Copyright 2008 Talent Connections. All Rights Reserved. Presented By Tom Darrow May 13, 2008 Improving the Recruiting Process SHRM – NW Georgia

Copyright 2008 Talent Connections. All Rights Reserved. Audience Survey Who are you? –Corporate Recruiters –Contract Recruiters –HR Generalists –Agencies –Others What are your challenges in recruiting?

Copyright 2008 Talent Connections. All Rights Reserved.Agenda How to elevate your recruiting program –Recruiting Infrastructure Models –Employee Referral Programs –Training your employees –Sourcing –Metrics –What doesn’t work well? Q&A Homework

Copyright 2008 Talent Connections. All Rights Reserved. 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

Copyright 2008 Talent Connections. All Rights Reserved. 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 Sullivan San Francisco State University

Copyright 2008 Talent Connections. All Rights Reserved. How to Elevate Your Recruiting Program Step 1 – Ensure Proper Infrastructure Recruiting Infrastructure –Ensure recruiter alignment is best for organization –Ensure recruiters recruit and coordinators coordinate –Ensure recruiter headcount and expertise is adequate –Sizing Based on level, support, geography, company lifecycle

Copyright 2008 Talent Connections. All Rights Reserved. Recruiting Infrastructure Models - Centralized vs. Decentralized Centralized - Most recruiters at corporate site Decentralized - Most recruiters in the field Combo - Administrative recruiting functions at corporate, recruiters at corporate and in field

Copyright 2008 Talent Connections. All Rights Reserved. Recruiting Infrastructure Models - Recruiter Alignment Geography Business Unit Function Positions are very location dependent Skills very different between business units Each location has critical mass There is high volume within each function & activity is location independent Level (Executive, Managerial, Support, Entry/Campus)

Copyright 2008 Talent Connections. All Rights Reserved. How to Elevate Your Recruiting Program Step 2 – Employee Referral Program World class employee referral program How many recruiters do you have?

Copyright 2008 Talent Connections. All Rights Reserved. Employee Referral Program — Why? Low cost Higher caliber candidates –Skills, behaviors, cultural fit can be referenced Empowers employees Increases employee morale and loyalty Candidate has positive pre-disposition about company Candidate is contacted proactively instead of waiting for them to take the initiative Limited competition for candidate

Copyright 2008 Talent Connections. All Rights Reserved. Primary Weaknesses of Employee Referral Programs Program is out dated Program is poorly designed Program is too detailed Program doesn’t vary reward with urgency and importance of the position Program doesn’t INCENT Program assumes employees know how to recruit/find referrals

Copyright 2008 Talent Connections. All Rights Reserved. Buy-In from Management Develop a business case –Collect sourcing and cost metrics from prior two years –Estimate cost of employee referral program Marketing Referral bonuses –Estimate increased number of hires –Estimate cost savings –Anticipate management concerns

Copyright 2008 Talent Connections. All Rights Reserved. Primary Management Concern Referring new hires and helping to build the company should be a part of the employee’s job Considerations: –Employees do what they’re evaluated on –If quality can be increased, cost reduced, and employees rewarded, isn’t that a good thing?

Copyright 2008 Talent Connections. All Rights Reserved. Management Concern #2 Employee referral candidates are hired more because of relationships and less because of skills and fit. Consideration: –Assessment process should be the same for candidates from all sources

Copyright 2008 Talent Connections. All Rights Reserved. Management Concern #3 Hiring too many employees from referrals will lead to an adverse impact problem. Considerations: –Assessment process should screen for job related factors –Develop diversity initiatives to counter tendency to refer “people just like us.”

Copyright 2008 Talent Connections. All Rights Reserved. Referral Program Overview Who is eligible? What positions are eligible? Communicating openings Referral process and documentation Communicating candidate status Incentives - Rewards and Recognition

Copyright 2008 Talent Connections. All Rights Reserved. Who is Eligible? Management? HR/Recruiting? Contractors/Temporaries? Alumni? Vendors? Others?

Copyright 2008 Talent Connections. All Rights Reserved. What Positions are Eligible? Management Administrative Hi-Tech Entry Level All

Copyright 2008 Talent Connections. All Rights Reserved. Communicating Openings IntranetIntranet Weekly Weekly NewsletterNewsletter CompanyBulletinBoardsCompanyBulletinBoardsCompanyMeetingsCompanyMeetings

Copyright 2008 Talent Connections. All Rights Reserved. Requirements & Documentation Form to be completed by referrer Resume required? (with advanced consent of candidate) Application completed? Does the referrer need to know and have contacted the referred candidate? Are clients/customers off limits?

Copyright 2008 Talent Connections. All Rights Reserved. Requirements & Documentation Does candidate need to have minimal requirements? Do referrals of alumni, contractors, temporaries qualify? Does the referrer get credit only if referral is hired? Duplicate referrals –split rewards between all referring employees –From different sources: resume that generates interest gets credit Referrals do not qualify if they were discovered while attending company recruiting functions (i.e. job fairs, open houses)

Copyright 2008 Talent Connections. All Rights Reserved. Recruiting Department To-Do’s Treat referred candidates the same as candidates from other sources except…. move more quickly! Reject Candidate Phone Interview Office Interview Referrer will not be involved in the assessment process

Copyright 2008 Talent Connections. All Rights Reserved. Parking Privileges Training course reimbursement Equipment –Computer –Palm Pilot –Home office Exclusive tickets, restaurants, country clubs Incentives — Rewards Cash* Car Stock Vacation Frequent Flyer Performance Evaluation note Drawing* Logo merchandise* * More details on following slides

Copyright 2008 Talent Connections. All Rights Reserved.Cash Set a level that will INCENT –Vary by position level and/or urgency –Set short term additional incentives –Increase incentives for multiple referrals in a year Gross up for taxes Pay out –On start date? –After 90 days? –More paid after length of service of referred employee?

Copyright 2008 Talent Connections. All Rights Reserved.Drawing Hype! Chances –10 for every referral hired –1 for every referral Timing –Each company meeting? –Annually Prizes –Trips, Cars, Stock, Vacation

Copyright 2008 Talent Connections. All Rights Reserved. Program Slogan Create special slogan for program: –Shaping Our Future –Bank$Shot –Bird Dog –PERSonnel (Personal Employee Referral System) –Quest for the Best –Planes Trains and Automobiles ERP –Spotters Involve your Advertising Agency, Marketing and sampling of employees

Copyright 2008 Talent Connections. All Rights Reserved. Program Logo Develop special Program Logo Give items that can be worn and seen around the office: t-shirts, polo shirts, pens, caps, gym bags, portfolio’s, coozies, etc. At a minimum, give company logo merchandise Give for referrals AND hires

Copyright 2008 Talent Connections. All Rights Reserved. Incentives — Recognition Mention in new hire welcome Performance Evaluation $$$$$$/merchandise presented at company meeting –Or….hand delivered by CEO. Logo clothing for display in the office

Copyright 2008 Talent Connections. All Rights Reserved. Marketing — Hype Incentives Slogan Kick off OpenHouses RecruitingProcess & Interview & Interview Skills training

Copyright 2008 Talent Connections. All Rights Reserved. Marketing — Visibility Logo Regular Communication –Cover openings, incentives, and payouts –Intranets, bulletin boards, program brochures, benefits brochures, newsletters, banners, paycheck inserts Program letter to new hires (be careful of contracts with prior employers) Program letter to employees’ homes

Copyright 2008 Talent Connections. All Rights Reserved. Buy-In from Employees Create advisory team of employees to help develop program Develop training program that must be completed for employees to be eligible for employee referral program involvement –Get key leadership to first sessions! AdvisoryTeamAdvisoryTeamERPTrainingProgramERPTrainingProgram

Copyright 2008 Talent Connections. All Rights Reserved. How to Elevate Your Recruiting Program Step 3 - Training Employees Prerequisite for employee referral program involvement –Recruiting Process workshop –Interview Skills workshop –Negotiation and Sales for Managers

Copyright 2008 Talent Connections. All Rights Reserved. Teach Employees How and where to source/network How to build relationships How to assess potential of candidates How to sell Importance of confidentiality How to work within the corporate process

Copyright 2008 Talent Connections. All Rights Reserved. Employee Referral Program — Sourcing Channels Prior Employers Conferences/ Seminars Professional Associations Alma Mater Family and Church Children’s Friend’s Parents Country Clubs/ Community Organizations Commuter Trains/Buses

Copyright 2008 Talent Connections. All Rights Reserved. Recruiting Process Workshop Develop a game –“Recruitopoly™” –“Recruit or Consequences” Teach the philosophy, techniques and tools for recruiting –Sourcing, assessing, selling –Employee referral program

Copyright 2008 Talent Connections. All Rights Reserved. Interview Skills Workshop Recruiting Process and Interview Preparation Types of Interviews –Screening –Skills –Behavioral –Confirming/Selling Managing the interview Making the decision Documentation Legal Issues

Copyright 2008 Talent Connections. All Rights Reserved. Other Training Negotiation –How to respond to the candidate –Who to get approval from for changes to the offer –How to give a little but not give the farm Selling –Understanding the candidates key decision factors –Promoting the company and position accordingly –Combating the competition

Copyright 2008 Talent Connections. All Rights Reserved.Selling Research has shown that people accept a job because of???? Money Develop Skills Peer Group Company Dynamics Creative Challenge

Copyright 2008 Talent Connections. All Rights Reserved. How to Elevate Your Recruiting Program Step 4 – Enhance Your Sourcing Strategy Sourcing strategies –Internet Job Boards Spiders Research –Creative strategies What do candidates read? Where do candidates hang out? Skill challenge Create your own user group Social Networking Strategies

Copyright 2008 Talent Connections. All Rights Reserved. How to Elevate Your Recruiting Program Step 5 – Implement Metrics “What gets measured, gets improved.” Quality of Hire Time to Fill Cost Per Hire Process Efficiency Acceptance Rate Recruiter Production Source Channels Recruiting Metrics Resumes Screens Interviews Offers Accepts Fills Use of system Efficiency Cost by source channel

Copyright 2008 Talent Connections. All Rights Reserved. How to Elevate Your Recruiting Program Step 6 – Reference and Background Checks Must be done for ALL candidates who receive an offer

Copyright 2008 Talent Connections. All Rights Reserved. How to Elevate Your Recruiting Program Step 7 – Candidate Management Candidate Management –Make it PERSONAL! –Communicate openly and often –Find our their needs and expectations –Ask them how to communicate with them Phone (Home/Work/Cell) (Personal/Work) –Treat them like a superstar during the process - they think they are!

Copyright 2008 Talent Connections. All Rights Reserved. How to Elevate Your Recruiting Program Step 8 – Automate Applicant Tracking Employee Referrals Streamline communications

Copyright 2008 Talent Connections. All Rights Reserved. How to Elevate Your Recruiting Program Step 9 – Assess Areas that Impact Recruiting Compensation Program Benefits Training Branding/Image Morale

Copyright 2008 Talent Connections. All Rights Reserved. How to Elevate Your Recruiting Program Step 10 – Turn Recruiting into a Business Partner Manage recruiting like a business unit Have dotted line reporting relationship to business units Understand company financial statements Attend industry/trade shows and training Push to have lead recruiter (VP or Director) attend Senior Management meetings Utilize Contract Recruiters to flex up and down with recruiting cycles Volunteer for company initiatives outside of recruiting –Community Contributions efforts –Company sponsored events –Employee Relations programs

Copyright 2008 Talent Connections. All Rights Reserved. Q&A

Copyright 2008 Talent Connections. All Rights Reserved.Homework How many recruiters do you have? –Action steps to turn every employee into a recruiter What recruiting metrics are in place? How will you measure quality of hire? What percent of your interviewers have been trained by your company on how to interview? Develop a list of creative sourcing strategies Develop a communications plan –Management, Hiring Managers, Candidates, Vendors

Copyright 2008 Talent Connections. All Rights Reserved. Thank You! Tom Darrow Principal Talent Connections, LLC 175 Inverness Approach Roswell, GA (770)