presented by tom darrow october 3, 2001 recruiting methods for improved performance
TRANSCRIPT
Presented ByPresented By
Tom DarrowTom DarrowOctober 3, 2001October 3, 2001
Recruiting Methods for Improved Performance
Agenda
• Recruiting Metrics – Why?
• Recruiting Metrics – What to Measure…
• Recruiting Metrics – How to Use…
To Ponder
“By showing a significant improvement in recruiting new talent, companies can
achieve a 10.1 percent increase in market value - the largest increase among areas linking human capital
practices and shareholder value creation.”
Watson Wyatt Worldwide, 1999
“Talent will be the single most important strategic factor for the next 20 years.”
McKinsey & Company
To Ponder
“The average cost of losing a high-tech employee is $123,000.”
Corporate Leadership Council
“The top 10% of candidates accept jobs within 10 days.”
“A top performer produces 50% more than an average performer.”
Dr. John SullivanSan Francisco State University
To Ponder
“There are three types of lies. Lies, Damned Lies, and Statistics.”
Benjamin Disraeli
What does 2 + 2 equal?
Recruiting Metrics – Why?
• To identify process steps that need improvement
• To anticipate market trends and initiate competitive adjustments
• To report recruiting results to senior management
• To support business cases for programs and expenditures in recruiting
• To evaluate and reward recruiting staff• To evaluate effectiveness of change
initiatives
Metrics to Measure
“What gets measured, gets improved.”
Qualityof Hire
Time to Fill
CostPer Hire
Process Efficiency
AcceptanceRate
RecruiterProduction
Source Channels
Recruiting Metrics
• Resumes• Screens• Interviews• Offers• Accepts
• Fills• Use of
system
• Efficiency• Cost by
source channel
Quality of Hire
“What gets measured, gets improved.”
Qualityof Hire
Time to Fill
CostPer Hire
Process Efficiency
AcceptanceRate
RecruiterProduction
Source Channels
Recruiting Metrics
• Resumes• Screens• Interviews• Offers• Accepts
• Fills• Use of
system
• Efficiency• Cost by
source channel
Quality of Hire – How to Measure
• Short Term– Create quality of hire ratings
• A = Exceeds job description requirements• B = Meets job description requirements• C = Could meet job description requirements with minimal
training and coaching– Set company-wide annual percentage goals
• A = 20%• B = 60%• C = 20%
– Within a week of hire, collaborate with Hiring Manager to secure ranking
– After 6 months, secure another ranking from Manager
Quality of Hire – How to Measure
• Long Term
– Review performance reviews• Results by recruiter, source channel,
department, hiring manager
– Review retention• Results by recruiter, source channel,
department, hiring manager
Quality of Hire – Considerations/How to Improve
• Expand sourcing channels– Researchers– Contract Recruiters
• Is the company’s compensation plan competitive?
• Time to Fill – Is it competitive?• Create interview methodology and train
management• Encourage internal transfers• Utilize contractors
Time to Fill
“What gets measured, gets improved.”
Qualityof Hire
Time to Fill
CostPer Hire
Process Efficiency
AcceptanceRate
RecruiterProduction
Source Channels
Recruiting Metrics
• Resumes• Screens• Interviews• Offers• Accepts
• Fills• Use of
system
• Efficiency• Cost by
source channel
Time to Fill – How to Measure
• Days From Requisition to Acceptance
• Days From Requisition to Start Date
Time to Fill – Considerations/How to Improve
• Stop/Start– Consider it a new requisition
• How much does it cost to not fill opening?– Revenue loss per day
• Utilize phone screens• Reduce # of interviewers• Utilize technology
– Videoconferencing– Fitability Systems
• Streamline requisition and offer approval process– Fewer signatures– Automate– Salary range approval in requisition
Cost Per Hire
“What gets measured, gets improved.”
Qualityof Hire
Time to Fill
CostPer Hire
Process Efficiency
AcceptanceRate
RecruiterProduction
Source Channels
Recruiting Metrics
• Resumes• Screens• Interviews• Offers• Accepts
• Fills• Use of
system
• Efficiency• Cost by
source channel
Cost Per Hire – How to Measure
Total Direct Recruiting CostsTotal Number of Hires*
*or Total Number of Positions Filled
Cost Per Hire – How to MeasureTotal Direct Recruiting Costs
• Marketing– Brochures– Job Boards– Company Web Site– ERP
• Interview Training• ASP/Applicant
Tracking• Candidate Travel• Signing Bonus
• Recruiter Salaries• Agency Fees• Relocation• Orientation/Training • Background/Drug
screens• Testing
Cost Per Hire – Considerations/How to Improve
• Costs Not to include:– Time of Hiring Managers and others– Donations/Grants to Universities– Administrative costs
• Telephone• Copies• Supplies
• How to improve– Hire recruiters/contract recruiters instead of
search firms– World class Employee Referral Program– Eliminate brochures– Agencies – Preferred Vendor List
Process Efficiency
“What gets measured, gets improved.”
Qualityof Hire
Time to Fill
CostPer Hire
Process Efficiency
AcceptanceRate
RecruiterProduction
Source Channels
Recruiting Metrics
• Resumes• Screens• Interviews• Offers• Accepts
• Fills• Use of
system
• Efficiency• Cost by
source channel
Process Efficiency – How to Measure
• Resumes # of Resumes 100 25:1 # of Hires 4
• Screens # of Screens 80 80%# of Resumes 100
• Interviews# of Interviews 40 50% # of Screens 80
• Offers # of Offers 10 25%# of Interviews 40
• Acceptance# of Hires 4 40%# of Offers 10
Process Efficiencies – Considerations/How to Improve
• Automate process• Define service level agreement
between Recruiting and customers
Acceptance Rate
“What gets measured, gets improved.”
Qualityof Hire
Time to Fill
CostPer Hire
Process Efficiency
AcceptanceRate
RecruiterProduction
Source Channels
Recruiting Metrics
• Resumes• Screens• Interviews• Offers• Accepts
• Fills• Use of
system
• Efficiency• Cost by
source channel
Acceptance Rate – Considerations/How to Improve
• Don’t confuse effort for accomplishment• Probably the least important metric• Target should NOT be 100%• How to improve
– Better assessment– More accurate job descriptions– Analyze declines
• Reasons for decline• What was accepted?• Recommendations for improving process?
Recruiter Production
“What gets measured, gets improved.”
Qualityof Hire
Time to Fill
CostPer Hire
Process Efficiency
AcceptanceRate
RecruiterProduction
Source Channels
Recruiting Metrics
• Resumes• Screens• Interviews• Offers• Accepts
• Fills• Use of
system
• Efficiency• Cost by
source channel
Recruiter Production – What to Measure
• Quality of Hire• Fills
– Number of filled positions • Cost per Hire• Time to Fill• Use of ASP/Applicant Tracking System• Customer Satisfaction
– Good process?– Hire a fit?
• Retention– 90 day probation period only
Recruiter Production – Considerations/How to Improve
• Role of Recruiting vs. Role of Hiring Manager– Screen, interview, and counsel or just
source and forward? • Ensure criteria used to assess
recruiter is within their control• Recruiter Workload
– Exempt level positions – 20 to 25 per month
– Non-Exempt positions – 35 to 50 per month
Source Channels
“What gets measured, gets improved.”
Qualityof Hire
Time to Fill
CostPer Hire
Process Efficiency
AcceptanceRate
RecruiterProduction Source
Channels
Recruiting Metrics
• Resumes• Screens• Interviews• Offers• Accepts
• Fills• Use of
system
• Efficiency• Cost by
source channel
Source Channels – What to Measure
• Agencies, ERP, Campus, Internet, Company Web Site, Newspaper– Acceptances– Quality of Hire– Time to Fill– Cost per hire– Process Efficiency
• Resumes to Hire
Source Channels – Considerations/How to Improve
• Research alternative sourcing channels
• Create your own sourcing channels– User group– Contest– Newsletter– Forum
AA/EEO/Diversity
• Measure for adverse impact• Track metrics for reporting• Track metrics for enhancing diversity
efforts– Increase diverse applicant flow
Using Recruiting Metrics
• Business Planning– Budgets– Resource plans
• Improve Process Efficiency• Business case
– Systems (ASP/Applicant Tracking)– Recruiter Headcount
• When report?– Weekly, Monthly, Quarterly, Annually
• Industry Standards/EMA Survey– WARNING!
• In-house or outsourcing
Recruiting Metrics – Getting Started
• Commit to data capture• Compile company metrics from prior
two years• Set goals for next fiscal period
– Push for a company staffing plan
• Capture data as it happens• Communicate to senior management
To Ponder
“Attaining one’s objectives is not a cause for celebration; it is a
cause for new thinking”Peter Drucker
“People are the one true competitive measure.”
Hal Rosenbluth
Thank You!
Tom DarrowTom Darrow
PrincipalPrincipal
Talent Connections, LLCTalent Connections, LLC
602 Gettysburg Place602 Gettysburg Place
Atlanta, GA 30350Atlanta, GA 30350
(770) 992-3701(770) [email protected]
www. talentconnections.netwww. talentconnections.net