2. Copyright 2005 Talent Connections. All Rights Reserved. Presented By: Tom Darrow THE Most Strategic Recruiting Initiative: Leveraging Your Employees to Source, Assess & Sell

3. Copyright 2005 Talent Connections. All Rights Reserved. Employee Referral Program — Why? Increased quality of hire –Skills, behaviors, and cultural fit can be referenced Low cost to administer 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

4. Copyright 2005 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 market value of the position Program doesn’t INCENT Program assumes employees know how to recruit/find referrals

5. Copyright 2005 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 through ERP –Estimate cost savings (if any!) –Anticipate management concerns

6. Copyright 2005 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 a program can increase quality of hire, reduce cost, and reward employees, isn’t that a good thing?

7. Copyright 2005 Talent Connections. All Rights Reserved. Additional Management Concern “Employee referral candidates are hired more because of relationships and less because of skills and fit.” Consideration: –Recruiting assessment process should be the same for candidates from all sources

8. Copyright 2005 Talent Connections. All Rights Reserved. Additional Management Concern “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.”

9. Copyright 2005 Talent Connections. All Rights Reserved. Additional Management Concern “If we’re getting so many hires from employee referrals, what do we need all these high priced recruiters for?” Considerations: –Recruiters facilitate employee referrals –Recruiters set overall strategy –Recruiters consult with hiring managers on job requirements, candidate assessment, and offer package

10. Copyright 2005 Talent Connections. All Rights Reserved. Who is Eligible (Full or Partial)? Management? HR/Recruiting? –Challenge: Make recruiters eligible!!! Contractors/Temporaries? Alumni? Vendors? Others? Make everyone eligible in some way!

11. Copyright 2005 Talent Connections. All Rights Reserved. What Positions are Eligible?Management Administrative Hi-Tech Entry Level All

12. Copyright 2005 Talent Connections. All Rights Reserved. Other Considerations Are clients/customers off limits? Does referred candidate need to have minimal requirements? Does referred candidate have to be referenceable? –Have to have met the candidate –Have to have their permission to submit resume –Avoids referrer from becoming a “pastatute” Does the referrer get credit only if referral is hired?

13. Copyright 2005 Talent Connections. All Rights Reserved. Other Considerations Treat referred candidates the same as candidates from other sources except…. move more quickly! Referrer will not be involved in the assessment process

14. Copyright 2005 Talent Connections. All Rights Reserved. Parking Privileges Training course reimbursement Equipment –Computer –Palm Pilot –Home office Exclusive tickets, restaurants, country clubs Incentives — Rewards Cash Stock Vacation Frequent Flyer Performance Evaluation note Drawing Logo merchandise

15. Copyright 2005 Talent Connections. All Rights Reserved. Cash Pay out –In first paycheck after start date? –After 90 days? Longer timeframe will not deter employees from making referrals Covers probation period Manager/company is responsible for assessment – this argument is not consistent with agency agreements A problem develops if referred employee leaves after 3 weeks and bonus has been paid out More cash when referred hire gets promoted? –Could create internal politics –Referrer has no control over referee’s retention or contributions –Should they have to pay some back if the referee gets fired?

16. Copyright 2005 Talent Connections. All Rights Reserved. Cash Gross up for taxes! –Reduce payout levels if necessary –Keep the emotions positive

17. Copyright 2005 Talent Connections. All Rights Reserved. Drawing Who is eligible for the drawing? –10 tickets for every referral hired –1 for every referral not hired –Watch out! If someone wins the grand prize who didn’t refer someone who was hired, you undermine an essential aspect of ERP’s – a hire is the goal. Need to document qualifying timeframe for drawing

18. Copyright 2005 Talent Connections. All Rights Reserved. Drawing PWC – “all but one chose cash” –Undermines hype value of non-cash awards Part of award to charity –Great idea! –Watch out – charities/non-profits that exclude protected classes (e.g. religious organizations) Employees need to feel they have a reasonable chance to win –Have more secondary prizes –Draw more often

19. Copyright 2005 Talent Connections. All Rights Reserved. Program Slogan and Logo 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

20. Copyright 2005 Talent Connections. All Rights Reserved. Incentives — Recognition Mention in new hire welcome e-mail Note in Performance Evaluation $$$$$$/merchandise presented at company meeting –Or….hand delivered by CEO Logo clothing for display in the office Reward managers for the % of hires in their departments from employee referrals

21. Copyright 2005 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

22. Copyright 2005 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 the position and the company Importance of confidentiality How to work within the corporate process

23. Copyright 2005 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

24. Copyright 2005 Talent Connections. All Rights Reserved. How to Teach Employees Recruiting Process Workshop Interview Skills Workshop Make attendance in both mandatory for: –Participation in interviews –Participation in ERP Get senior management to attend first class!

25. Copyright 2005 Talent Connections. All Rights Reserved. Recruiting Process Workshop Develop a game –“Recruitopoly” –“Recruit or Consequences” Teach the strategy, techniques and tools for recruiting in the company –Sourcing, assessing, selling –What is the Hiring Manager’s role? –What is Recruiting’s role? –What is everyone else’s role? –Employee referral program

26. Copyright 2005 Talent Connections. All Rights Reserved. Interview Skills Workshop Recruiting Process Interview Preparation Types of Interviews –Screening –Skills –Behavioral –Confirming/Selling Managing the interview Assessing the candidate Documentation Legal issues

27. Copyright 2005 Talent Connections. All Rights Reserved. Questions & Answers

28. Thank You! Tom Darrow Principal Talent Connections, LLC 602 Gettysburg Place Atlanta, GA 30350 (770) 992-3701 TomDarrow@talentconnections.net www. talentconnections.net