Presented ByPresented By

Tom DarrowTom DarrowOctober 3, 2001October 3, 2001

Recruiting Methods for Improved Performance

Agenda

• Recruiting Metrics – Why?

• Recruiting Metrics – What to Measure…

• Recruiting Metrics – How to Use…

To Ponder

“By showing a significant improvement in recruiting new talent, companies can

achieve a 10.1 percent increase in market value - the largest increase among areas linking human capital

practices and shareholder value creation.”

Watson Wyatt Worldwide, 1999

“Talent will be the single most important strategic factor for the next 20 years.”

McKinsey & Company

To Ponder

“The average cost of losing a high-tech employee is $123,000.”

Corporate Leadership Council

“The top 10% of candidates accept jobs within 10 days.”

“A top performer produces 50% more than an average performer.”

Dr. John SullivanSan Francisco State University

To Ponder

“There are three types of lies. Lies, Damned Lies, and Statistics.”

Benjamin Disraeli

What does 2 + 2 equal?

Recruiting Metrics – Why?

• To identify process steps that need improvement

• To anticipate market trends and initiate competitive adjustments

• To report recruiting results to senior management

• To support business cases for programs and expenditures in recruiting

• To evaluate and reward recruiting staff• To evaluate effectiveness of change

initiatives

Metrics to Measure

“What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics

• Resumes• Screens• Interviews• Offers• Accepts

• Fills• Use of

system

• Efficiency• Cost by

source channel

Quality of Hire

“What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics

• Resumes• Screens• Interviews• Offers• Accepts

• Fills• Use of

system

• Efficiency• Cost by

source channel

Quality of Hire – How to Measure

• Short Term– Create quality of hire ratings

• A = Exceeds job description requirements• B = Meets job description requirements• C = Could meet job description requirements with minimal

training and coaching– Set company-wide annual percentage goals

• A = 20%• B = 60%• C = 20%

– Within a week of hire, collaborate with Hiring Manager to secure ranking

– After 6 months, secure another ranking from Manager

Quality of Hire – How to Measure

• Long Term

– Review performance reviews• Results by recruiter, source channel,

department, hiring manager

– Review retention• Results by recruiter, source channel,

department, hiring manager

Quality of Hire – Considerations/How to Improve

• Expand sourcing channels– Researchers– Contract Recruiters

• Is the company’s compensation plan competitive?

• Time to Fill – Is it competitive?• Create interview methodology and train

management• Encourage internal transfers• Utilize contractors

Time to Fill

“What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics

• Resumes• Screens• Interviews• Offers• Accepts

• Fills• Use of

system

• Efficiency• Cost by

source channel

Time to Fill – How to Measure

• Days From Requisition to Acceptance

• Days From Requisition to Start Date

Time to Fill – Considerations/How to Improve

• Stop/Start– Consider it a new requisition

• How much does it cost to not fill opening?– Revenue loss per day

• Utilize phone screens• Reduce # of interviewers• Utilize technology

– Videoconferencing– Fitability Systems

• Streamline requisition and offer approval process– Fewer signatures– Automate– Salary range approval in requisition

Cost Per Hire

“What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics

• Resumes• Screens• Interviews• Offers• Accepts

• Fills• Use of

system

• Efficiency• Cost by

source channel

Cost Per Hire – How to Measure

Total Direct Recruiting CostsTotal Number of Hires*

*or Total Number of Positions Filled

Cost Per Hire – How to MeasureTotal Direct Recruiting Costs

• Marketing– Brochures– Job Boards– Company Web Site– ERP

• Interview Training• ASP/Applicant

Tracking• Candidate Travel• Signing Bonus

• Recruiter Salaries• Agency Fees• Relocation• Orientation/Training • Background/Drug

screens• Testing

Cost Per Hire – Considerations/How to Improve

• Costs Not to include:– Time of Hiring Managers and others– Donations/Grants to Universities– Administrative costs

• Telephone• Copies• Supplies

• How to improve– Hire recruiters/contract recruiters instead of

search firms– World class Employee Referral Program– Eliminate brochures– Agencies – Preferred Vendor List

Process Efficiency

“What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics

• Resumes• Screens• Interviews• Offers• Accepts

• Fills• Use of

system

• Efficiency• Cost by

source channel

Process Efficiency – How to Measure

• Resumes # of Resumes 100 25:1 # of Hires 4

• Screens # of Screens 80 80%# of Resumes 100

• Interviews# of Interviews 40 50% # of Screens 80

• Offers # of Offers 10 25%# of Interviews 40

• Acceptance# of Hires 4 40%# of Offers 10

Process Efficiencies – Considerations/How to Improve

• Automate process• Define service level agreement

between Recruiting and customers

Acceptance Rate

“What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics

• Resumes• Screens• Interviews• Offers• Accepts

• Fills• Use of

system

• Efficiency• Cost by

source channel

Acceptance Rate – Considerations/How to Improve

• Don’t confuse effort for accomplishment• Probably the least important metric• Target should NOT be 100%• How to improve

– Better assessment– More accurate job descriptions– Analyze declines

• Reasons for decline• What was accepted?• Recommendations for improving process?

Recruiter Production

“What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics

• Resumes• Screens• Interviews• Offers• Accepts

• Fills• Use of

system

• Efficiency• Cost by

source channel

Recruiter Production – What to Measure

• Quality of Hire• Fills

– Number of filled positions • Cost per Hire• Time to Fill• Use of ASP/Applicant Tracking System• Customer Satisfaction

– Good process?– Hire a fit?

• Retention– 90 day probation period only

Recruiter Production – Considerations/How to Improve

• Role of Recruiting vs. Role of Hiring Manager– Screen, interview, and counsel or just

source and forward? • Ensure criteria used to assess

recruiter is within their control• Recruiter Workload

– Exempt level positions – 20 to 25 per month

– Non-Exempt positions – 35 to 50 per month

Source Channels

“What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction Source

Channels

Recruiting Metrics

• Resumes• Screens• Interviews• Offers• Accepts

• Fills• Use of

system

• Efficiency• Cost by

source channel

Source Channels – What to Measure

• Agencies, ERP, Campus, Internet, Company Web Site, Newspaper– Acceptances– Quality of Hire– Time to Fill– Cost per hire– Process Efficiency

• Resumes to Hire

Source Channels – Considerations/How to Improve

• Research alternative sourcing channels

• Create your own sourcing channels– User group– Contest– Newsletter– Forum

AA/EEO/Diversity

• Measure for adverse impact• Track metrics for reporting• Track metrics for enhancing diversity

efforts– Increase diverse applicant flow

Using Recruiting Metrics

• Business Planning– Budgets– Resource plans

• Improve Process Efficiency• Business case

– Systems (ASP/Applicant Tracking)– Recruiter Headcount

• When report?– Weekly, Monthly, Quarterly, Annually

• Industry Standards/EMA Survey– WARNING!

• In-house or outsourcing

Recruiting Metrics – Getting Started

• Commit to data capture• Compile company metrics from prior

two years• Set goals for next fiscal period

– Push for a company staffing plan

• Capture data as it happens• Communicate to senior management

To Ponder

“Attaining one’s objectives is not a cause for celebration; it is a

cause for new thinking”Peter Drucker

“People are the one true competitive measure.”

Hal Rosenbluth

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) 992-3701TomDarrow@talentconnections.net

www. talentconnections.netwww. talentconnections.net