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

2. Agenda Recruiting Metrics – Why? Recruiting Metrics – What to Measure… Recruiting Metrics – How to Use…

3. 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

4. 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

5. To Ponder “There are three types of lies. Lies, Damned Lies, and Statistics.” Benjamin Disraeli What does 2 + 2 equal?

6. 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

7. Metrics to Measure “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

8. Quality of Hire “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

9. 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

10. 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

11. 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

12. Time to Fill “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

13. Time to Fill – How to Measure Days From Requisition to Acceptance Days From Requisition to Start Date

14. 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

15. Cost Per Hire “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

16. Cost Per Hire – How to Measure Total Direct Recruiting Costs Total Number of Hires* *or Total Number of Positions Filled

17. Cost Per Hire – How to Measure Total 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

18. 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

19. Process Efficiency “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

20. Process Efficiency – How to Measure Resumes # of Resumes10025:1 # of Hires 4 Screens # of Screens8080% # of Resumes100 Interviews # of Interviews4050% # of Screens80 Offers # of Offers1025% # of Interviews40 Acceptance # of Hires 440% # of Offers10

21. Process Efficiencies – Considerations/How to Improve Automate process Define service level agreement between Recruiting and customers

22. Acceptance Rate “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

23. 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?

24. Recruiter Production “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

25. 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

26. 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

27. Source Channels “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

28. 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

29. Source Channels – Considerations/How to Improve Research alternative sourcing channels Create your own sourcing channels –User group –Contest –Newsletter –Forum

30. AA/EEO/Diversity Measure for adverse impact Track metrics for reporting Track metrics for enhancing diversity efforts –Increase diverse applicant flow

31. 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

32. 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

33. 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

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