruiting managers•Local/National coverage•Range of services

Areas of Perceived Improvement

(In Order of Importance)

•Reduction in costs

•Better standardised process

•Better relations with fewer agencies

•Improved relationship between agencies and HR

•Better communication between agencies and hiring managers

•Better monitoring of activity and effectiveness

•A range of solutions to best fit the requirement

•Internet recruitment strategies need formalising

•Brochures and Literature

•Interview procedure (better strategy for rare skills)

•Speed of turnaround

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Generalist and Specialist recruitment companies

• High Street

• Agency

• Consultancy / Executive Search

What does the Recruitment Industry look like?

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•Generalist and Specialist

•F2F interviews with local people•Walk ins off the street•Newspaper Adverts•Local online presence•Mainstream skills

High Street recruitment

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•Generalist and Specialist

•Internet advertising & Database search•CV Screening/ Telephone interviews •70% active candidates •Limited networking of passive candidates•Quick turnaround on campaigns

Agency

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•Generalist and Specialist

•Detailed requirement capture phase•Research companies and Industry Sectors•Operate from a more targeted prospect list •Internet advertising and database searching to compliment•Strategic networking of candidates •Social media strategy•Dedicated days/weeks to the campaign•Sensitive consultancy recruitment process •Comprehensive search strategy and process•70% passive candidates •Retained business

Consultancy / Executive Search / Head Hunters

Executive Search Recruitment Process

STAGE 1 - Information Gathering & Requirement CaptureReceiving the requirement Brainstorm and job clarification Complete The Requirement Capture formTrial search campaign Trial CV sent within 48 hoursAgreement to proceed

STAGE 2 – Candidate Selection and QualificationA comprehensive search criteria to form a list of prospective candidatesCandidate Intro and Pre Qualification – Consultation phaseCandidate Selection phase 1 – Selling the company and roleCandidate Selection phase 2 – Telephone / skype interview. Networking and Information gatheringShort listing and Candidate Submission to client

STAGE 3 – Interview and Offer ManagementArrange interviews Pre interview discussionsPost interview evaluationFeedback and Offer managementCounter offers and Acceptance

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Best Practise

Requirement Capture (Phase 1)

•Do you provide the agency with a comprehensive profile on the organisation? (presentation/promotional docs)

•Does the agencies you use know about the company history, awards won, recent contract wins, growth etc?

•Do you check that the RCF will allow the agency to sell your job to anyone?

•Do you check that the job description sounds sexy and exciting to potential recruits?

•Does the role sound challenging

•Do you provide details of the opportunities for potential development and growth?

•Does the hiring manager get involved with the agencies to ask questions and discuss?

•Do you always provide a list of companies that you would like to receive CV’s from?

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The Search (Phase 2)

•Do you make arrangements to discuss feedback on the first 1 or 2 candidates with the agency? (If not why not?)

•Do you set timescales for the agencies to work to, to get their shortlist to you?

•Do you provide a standard cover sheet so that you always get the quality information that you want on each applicant?

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Interview (Stage 3)

•Do you try and book all your interviews’ within 1 week of receiving the CV?

•Do you adapt a different strategy for passive candidates?

•Do you always provide the agency with an overview of interview process, attendees etc?

•Do you always agree to discuss feedback at the earliest opportunity with the agency?

•Do you get the agency and candidates to discuss feedback immediately after the interview?

•Do you work together to secure acceptances and overcome counter offers ?

Best Practise

Why work with just One Agency?

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Other20%

Database Search

40%

Advertising Resonce

40%

Typical Agency demographics for placement activity

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The effects of duplication:•Agencies use the same website databases

•Results in a reduction in overall effort by agencies. Most noticeably within the passive market space.

•Hastily worked campaigns do not encouraging a consultative approach.

OtherDatabase SearchAdvertising ResponseDuplication of effort

Multiple Agency activity demographics

Blame Culture

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What winds us up the most about each other?

Client/Hiring Manager Candidate Recruiter

None or poor Job specification

No or slow feedback

Overlook good candidates

HR no control over hiring managers

Internal applicants?

Poor IV techniques

Don’t sell the role well

Offer below requirement

Doesn’t return calls

Poor CV

Lacks commitment

Slow providing details

Untruths on the CV – inaccurate details

Doesn’t return calls

Let you down at the last minute

Change their mind at the end of the recruitment process

Do not acknowledge emails

Over exaggerate skills and experience

Send poor Quality CV’s

Always chasing feedback

Always putting on pressure and selling

Pushing the salary up

Charging too much

Identifying the Right Agency

Different requirements require different solutions!

What type of role are you looking to fill?Generalist/specialist? High skilled/ low skilled? Low supply/ high supply?

Where can you find the right agency to help you ?1) Search Engines 2) Agency Central 3) Job Boards

Identify up to 10 agencies and put them through a selection process.

Provide agencies with a check list:Relevant domain knowledge and experienceProvide a list of similar roles/ other clients they work withAsk to see their process for recruitingTheir SLA’sTheir rates (for perm and contract) and TOBAsk if they would consider working at lower rates in return for exclusivity?

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Compile a shortlist of the best 2 and send your own proposal. Advise them both that you are looking to draw up an agreement with one of them and that you have reached a decision on what you are ideally looking for.....

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To work on your campaign exclusively at 15% for a period of 2 weeks (possibly retained)

To arrange a conference call between the recruiters and hiring manager on day 1 to run through Your requirement capture form and JD

Within the 1st 48 hours, you would like to see the 1st qualified candidates. Immediate feedback will be provided to confirm if suitable, if not a telephone conversation with the hiring manager can be arranged.

Once you are happy that the agent has fully understood the requirement and has submitted 1 suitable candidate, a period of 5 working days will be allowed to provide a short list of 3 or 4 more applicants

Feedback and interview times will be provided with 2 working days of the deadline

Provide the agency with your own candidate cover sheets and insist that they must be completed properly for every applicant.

You can negotiate on rebate terms but most companies will refuse to extend beyond 3 months – so look to get an extra agreement to replace for a half price replacement for 1st 12 months if the candidate leaves .

Your simple Agency Business proposal and SLA

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*Negotiate a fixed price for their service in return for exclusivity.Ask for a money back guarantee and multiple hires at no extra cost

•5 Simple SLA’s

•Provide a trial CV within the1st week

•Cover sheets provided and to be completed

•Insist on a Min – Max number of candidates (4 and 8)

•Shortlist to be provided within 2 weeks

•Interview feedback within 24 hours

Simple agreement and SLA for Mainstream roles

Back-up Strategy

•Other agencies to go to

•Extend the deadline

•Increase salary

•Review essential criteria

•Look further a-field and consider relocation

•Recruit a less experienced prospect and train

•Consider using a contractor

•Change agencies and agency strategy

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Summary

1) Choose the right recruitment provider for each campaign

2) Use only 1 or 2 suppliers for each job max

3) Dictate the process and SLA’s, (RCF’s and coversheets)

4) Negotiate fees in return for good communication, exclusivity and a quick turnaround.

5) Encourage a relationship between managers and the agency

6) Review results and metrics and act upon them

7) Build recruitment partnerships with the best agencies. Treat them like an extension to the company

8) Have a backup plan

9) Hold regular agency review meetings between the recruitment team and the hiring managers. Get Directors of the recruitment company involved.

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Download our presentation

A full copy of the 2010 Best practice report is available if you go to our website

www.f10.co.uk

And visit the Smart Recruit page

This document will also include free templates for

Cover sheets

Requirement Capture forms

Feedback forms

Agency measurement