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Leading the Industry with a tradition of continued recognized excellence.
Hiring and Recruiting Workshop: Best Practices for 2011 and Beyond
September 22, 2011
Michael GruberChief Client Officer
The RightThing Overview
Ranked top RPO provider by the Everest Research Institute in 2011 in terms of overall scale, scope and technology capability; as well as being recognized for holding the largest market share of global RPO deals, large market segment success and exempt employee hiring
Deliver a variety of RPO models to over 80 clients filling 140,000+ external positions annually
Global reach with 800+ employees in Findlay, OH; Philadelphia, PA; Lebanon, NH; Buenos Aires, Argentina and a strategic global partnership with Alexander Mann Solutions
Developed award winning SourcePoint® Automated Sourcing Technology & AIRS Training with over 300 technology clients and 200,000+ trained globally
Seasoned leadership team with award winning executives
Best-in-class workplace: Recognized by SHRM & Great Place to Work Institute as one of the “Best Small & Medium Places to Work”
2
The RightThing Clients
3
Agenda
The evolution of the recruiting environment
The state of recruiting today
An overview of recruiting models
Cutting-edge recruiting strategies
Agenda
4
Leading the Industry with a tradition of continued recognized excellence.
The Recruiting Environment
-A Glimpse Inside-
May ‘10
Past 12 Months Unemployment
6
Aug ‘11
*Source: U.S. Dept. of Labor Bureau of Labor Statistics – Updated September 2011
The unemployment rate was little changed with approximately 14 million unemployed holding the rate steady at 9.1% in July and August 2011. The number of employees who are part-time for economic reasons rose from 8.4 million to 8.8 million in August. Job gains occurred in health care with growth of 30,000 in August and 306,000 in the last12 months. Mining continued trending up with over 6,000 added in August, as did professional and business services, though only slightly. The information industry, however, saw a steep decline by 48,000.
9.1%
Unemployment Rates Beginning to DeclineFor 2010, the overall unemployment ended at 9.6% with 14.8 million unemployed. To date in 2011, we have not seen numbers above 9.2% with an overall average of 9.0% and a drop to 14 million unemployed.
*Source: U.S. Dept. of Labor Bureau of Labor Statistics – Updated September 2011 7
9.0% to date
Job Postings Per CapitaFor the 50 most populous metropolitan areas in the United States. The bigger the dot, the more job postings per capita.
Seattle*108
San Jose*187
* = Jobs per 1000 People
Washington, DC*147
Denver*92
Cleveland*102
Austin*90
Miami*29
Boston*84
*Source: http://www.indeed.com/jobtrends.jsp – Updated August 2011
Charlotte*105
8
San Francisco
*105
Baltimore *104
Phoenix*79
St. Paul*74
Jobless Rate on the Decline Overall
*Source: http://en.wikipedia.org/wiki/List_of_U.S._states_by_unemployment_rate - Updated September 2011
Nevada12.9
North Dakota3.3
*Lowest Rate
*Highest Rate
9
Top 20 Hiring Cities for 2011
Source: http://www.careerbliss.com/press-releases/careerbliss-data-shows-bigger-cities-isnt-always-better-for- hiring-in-2011 – Updated September 2011 10
Top 20 Hiring Cities Annual Open Jobs Listed* New York 779,778
Washington 695,566Chicago 608,375
Los Angeles 528,870Philadelphia 457,918
Boston 424,726Atlanta 335,493
Charlotte 303,725Dallas 293,691
San Francisco 283,080Seattle 270,747
Pittsburgh 243,136Baltimore 236,672Denver 227,272
San Jose, Calif. 222,647Phoenix 186,657
Hartford, Conn. 174,705Miami 169,160
Houston 167,555San Diego 149,513
Current Job Market Competition
Source: http://www.indeed.com/jobtrends/unemployment – Updated August 2011
Unemployed per Job Posting
Here's the number of unemployed per job posting
for the 10 most populous metropolitan areas in the
U.S. currently
11
HRO Revenue Growth: 2011 Anticipation
Outsourcing Service Average Growth*
HR Outsourcing Overall 33%
The following shows the average change in HR outsourcing revenues experienced by organizations throughout 2011.
*Source: Nelson Hall Report– Updated January 2011
2011 Anticipated Relative HRO Outsourcing Revenue Growth by Service Type*
Outsourcing Service Change
HR outsourcing overall 4.4
RPO 4.2
Payroll 4.3
Learning services 3.9
Benefits administration 4.0
Multi-process HRO 3.9
12
Economy Becomes a Yo-Yo
*Updated September 2011 13
September 12 , 2011 September 12 , 2011
September 12 , 2011
September 12 , 2011
Summary of Current Recruiting Conditions
Competition still tough for knowledge workers
Volume of lower skilled employees is still very high
Certain industries still not hiring
Starting to see some release of new openings
New recruiting technologies are evolving:
Mobile Recruiting
Web 2.0 (SEO, Social Networking, Blogs/User Groups)
Talent Communities (Resume Databases)
Provider Technology
14
Leading the Industry with a tradition of continued recognized excellence.
What Is Happening?
State of Recruiting Today
The Impact of External Conditions on Staffing
16*Source: Staffing.org 2011 Corporate Recruiting Reports: Trends
Candidate Availability
Source: Staffing.org Benchmark Report 2010 17
Employer Sourcing during Recession
18Source: Staffing.org 2011 Corporate Recruiting Reports: Sourcing and Marketing
Recession Sourcing: Change in Usage by Company Size
19Source: Staffing.org 2011 Corporate Recruiting Reports: Sourcing and Marketing
External Recruiters
Mass Media Advertising
Staffing Services
Career Fairs
Large Job Boards
College Recruiting (on-site)
Co-op Education Programs
Temp to Perm Programs
Military
Search Engine Marketing
Bus. Prof. or Assn. Media
Niche or Regional Job Boards
Corporate Career Site
Direct Sourcing
Employee Referrals
-50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60%
Source Popularity versus Source Effectiveness
Source Popularity Rank Source EffectivenessEmployee referrals 1 Employee referralsLarge job boards 2 Large job boardsNiche job boards 3 Niche job boards
Trade media 4 Temporary to permanentCareer fairs 5 Recruiters
Staffing services 6 Trade mediaCollege recruiting 7 Staffing services
Temporary to permanent 8 College recruitingRecruiters 9 Career fairs
Mass media 10 Co-op educationCo-op education 11 Mass media
Military 12 Military
20Source: Staffing.org 2011 Corporate Recruiting Reports: Sourcing and Marketing
Online Recruiting
*Source: Pew Research Center, Internet & American Life Project, 2010 21
*
Online Recruiting
22*Source: Staffing.org 2011 Corporate Recruiting Reports- Candidate Attitudes and Behaviors
*
Persuasive Channels: Corporate Websites
23
*Source: Staffing.org Benchmark Report 2010 23
*
Candidate Usage Issues: Corporate Websites
24
*Source: Staffing.org 2011 Benchmark Report- Candidate Attitudes and Behaviors 24
*
Where to Start the Job Search
25
Source: Staffing.org Benchmark Report 2010 25
Top Internet Job Sites – Where do Job Seekers Go
craigslist
Direct Employers
Source: http://www.quintcareers.com/top_10_sites.html - Updated September 2011 26
Industry Specific Job Boards
27
Interest in Utilizing Social Media Sites
28
Source: Staffing.org Benchmark Report 2010
Since 38% of Jobs.com survey base has located job opportunities suggests these sources are worth investigating
28
September 2011 Top 10 Social Networking SitesOnline social networking is a key factor in researching top talent
Source: http://www.ebizmba.com/articles/social-networking-websites– Updated September 2011 29
How Jobs are Found on Social Networks
Source: Staffing.org Benchmark Report 2010
Clicked on a banner or link – 7%
Contacted by an employer – 26%
Contacted by an Employment Agency – 22%
Contacted by a Friend – 15%
Contacted by an RPO provider / Recruiter – 29%
30
Facebook Job Trends
*Source: http://www.indeed.com/jobtrends.jsp – Updated September 2011 31
Leading the Industry with a tradition of continued recognized excellence.
What Is Happening?
Recruiting Models to Consider
Recruiting Pressures
Internal Recruiting Dept. Pressures
Reduced Recruiting Staff
Increased Candidate Volume
Latest Recruiting Techniques
Corporate / Business Pressures
Reduce Cost Per Hire
Increased Strategic Demand
Achieve Diversity Targets
External Market Pressures
Increased Competition for Top Talent
Changing Sourcing Landscape
Lack of Qualified Candidates
33
Employer Recruiting Priorities for 2010
Most Important, 2010 Less Important, 2010*
Candidate quality Cost
Retention Management metrics
Recruiter Workload Time
Candidate Sourcing
Candidate Availability
Changes from 2009*:CostManagement MetricsRetentionCandidate Availability
*Source: Staffing.org Benchmark Report 2010 34
What is RPO
“Recruitment process Outsourcing (RPO) means that an organization outsources at least two elements of the recruiting process. These elements can include but are not limited to: sourcing and job advertising, screening, testing, assessments, interviewing and selection, background verification, drug testing, offer extension, on-boarding and orientation.”
Value of RPOTurnover in first 12 months reduced from 28% to 6%
17% Increase in Retention Rate at 30
days
Quality of hire has reduced attrition by 29% at 45 day mark
Turnover in first 12 months reduced from 28% to 6%
Increased diverse candidate flow by 19% over previous year
Diversity fills at 67%, far exceeded target goal of 25%
Researched diversity availability in markets and improved ethnicity from 25% to 33%
Analyze under utilization by job and create Unique diversity sourcing plan
Had 12 days to fill positions, hired 9 M&Cs with average cycle time of 9.5 days. 2 new hires had turnaround time of 5 days
Peoria startup, 4 for 4 interviews/offers (100% delivery)
Phone interview to hire ratio 5.5 to 1 and requisition open to offer accept date is 33 days for sales expansion hiring project
Quality of Hire
HM Experience
Diversity
Time to Fill (offer) for retail positions is 15 days for hourly and 17 days for salary.
Vacancy Approval & Requisition
Consultation
Vacancy Approval & Requisition
Consultation
Attraction and
Sourcing
Attraction and
SourcingPre-
Screening Pre-
ScreeningSelection & Assessment Selection & Assessment
Offer Development
Offer Development
Offer Management
& Pre- Employment Screening
Offer Management
& Pre- Employment Screening
On- Boarding
On- Boarding
Recruiting Models Overview
All hiring functions
conducted by internal
resources
A combination of insourced
and outsourced solutions
All hiring functions
conducted by external RPO
provider
INSOURCE CO-SOURCE OUTSOURCE
37
Recruiting Models - Defined
Hybrid/Blended
Point SolutionPoint SolutionOverflow RPO
End-to-EndEnd-to-End
OUTSOURCECO-SOURCEINSOURCE
CentralizedCentralized
De-CentralizedDe-Centralized
Hybrid/BlendedHybrid/Blended
Shared ServicesShared Services
Point SolutionPoint Solution
End-to-EndEnd-to-EndCentralizedCentralized
De-CentralizedDe-Centralized
On-siteOn-site
Shared ServicesShared Services
38
Model Advantages•Total Control of Process/Resources•Little Change Management•Culture/Jobs Well Understood from Field/BU’s
Model Risks•Overhead & Field Expense•Field Focused on Non-Business Priorities•Limited Recruiting Experience in Field•Agency Utilization Typically High•Non-Compliance•Loss of Control of Process
Insourced Solution
Definition: Recruiters are physically placed in the business units/field and are a liaison to central recruiting function
Hybrid/BlendedHybrid/Blended
39
Selection and Assessment
Offer Development
Offer Management
and Pre- Employment Screening
Onboarding
Vacancy Approval & Requisition
Consultation
Attraction andSourcing
Pre-screening and Slate
Preparation
Hybrid – Company performs all recruiting functions in-house
Insource
Client Recruiters
Co-source 1: Front-End Sourcing
The Provider performs sourcing; Client conducts remaining activities in-house
Model AdvantagesExpertise in recruitingReduced cycle timeEfficiency of standardized processTechnology enabled solutionHigh-touch candidate experience
Model RisksDual processed – (outsourced/insourced) Transfer of knowledge to outsourced providerPotential lack of partnership with RecruitersReliant on external firm for delivery of quality candidates
Selection and Assessment
Offer Development
Offer Management
and Pre- Employment Screening
Onboarding
Provider Front End
Dual Recruiting Model
Vacancy Approval & Requisition
Consultation
Attraction andSourcing
Pre-screening and Slate
Preparation
40
Client Recruiters
Provider Administrative Support
Co-source 2: Back-End Administrative
Client Performs Sourcing and Selection; Provider owns administrative functions
Model AdvantagesClient maintains expertise in recruitingScalability with administrative tasksEfficiency and accuracy of standardized back-end processHigh-touch candidate experience
Model RisksDual processed – (outsourced/insourced) Transfer of administrative knowledge to outsourced provider
Vacancy Approval & Requisition
Consultation
Attraction &Sourcing
Pre-screening & Slate
Preparation
Selection & Assessment
Interview Scheduling
Offer Management
& Development
Pre- Employment &
Onboarding
41
Dual Recruiting Model
Overflow RPO
Co-source 3: Centralized + Overflow RPO
CO-SOURCE
Model Advantages•Control of Process/Resources•Minimal Change Management•Scalability if Hiring Spikes•Recruiters Specializing in Various Needs are Used to Source Candidates•Efficiency of Standardized Process
Model Risks•Centralized Team Having Appropriate Expertise•Potential Lack of Best Class Processes and Recruiting Techniques•Some Change Management Challenges
CentralizedCentralized
42
Client Performs Sourcing and Selection; Provider owns administrative functions
Vacancy Approval & Requisition
Consultation
Attraction &Sourcing
Pre-screening & Slate
Preparation
Selection & Assessment
Interview Scheduling
Offer Management
& Development
Pre- Employment &
Onboarding
Provider Owned
Outsource Solution: End-to-End
The Provider Performs All Recruiting Activities
Model AdvantagesExpertise in recruiting & process administrationLow cost solutionScalabilityPerformance accountabilityTechnology-enabled solutionHigh-touch candidate experience
Model RisksChange management challengesTransfer of knowledge to The RightThing
Vacancy Approval & Requisition
Consultation
Attraction andSourcing Pre-screening Selection &
AssessmentOffer
Development
Offer Mgt/ Employment Screening
Onboarding
Fully Outsourced Model
43
Performance ManagementData shows that most organizations outsource tactical elements of the recruitment process to free up HR personnel to be more strategic and focus on core organizational competencies
*Source: Global RPO Report, 2010, HROA & Kelly OCG
Company wide
Business unit
Contingent
Temporary
Administrative
Professional
Graduates
0% 5% 10% 15% 20% 30%25%
Areas of hiring process outsourced*
Prepare for the Next “Up”
45
Recruit-Mine- Source COE
Sourcing Strategist
Automated Sourcing
Job Postings
RMS Level 1
RMS Level 2
RMS Level 3
Center of Excellence
Admin Support
Phone Interviewers
Call Center
Scheduling
Pre- employment screening
Offer Processing
Resource Baseline
Peak Season/ High Volume
Low Volume
Requisition Volume
Control acquisition cost
Ability to immediately respond to hiring needs both increases and decreases
Our staffing model gives us the unique ability to add/remove almost instantly to meet hiring needs
Sample Scalable Resources
The ability to adjust increases efficiency
reducing per hire cost
Incremental resources are deployed to handle peak
volume
Onboarding
Recruitment Process
Recruit-Mine-Source Level 1Big Board, Niche Sites, Client ATS
Recruit-Mine-Source Level 2Intermediate sourcing strategy, deep web sourcing, social networking and blog searching
Recruit-Mine-Source Level 3Advanced sourcing strategy for hard-to-fill, high level requisitions
Automated Overnight SearchProprietary RecruitPoint technology sources new candidates on set intervals
Candidate IntakeCandidate applies online, collect profile, complete prescreen questions based on job criteria
Testing/AssessmentSchedule, Administer, Evaluate online assessment as appropriate
Behavioral Phone InterviewSchedule, administer, evaluate
Schedule Qualified Candidate for Final Interview with HM
Compile Offer PacketOffer letter, welcome kit, employee forms, etc.
Coordinate Background ChecksUtilize preferred vendor to conduct checks
Candidate OnBoardingInitiate relocation, orientation, notify hiring manager of start date
Requisition Close-OutClose out requisition in system and complete compliance checklist.
Create Job RequisitionHiring Manager creates job requisition
Requisition Planning DiscussionHM & RTi Recruiter Discuss Plans to Fill
Recommend Sourcing StrategyCreate proactive sourcing strategy
REQ Prep Recruiting Expertise
Pre-Offer Administration
Post-Offer Administration
A Brief Technology Interlude
Technology is a key driver of all aspects of recruiting.
Technology platform
Recruitment CRM
Recruiting event management
Process management (interview scheduling)
Hierarchical reporting• Individual recruiter level reporting• Regional/Business unit level reporting• Corporate level reporting
Measure and manage key data points for optimization• Source effectiveness• Sub cycle analysis
A Brief Technology Interlude
Technology is a key driver of all aspects of HR.
Technology Platforms;
Applicant Tracking Systems (ATS)
Talent Acquisition Systems (TAS)
Talent Management
Systems(TMS)
HR Management Systems (HRM)
•Applicant / Resume Management
•Candidate Career Portals
•Candidate Relationship Mgmt
•Job Distribution Mgmt
•Pre-Screening & Assessment
•Program Management (ERP, College)
•Volume Recruiting (Events)
•Onboarding
•Performance Mgmt
•Succession Planning
•Learning Management
•Competency Management
•Compensation
•Benefits
•Payroll
•Employee Management
Source: Staffing.org Benchmark Report 2010 48
Leading the Industry with a tradition of continued recognized excellence.
What Is Happening?A Glimpse into Cutting-Edge Recruiting
The Impact of Social Media on Recruiting
Impact on the recruitment profession has been more significant than the introduction of online job boards and resume databases.
Harness Social Media to grow employment brand, strengthen relationships with current and future employees, and create interest in products, service, offerings, etc.
Numerous Social Media sites, applications, aggregators, and time saving tools make it tremendously easy to leverage these resources to improve our recruitment tactics.
50
Future TrendsThe RightThing Solutions Design Team and The RightThing Mobile Web Platform combine creativity and technology to:1.Build mobile career sites2.Enable mobile employment marketing3.Host mobile intranet pages for Hiring Manager communications to mobile.
Text Communications platform enables:1.Mobile applications and employment preference information 2.Employee engagement and post hire candidate data collection3.Pulse checks on EVP4.Integration to ATS systems5.Location based campaigns6.Client to build opt in mobile database of candidates interested in opportunities
51
Future Trends-Web 2.0
Targeted Job FeedsTargeted Job Feeds
craigslist
Direct SourcingDirect SourcingCandidatesEmployees
RightThing
MobileRightThing
Mobile
Social NetworksSocial NetworksPay‐Per‐Click
(SEM)
Pay‐Per‐Click
(SEM)
Jobs2webPlatformJobs2webPlatform Associations Associations
Talent Community
Landing Pages (SEO)
Talent Community
Landing Pages (SEO)Job Boards – Niche
and General
Job Boards – Niche
and General
52
Real-Time and Social Media Search Engines
Time Management Tools
Ping.fm
Post to all of your social media from one location
NutShellMail
Manage social and professional network updates in emails delivered periodically throughout the day.
iGoogle
Customize your Google homepage• RSS & News Feeds• Custom Search Engines• Stay Organized
59
iGoogle
Customize your Google homepage
Add your calendar, RSS Feeds, Custom Search Engines, Google Docs, Social Media, and more
Ability to login from any computer makes it a virtual recruiting desktop
61
NutShellMail
Supports Facebook, LinkedIn, Twitter and MySpace as well as email forwards.
Save time by not having to login to multiple accounts
Control frequency and content of updates received via email.
63
Mobile Recruiting
Text messaging and Internet usage is overtaking all other uses of mobile phones
More contacting options for recruiters and candidates alike
Can be used to advertise and source
Cost can be minimal
Mobile advertising
Mobile phone recruiting applications
66
Mobile Phone Recruiting Applications
“Apps” that can be downloaded to a recruiters phone
Mobile Interview, The HireSyndicate, LinkedIn, Plaxo, BeamMe, etc.
Most work with the iPhone, Droid, and Blackberry models
67
Passive Candidate Sourcing in 2011
Resume searches have become “about me” and “my profile” searches, as user generated content reigns supreme.
Org charts, attendee lists, membership directories, etc. can be easily located and provide a tremendous wealth of candidate information
People search engines such as Pipl.com and ZabaSearch can help pinpoint contact information
Social Media sites can be leveraged to extract top-notch passive candidates
68
filetype:pdf ("org chart" OR "organizational chart" ) (manager OR director OR vp OR vice) "human resources" site:com
site:linkedin.com "compensation analyst" ccp "greater los angeles area" -dir
Leading the Industry with a tradition of continued recognized excellence.
Michael Gruber, COOPhone: 419-420-1830 x 4240Michael.gruber@rightthinginc.com
The RightThing3401 Technology DriveFindlay, OH 45840www.rightthinginc.com
Thank You!
Leading the Industry with a tradition of continued recognized excellence.
Question & Answer Session
Have a question for the speaker? Press “Star” and then “1” on your phone to enter the queue.
If, during the Q&A, your question has been answered, or you wish to remove yourself from the queue, press “Star” and then “1”.
The moderator will introduce you by first name and state when it is your turn to speak.
For more information regarding Business Management Daily’s newsletters, forums, webinars, and Special Reports, visit www.BusinessManagementDaily.com
We’d love your feedback regarding the conference and other topics you’d like to hear about! Contact Josh at jstrohecker@BusinessManagementDaily.com
Thank you for participating!
83Resource Overview
Michael GruberChief Client Officer
Clients looking to win the war for talent and marshal a qualified workforce can benefit greatly from the expertise of Michael Gruber. In addition to his 10 years of experience in recruitment process outsourcing, Michael was an HR Leader for the largest personnel branch of the U.S. Army in Europe.
As Chief Client Officer for The RightThing, Michael designs and manages operational strategy. To further advance the company, Michael pursues a variety of business strategies and works continuously to enhance the company’s portfolio of service offerings, develop relationships with strategic partners and reviews competitive analysis trends and educates the marketplace about the advantages of RPO.
Michael has been a key member of The RightThing since inception in 2003 and has served in a variety of roles including Director of Onsite Programs, Strategic Account Manager and Chief Operating Officer before being promoted to his current position.
Prior to 2003, Michael worked for two RPO companies that were predecessors to The RightThing – Selective Staffing, Inc. and Aon Consulting. Since 1997, Michael has collaborated with a wide range of industry giants to reduce their hiring cycle times and lower costs for both exempt and non-exempt employees. Clients that have had short- and long-term needs fulfilled by Michael include Abbott Labs, DaimlerChrysler, General Electric, Kellogg, Merck, Owens Corning, Prudential, Siemens, U.S. Steel and Wal-Mart.
While serving in the U.S. Army Europe from 1991 to 1997, Michael was responsible for a variety of areas including recruitment of local nationals, training and development, reassignments, discharges and retirements.
Michael holds a Master’s degree in Human Resources from the University of Oklahoma and a Bachelor of Arts degree in Psychology from the University of Maryland.
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