copyright 2005 talent connections. all rights reserved. presented by: tom darrow the most strategic...

Copyright 2005 Talent Connections. All Rights Reserved.

Presented By: Tom DarrowPresented By: Tom Darrow

THE Most Strategic Recruiting Initiative:

Leveraging Your Employeesto Source, Assess & Sell


Employee Referral Program — Why?

• Increased quality of hire– Skills, behaviors, and cultural fit can be

referenced

• Low cost to administer• Empowers employees• Increases employee morale and loyalty• Candidate has positive pre-disposition about

company• Candidate is contacted proactively instead of

waiting for them to take the initiative• Limited competition for candidate


Primary Weaknesses of Employee Referral Programs

• Program is out dated• Program is poorly designed• Program is too detailed• Program doesn’t vary reward with

urgency and market value of the position

• Program doesn’t INCENT• Program assumes employees know

how to recruit/find referrals


Buy-In from Management

• Develop a business case– Collect sourcing and cost metrics

from prior two years– Estimate cost of employee

referral program• Marketing• Referral bonuses

– Estimate increased number of hires through ERP

– Estimate cost savings (if any!)– Anticipate management concerns


Primary Management Concern

“Referring new hires and helping to build the company should be a part of the employee’s job”

• Considerations:– Employees do what they’re evaluated on– If a program can increase quality of hire,

reduce cost, and reward employees, isn’t that a good thing?


Additional Management Concern

“Employee referral candidates are hired more because of relationships and less because of skills and fit.”

• Consideration: – Recruiting assessment process should be

the same for candidates from all sources



“Hiring too many employees from referrals will lead to an adverse impact problem.”

• Considerations:– Assessment process should screen for job

related factors– Develop diversity initiatives to counter

tendency to refer “people just like us.”



“If we’re getting so many hires from employee referrals, what do we need all these high priced recruiters for?”

• Considerations:– Recruiters facilitate employee referrals– Recruiters set overall strategy– Recruiters consult with hiring managers on

job requirements, candidate assessment, and offer package


Who is Eligible (Full or Partial)?

• Management?• HR/Recruiting?

– Challenge: Make recruiters eligible!!!• Contractors/Temporaries?• Alumni?• Vendors?• Others?

Make everyone eligible in some way!


What Positions are Eligible?

ManagementManagement

AdministrativeAdministrative

Hi-TechHi-Tech

Entry LevelEntry LevelAllAll


Other Considerations

• Are clients/customers off limits?

• Does referred candidate need to have minimal requirements? Does referred candidate have to be referenceable?– Have to have met the candidate– Have to have their permission to submit

resume– Avoids referrer from becoming a “pastatute”

• Does the referrer get credit only if referral is hired?


Other Considerations

• Treat referred candidates the same as candidates from other sources except…. move more quickly!

• Referrer will not be involved in the assessment process


• Parking Privileges• Training course

reimbursement• Equipment

– Computer– Palm Pilot– Home office

• Exclusive tickets, restaurants, country clubs

Incentives — Rewards

• Cash• Stock• Vacation• Frequent Flyer• Performance

Evaluation note• Drawing• Logo

merchandise


Cash

• Pay out – In first paycheck after start date? – After 90 days?

• Longer timeframe will not deter employees from making referrals

• Covers probation period• Manager/company is responsible for

assessment – this argument is not consistent with agency agreements

• A problem develops if referred employee leaves after 3 weeks and bonus has been paid out

• More cash when referred hire gets promoted?– Could create internal politics– Referrer has no control over referee’s

retention or contributions– Should they have to pay some back if the

referee gets fired?


Cash

• Gross up for taxes!– Reduce payout levels if necessary

– Keep the emotions positive


Drawing

• Who is eligible for the drawing? – 10 tickets for every referral hired– 1 for every referral not hired– Watch out!

• If someone wins the grand prize who didn’t refer someone who was hired, you undermine an essential aspect of ERP’s – a hire is the goal.

• Need to document qualifying timeframe for drawing


Drawing

• PWC – “all but one chose cash” – Undermines hype value of non-cash awards

• Part of award to charity– Great idea!– Watch out – charities/non-profits that

exclude protected classes (e.g. religious organizations)

• Employees need to feel they have a reasonable chance to win– Have more secondary prizes– Draw more often


Program Slogan and Logo

• Create special slogan for program:– Shaping Our Future– Bank$Shot– Bird Dog– PERSonnel (Personal Employee

Referral System)– Quest for the Best– Planes Trains and Automobiles ERP– Spotters


Incentives — Recognition

• Mention in new hire welcome e-mail

• Note in Performance Evaluation

• $$$$$$/merchandise presented at company meeting– Or….hand delivered by CEO

• Logo clothing for display in the office

• Reward managers for the % of hires in their departments from employee referrals


Buy-In from Employees

• Create advisory team of employees to help develop program

• Develop training program that must be completed for employees to be eligible for employee referral program involvement – Get key leadership to first sessions!

AdvisoryAdvisoryTeamTeam

AdvisoryAdvisoryTeamTeam

ERPERPTrainingTrainingProgramProgram

ERPERPTrainingTrainingProgramProgram


Teach Employees!

• How and where to source/network

• How to build relationships• How to assess potential of

candidates• How to sell the position and

the company• Importance of

confidentiality• How to work within the

corporate process


Employee Referral Program —Sourcing Channels

PriorEmployers

Conferences/Seminars

Professional Associations

Alma Mater

Family and Church

Children’s Friend’s Parents

Country Clubs/ Community

Organizations

Commuter Trains/Buse

s


How to Teach Employees

• Recruiting Process Workshop• Interview Skills Workshop

• Make attendance in both mandatory for:– Participation in interviews– Participation in ERP

• Get senior management to attend first class!


Recruiting Process Workshop

• Develop a game– “Recruitopoly”– “Recruit or Consequences”

• Teach the strategy, techniques and tools for recruiting in the company– Sourcing, assessing, selling– What is the Hiring Manager’s role?– What is Recruiting’s role? – What is everyone else’s role?– Employee referral program


Interview Skills Workshop

• Recruiting Process• Interview Preparation• Types of Interviews

– Screening– Skills– Behavioral– Confirming/Selling

• Managing the interview• Assessing the candidate• Documentation• Legal issues


QuestionQuestions & s &

AnswersAnswers


Thank You!

Tom DarrowTom Darrow

PrincipalPrincipal

Talent Connections, LLCTalent Connections, LLC

602 Gettysburg Place602 Gettysburg Place

Atlanta, GA 30350Atlanta, GA 30350

(770) 992-3701(770) [email protected]

www. talentconnections.netwww. talentconnections.net

copyright 2005 talent connections. all rights reserved. presented by: tom darrow the most strategic...

Documents

talent connections

sell slide

package slide

employee referrals recruiters

dated program

designed program

employees job considerations

primary management concern