Recruiting%20Methods%20for%20Improved%20Performance

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Recruiting Methods for Improved Performance
Presented By Tom Darrow October 3, 2001
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Agenda

• Recruiting Metrics Why?
• Recruiting Metrics What to Measure
• Recruiting Metrics How to Use

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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

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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

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To Ponder

• There are three types of lies.
• Lies, Damned Lies, and Statistics.
• Benjamin Disraeli
• What does 2 2 equal?

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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

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Metrics to Measure

• What gets measured, gets improved.

Recruiting Metrics
Quality of Hire
Time to Fill
Cost Per Hire
Process Efficiency
Acceptance Rate
Recruiter Production
Source Channels

• Resumes
• Screens
• Interviews
• Offers
• Accepts

• Fills
• Use of system

• Efficiency
• Cost by source channel

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Quality of Hire

• What gets measured, gets improved.

Recruiting Metrics
Quality of Hire
Time to Fill
Cost Per Hire
Process Efficiency
Acceptance Rate
Recruiter Production
Source Channels

• Resumes
• Screens
• Interviews
• Offers
• Accepts

• Fills
• Use of system

• Efficiency
• Cost by source channel

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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

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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

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Quality of Hire Considerations/How to Improve

• Expand sourcing channels
• Researchers
• Contract Recruiters
• Is the companys compensation plan competitive?
• Time to Fill Is it competitive?
• Create interview methodology and train management
• Encourage internal transfers
• Utilize contractors

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Time to Fill

• What gets measured, gets improved.

Recruiting Metrics
Quality of Hire
Time to Fill
Cost Per Hire
Process Efficiency
Acceptance Rate
Recruiter Production
Source Channels

• Resumes
• Screens
• Interviews
• Offers
• Accepts

• Fills
• Use of system

• Efficiency
• Cost by source channel

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Time to Fill How to Measure

• Days From Requisition to Acceptance
• Days From Requisition to Start Date

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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

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Cost Per Hire

• What gets measured, gets improved.

Recruiting Metrics
Quality of Hire
Time to Fill
Cost Per Hire
Process Efficiency
Acceptance Rate
Recruiter Production
Source Channels

• Resumes
• Screens
• Interviews
• Offers
• Accepts

• Fills
• Use of system

• Efficiency
• Cost by source channel

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Cost Per Hire How to Measure

• Total Direct Recruiting Costs
• Total Number of Hires
• or Total Number of Positions Filled

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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

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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

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Process Efficiency

• What gets measured, gets improved.

Recruiting Metrics
Quality of Hire
Time to Fill
Cost Per Hire
Process Efficiency
Acceptance Rate
Recruiter Production
Source Channels

• Resumes
• Screens
• Interviews
• Offers
• Accepts

• Fills
• Use of system

• Efficiency
• Cost by source channel

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Process Efficiency How to Measure

• Resumes
• of Resumes 100 251
• 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

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Process Efficiencies Considerations/How to
Improve

• Automate process
• Define service level agreement between Recruiting
  and customers

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Acceptance Rate

• What gets measured, gets improved.

Recruiting Metrics
Quality of Hire
Time to Fill
Cost Per Hire
Process Efficiency
Acceptance Rate
Recruiter Production
Source Channels

• Resumes
• Screens
• Interviews
• Offers
• Accepts

• Fills
• Use of system

• Efficiency
• Cost by source channel

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Acceptance Rate Considerations/How to Improve

• Dont 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?

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Recruiter Production

• What gets measured, gets improved.

Recruiting Metrics
Quality of Hire
Time to Fill
Cost Per Hire
Process Efficiency
Acceptance Rate
Recruiter Production
Source Channels

• Resumes
• Screens
• Interviews
• Offers
• Accepts

• Fills
• Use of system

• Efficiency
• Cost by source channel

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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

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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

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Source Channels

• What gets measured, gets improved.

Recruiting Metrics
Quality of Hire
Time to Fill
Cost Per Hire
Process Efficiency
Acceptance Rate
Recruiter Production
Source Channels

• Resumes
• Screens
• Interviews
• Offers
• Accepts

• Fills
• Use of system

• Efficiency
• Cost by source channel

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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

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Source Channels Considerations/How to Improve

• Research alternative sourcing channels
• Create your own sourcing channels
• User group
• Contest
• Newsletter
• Forum

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AA/EEO/Diversity

• Measure for adverse impact
• Track metrics for reporting
• Track metrics for enhancing diversity efforts
• Increase diverse applicant flow

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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

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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

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To Ponder

• Attaining ones 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

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Thank You!

• Tom Darrow
• Principal
• Talent Connections, LLC
• 602 Gettysburg Place
• Atlanta, GA 30350
• [phone]
• TomDarrow_at_talentconnections.net
• www. talentconnections.net