In every recruiting process, metrics are key. And the most measured are time and cost. But have you considered the most important business metric of all, top-line revenue? You only need to evaluate some of these critical stats to understand why accelerating top-line revenue is one of the only metrics with which senior executives are concerned. keep reading…
If you answer is along the lines of “I don’t know,” CareerBuilder has a solution for you. Any employer with a job posting can now see how well their ad performs against every other similar ad in the CareerBuilder network. Free.
That alone is pretty cool, since knowing your ads for customer service reps draw fewer applications than your competitors get is important business intelligence. But as the cliche goes, “Wait, there’s more!” Besides the raw counts, CareerBuilder’s new Recruitment Performance Portal tells you at a glance how experienced they are, how educated, as well as ethnicity, gender, and a fairly broad range of other details. keep reading…
All across the U.S. retailers this month are doing something you should be doing. They’re counting stock and taking inventory.
They do this for a number of reasons. One of the biggest is to know what’s selling, what’s not, and how fast. Scan codes and computerized inventory management keep track of things day in and day out. Hand counting verifies the data.
Now is a good time for you to do likewise and verify your data. No doubt you know the number of hires, the time to hire, hopefully the source of hire, and likely the full cost of hire. Those are the kind of metrics every recruiter should monitor regularly.
The inventory I’m referring to here is the performance of the company career site.
Just what do you know about how well it is performing? If you were an e-commerce vendor, you would absolutely be tracking visitor counts (and repeat visitors), bounce rates and conversion rates, and abandonment rates. To see where you’re losing customers, you would want to know exit pages. To know how visitors found you, you would be checking the entrance pages and the keywords they plugged into search engines. keep reading…
The Top 18 Metrics for Recruiting Leaders
It’s hard to find anything in recruiting that has failed to live up to its potential more than recruiting metrics. For nearly two decades recruiting leaders have poured resources into measuring recruiting success, and in most cases, the best that they have to show for it is being able to say “yes, we have metrics.” If you don’t know what’s wrong with most recruiting metrics, I have outlined in great detail in a previous article “what is wrong with metrics”).
So if you are a recruiting leader and you are frustrated or disappointed with your current metrics, this article will provide you with a list of the metrics that you should be using. I assure you that after reading this list you will definitely question your current metrics. The other possible option is that you may think that the metrics provided here are impossible, but you would be wrong (they are not).
Understanding the Three Time Periods That Metrics Should Cover keep reading…
This week, I thought I’d throw out a bunch of recruiting related questions that I’m curious about. Some may be easy to answer (and I’m just to lazy to do so), some hard, and some may have to be re-stated/re-defined.
Do you have any answers? keep reading…
Talk is cheap. Proving the real value of something is often an exercise that requires intention, dedication, focus, and effort. When it comes to demonstrating value, data and money are among the best pieces of proof one could ask for.
Clearly showing the value of hiring remains a perpetual challenge for those in the staffing game. While it is easy to talk about all of the great things we are doing, it is much harder to turn this talk into the hard proof that business leaders expect (i.e., money).
My research and experience clearly demonstrate that organizations fail to take the proper steps to evaluate the impact of their hiring processes. This is especially true when it comes to the use of pre-hire assessment tools. In fact, the proper evaluation of pre-hire assessments is actually the exception rather then the norm. This is unfortunate because a lack of effort in this area can keep a company from realizing its potential while costing it big time.
The reason most companies consistently fail to evaluate the impact of their pre-hire assessments is both simple and complex. The simple answer is that many companies just don’t care enough or aren’t willing to put in the effort it takes to make it happen. We all know that proving the value of your hiring process is not easy, but what things of value truly are?
The complex answer has to do with to the geeky side of things — specifically the methodological issues that accompany “test validation” and the science of hiring (for a through discussion of this see here).
Validation is important because it is the avenue via which staffing practices demonstrate value. While there are several types of validation, the most effective type for demonstrating real-world impact of the hiring process involves a systematic investigation of the relationship between pre- and post-hire data. This is known as “criterion related validation” — an analytics-driven process that is essentially business intelligence applied to the hiring process ). We I/Os have been doing this type of work for a good five decades now and have found results we can really be proud of.
Despite our success with it, validation is tricky and presents some inherent difficulties that can obscure its value and therefore its popularity. These include: keep reading…
There’s no better way to start out a new year than to take one or more strategic actions. On the surface, selecting a new strategic area may seem to be difficult because at established firms, it would seem as though all of the important talent management areas would have already been addressed (i.e. with a full-time leader, a written plan, a permanent team, a yearly budget, and a set of metrics for assessing its strategic impact).
However, I have still been able to identify 10 potentially high business impact strategic areas in talent management where almost no firm has a permanent company-wide strategy, plan, and team. The fact that almost no firms do these things isn’t because they lack a potential impact (most agree it could be high), so the lack of action must be because either no one has been trained in the area or because the strategic area is highly complex or highly political. Even if you don’t have the bandwidth to take action in any of these areas, review the list to see if you see the potential for a high business impact.
The Top 10 Strategic Talent Management Areas That Firms Ignore keep reading…
My inclination was to ignore it; I’ve got enough to do keeping track of today, let alone trying to figure out what next year will bring. As for 2012, without the perspective of time, it’s hard to tell tell what will turn out to be significant in the long run. A few developments, though, will undoubtedly make the survey.
Social media for recruitment will be there, as will the drive to mobile. My list includes growing buzz over “big data,” even though it’s nowhere near clear how it will eventually make a difference in hiring and workforce management.
Vendor consolidation also makes my list. So too does the changing composition of the traditional workforce composition. By that I mean specifically the use of temps and contractors as a strategic component of the workforce, coupled with the growing cadre of professionals who, having turned to contract work (consulting, to put it politely) out of necessity are finding it suits them and provides a work/life balance companies mostly just talk about.
However, after thinking about my list, I realized that it’s the mergers and acquisitions that will have the biggest impact and will come to be seen as one of the more significant industry developments since the recession forced all of us to completely rethink and restructure what we do.
Much of what went on in 2012 was evolutionary, rather than revolutionary. And this is certainly true of the consolidation of the talent acquisition and HR management system vendors. It has been going on for some time now, though the setting was on simmer. But then SAP’s acquisition of SuccessFactors, technically a late 2011 event, turned up the heat. In short order Kenexa and Taleo got bought up. And later, Bullhorn picked up Sendouts and MaxHire. There were also smaller deals that kept the pot boiling throughout the year.
The significance here isn’t the transactions themselves; it’s what’s behind them and, even more so, what it means for the future. keep reading…
In the movie “The Matrix” there’s a scene where Laurence Fishburne says to Keanu Reeves, “The Matrix is everywhere. It is all around us. Even now, in this very room. You can see it when you look out your window or when you turn on your television. You can feel it when you go to work … when you go to church … when you pay your taxes.”
That’s basically the premise of big data, where the potential in recruiting is in getting good candidates to respond. keep reading…
Wednesday’s looking like an awfully good day to post a job.
At least that’s what you glean from job-distributor eQuest, whose data indicates a lot of U.S. job-seekers are hunting on Wednesdays, as well as Tuesday and Thursday. It studied more than a million jobs posted online to see when candidates searched and sent in resumes.
It found: keep reading…
If you work in an office, you realize that many times the Christmas season can be a less hectic and even a slack period. In most cases everyone, including recruiters, gear down and change their work patterns for the holidays. But if you’re a corporate recruiting leader, December should be viewed instead as a golden opportunity. It is a prime recruiting month (along with January and June) because many employed prospects have free time to consider a new job due to their own reduced workloads.
The end of the year is also a time where many individuals are reevaluating their current work and life situation and planning for the future. You may be skeptical but in this article I provide more than 20 reasons why corporate recruiting leaders should actually ramp up recruiting during the holiday season.
The Top 20 Reasons Why December Is a Powerful Time to Recruit keep reading…
Whether you follow politics or not, there are many important lessons that leaders in talent management and HR can learn from the recent presidential election.
Before you dismiss the relevance of this learning opportunity out of hand, spend a few minutes to consider the following lessons from the election that may be valuable to leaders in HR and talent management.
4 Key Lessons for HR and Talent Management Leaders keep reading…
If you are going to be strategic, you must be forward looking. Obviously forward-looking people stay aware of current trends. I’ve written extensively on recruiting trends, but the definition of “a trend” means that a significant group of firms have already implemented the practice. And that means that if you merely identify and copy current trends, by the time your firm implements them, you will have fallen behind the benchmark firms that would have continued to develop new approaches. If you are tired of simply playing catch-up and you want to “get ahead” of your talent competition, you need to move beyond current trends and instead identify “next year’s” upcoming practices long before they gain wide acceptance.
If you want to prepare for what’s next on the horizon, here is my list of “next year’s recruiting headlines” or “next practices” that will soon be adopted by leading edge firms. Don’t be surprised if you’re not familiar with some of these “next practices” because they are seldom written about and they are even less frequently implemented.
A List of the Top 20 Recruiting Headlines That You Can Expect to Read Next Year keep reading…
I was training a group of hiring managers in New York City a few weeks ago on the fine points of Performance-based Hiring. The conversation quickly focused to quality of hire: how to both measure and maximize it. One of the sales directors in the room was quite frustrated with his recruiting team, and suggested the way he controlled quality of hire was by rejecting 9 of 10 candidates their recruiters presented. The rest of the hiring managers then chimed by saying how disappointed they were with the quality of the candidates sent by their recruiters.
They attributed the primary cause to their recruiters’ lack of understanding of real job requirements. I suggested the problem was more likely a quality-control issue: using inspection at the end of the process to control quality of hire, rather than defining and controlling it at the beginning. keep reading…
Would strategic HR be there? How about outsourcing; or, should that be in-sourcing? Does employer branding and the “war for talent” belong there? And where would technology fit in, especially the trend away from so-called best-in-class components and toward integrated systems?
Not an easy call is it? Just since the start of the recession in late 2007 human resource departments, and the profession itself, has seen a remarkable shift in both function and practice. Strategic HR, a concept that began to percolate about the same time companies changed the personnel division to the HR department, got jumped into the C-suite consciousness shortly after the layoffs began. It was helped along by the angst created earlier by Keith Hammond’s wake-up call to the profession, “Why We Hate HR.” keep reading…
It’s not the big that eat the small. It’s the fast that eat the slow! --Author Jason Jennings
If the rate of change inside your firm is slower than the rate of change occurring outside your firm, your end is in sight. --Jack Welch’s philosophy
Even the most optimistic business leaders have begun to realize that the incredible business turbulence that we have been undergoing for the last decade isn’t going to end. In fact, turbulence, volatility, and continuous rapid change are likely to become the “new normal.” Recently an excellent research study by the leading consulting firm BCG effectively identified and then quantified this high level of turbulence. A summary of some of their key findings include:
- Turbulence strikes more often than in the past — More than ½ of the most turbulent quarters over the past 30 years have been in the past decade.
- Turbulence has increased in intensity – Volatility in revenue growth, in revenue ranking, and in operating margins have all more than doubled since the 1960s.
- Turbulence today persists much longer than in preceding periods – The average duration of periods of high turbulence has quadrupled over the past three decades.
- Turbulence in key business results – key business areas including revenue growth, profitability, and industry rank have all shown triple-digit percentage increases over the last few decades.
The Goal Is to Become an “Adaptive Firm” and Function keep reading…
Corporate recruiting is a field where there are distinct and measurable differences between the average and elite functions. In short, what that means is that “elite” recruiting functions (defined as the top 1%) produce superior results and act in ways that are totally different from the average function.
I am frequently asked during corporate presentations to cite the difference between “good and great” recruiting functions. Well, as a former chief talent officer and someone who has spent years devoted to identifying what makes the handful of elite recruiting functions unique, I’ve come up with an assessment tool. It is a checklist that can be used by recruiting leaders as a self-assessment tool in order to determine how they compare “side-by-side” to the few firms that have reached this elite status. The 40 defining characteristics are broken into seven distinct categories and they are listed in a numbered format for easy scanning.
The 40 Defining Characteristics of an “Elite Recruiting Function” in 2012 keep reading…
In this session, Fred Shilmover of InsightSquared talked about the importance of data, being able to conceptualize and analyze it as well as what it means for your business.
I nominate the calculating of “cost per hire” as the single most pointless and damaging exercise in recruiting. Even though the cost per hire metric is widely used, that certainly doesn’t mean that it adds value, and it may in fact actually hurt the recruiting function. Years ago when I was a chief talent officer, I even went so far as to ban the calculation of cost per hire.
I did this because cost per hire had the negative effect of causing our recruiters to shift their focus toward cost reduction and away from our real job, which was to produce high-performing hires. If you’re going to be a strategic recruiting leader, you need to stop thinking like an accountant (who focuses on transactional costs) and instead act strategically and focus on the more important and higher value business and revenue impacts that great recruiting can produce. If you were the CEO of the Miami Heat and you were hiring LeBron James, you would consider the cost of the recruiting transaction to be insignificant compared to the economic value that he produced (winning a championship).
A Long List of the Reasons Why You Should Stop Worrying About the Transactional Cost of a Hire keep reading…
Thus grief still treads upon the heels of pleasure; Married in haste, we may repent at leisure. –William Congreve, 1693
If you work from a job description only to find it does not correctly define candidate requirements; if you send multiple candidates to the hiring manager only to him/her complain about wrong-skilled people; if turnover stubbornly stays high; if too many people fail training programs; if newly promoted managers fail on the job; if 80% of salespeople produce only 20% of sales, or if half the people you hire tend to sink to the bottom of the pool, then William Congreve defined your problem over 300 years ago.
Put another way, any organization that uses poor or inaccurate hiring processes is doomed to suffer the long-term consequences of poor employee and manager performance.
What would you do with a department whose decisions resulted in a 10-50% annual defect rate? That’s the estimated cost of turnover; job mistakes; too many people doing too little work; quality defects; poor customer service; barely acceptable productivity; low sales; and, so forth that came from using typical hiring practices.
While you pray your line managers aren’t reading this article, consider the following. keep reading…