Extreme Optimization of Sourcing Effectiveness. For sustainable competitive advantage
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2 Extreme Optimization of Sourcing Effectiveness For sustainable competitive advantage
3 Learning Objectives Conduct this innovative diagnostic to: identify team s development path accurately pinpoint bottlenecks find opportunities for gaining efficiency or reducing waste improve how sourcers and recruiters work together compare productivity and efficiency between sourcing and recruiting Strategic advantages your team can gain immediately
4 About Shally Dual Bachelor of Science, RIT Returned Peace Corps Volunteer (Nica 94) Recruiting since 1996: Full desk, contingency, million dollar biller Corporate sourcing leader (Cisco, Coke, Google, Microsoft) Advise over 300 organizations on sourcing and recruitment optimization Adjunct Faculty, Fox School of Business, Temple Teach 1 st ever academic capstone course on recruitment Textbook author: The Talent Sourcing & Recruiting Handbook Raised in Colombia, South America, ESL (si, soy bilingue ) Founder of JobMachine.net (now 4SCT LLC) shally@4sct.com (888) x200
5 GOVERNMENT
6 Sourcing Definition Sourcers are recruiters specialized in proactively identifying and engaging with talent not found via traditional means.
7 Recruiting Sourcing Goal = Hire Close candidates Coach perspective Turn pipeline into hires Focus on responsibilities and job environment Manages expectations, processes, policies Business acumen Partner with hiring authority Insightful communicator Interviewer / evaluator Gatekeeper / negotiator Matchmaker / diplomat Goal = Hire Conduct research Special Teams perspective Build pipeline Focus on skills and qualifications Easily makes logical leaps Technological acumen Endlessly curious, natural problem solver Intuitive, read between lines Tenaciously persevering Effortlessly coachable Continuous learner
8 Pre-search, The Critical Point of Failure Also called: Kickoff, Briefing, Discovery, Strategy Session Generate a sourcing plan/strategy Positions recruiter as expert Demonstrates immediate value as a partner Gather all the necessary data to ensure success Set timelines and manage expectations "Put First Things, First" Covey's 7 Habits of Highly Successful People Urgent tasks steal time from important ones Fewer but better candidates means hiring managers will devote more time to conducting thorough interviews
9 Stop wasting time searching for candidates Don t click on results until your search yields at least 50% useful results at a glance Spend a couple of minutes making adjustments until you are happy with search results Aim for no more than 250 results per search It is impossible to filter out every irrelevant result
10 Critical Thinking Simple yet distinct searches always beat complex ones Search is a process not a destination Start with a broad definition of search terms and options What s on a resume not a job description?
11 Sourcing Channels 1. Traditional Job Postings and Job Board Resumes 2. Resumes from Search Engines (Google, Bing, etc.) 3. Resumes from company s ATS and/or CRM 4. Recruitment Marketing (SEO/SEM, direct ads, mobile) 5. Deep Web Research (direct sourcing) 6. Professional Associations, Conferences, Non-profit Orgs 7. University and Corporate Alumni Organizations 8. Specialized Leads Databases (Zoominfo, Jigsaw, etc.) 9. Diversity Communities and Affinity Groups 10. Online Communities (mailing lists, user groups, forums) 11. Online Social Networks (LinkedIn, Facebook, Twitter, Ning) 12. Other Social Media (Blogs, Microblogs)
12 Diagnostic focal points Quality Competitive Advantage Time Culture Sourcing & Recruiting Cost Synergy Efficiency Value
13 Four Recruitment Organization Types Defensive Responsive Anticipative Proactive Mainstream recruitment Inbound ad respondents Career portals Job boards Events Employee referrals Specialized job ad distribution Viral marketing, contest, mobile apps/sms SEO, SEM, PPC, contextual ads via Twitter, Facebook, LinkedIn Pipeline ahead of demand Business aligned highgrade corporate recruiters Consultative approach Existing and purpose built Talent Communities Expert researchers and callers conducting lead generation and identification Non-employee referrals ATS searches for silver medalists, offer declined candidates, re-hirable former employees
14 Illustrating The Numbers Case Candidates 4:1 Four submitted per each interviewed (25%) One out of two spoken with become qualified and interested (50%) Prospects 2:1 160 leads found yield 40 people recruiter speaks with (25%) Leads 4:1 Interviews 5:1 One Hire On average hiring managers interview five candidates before making a hire
15 8 Stages of Growth STE GOAL KEY FOCUS P 8 Advantage Pipeline Launching Programs 7 Culture Collaboration Establishing Policies 6 Synergy Engagement Forming Partnerships 5 Value Enthusiasm Managing Expectations 4 Efficiency Productivity Improving Systems 3 Cost Capacity Increasing Abilities 2 Time Energy Refining Procedures 1 Quality Effort Standardizing Practices
16 Data You Will Need Hires per Recruiter Recruiter First/Last name, Department/Division, Offers Accepted, Hires Approximate sum total of all salary offers per each recruiter AVERAGE derived by dividing above sum total by # offers Total Dollars Spent in Recruitment Cost per hiring manager per requisition (if not possible use ad hoc estimate) Cycle Time per major job profile from req posted to offer accept Performance by Source (if not possible use ad hoc estimate) Quality Metrics Promotions from External Experienced Hires Non-starts (90, 120 day, 1 year, 3 year) by source If both not possible provide ad hoc estimate
17 Root Cause - Differential Analysis Decision making technique in which evaluation is confined to only those factors which are different or unique among possible alternatives. 1. List all possible factors 2. Calculate costs (time/money) associated with each 3. Ignore sunk costs and costs remaining largely constant 4. Select the alternative offering the best cost-to-benefit
18 Overall Findings Recruiters and Sourcers are over-resourced and showing signs of burnout Confusion concerning tactical of teams is widespread Uncertainty on expected interactions due to inconsistent and contradictory messages from management Hiring Managers have little to no interaction with the sourcing therefore expectations vary widely Procedures often vary by team member and by Hiring Manager supported Corporate Recruiters and management often regard sourcing as support staff therefore constraining the team s access to hiring managers and undervaluing their potential contribution Corporate Recruiters see themselves as Sourcing s primary customers
19 Fireproof or Firefight? Recruiting and Sourcing operate in firefighting mode due to rapidly changing business requirements. Corporate Recruiters believe their req workload is higher than can be effectively managed given current resources therefore distracting sourcers with requests for firefighting support There is more demand for sourcing support than can be met by current resources Lack of a clear charter, SLA or SOW, and mandates for Strategic Sourcing result in underutilization Greatest return on investments gained from taking sourcing out of firefighting mode moving them into proactive or Strategic outreach in Talent Pipelining in anticipation of business requirements
20 Role Confusion Current Roles and Responsibilities are not clear and change often enough that teams are unclear about what is expected of them Current performance metrics and interpretation of the measurement standards are ambiguous, causing the perception of a resource-constrained environment Ad hoc communications about roles and responsibilities have resulted in variable performance and uneven delivery of service in recruiting and sourcing operations Recruiting & Sourcing currently operate reactively rather than proactively Failure to establish boundaries and set disciplined expectations results in the reported perception that the recruiting and sourcing process is out of control
21 Broken Intake Process Hiring Managers currently encounter inconsistent practices due to the lack of standardization in administration of the requisition intake process This core business process is currently unevenly administered or absent Integration and implementation of intake process is variable leaving HMs feeling like they have not been heard with respect to their requirements Hiring Managers become demanding / belligerent because they are uninformed and feel that they have little control or visibility on the process
22 Not Validating Requirements No standardized sourcing activation and engagement process is currently in place. Uneven and variable administration of the intake process results in failure to effectively validate requirements. Therefore Hiring Mangers use Recruiting & Sourcing to define requirements and qualifications, consuming cycle-time and bandwidth, resulting in Recruiter and Sourcer disengagement and burnout. In essence, the corporate organization currently uses the recruiting and sourcing process as a form of ad hoc talent market research to the detriment of all concerned.
23 Alignment Lack of preparation and coordination between Recruiting & Sourcing results in Recruitment taking direction from Hiring Managers rather than positioning themselves as internal subject matter experts. The failure of Recruiting & Sourcing to cooperate in the research and planning phase of the intake process deprives Hiring Managers and Dolby of the value added outcomes that a more collaborative dynamic would produce. More input from Sourcing and greater participation in the process could lead Hiring Organization to trust the team and develop greater confidence in Recruiting & Sourcing process.
24 Case Study For comparison we look at the top, bottom, and middle performing contributors measured by Total Attributable Hires in each of the two functions, recruitment and sourcing. NOTE: Not representative of one particular company, aggregate from multitude of current and prior clients. Reflects external corporate hires over one year.
25 Candidates NOT Actively Recruited Originate from Job Boards, Employee Referrals, Career Site Contacted the employer, expressed interest by own initiative Inbound results from company s significant and continued recruitment investments Take into consideration total amount spent on Recruitment staff headcount cost Employment advertising Search engine marketing Career website development, hosting, and maintenance Subscriptions to \databases (LinkedIn, Monster, CareerBuilder) Agency fees.
26 Productivity Analysis Recruiter Total Hires External Hires Job Boards Employee Referrals Career Site Agency Hires Contacted Directly Other Sources David Kathleen Justeen Sourcer Total Hires External Hires Job Boards Employee Referrals Career Site Agency Hires Contacted Directly Other Sources Pat Jennifer Allison
27 Real Cost of Hire Recruiter making 31 experienced external hires in one year To achieve those employer spent: $150k avg gross cost per recruiter $108k at 20% fee, $90k avg salary $37k Monster/CareerBuilder/LinkedIn $35k at $5k per ER hire $28k conservative estimate using industry average costs-per-hire for cross segment of career websites Career Site $28,000 Agency Fees, $108,000 Employee Referrals, $35,000 Job Boards, $37,000 Recruiter Headcount, $150,000
28 Explanation Recruiter made 31 experienced external hires Estimated cost $358,000 total, or $11,548 per hire Sourcers utilize none of the channels so cost burden is only from headcount Sourcer contributed 22 experienced external hires Compensated same as recruiter above, cost-per-hire would be $150,000 total, $6,818 per hire Even though the number of total hires appears lower, the Sourcer is evidently a better return on investment.
29 Your Assignment Metrics that inform management and keep sourcers accountable Guidelines for Prioritization of Sourcing Requests Failure-proofing Sourcing Systems Development of a Sourcing Service Level Agreement (SLA) Best Practices for Selecting, Managing, and Motivating Sourcers Evaluation of potential for building a Sourcing Center of Excellence
30 CyberSleuths World-class, structured adult learning and certification for Recruiters and Sourcers Both live instructor-lead courses and online self-directed true adult e-learning Curriculum designed around real-life tasks, problems, and situations Only what you need to know to recruit more effectively and with greater job satisfaction Graduates frequently benefit from expanded responsibilities, increased influence, and peer recognition for their achievement SourcingInst Sourcing Institute SourcingKB +1 (855) TheSourcingInstitute.com 265 Mitchell Rd. #745 Norcross, GA 30071
31 Pre-Order Now About the Author Shally Steckerl is a global recruiting leader who has created a way to successfully embed key talent identification and engagement initiatives into existing recruitment efforts. The innovative breakthrough in his method has been standardizing sustainable competitive advantages which have allowed global Fortune 100 companies and employers of all sizes to maintain leadership in their sector, based solely on their talent.
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