KeenHire Blog by Margaret Graziano

Recruitment Process Management

Every company is charged with the assignment of doing more with less. The movement to create efficiencies in every component of running a business has lead to a huge movement of outsourcing everything from office administration, technology, recruitment and manufacturing to accounting, supply chain, staffing and in some cases customer service.  Many of the largest companies in America have been among the first to explore Business Process Outsourcing (BPO) for some it is the best thing that they have ever tried, for others the results have been disastrous.

In the area of business that I specialize in I have been researching the RPO movement. Recruitment Process Outsourcing, is about removing the recruitment and staffing function from inside the company and having an outside vendor manage, execute and deliver people on an as needed basis. The choice to RPO has for the most part been about price, economies of scale and efficiency.  The most popular roles that I have read about RPO filling is call center, front line banking, customer service, retail, and medical.

Some user reports say this is the most efficient way for a National or Global organization to staff, others say their quality of hires has declined, unwanted turnover has increased and candidates are left with an ill feeling about the companies employment brand. 

What I have learned for sure is that RPO is not for every company; a company has to have certain staffing objectives that make an RPO offering appealing.

Just because RPO might not be the right answer for your company does not mean that there is not work to do to create an efficient, effective and highly successful recruitment function within your organization.  After all, your company is only as god as the people inside and an ineffective, inefficient recruitment process is a barrier between you and your next level of talent.

Over 10 years ago, when I owned Alliance HR Network, one of my mentors asked me for our operational quality ratio of interviews to hires. I did not have the number. He then asked me how many candidates we had to talk to, to generate a live interview, I did not have that number either. I began to see that my lack of managing those important numbers was in the way of me running an efficient recruiting operation and that was costing me money.

Efficiency

The journey was a painful one, back then we were interviewing 10 people to place 1 and we had to talk to 100 to interview 10. That meant that 90% of our time did not result in generating revenue. I began to understand more and more about lean manufacturing, operational excellence and performance ratios.  I chose to enroll in a certification program in organizational development and in that 12 month program I learned a great deal about why companies lay so many people off in recessionary times. 

I decided to go to work on my own company looking for ways to bring operational excellence, improve productivity, lower costs and continue to deliver a high quality of service.  What I learned and implemented was the impetus for the making of KeenHire. 

My team and I went to work on our business processes, we analyzed performance ratios in each of our core functions and worked on eliminating tasks that were irrelevant to effectiveness. We incorporated time saving technology that allowed team members to focus on high impact functions. We created a system for candidate intake that dropped our ratio from 10:1 to 3:1.  

Effectiveness

Considering quality was what my company was known for I knew I had to find a way to stand behind that claim beyond in words. This is what lead me to implementing behavioral interviewing and 'fit' assessments into our hiring and selection process. This not only aided us in the validation of the candidates we submitted, it save us thousands of man hours. It became much easier to select the best and eliminate the rest and was instrumental in my ability to quickly ramp up new hires. Our recruiters were making placements within 2 weeks on a desk, because I was hiring the right people and giving them a great process to follow. 

Our customers were delighted with the amount of data we had on each candidate we were representing. The real benefit was when our customers requested we manage the complete staffing of entire department, leadership and launch teams. The implementation of this conscious-hiring process not only saved us money and time, it was directly responsible for an uptick in work, sales and profitability.

Whether your company chooses to run recruitment from the inside or the outside it is up to you to manage performance in 3 key areas.  In no particular order, ensuring high quality hires, managing efficient recruitment processes and delivering a high quality of service to all of the stakeholders is critical to maximizing your return on your people investment and imperative to being an Employer of Choice.

How Can You Improve Performance Metrics and Employee Productivity?

A study of the Corporate Executive Board found that since the recession began, managers have become less effective at defining employees roles and accountability. Before the recession, only 60% of employees said their managers did an okay job of effectively communicating expectations, since the recession that number has dropped to 45%, which considering is quite low.  Before, Front Line and HR Managers told employees how they fit in to the overall strategy and market share objectives, now they tell employees to get to work and be grateful they have a job.  Ouch…….that is pretty short sighted thinking.

The highly interesting part of this is that when employees understand how what they do fits into the overall strategy of the business and the achievement of their corporate objectives productivity can increase by 10% at a minimum. Ten percent of ten employees equates to an additional headcount.

When I lead my Maximize Your People ROI workshop and keynotes I speak a great deal about Jim Collins’ call to action, “Put the right people on the Bus”.  Five years ago I learned two provocative processes for assessing, evaluating & validating job specifications, at Keen we call these Benchmarking and Role Analysis.  Both of these tie Organizational Development and Recruitment processes together and drastically improve hiring metrics and recruiting success rates.

If you want to attract more of the best, you first have to truly understand why some of your employees are high performers. Is it coincidence, dumb luck or a lot of hard work when a key manager assembles a team of high performers?  Or is it a calculated and well-executed strategy?

Experts say that building a high performance work-group does not happen by anything other than a well defined, executed recruitment plan and selection hiring process. High performing teams are not created by accident.  There is always a plan of attack that attracts people with solid competencies, required behaviors, complimentary traits, and shared values.  Companies like HP create programs for this by assessing their top performers and understanding what drives their performance; aspects like competencies, motivators, behaviors, values, work style, and emotional intelligence.  They then build a hiring model that vets candidates with similar winning formulas.

This is what KeenHire refers to as benchmarking.  The Keen team has assessed over 1000 high performers conducted over 200 corporate benchmarks since our launch.  In one company alone, we saved the employer over $1,000,000.00 in poor hiring costs  Download Keenhireclarknatcasestudy because they stopped hiring people who they thought would fit and they started hiring people they knew would fit.  This new age Talent Management stuff really works!

Conducting a Role Analysis on positions that you are filling whether through an internal promotion or a new hire impacts not only your ability to put the right person on the bus, it effects your companies ability to improve workforce production and engagement. When your employees know that you chose them because they had the natural ability to do the job in a way that amplifies the companies mission and vision and they know what is expected as well as how these accomplishments impact the big picture; they are awake and aware to exactly what you are counting on them to achieve on a daily, weekly, monthly, quarterly and annual basis they are much more likely to achieve it. 

The Bottom Line is if you want a more productive, engaged workforce hire the right people for jobs they are well equipped to do, make sure they know what you expect from them and then encourage them to use their natural talents and abilities to get the job done.

If you have professional HR Management, Contract Recruitment staff or In Sourced Recruitment consultants on your team make sure they are trained in these critical hiring selection programs and strategies; if you do not and you need to go outside to Recruiting services require these service providers to offer solutions that enable you to hit your hiring and retention metrics. 

Retention: Will Your Key Contributors Be There When You Really Need them?

Even though Human Resource Executive’s Magazine is geared towards HR Management professionals, the January 2010 issue is excellent reading for any leader concerned with Talent Management.  The cover story is about the necessity of Re-Engaging of Mission Critical, Key contributor and next level leadership talent. The most pressing post recession issues for leaders will be to provide highly engaged worker with the ability to execute new business strategies.

HRE reports that as the nation heads for an economic recovery, HR leaders at some of America’s largest companies will have to focus their attention on securing and keeping the talent capable of executing new post recession business strategies and metrics. 

Isn’t that what we have been saying all along?

KeenHire Talent Strategy 3.0 program not only delves into the changing demographics effecting the US workforce and the companies employing it, we also dig deep into the continual stream of issues surrounding and effecting employee engagement, organizational design, recruitment, and talent retention.  The course is quite content heavy however because of the group interaction the journey is barrel of fun!

The Washington based Executive Board reports that the number of disengaged workers has doubled during the recession of 2009 and 2010; even more disturbing many high potentials, workers who very possibly hold the key to a companies ability to press through the rebound are waiting with baited breath for a headhunters call. When the call comes, these highly valuable contributors will not only take it, they will leap at the chance to escape the last few years of misery.  Actually another report by the same organization indicates that nearly ¼ of all high potentials are already looking for a new job and beyond that one in ten of the broader workforce is actively on the hunt for a new job.

In Peter Drucker's 5 New realities and 8 Business Strategies he speaks about Business Leaders being willing to see the truth even when it hurts. To ensure you are not running in front of the truck and scrambling for Talent Management and Recruitment solutions, the time for planning how your firm will handle these changing workforce realities is now.

Recruiting: Filling The Talent Pipeline

Filling the Recruiting Pipeline  

Sourcing and Selection are two very different worlds. One puts as many applicants in the pool as possible and the other sorts and selects the best fit for the fulfillment of the positions’ key objectives.  Given there is a War for Talent many companies fear that they can not afford to be highly selective in their recruitment efforts. The reality is while there is a war, there is also a recession which means certain industries are dying and with that is the emergence of talent from hidden sectors. 

If you strategize effectively you will easily attract solid ‘core’ talent from industries that are highly compatible to yours. Yes, you may have to train the candidate to your company, products and services. However if you conduct the hiring process with thoroughness and integrity you hire ONLY the best suitable talent - rather hiring the best suitable experience (which we all know backfires when it’s the wrong ‘fit’). Either way you have to train a newcomer to your firm, so it is your choice whether you want to train and fix bad behaviors or invest in up front industry, product and service training.  

To attract, hire and retain the “right” talent Keep in mind there are now a multitude of cost effective options and alternatives.  If you are choosing to pay a fee, or hire a contract recruiter ensure your recruiter is highly skilled in both search and selection, or consider outsourcing pieces of the processes to firms or people who are highly skilled in a specific area, or make certain that your internal resources have all the tools & training  they need to improve their hiring batting average.

Options for Generating Candidates at the top of the funnel:

A. Hire a Contract Recruiter, a full scale Search Firm or a local Employment Agency

Interviewing & Hiring A Recruitment firm or Professional Recruitment Contractor:
Questions you may want to ask.
1) How many placements have you made in our field/niche/industry/position level?
2) What is your passive candidate strategy? Please outline it.
3) What system are you utilizing to evaluate your candidates strengths, behaviors,and competencies as they compare to our immediate and long term needs for the role?
4) What is your due diligence process? Who pays for that?
5) What is the average tenure of your placements?
6) Will you consider a fee arrangement with a percentage weighted on retention
7) How many customers have you retained for 5+ years?

B. Sourcing Candidates through the Boards & Internet

1) If you using the boards to source candidates – hiring a 3rd party sourcing company might be a prudent option; these companies have armies of people who scour the job boards while we in America are sleeping. The average cost of this service is $1500.00 per search to $2500.00 per month.  Different companies charge based on the deliverable. This emerging industry is rapidly taking their stake in the talent acquisition sector.
           
2) Resume Search Aggregation and Filtering – these are software as a service subscriptions that take your job specifications and pull appropriate resumes from a multitude of job boards. This type of software can save your internal Sourcers or Recruiters hundreds of hours.

3) Posting technology - There is job board and social media posting technology that takes your single job posting and delivers it to hundreds of specialty sites in seconds. Pretty cool!

C. Passive Candidate Acquisition: Social Networking 

1) If you chose this route make sure you are hiring/contracting with a person who has no fear of rejection, is willing and able to make an abundant of outbound calls on a regular basis and who has strong talent in navigating around the internet.

2) Linked in and Face Book are by far two of the most effective ways to find passive talent. 

D. New Fashioned Head hunting

How is your recruiter planning on building the list of who to call? Do they have the resources for list building; will they outsource this function; if so how much will that cost?  There are excellent technology solutions that your recruiters need be using to maximize their efficiency and effectiveness. 

E. Create an EVP and promote the hell out of it

Find out why people work for your company, find out why they stay. Create an Employee Value proposition and promote it on social media, industry sites, internally, to customers, to local colleges and vocational schools, etc. 

F. Pay Referral Bonuses

G. Build Your Internal Recruitment Team to Maximize Your People ROI

Consider implementing B-F with a carefully selected and trained internal recruitment team. The internal team must be evaluated based on hiring metrics, retention, efficiency and value they provide.

The bottom line is make sure you are investing in the right solution for your unique situation.

Stop Jamming A Square Peg Into A Round Hole

As a manager, have you ever had the experience of trying to ‘make’ an employee change, forcing an outcome from an employee to improve their performance or even worse; have you ever attempted to have them work differently by encouraging them to alter their natural work style, values, behaviors, beliefs and personality so they would perform better in their role, or for the betterment of the company?  

As leaders of people, we often have to deal with ourselves to overcome the syndrome of

“I can fix and change people".  As a peak performer in recruitment, for years I found myself placing the best and hiring the rest. As a small business owner, I was hiring 'C' candidates, because they were more affordable and selling myself on the myth that they would be better if someone just helped them and then I expended enormous amounts of my personal effort trying to overcome their ineffectiveness.  My shortsightedness had me saving money on the front end and spending 3 times the savings on the back end. Until I went  through a basic training from Vistage (formerly known as TEC),   I was not present to the profit erosion that these non strategic hiring practices were causing.

Once having my eyes opened, I embarked on a hiring process development journey. I was committed to fixing my problem and I took courses on organizational assessment, behavioral interviewing, top grading, organizational development, personal transformation and executive coaching.  Over the course of a decade I invested $100,000 in mastering 'putting the right people on the bus'.  After much resistance and many breakthroughs, I finally learned the lesson handed down to me from my first mentor.  "People are whole and complete and have everything they need to be successful, as long as you put the right people in the right role." It is your job to Choose Wisely"

There have been many books, articles, lectures and even case studies written on this subject. Companies like General Electric, PepsiCo, Spielberg Productions, DreamWorks, Google, Microsoft, The Limited and more have all publicly stated that a KEY factor to their enormous success was the people they chose to employ in key contributor, mission critical and leadership roles.

The new game in the business of Recruitment Process In-Sourcing

7 Easy Steps To Becoming An Employer Of Choice

Step 1 – Establish Your Employee Value Proposition

 

Tie your employment brand with your business strategy. Understand why people want to work for your organization and develop a program that attracts more ideal candidates through your doors.

 

Recommended Reading: Attracting Perfect Customers: The Power of Strategic Synchronicity, by Stacey Hall and Jan Brogniez.  

 

 

Step 2 – Establish a 'Cracker Jack' Candidate Sourcing Strategy

 

Do the work to find out where your ideal candidates are right now. Where do they hang out? What do they read? What do they do for fun?

 

Include Social Media tools, this means be a proactive social media presence. Have a credible, passionate, authentic person from your company talk to your ideal audience all the time, whether you are hiring or not. Provide value.  Keep ideal candidates coming back for more, get them on your web site, create reasons for website and social media stickiness.

 

Be a talent scout. Enroll your team into scouting for additional contributors and mission critical players. Reward your people for quality recommendations.

 

Hire the right recruitment talent.  Select your partners as wisely as you select your teammates. There are a ton of ‘recruitment’ alternatives in the marketplace. Choose a partner who is committed to your end game and will do a great job surfacing, selecting and assisting you in on-boarding top tier people for your organization.

 

Step 3- Conduct a Role Analysis – Let the job talk.

Define performance criteria before you start searching. Sit down and work through the KPI’s, Core functions and specific Selection Criteria with the key stakeholders impacted by the success or failure of the hire. Predetermine the “who” in who you need to hire. What values do they honor? What is their work ethic? For that matter, what are their ethics? What are the non-negotiable competencies, behaviors and emotional intelligence levels required in the role?

 

Recommended reading: The Truth About Managing People and Nothing but the Truth. Stephen Robbins.

 

Step 4- Establish a hiring process that holds your hiring team accountable for selecting the best and eliminating the rest.

 

Create a process and choose to stick to it. All to often a great process is defined and then a decision maker meets someone who strikes their fancy yet clearly does not meet the selection metrics required. The decision maker calls the shots, ignores the very process they implemented and pulls the trigger only to discover that a slick talker with a good story has bamboozled them into paying way to much money for way too little in return.

 

Step 5 – Begin amplifying the employment brand during the hiring process.

Some Aspects For Staffing Companies To Think About

A trend I have noticed is those who cut all costs necessary to operate their businesses are financially in worse shape than those who have methodically evaluated where to focus cost cutting.

I call these "knee-jerk" blanket cost cutting decisions Emotional Management and will suggest that everyone be wary of it. Are you cutting costs because of a fear of the unknown - the length of the recession, the direction of the economy, the ability for you to make a sale next month? Or are you cutting costs because you are determining which costs are necessary for survival, which are necessary for growth, and which costs are "lifestyle” costs? Food for thought.

 By Adam Peterson, CEO, Vipe Inc

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It is all about differentiation.  Keen recently surveyed over 25 large staffing and or recruitment firms, what is on everyone of their minds is how to generate more business and come out ahead of the rest. The following is a brief summary of what they said.

1. You are either the largest in your niche and you differentiate because you are the biggest

2. You have some new innovations that separate you from the competition

3. Your price is better

4. You have a means like RPO or VMS that catapults you to the front of the line.

5. You dominate multiple markets all selling to the same end user

6. Your brand is known to all

Think about it.....what is it for you? If you don't know, figure it out, and figure it out fast.

Best to You 

Margo

Hard Won Staffing Lessons And Where We Go from Here

 

Although staffing employment traditionally is a leading indicator of recovery, professional recruiters today look forward with caution. This recession feels different -- not just a slowdown, but a disruption of the way business has been done.   As you formulate a strategic plan for 2010, ask yourself: "Can I afford a return to business-as-usual?"  Monster spoke to leaders in staffing whose hard-won wisdom points to a better future.

Staffing Solutions that Innovate

Dan Boersma of Laguna Source in Laguna Beach, CA specializes in finding talent for pharmaceutical, biotechnology and medical device makers. He's managed the downturn with a three-part strategy of client service, industry knowledge and old-fashioned hustle.

"In this recession, you're working twice as hard to make three quarters as much money," Dan asserts. "The big positive is you have a little bit of free time, to say, 'Hey, we have some time on our hands, what can we do that's going to help us long-term?'"

Talent shortages in his niche have helped, but as even successful companies try to do more with less, Dan finds he has to narrow his focus to develop deeper relationships with clients. This is the time to listen, to learn more about coming technologies and the skills needed to harness them, and to build trust.

Dan and his team watch for announcements on venture funding and company earnings that signal staffing opportunities. Press releases and news articles are obvious conversation-starters with potential clients. Less obvious is Dan's observation that his best currently-employed candidates are more reluctant to move to a new employer. They need reassurance that a medical technology firm, for example, will have staying power. Whether positive or negative, industry developments point to hidden corners where top talent and new prospects on both sides of the recruitment equation are open to change. Dan says, "If a company's doing layoffs, I want to be the first to talk to their people."

And then there's plain old bearing down in tough times. "In a downturn, recruiters tend to get down on themselves and the business," Dan says. "It's easy to blame things on a bad economy, but we get here early, stay late, work on weekends…staying aggressive like this has just kept us going."

Service, research, and hard work deliver. It's a simple plan, and it works for Laguna Source.

Rethinking Staffing Services

Margaret (Margo) Graziano of KeenHire in San Jose is taking the reinvention route; she believes that the fundamentals of staffing have shifted, and the future belongs to those who broaden their services.

Margo has moved her Talent Management Division from "getting people into chairs" to a form of human capital management consulting. KeenHire's clients, also caught in the disruptions of the Great Recession, face many hiring complications that boil down to doing more with less. They profit from expertise she's developed across the entire talent acquisition timeline, such as:



Risk Mitigation
"Clients are asking us to help them not hire the wrong people, because they can't afford to make mistakes," says Margo. Staffing can't just supply candidates and hope it works out (or blame a bad hire on a client's managers). Risk mitigation means helping a client design teams. What's the right mix of talents for a new initiative or product? How should the team work? Can the company adapt, and how?

It also means retention. "We see a lot more effort and money being spent on keeping the good people," observes Margo.

Hiring Improvements
Job descriptions can be a vise, squeezing the wrong person into a job because she happens to have the right skills. Margo counters this problem by assessing people well beyond skills. "I look carefully at the people who are already doing well in the job and build what we call a 'DNA thumbprint' of what the ideal candidate looks like -- not their resume but their values, beliefs, competencies and behaviors. We actually find and staff organizational development professionals, industrial psychologists, training and development people, HR, talent management people, talent acquisition, full-time and contract recruiters."

Human Resource Management
Human capital consulting from staffing companies can add value to processes like onboarding, top-grading and retention strategies. Once the staffing company has supplied great talent, it can help the client hold onto those people. This is more service, and while it reduces churn (and -- let's admit it here -- churn can make short-term profits for staffing companies) it deepens customer attachment and creates new services to sell.

"It goes beyond the hiring moment," Margo concludes. "We work with companies to help them develop coaching programs and training and development programs for their high potential people."

Where Staffing Goes from Here

As you plan for 2010, consider these likelihoods:

1) Staffing will see a resurgence but not a return to business as usual. The collapse of whole business areas and re-alignment of money (think automotive and health care, for two examples) means that client needs will change.

2) The super-candidate syndrome will continue. Margo Graziano suggests that staffing lead the conversation away from "Super Resume" to "Super Candidate" by finding greater alignment in values and capabilities than single skills.

3) There is no substitute for persistence and hard work, especially with your most creative employees. Open your business to their suggestions. Experiment. Be aggressive. Learn and change.

Great practitioners of staffing recognize a tectonic shift brought by such a brutal recession. Companies big and small will have to do more with less. Even as business picks up, the opportunity to lead change -- for your clients and your business -- is too exciting to miss.

By Doug Hardy: Monster Staff Writer