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Weekly Update: Quality of Hire, Cuil, Assessments

by
Madeline Tarquinio
Aug 5, 2008, 12:41 pm ET

Quality of Hire Measurement
Reporting and metrics is always a hot topic for recruiting, but so few companies do it right. In my research over the years, most companies measure time-to-hire and cost-per-hire but ignore quality-of-hire. Lisa Shapiro Mendell is an exception. She is interested in adding this key performance indicator to her recruitment metric dashboard and wants to know what other companies have done the same.

Ravi Subramanian recommends hiring manager surveys and assessments. Michael Chernesky asks a very relevant question…who is accountable? Bonita Martin says recruiters and Steven Yeong says hiring managers. Joshua Letourneau offered some great insight based on his experiences. While many of his clients do measure quality of hire, their process often fails because of one of three problems. They don’t measure quality of hire beyond the first day; the hiring manager survey turns into a game since “recruiters are incentivized to make the survey look good”; or feuds spark between HR and the hiring manager. Josh’s solution to overcome these challenges lies in performance assessments that measure expected versus actual performance. Anyone out there having great success measuring QOH? Share your story; we would love to hear it.

Wednesday’s Question of the Day
Anna Patterson’s latest Internet search engine, Cuil, is backed by $33 million in venture capital and expected to outshine Google. I read negative reviews of Cuil and wanted to know if anyone is using it and seeing results. Glenn Gutmacher, Sourcer extraordinaire, is not a fan…it is slow and produces poor quality results. Without launching an alpha or beta version, Glenn believes they “set high expectations and they ‘way’ underdelivered.” T Tallis agrees. Amanda Blazo is more optimistic. She acknowledges Cuil’s shortcomings but encourages us to give it time.

Phone Screening Candidates
Diane Propsner wonders: before a third-party recruiter sends a resume to a corporate recruiter, How much time should he or she spend on phone screening and what questions should be asked? She gave us an overview of her process and the questions included. Andrew Stone agrees with Diane that 10-15 minutes is not enough time for building a relationship with a candidate. Tania Murray recommends “tailoring your cover sheet to your client to focus on just what they (candidate) told you is important to them.” According to Tania, it is critical to know the candidates goals and motivations. Joy Naui offers a different approach by suggesting that third-party recruiters first contact the hiring manager. The phone screening should include key points based on that conversation. Questions should include more than technical skill questions. If a candidate recognizes that you are genuine about finding them the right job, they will agree to answer more questions.

Thursday’s Question of the Week
After hearing Dr. Wendell Williams’ Selection and Assessment webinar on July 23, an attendee wanted to know if behavioral or situational screening questions are better and why. I thought I would ask you. Joe Payne is in favor of behavioral questions since they are a good indicator of past actions and can allow interviewers to dig deeper. Matt Cooper brings up an interesting point that most candidates are too prepared for behavioral questions with the amount of information available on the Internet including examples and preparation tools. Interviewers need to be creative and get more specific. KT Connor agrees with Matt and also cautions against self-reporting assessments instead recommending objective decision tools.

Are Job Boards Becoming Obsolete?
This is a hot topic of debate, check it out!

6 Ways to Measure Your Contribution to Retention

by
La Donna Lokey
Jul 14, 2008, 4:21 pm ET

For as long as HR has been a separate function from the business, there has always existed a certain tension when it comes to who is primarily responsible for influencing employee retention.

Business management often argues that recruiters are not presenting the right candidates, and in perfect “hiring hindsight” find fault on the basis of candidate education level, character attributes, work experience, technical skills, compensation, etc.

Recruiters are quick to remind management that they present, but do not select, candidates for hire, and that most employees who leave a position do so because of other issues such as training, keep reading…

6 Good Metrics

by
Stephen Lowisz
Jul 7, 2008, 3:35 pm ET

Recruiting metrics require a number of characteristics to be considered effective and reliable:

• Metrics must be predictive and actionable. Statistics need to provide information that can be acted upon by providing data to indicate trends.
• Metrics must be tracked over time in order to generate internal benchmarks and analyze internal performance.
• Recruitment metrics should include both quantitative and qualitative aspects. Time and cost obviously comprise the quantitative aspects of recruitment metrics, while productivity, retention, efficiency, and candidate performance comprise the qualitative aspects.

Metrics of the Past

Ten years ago recruiting was often seen as a steppingstone to an HR generalist role. Recruiters were trained to “screen out” applicants, thus making their positions transactionally focused. This led to the two most commonly used metrics: cost-per-hire and time-to-fill.

keep reading…

The 20 Principles of Strategic Recruiting

by
Dr. John Sullivan
Jul 7, 2008, 4:06 am ET

Corporate recruiting is an interesting field. There are no books entitled The Theory of Recruiting or Principles of Strategic Recruiting. As a result, most individuals in recruiting tend to make it up as they go rather than follow a more defined set of rules or principles.

There is no formal body in recruiting that “codifies” the established practices. In this article, I am attempting to help resolve that problem by compiling a list (from my 35-plus years of experience in the field) that can serve as a foundation for your actions.

Of course, principles are guidelines to point you in the right direction. Remember to vary your direction depending on your business situation and global location.

20 Principles of Recruiting and Talent Management

The following is a list of 20 principles, laws, or guidelines to help you design and implement effective recruiting strategies and approaches:

  1. A well-defined strategy. The foundation of any recruiting effort is a clearly defined and communicated strategy that illustrates the brand message, target candidates, primary sources, and most-effective closing approaches (the who, what, when, and how). Poorly defined or communicated strategy elements results in wasted resources and weak hires. In addition, the best strategies have the capability of “shifting” as the economy and the demand for candidates change.
  2. Pipeline approach. The most effective recruiting approach is to build a steady stream of applicants (a pipeline). In order to build a continuous “talent pipeline,” use a “pre-need” approach that includes workforce planning, branding, continuous sourcing, and onboarding.
  3. Competitive. The most effective recruiting approaches are compared against and are clearly superior to those of a firm’s talent competitors. Because competitors will quickly copy your most effective approaches, a continuous side-by-side assessment of “yours versus theirs” is necessary. A sub-principle applies to candidates: because the very best are always in high demand, if you don’t have to literally “fight” for a candidate, in most cases, you do not have the best candidate in the field.
  4. Employment branding. The approach with the highest impact and the only long-term recruiting strategy is employment branding, the process of building your external image as an excellent place to work. By proactively making it easy for potential applicants to read, hear, or see the factors that make working at your firm exciting, you can dramatically increase the number and quality of your applicants over a long period.
  5. Global. For jobs that require top talent, the process must have a global recruiting capability. This is because the very best talent is unlikely to live within commuting distance of your job.
  6. Target employed “non-lookers.” The best recruiting processes are designed to identify and successfully hire currently employed top performers. This means that the process needs the capability of identifying and convincing employed individuals who work at your competitors and may not be actively looking for a position. Unfortunately, most corporate recruiting approaches are designed to attract “active” candidates.
  7. Speed. Making fast hiring decisions is essential whenever a candidate in high demand decides to make a job switch. Top candidates must be hired using “their” decision timetable. Research shows that top candidates are off the market in less than half of the normal corporate time to fill.
  8. Sourcing is critical. If you don’t utilize sources that attract a high percentage of top performers, it is unlikely you will make a quality hire. After employment branding, effective sourcing is the most critical element of the recruiting process. Generally, the most effective source is employee referrals. Other effective but under-used sources include recruiting at professional events and contests. Using ineffective sources means that you must spend inordinate amounts of time and money on candidate screening in order to avoid a weak hire. The source that is used must be shift, depending on the type of candidate required for that position. Unfortunately, many recruiters use the same exact sourcing scheme for every job.
  9. Data-based decisions. Base decisions on sources, screening tools, and which individual to hire on facts and data, not emotion or even common practices. Making decisions based on objective data helps eliminate biases and causes the recruiting process to produce more consistent, reliable, and high-quality results. It’s also true that in a fast-changing world, “what works” changes quickly so recruiting practices become obsolete quickly. Unfortunately, rather than being a small part of recruiting decisions, emotions and “it’s the way we’ve always done it” tend to dominate corporate decision-making.
  10. Build a recruiting culture. The most effective approaches build a corporate-wide “cultural of recruiting” where every manager and employee is a recruiter. Because of their continuous contact and interaction with outside talent, everyone must play an important supplemental role in identifying talent and in spreading the employment brand. The most effective recruiting strategies convince employees to be 24/7 talent scouts, making every employee a recruiter.
  11. A candidate-centric approach. Focus the process on the candidate’s needs, their job selection criteria, and the candidate experience. A significant part of recruiting is “selling” the candidate on applying for and accepting the job. At least in part, recruiting must follow the customer relationship management (CRM) and the sales and marketing models. Often, the number-one reason why candidates reject job offers is the way that they were treated during the hiring process. It’s also important to note that candidates may be current or future customers, so treating them poorly can directly impact future revenue.
  12. Prioritize jobs and targets. Effective recruiting processes maximize resource utilization by identifying and focusing on the positions with the highest business impact. That generally means revenue-producing and revenue-impact jobs, as well as jobs in high margin and rapid growth business units. The process should also target high-impact individuals known as top performers, innovators, and gamechangers.
  13. Managers are the delivery system. Although corporate recruiting designs the process, managers “deliver” and execute a significant part of that process. As a result, hiring managers must understand its elements and support its precise execution. You must effectively demonstrate to individual hiring managers that they will suffer whenever a bad or “butts in chairs” hire is made. Therefore, recruiting must make a strong business case to individual hiring managers that convinces them of the importance of executing the process precisely. The most effective way of influencing hiring managers is by converting recruiting results into their dollar impact on that individual manager’s revenue and profit.
  14. Diversity. An effective recruiting process must include enough variation and personalization to meet the unique needs of diverse individuals from around the world. Diversity and inclusiveness are becoming not just legal terms but critical components in building global sales.
  15. Selling applicants. The very best recruiting processes builds “relationships” with potential applicants over time in order to increase their level of trust and interest. Unfortunately, no amount of benefits or job features will be convincing to high-demand applicants without this level of trust. Because all candidate-screening processes have flaws, stretching out the assessment process over time allows you to learn more about the candidate and decrease the chances of making a bad hire. The best approaches are designed to take advantage of the fact that a target candidate’s willingness to consider a new job changes quite rapidly, as a result of changes in their own job and organization.
  16. Technology. The best processes rely heavily on technology and the Web in all aspects of the recruiting process. Technology can improve screening, increased hiring speed, cut costs, and provide the firm with the capability of hiring globally.
  17. Integration. Recruiting processes must be integrated with other HR processes. Those recruiting processes that operate independently rather than in unison with other HR functions like relocation and compensation will produce diminished results.
  18. Talent shortages. Although industries often face talent shortages, individual firms can actually have a surplus of candidates if they have a strong employment brand, a great referral program, and a candidate-friendly hiring approach. For example, handsome movie stars seldom have difficulty getting “dates” even when the average “Joe” can’t find a single one. Talent shortages are relative and depend on your image and what you have to offer.
  19. Remote work options. Offering candidates remote work options dramatically increases the candidate pool. Firms that have the capability of managing candidates who work from remote locations have a distinct competitive advantage. They can attract the top performer who doesn’t live in the area, who desires working at home, or who isn’t willing to make a long commute.
  20. Metrics and rewards impact recruiting. Every aspect of recruiting improves dramatically when managers and employees are measured, recognized, and rewarded for their contribution to recruiting. By convincing senior management and HR to place metrics and rewards on key aspects of recruiting, you send a clear message about its importance.

Final Thoughts

Almost every business function has come to realize that if you want consistency and excellent results, you must clearly define the rules of the game. There are, of course, exceptions and perhaps even additions that can be made to the principles outlined above.

But, after working with recruiters and recruiting managers from hundreds of companies, I found that these guidelines will give you a pretty good idea of the essential laws of recruiting and where to focus your efforts if you want superior recruiting results.

Save Boatloads of Money

by
Beth Minter
Jul 1, 2008, 11:31 pm ET

Corporate recruiting is lucky.

We are the piece of any corporate HR function that can show our business hard and fast data around spending and savings. We can show you, Mr. Hiring Manager, how much you spent last year per hire, how quickly we filled your need, the quality of those candidates, and exactly where we found them, plus about 37 other data points. Wow. We’re good. Recruiters, not usually a shy bunch, will market our successes to you relentlessly. We run staffing like a business and we like to make sure you get that.

So, how is it that we measure every molecule of a full-time hire, and continue to drive down cost per hire, but know little about the “other” side of staffing. I present to you contractors. Shady sort. And a little scary, if you remember the Microsoft fiasco a few years ago. Co-employment is not your friend. This uneasy feeling may have something to do with our lack of touch on them, or their price tag. But, you can’t really run a business without them.

It used to be that once a contractor requisition was approved, it was automatically distributed to our vendors. We chose these vendors based on information they provided that they (a) could provide us the best rates while (b) guaranteeing excellent quality ( c) from their “unique” databases where they’d have access to people no one else could find. Cool. Except that we spent $7M last year on contractors. Not cool.

keep reading…

Evaluating Quality of Hire: Can’t Get There From Here

by
Dr. Wendell Williams
Jun 24, 2008, 2:53 am ET

Time and again I read recommendations for evaluating quality of hire. Ask the managers, ask the employees, ask an astrologer. None of these things will ever give you more than a subjective opinion about the kind of information you need to improve the quality of hire. Here’s why.

Imagine advertising for superheroes. There are a dozen steroid-pumped, ego-centric applicants sitting in your waiting room wearing masks, capes, and tights. Each hero claims to have saved the world at one time or another. You hire three of them. Six months later, how do you evaluate your quality of hire?

Evaluating quality of hire requires looking at performance in a different way. It requires mentally separating the “how” from “what.” The “how” represents what the superhero says or does and “what” represents the outcome. Here is the hard part to accept: evaluating quality of hire depends almost entirely on evaluating “how” the hero performed the job, not the outcome. Regardless of opinions to the contrary, “how” is the only part of the job under the hero’s control. It is the only thing separating one hero from another.

Here is an example that may explain this idea.

It’s a particularly bad time on earth. Asteroid showers are occurring periodically, keeping the super-heroes busy. When he was on duty, Clock-Man reacted by turning back time. On her shift, Wonder Woman pulled the asteroids into new orbits with her lasso. And when it was his turn, Superman flew faster than a speeding bullet, smashing them into smithereens. The “what” was the same for all three: reversing time. Using lassos and brute force were all examples of “how.”

keep reading…

Talent Management Analytics

by
Dr. John Sullivan
Jun 2, 2008

By Dr. John Sullivan & Master Burnett

The subject of analytics is often discussed but rarely executed well, even in the most well-established talent management functions.

keep reading…

It’s All About Performance

by
Kevin Wheeler
Jan 17, 2008

It’s all about performance. Over the past four or five years, I have seen a steady increase in organizations spending time and effort to define and measure employee performance. Firms like Success Factors, DDI, and Authoria have had good commercial success in providing the tools and processes that make this easier to do. Oracle and SAP offer modules that ease the process of defining competencies and measuring employees on their contributions.

As the economy heads into a recession and profits are under scrutiny, this will become even more important. No organization can afford people who do not contribute and who cannot perform consistently at a high level.

keep reading…

Webinar: Recruiting Metrics — Quality of Hire

by
Madeline Tarquinio
Nov 29, 2007, 4:00 am ET

Despite the stated importance of attracting and hiring quality talent, many recruiters and recruiting managers continue to face challenges in getting managers to adequately prioritize their roles in recruiting or securing a budget that makes world-class recruiting possible.

As a result, recruiters learn to do more with less, often at the initial expense of the candidate experience and the long-term expense of the organization’s employment brand. Many recruiting leaders have tried to counter this trend with approaches that run the gamut of possibilities, yet most have failed. During this interactive webinar with world-renowned HR strategist, Dr. John Sullivan (sponsored by Previsor), learn the top-10 metrics recruiting organizations can use to demonstrate the impact of effective world-class recruiting. This isn’t a session about transactional analytics, most of which have no value to line managers, but rather metrics that focus on recruiting effectiveness and bottom-line impact.

What Is Your Hiring Batting Average?

by
Dr. John Sullivan
Aug 27, 2007

I am an unabashed follower of the HR philosophy of Jack Welch, former CEO of GE. He is a proponent of a “business-like” approach to HR that emphasizes its critical role in impacting organizational results. Welch is certainly controversial in HR circles because he advocates many things that “softies” in HR regale against, including differentiation in treatment, honest and direct performance appraisals, stretch assignments, and yes, routine firing of individuals who don’t produce or fit the system.

His latest foray into HR deals with measuring your “hiring batting average.” By advocating the direct measurement of hiring quality, he adds even more credibility to counter the “silly” list of arguments that many in recruiting make against measuring quality of hire.

keep reading…

The Dollar Impact of Great Recruiting: A Must-Do Calculation

by
Dr. John Sullivan
Aug 13, 2007

There is nothing more important in the business world than demonstrating the dollar impact of what you do. Every major business function from marketing, sales, finance, supply chain, customer service, and production routinely demonstrate their return on investment. However, as with many aspects of corporate life, HR tends to be the exception to the rule.

Over the course of my career I have routinely heard complaints of the recruiting function being underfunded, underappreciated, and not taken seriously. Such poor treatment should hardly be a surprise given that most recruiting managers have historically not been willing or able to convert what they do into the universal language of business?dollar impact on revenue. What could be more fundamental and important than demonstrating to senior management the dollar impact of hiring top performers versus average ones? To me, it’s the single most egregious error in recruiting.

keep reading…

I’ve Been Recruiting for 25 Years but Still Haven’t Hired Anyone!

by
Ken Gaffey
Jun 29, 2007

When reading the thoughts of my peers in the recruiting profession, I have to admit I become a little surprised at how many have really had a chance to hire people. While aside from a couple of assistants in recruiting groups I have managed, I actually have never hired anyone. Usually that has been the hiring manager’s job.

Recruiters play a vital role in the process that includes:

keep reading…

The Value of Talent

by
Raghav Singh
Jun 6, 2007

For anything to have value it needs to be measurable. In fact, in scientific circles it’s an article of faith that if you can’t measure something, it doesn’t exist. So the time it takes an electron to orbit an atom is precisely known in yoctoseconds (one quadrillionth of a second).

We’re a little short of that level of precision when it comes to measuring the value of talent. Knowing the value of talent in an organization can have major benefits. For one, it would let the organization know how much better (or worse) off it is than its competitors. It would also help focus recruiting efforts where they generate the most return on investment.

keep reading…

Proactive Recruiting Metrics

by
Dave Lefkow
Dec 13, 2006

A fundamental shift in recruiting values is now taking place inside organizations around the world. At the center of this shift is a focus on more proactive recruiting tactics in order to help drive a higher return on investment from recruiting and develop talent pipelines ahead of demand.

In a reactionary, requisition-driven recruiting model, overhead metrics such as cost, efficiency, and speed are adequate measurements of a recruiting department’s value to the organization. Cost-per-hire, staffing efficiency, and time-to-fill are still the primary metrics used in most organizations when recruiting reports to the business.

keep reading…

Measure What Matters

by
Raghav Singh
Nov 1, 2006

I just returned from the first of many HR conferences to come this season. At some, one of the main events are panel discussions featuring industry analysts. They are touted as holding the promise of deep insights into trends that will affect our professional lives in the future.

As many who have attended these can attest, there’s a need for more truth in advertising here: much of what is said is not very useful or interesting. Some of the pronouncements, when combined with two quarters, are worth almost 50 cents.

keep reading…

Recruiting B Players

by
Dave Lefkow
Jul 13, 2006

We all want the best available talent, but of course we’re not alone. As the market for great talent intensifies, some of the best recruiters will realize that there’s often a place for B players in their talent strategies. Identifying and exploiting these untapped talent pools can make your business a dominant force in your industry.

The Ultimate B Player Talent Strategy: The Oakland Athletics

It has been said that “one person’s trash is another person’s treasure.” Michael Lewis’ Moneyball: The Art of Winning an Unfair Game is a perfect testament to this. Even if you’re not a baseball fan, this is an amazing story with valuable lessons for anyone in talent management. In his best-selling book, Lewis documents the practices of Major League Baseball’s Oakland Athletics, who with a $45 million payroll have stayed competitive against the league’s richest teams, some of whom outspend them by a 4-to-1 or even 5-to-1 margin. To illustrate this, here’s a side-by-side comparison of the A’s (who spend an average of $55 million or less per year on payroll, making them one of the lowest-spending teams in the majors) versus the New York Yankees’ (whose payroll is now over $200 million per year, the highest in the league) regular season records over the last six years:

keep reading…

On Becoming a Great Recruiter, Part 3

by
Lou Adler
Jun 30, 2006

We’re into the third week of our eight-week program on becoming a top 10% recruiter. Aside from reading the two previous articles, there were four other things you had to do to get to this point: 1) take the online recruiter diagnostic to see where you are today; 2) email me (lou@adlerconcepts.com) about the biggest change you need to make to become a better recruiter; 3) sign up for a comprehensive survey; and 4) begin tackling the reading list presented in the previous article. Now you’re ready to find some top candidates.

The recruiting and hiring process can be divided into three basic categories: attraction, assessment, and acceptance. These are the three big As. What some people fail to recognize is that you must be good at all three to have great hiring results. Being great at one or two and weak in the third will result in failure. On the other hand, you don’t even need to be great at all three: Being good enough in all three can provide great results. Good enough is good enough. What a lot of HR and organizational-development people and other so-called experts fail to see is that hiring top people is a three-part system. For example, sometimes a great assessment tool can minimize the number of top people who apply because the tool is boring or demeaning.

A behavioral interview or competency model actually might be useful, but not if managers find it too cumbersome to use or if candidates can game it. Designing subsystems that defeat the objective of the main system is called suboptimization, and it’s a common problem that good recruiters have to fight every day. The underlying theme of this eight-part series is to give recruiters the tools to deal with the bureaucrats who forget that the real objective is hiring great people every time. In this week’s session, we’ll focus on the attraction piece: what it takes to find top people who might actually use the Internet, job boards, and career websites to look for jobs. While it shouldn’t be your dominant focus, sourcing active candidates should represent about 25-35% (resume databases and advertising) of your total sourcing efforts. This is shown in the following chart.

Total Candidate Pool by Major Sourcing Channel

Seeking Out “Next Practices,” the Next Generation of Best Practices

by
Dr. John Sullivan
Jun 26, 2006

Many in HR proclaim a desire to be more strategic, yet most doom themselves by not acting any differently than everyone else. A clear indication of this can be seen in the speed by which documented best practices are mimicked and improved. Benchmarking has become a common practice in the profession of recruiting, which most organizations use to identify what must be done to emulate those who do something better. Unfortunately, most stop there with emulation, and that may doom them to mediocrity forever. The business world once moved at a significantly slower pace, a pace that made benchmarking and emulating best practices prudent activities. However, things no longer move so slowly! By the time firms benchmark a best practice today, the situation that warranted the development or implementation of the best practice might have changed or may no longer be present. Instead of systematizing an effort to consistently follow the leader and mimic the soon-to-be-obsolete practices of others, I recommend adopting a proactive approach, one in which you develop your own “next generation” of best practices. I call these “next practices.”

Next Practice Development Is More Common in Other Business Functions

Next practice development isn’t about making something more efficient; instead, it is about a fundamental transformation of the core business activity. For example, Apple has long been a participant in the computer industry, in which the core best practices are predominately focused on refinement of manufacturing technologies that enable computers to do more. While Apple could have easily jumped on the performance bandwagon, it instead opted to develop next practices in the areas of product packaging and service. With the introduction of the iMac, Apple demonstrated that computers don’t have to be beige and gray boxes. With the introduction of the iPod and iMusic service, Apple demonstrated that product companies can develop sustainable long-term relationships with consumers. It abandoned efforts to compete on the nature of performance, long a computer-industry challenge, and reinvented the game with best practices that were unique to its business.

Next Practices Help You Create the Future

Best practices only allow you to do what you are currently doing a little better, while next practices increase your organization’s capability to do things that it could never have done before. By jumping a level up to next practices, you’re taking a giant step in that you are actually creating your future recruiting capabilities, rather than relying on the innovation of others.

Examples of Next Practices

If you are not sure of the distinction between best and next practices, here are some examples in several HR areas: Practice Area: College Recruiting

  • Average practice: Visit the top schools within your state.
  • keep reading…

What Is Talent, and How Do We Measure It?

by
Kevin Wheeler
Apr 26, 2006

Managers ask us to bring them the best talent we can find. We say that quality of hire is our most important metric and that it is tied directly to the kind of talent we can attract. Yet while we bandy about the term “talent,” we have no real definition of it. For many recruiters, talent is synonymous with “anyone who says yes.” For others, it is any hire that stays for six months or a year. And for still others, it is any hire that a manager finds satisfactory.

I think we should define “talent” as those employees whose contributions are vital to our ability to produce our product or deliver our service. Excellent talent then refers to those who produce an above-average amount of our product and poor talent means those who do much less than average. Sports teams measure talent this way all the time. When a team manager speaks of quality talent, he is talking about those individuals who make the most points, block the other team most often, or who the fans and players identify as essential for success. Almost all organizations rate and rank their sales forces. They know that above-average performers generate more sales than average performers. McKinsey, in its Talent War 2000 study, has also documented this. Those surveyed by McKinsey were asked to assess how much more a high-performer in a P&L position generates than a mid-performer. They estimated the difference at 49 percent, and they said that the high-performer should be paid 42 percent more.

When you think about what 49 percent means, it is astounding. That means that a high-performer brings in almost twice as much business as an average-performer or produces twice as much. If you, as a recruiter, could identify potential high-performers, how much more respect would you get? How much better would your reputation be? Defining quality of hire is not the hardest part, though. You should be able to sit down with hiring managers and get some agreement on quantifiable performance measures for most positions. For recruiters it could be simply the time it takes to present qualified candidates or it could be the number of candidates that you present who get an offer. Both measures are easy to track and directly measure your ability to source and qualify candidates and sell those candidates to the hiring manager. Here are four things you could do to improve the quality of hires you bring in and thereby clearly define what good talent looks like.

  1. Together with hiring managers, work to identify what characterizes a high performer. Is it quantity of output, amount of time spent, number of defects created, or is it the amount of revenue their group has generated? This is hard work and there aren’t a lot of benchmarks to go by, but we all know more or less who contributes the most to our organizations. Our task is to quantify that.
  2. keep reading…

Metrics for Improving Referral Program Effectiveness

by
Dr. John Sullivan
Jan 30, 2006

I recommend referrals as the foundation of any excellent recruiting program, followed by employment branding and then recruiting at professional events. However, I must warn the reader that referral programs are not all created equal, and a good number of them (well over 50 percent) provide no better than mediocre results because they have inherent design flaws. These design flaws occur because the directors of these programs invariably copy what others do as opposed to using metrics and data to tell them what works, why it works, and what doesn’t work.

Basic Characteristics of Excellent Programs

In order to gather the “right” metrics about a referral program, you need to know upfront what the critical design elements are that turn good referral programs into great ones. Next, you need to have metrics that cover each of these critical areas if you expect to continually improve your results:

  • On-the-job performance. The primary reason for using referrals is because they produce better performers (quality of hire). Metrics must be developed to compare the performance of referrals versus new hires from other sources.
  • keep reading…