In 30 years, I have yet to see a retention bonus retain, let alone motivate, anyone. – Kate D’ Camp, former VP of HR at Cisco
Let’s face it: only a few people voluntarily spend any time thinking about the use of employee retention bonuses (ERBs). I wouldn’t either, except for the fact that a majority of major firms use them instead of much more effective retention approaches. The use of retention bonuses is at an all-time high but I wonder why, because they’re expensive and only occasionally do work. In my over 20 years of work as a thought leader and practitioner in retention, I have been unable to find any credible corporate data that even comes close to demonstrating the effectiveness of retention bonuses.
The major flaws of employee retention bonuses fall into three categories, which include:
- ERBs are evil because they are a form of “paid servitude,” where you buy rather than earn employee loyalty.
- ERBs don’t actually work in a time when turnover rates have gone up 45 percent.
- ERBs have many negative unintended consequences that unintentionally create damage.
Maybe the lack of data proving the effectiveness of retention bonuses is not such a big surprise, because almost nothing in corporate retention is data-driven. There is also no data to prove the effectiveness of most other common “retention resource wasters” like improving benefits for all, engagement efforts to improve retention, or offering a coach/mentor or profit-sharing. Despite their lack of supporting evidence, the use of retention bonuses has doubled since 2010 (according to a recent WorldatWork survey). If you are a corporate manager or a talent management professional who is considering offering retention bonuses, review the following 25 ugly reasons thoroughly before you act. In my book, they rank at the very bottom as the least effective commonly used retention tool.
The Top 25 Reasons Why Retention Bonuses Don’t Work keep reading…
Are you looking for a new job, or filling recruiter positions? Being on either end of the spectrum, it may be useful to know what the labor markets are like in North America. We used WANTED Analytics hiring demand and talent supply data to analyze and compare hiring trends for recruiters in the U.S. and Canada. keep reading…
In a large or small organization, there is a need for a recruiter to take charge at times. Below are scenarios that occur in almost every organization. The key steps underneath will improve your time to fill, relationship with the hiring manager, and establish yourself as a trusted advisor.
Scenarios: keep reading…
Employers and talent acquisition professionals are still trying to grasp what it takes to retain the millennial generation, making sure that they are unleashing the full human potential of Gen Y. Clearly this topic of engaging and retaining millennials in the workplace is proving to be an ongoing struggle for those in corporate America and around the globe. In fact, a Bentley study found that about two-thirds of employers (63 percent of business decision makers and 68 percent of recruiters) say their organizations struggle to manage millennials. According to the U.S. Bureau of Labor Statistics, by next year, millennials will account for 36 percent of the U.S. workforce and by 2025, they will account for 75 percent of the global workplace.
Using what I shared in my first article to attract millennials into your organization, below are ideas to keep them retained and engage the full potential of Gen Y. keep reading…
Recently, I’ve become immersed in some unfamiliar recruiting territory — collegiate sports! As I work with my son, a student athlete, to navigate the college exploration process, I’m noticing many similarities between these two worlds of talent search.
Last month, I met Jay, a sports recruiter/scout who has placed numerous incredible college athletes through the years. Many of his “picks” have gone on to play sports professionally. Jay and I spoke at length about our industries and I asked him the secrets to his success as a recruiter, albeit in another realm.
If you find solutions to your professional challenges by looking to other industries, read his valuable perspective on sports recruiting success, as well as my related observations. keep reading…
Take a little trip with me. Don’t worry; you don’t need to pack any bags and your passport can remain safely stowed away. We’re just going to take a step back in time to when we were college students. Reflect for a moment on the months leading up to your graduation. What thoughts were weighing most heavily on your mind at that time? Aside from your immediate concerns of making it to every big party that week (without missing any classes the day after), you probably had some big questions about your next step. What would life in the real world be like? And how would you find a job that you were overjoyed about — or at the very least, a company that would hire you?
University recruiters have the opportunity to help provide some answers to those tricky questions that plague 20-somethings. keep reading…
I work in the Silicon Valley, where we have a long-established mantra of “faster, cheaper and better.” But now no matter where you work in the world, almost everyone can sense the fact that every aspect of global business now seems to move significantly faster than it did even 10 years ago. You could even label the 21st century as “the century when speed dominated.” This increased speed means that new products and product features come to market at an amazing rate, copying is almost immediate, everything you rely on seems to become quickly obsolete, and long-established businesses routinely lose out to faster moving startups.
In this environment, even notable fast-mover firms like Google and Apple occasionally don’t move fast enough. This was the case where they both failed to effectively seize on the amazing social media and microblogging opportunities that the faster-moving startups Facebook and Twitter quickly dominated.
In the past, the business domination rule was simple … Large and established firms will dominate the smaller ones.
However the new rule has become “It’s the fast-moving and rapidly adapting firms that now dominate the slower ones, whether they are large or small.”
If Your Firm Changes Slower Internally Than the External World, it Has No Future keep reading…
Looking for STEM talent? Struggling with a skills gap? Your best candidates might be searching for part-time jobs.
You see, popular coverage of the role of part-time jobs in the economy often attributes the rise of these positions to employers who have turned some full-time jobs into part-time ones. While there are 7.5 million Americans working part time for economic reasons (they’d like to work more hours but can’t find a full-time job), there are millions of others who are actively interested in more flexible work options or reduced hours — and this interest isn’t isolated to low-skilled workers. keep reading…
Most recruiting leaders have had coffee-shop or happy-hour conversations with each other about “having a seat at the table” or being a “more strategic partner” to the business. There is no doubt these clichés are played out (and there’s a good chance you’re rolling your eyes at the thought of reading another article about this). The truth is, there are talent-acquisition departments that talk about having a seat at the table; heck, they might even lobby so hard to get to this “table” they get a pity invite.
But, for as many of those that are worrying about a “table” there’s the other side of the house: departments hard at work building teams that help their business use human capital to win in the marketplace.
This is no easy task. It’s a grind. But there’s great work going on in our industry right now by many talent-acquisition leaders showing a commitment to this approach. Some of those very leaders you’ll meet at ERE next week.
At CDW, we built a high-performing talent acquisition team by developing business- and HR-savvy recruiters. keep reading…
When searching for the right developers to hire, recruiters face a number of challenges. One of the biggest difficulties is that there is a small pool of developers in the market, and other recruiters are likely reaching out to them, too. The high demand for developers means that developers are used to, and often annoyed by, recruiters’ attention.
It doesn’t help that recruiters often can’t relate to developers. keep reading…
Now, I’m not an anti-consistency guy at all. To scale, to create a great experience, you need to make sure certain things are predictable and dependable. For example, every candidate should know their status in a process and what the next step is (and timeline of that next step).
But, sometimes, consistency becomes the goal itself, not a means to a goal. And in a talent-centric world – where we preach personalization, creating a stand out experience, tailoring the process/tools/approach to the person — consistency can get in the way, and even create a bad experience. keep reading…
On average, 118 people apply for any given job — and of those 118 candidates, only 23 actually get an interview. This conundrum begs the question: are employers building the best candidate pools? Staffing agencies and corporations face an identical challenge — attracting the right candidates to begin with.
Enticing a precise type of person to fill one very specific role is like searching for a needle in a haystack. You will end up with strict criteria, and an endless list of names of people who miss the mark. To fill your candidate pool with greater potential, take a page from the staffing agency playbook. Start with these three ideas: keep reading…
Even an average teacher knows the answers to a test before:
- scoring the test
- administering the test
- teaching the lesson
- developing the lesson plan
- and creating the course syllabus
Compare that to state of readiness of many interviewers. keep reading…
The goal of any job advertisement should be to attract the highest number of responses from qualified applicants. But how exactly do you go about writing a job ad that attracts the top talent?
If you want to generate more applications from top candidates you must include a telephone number in your job advert.
Now I know what you’re thinking; Connie (who has an agenda of course) can’t possibly understand the recruitment industry. Is she seriously suggesting including a contact name and telephone number? Imagine all those nuisance calls from unqualified candidates; it’s enough to raise the blood pressure of any agency owner. I guess than I owe you some form of explanation if I’m going to challenge the conventional wisdom. keep reading…
The Holy Grail in recruiting has always been the passive candidate: someone not actively searching for a job.
A LinkedIn survey of 18,000 full-time employees across all industries and 26 countries found what attracts these people. The results aren’t particularly shocking: passive candidates want more money. Either that, or they want a better work/life balance or a greater opportunity for advancement.
But the survey revealed more than just that. It also showed the surprising number of workers who consider themselves passive candidates, what active applicants want, and what motivates people to change jobs the least.
From helpful advice to foreboding warnings, job seekers hear countless dos and don’ts when it comes to applying to, interviewing for, and nailing down a job. It makes sense: we’ve all been through the process, and chances are, we’ll all do it again. Having a plan in place — and a backup plan, in some cases — is not only helpful, but strategic when on the job hunt.
But with all these words of encouragement floating around for job seekers, the same kind of advice simply doesn’t exist for recruiters. As a result, it’s easy to mess up. The initial candidate experience is a crucial piece of long-term talent relationships that are developed during the hiring process. If we don’t get it right, we run the risk of losing a potentially successful hire. Here’s a look at how 10 short days and a few wrong turns can quickly send a candidate running for the hills, and how you can avoid these issues and make your talent search a success.
Day 1: You post an inaccurate job description. keep reading…
It is becoming more difficult for companies to convert interns into full-time hires. Companies need to re-assess how they structure these programs in order to maintain a good return on investment.
The most recent sources of hire survey by CareerXroads found that of the interns who companies wanted to hire at the end of internship programs in 2013, only 32 percent accept their offers. In the words of the survey’s director, Gerry Crispin, “I’m not sure training two thirds of my interns for someone else is good ROI.”
This low offer-acceptance rate may present a unique opportunity for companies to differentiate themselves, and to benefit from the new generational factors that influence an interns’ decision to join a company full time.
Focusing on Feedback and Technology keep reading…
While it may seem like a bit of a challenging proposition, recruiting candidates to work abroad simply requires a bit more calculation and tactical thought. The central issue with any career move abroad is the cultural and linguistic differences, and if your aim is to recruit Westerners to work in the Middle East, this is obviously going to be quite a large obstacle.
Fortunately, the exceptional quality of life in the Middle East provides a handy incentive, helping to offset the negative impact that an alien culture and language may have on a prospective recruit. Thanks to the ever-present worldwide need for oil exports, countries such as the United Arab Emirates and Saudi Arabia have a particularly high standard of living, allowing employees in those nations to enjoy a standard of living far beyond what they could expect at home.
While a convincing argument, the above is only an effective technique if there are interested candidates around to be convinced in the first place. Fortunately, in such a well-connected world there are many ways to engage with interested candidates, allowing you to best extol the benefits of your particular vacancy.
Meet Potential Applicants Face to Face keep reading…
Q: What does your CEOs know about talent assessment?
A: Nothing and everything.
Let me explain. keep reading…