Enabling Success With Big Data - Driven Talent Acquisition- Adopting an evidence-based recruiting strategy

OverviewWhy Big

Data &

Talent

Acquisition

StrategizeFill

Identify

&Prioritiz

e

Measure

-ment &

Case

Studies

Introduction Activity• We have leadership who asks, “What does the

data tell us? • Our leadership is willing to let data override

their initial hypothesis?• Do you have at least one person ON your team

responsible for data and analytics and that person spends at least 50% of their time on those activities?

• Does that person use a tool other than Excel for your data analysis?

• Have you taken at least one basic statistics course?

• Do you have a passion for data and analytics? Share typical results…

And Now A Story About Ham

Value & Need Assessment

Optional

Value

Need

Nice To Have/

Nice To Do

Optional Must Have/

Must Do

Decision Framework

Money

Drive Better Decisions

Make

BusinessHR

Save

There are only 2 reasons why HR should deploy an analytics program - Business Leaders Care About Cost and Profit

Business Plan

Workforce PlanTalent Acquisition

Plan Sourcing Strategy

PlanBudget Forecast

Branding, EVP/EOC

Marketing Effectiveness

Funnel AnalysisCandidate Selection

Quality of HireBusiness

Outcomes

Data

Opportunities To Be “Evidence-Based”

OVERVIEW

The Intersection Between Little Date, Big Data& Talent Acquisition

Market Interest In…

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Huge Interest in “Big Data”

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Evolution of HR

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HR’s role is participating in and creating business strategy. 80% of HR Leaders now report to the CEO. What stories does the data tell? What insights can be derived and applied?

HR’s Pursuit

The Facts:• Only 6% of HR organizations report that they have excellent analytic skills

internally. Most have not yet invested the time it takes to build a holistic analytics function. Due to limited headcount, priority is given to core responsibilities.

• Only 8% of companies report that they have begun to implement a Predictive Analytics strategy into their HR Strategy and Planning activities.

• Most reporting has been focused on HR Operational metrics vs. using data to drive forecasts, planning and decision making.

• The United States alone faces a shortage of 140,000 to 190,000 people with analytical expertise and 1.5 million managers and analysts with the skills to understand and make decisions based on the analysis of big data.

More Facts:• 80+% of Senior HR Executives report to their CEO for the purpose of

integrating People strategies into the highest levels of the business planning.

• However, only 38% of CEO’s report that they are satisfied by the role that their HR Leader plays. The number one reason for the dissatisfaction is that they find HR Leaders fall back to operational and compliance topics vs. strategy and business planning.

The Opportunity:• Companies in the top third of their industry in the use of data

driven decision making were, on average, 5% more productive and 6% more profitable than their competition.

What is Big Data?

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What is Big Data?Buzz phrase – Squishy….no single definition

• Official definition: Convergence is building around the following:» Gartner’s 3 “V’s – A data set that is created through the combination of high Volume and Velocity from a

Variety of sources» IBM’s 4th V – Veracity

• Technical Component - Due to the enormity of the data traditional data acquisition, storage, and processing tools will not suffice

• Paradigm Shift: Traditional Structured vs. Creative Discovery Models=====================================================================• Key Hallmarks - Big, Fast, and “Different” – Blended together, Allowing for Predictive/Forecasting

and Real-Time Analysis

• Layman’s definition is emerging. Less focus on “what it is.” Instead the focus is shifting to “why it is important?” and “how it can be used?”

» i.e. “Big Data” is collection of activities that center around the analysis of large sets of data to determine if there are any Patterns that could be used to Predict Performance.

Big data is: rapidly increasing amounts of data, generated by multiple sources, in many formats; analyzed for new insights

The value of big data comes from analytics. With big data, organizations can perform more in-depth analytics; delving into data and connecting previously unconnected data sets.

The variety of data types are increasingly diverse. Structured data* often comes from

transactional systems, while unstructured data comes from a number of sources

such as photos, video, text documents, etc.

Variety

Velocity

Volume

Veracity

Value

The volume of data being produced has increased rapidly. Organizations are faced with data from numerous sources including the enterprise, the cloud, and social media.

Data is being generated at increasing rates.

Organizations not only need to address how quickly data is generated, but also

how quickly the data needs to be analyzed

before it becomes stale or obsolete.

Getting value out of big data is dependenton having quality data. If an organization’s data lacks veracity, decisions may be made that do not actually benefit the organization.

Velocity

Volume

Variety

Veracity

The 4 “V’s” + Statistical Analysis =Opportunity to See Patterns & Derive

New Insights!

Data you see...Platform usage...

Other DataYou need special tools to see

HR – HRIS Data, Payroll, Performance Reviews, Training Comms / marketing - Surveys, community feedback, ratings, vendor dataSales – CRMInformation technology – Outlook exchange (or similar)Operations – Project management system, inventory or warehousing systems, enterprise resource systems Customer service – CRM technologies, customer recordsProcurement – Contracts, service-level agreements, targetsQuality – Compliance systems, automated reportingFinance – general ledger, enterprise resource system, payrollLegal - compliance fees, litigation, settlement

Examples - Little Data Sources

HR – BLS, Comp Benchmarks, Unemployment Data Comms / marketing - Sentiment analysis of social dataSales – communication engagement with customers using voice, text, and GPS trackingInformation technology – leadership communications, interpersonal relationships through email, IT resource usage.Operations – usage of GPS dataCustomer service – voice-based analyticsProcurement – commodity market data integrationQuality – operations outputs and sensor readings

Examples - Big Data Sources

The Results That Matter

Narrowcast Laser In Target

It’s all about targeting and results!

TALENT ACQUISITION

Why Big Data &Talent Acquisition Make Sense

The Changing Look of Business Success

How does Talent Acquisition Drive This?How is Talent Acquisition Impacted By This?

Big Data for HR

Top benefits, as seen by HR managers

– Identifying Potential Recruits

– Determining Optimal Job Candidates

– Identifying Effectiveness of Recruiting Campaigns

Areas of Greatest Benefits

No benefits Moderate benefits Very high benefits

Degree Of Potential Benefits Big Data Could Generate— TATA Consultancy

Improve employee retention

Indentifying Effectiveness of recruiting campaigns

Determining employees to promote and provide other rewards

Gauging employee moral/engagement

Determining optimal job candidates

Determining the most valuable employees

Indentifying internal mentors

Finding information

Finding Employees with the right knowledge

Indentifying potential recruits

0 1 2 3 4 5

3.85

3.5

3.42

3.38

3.38

3.35

3.31

3.27

3.23

3.08

Why Applying Big Data To Talent Acquisition Matters

Talent Is Clearly A Differentiator Talent is what drives innovation

“War for Talent / Competitive Talent Acquisition Candidates can only take on job at a time

Talent Constraint Issues PwC Study Boston Consulting Group Study

Value Propositions for Talent Acquisition

• Paradigm Shift– – Proactive and Foresight driven

• Talent needs assessment – What, When & Where– Focus on building talent sourcing strategies that align to the business plan– Increase focus candidate and hiring manager engagement vs. transactional aspects of the

process– Tied to a “Workforce Plan”

• Smarter Spend –– Reduced Cost Per “Applicant” and “Hire”– Quality of Candidate – Increase % of completed apps you want to interview– Ability to reduce or get broader coverage with the marketing budget

• Precision and Speed –– Know before you begin – Sources and Difficulty– Narrow casting – No more Post & Pray/Spray– Timeliness

When Was This Said?“Today, many companies are reporting that their number one constraint on growth is the inability to hire workers with the necessary skills.”

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Peter Drucker – Professor of Management, The Wharton SchoolOf Business - Present

William Jefferson Clinton – President of the United States of America 1993 - 2001

John Francis “Jack” Welch, Jr. – Chairman and CEO of General Electric 1981 - 2001

The Basics Have Not Changed…

Need To Find & Attract The Best Talent, As Quickly As Possible, For The Best Cost

IDENTIFY

Identify & PrioritizeMission-Critical Positions

Specialist Key

Flexible Fundamental

Vacancy Impact

Scarc

ity

Short & Long-Term Impact

Vacancy in role has significant impact on short-term;

Specialized skills or knowledge that must be recruited and/or developed

Vacancy in role has significant impact on short-term;

General knowledge and skills

Vacancy in role has little impact on short-term;

Specialized skills or knowledge that must be recruited and/or developed

Vacancy in role has little impact on short-term;

General knowledge and skills

Focus On Positions That Have The Greatest Impact

Long-Term Impact

Talent Supply

Size of Candidate Pool

Confidentialit

y

Sensitivity of Search

Specialty

Assessment of External Labor Market

Difficulty

Resource Intensity

Capability

Capability of Recruiting Team

RoleCritical

ity

Assessment of Business Impact

Intelligence

Analysis of Information to be Gained

Strategic

Support

Business Action on Pipeline

Small: <20 resumes received for avg RTH Medium: >20 & <50 resumes received for avg RTH Large: <50 resumes received for avg RTH

High: No ads, only aware to stakeholders Medium: No ads, internal knowledge only Low: Ads, internal and external knowledge

High: Small number with specific skills Medium: Somewhat limited number with specific

skills Low: Constant supply with specific skills

High: Many resources required, longer cycle Medium: More resources required, average cycle Low: Limited resources required, short cycle

High: Direct experience / current knowledge Medium: Related experience / previous knowledge Low: No experience / no previous knowledge

Critical: Creates strategy, high short and long-term impact

Key/Core: Creates or affected by strategy, avg impact General: Executes strategy, little short-term impact

High: Valuable info about competitors or market Medium: Potential info about competitors or market Low: Low-value info about competitors or market

High: Commitment to hire, regardless of opening Medium: May hire, regardless of opening Low: Will only hire for an opening

Sample Prioritization Criteria Matrix

Role #1 Role #2 Role #3 Role #4

Talent Supply � ���� � �

Confidentiality ���� � � ����

Specialty � ���� � �

Difficulty � � ���� ����

Capability � � � �

Role Criticality � � ���� ����

Intelligence � � � �

Strategic Support ���� ���� ���� �Is this position a

priority? Yes No No Yes

prioritization criteria

The value for each criteria is entered for the roles being considered. The decision is made looking at all of the criteria results, role vs. role.

decision

Multiple roles can be considered side by side.

Sample Prioritization Decision Tool

Know Your Typical Funnel

40 Sourced

14 Responses

5 Interviewed

1 Hired

STRATEGIZE

Create Your Strategy To Source & FillMission-Critical Positions

Strategy Defined

Talent Acquisition Is Competitive – It Is Critical That You Be Able To…

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Market Your MessageIn The Right Places, The First Time… Ahead Of The Competition

What if you could accurately predict the outcome?

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What If?• Examples - What would you be able to do if you could…

– Make better, more accurate forecasts?– Be able to be “proactive” in your talent acquisition activities?– Be able to make “informed” decisions, faster and then be able to take

quicker action?– To understand the effectiveness of the actions you’ve taken in real-time?– To have the competitive “talent” intelligence regarding how well your

marketing efforts are working, in real-time?– Have insight into the available supply and demand for talent?

• “Recruitability Index” and “Poaching Protection”– Could tie Sourcing to future Performance and Retention

• Talent is a differentiator. Without a pipeline you can’t recruit. • Leverage Big Data Insights for Operational Efficiencies and Competitive

Advantage.

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Activity SummaryWhat does my recruitment marketing activity look like?

Marketing EffectivenessHow well did my investment work for me?

Big Data

Breaking It Down

How To Apply Big Data In Talent Acquisition

FILL

Source & FillMission-Critical Positions

Pipelining

Sourcing

Labor Market Research

Consultation & Development

Agency Engagement

The sourcing method chosen is based on the scarcity of talent and the importance to the business strategy.

Each method requires its own strategy!

Specialist Key & Critical

FlexibleFundamenta

l

Value Creating / Short-Term Impact

Scarc

ity

Affected by Strategy Affects Strategy

Pipelining

Sourcing

Build pipelines and direct source for roles that will yield valuable, recyclable intelligence.

Labor Market Research

“Quick wins” that yield high intelligence but are easy to execute and can be managed with less resources

Agency Engagement

Outsource roles that are resource intensive but will yield little intelligence.

Consultation & Development

Leverage opportunities to help managers increase their networking skills, etc.

Sourcing Method:

Determining The Best Sourcing Methods

Pipelining Sourcing Labor Market

ResearchConsultation & Development

Agency Engagement

Definition

Sourcing Options

Developing pools of talent for future hiring needs.

Identifying pools of talent and converting them into applicants for current and future hiring needs.

Conducting research to benefit future hiring strategies and support competitive business objectives.

Building internal sourcing expertise with recruiters and hiring managers.

Centralizing management of recruiting-based, 3rd party agency engagement.

• Name generation

• Recruitment Marketing

• Outreach to talent leads

• Ongoing engagement of leads

• Name generation

• Recruitment Marketing

• Outreach to talent leads

• Ongoing engagement of leads

• Filtering of leads

• Conversion of leads into applicants

• Name generation

• Labor-market analysis

• Competitor employer value analysis

• Informal coaching of recruiters and hiring managers by senior sourcing specialists

• Training sessions to improve recruiters’ capabilities in direct-candidate sourcing

• Sourcing channel consultation

• Maintaining relationships with preferred vendors

• Leveraging 3rd party agency success

Defining Sourcing Methods: The “What” – Not The “Where”

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Which Pond To Fish In?

Greatest Scrutiny Should Be On Spend

Maybe I’ll Just Use My

49Usual Media Outlets

Post & (S)Pray

Single Source

MEASUREHow and What to Measure

Marketing Effectiveness

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Case StudyPrior to eQuest Analysis:

Financial Job Board Sector Only

• Utilized 48 Financial Job Posting Sites• Average Spend Per Site = $500.00• Total Annual Spend = $175,000.00 (350 postings annually)

………….………….………….………….………….………….…….

After eQuest Analysis:

3 & 6 Month Trending Reports

• 3 & 6 month study showed no candidate viewership/activity on 45 of 48 sites• 2 sites showed upward candidate trending• 1 site determined strong viewership and response rates

Case Study - ContinuedRecommendations:

1. Disengage the 45 non-working career sites2. Add additional 4 career sites determined to be effective through data analytics3. Focus postings on remaining 3 sites and 4 new sites by job location, job title, skills sets4. Incorporated best responded to job titles in aggregated analysis5. Skill word(s) analysis, comparison, and recommendation

………….………….………….………….………

Results:

6. Candidate traffic was boosted by 175%7. Quality of candidates increased8. eQuest Media negotiated preferable posting contracts with the 7 boards to reduce overall

spend by 50% or $87,500.009. Repurposed savings into other job classifications

Case Study• Customer: One of the world’s largest manufactures of commercial building systems and

automotive components.• The Business Challenge: In order to gain a competitive advantage in the marketplace by

attracting top talent, the customer needed to obtain and engage a more qualified candidate pool. In the past, their recruitment marketing strategies relied on hindsight and trial-and-error. As a result of this reactionary approach to talent acquisition planning, they was spending more time on recruitment administrative tasks and less time on the all-important task of candidate engagement. The challenges were compounded by an increase in the number of difficult-to-fill critical jobs, which they needed to address in a very short amount of time.

• The Approach: Adopt an evidenced-based recruitment marketing strategy to forecast the right job boards, candidate flow, and timing anticipated to fill the critical positions. Additionally, they needed to get a better understanding the effect their employment brand was having on their recruiting efforts.

• Results: Focused marketing campaigns. Increased “Interview Per Post” metric by 20%. Increased Recruiter Engagement vs. Administration ratio by 30%. Decreased time to fill for critical jobs by 15%.

Other Big Data Case Studies

Research has found that applicant’s work history is not a good predictor of future results.

In call centers, the quality of the supervisor is a better predictor of tenure and performance than the experience and individual attributes (i.e. communication skills and personal warmth) of the workers themselves.

Analysis has also revealed that, contrary to common belief, an outgoing personality is not the defining trait of successful sales people. Rather, it’s a persistence to keep going even after being told no, called emotional courage, that predicts sales success.

(Source: Lohr, April 20, 2013)

Other Big Data Case Studies

• What data points correlate with successful outcomes – i.e.

• RIGHT Job Boards / Advertising Sources that lead to the highest “Quality of Candidate” ratio

• External & Benchmark Data – i.e. BLS, Unemployment rates, Census, and Talent Competitor averages for same role

• Lowest time-to-application rates• Highest volume of applicants• Hiring Funnel

– Volumes needed by Role– Conversion rates

Know Your Data – by Position & Labor Market

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Begin With The End In Mind!Determine which roles have the highest value to the business. Use “Big Data” patterns to develop your strategy to determine

how to source, acquire, and select the best candidates. Be a valuable business executive with human capital insight.

Big Data – Baby Steps

Use These 2 Frameworks To Guide You1 – Mindset, Skillset, Toolset2 – What? So What? Now What?

In the end – it’s all about driving

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Find Candidates, Fill Jobs Faster, Spend Smarter!

Questions?

David BernsteinVP – Big Data for HR

David.Bernstein@eQuest.com@BigData4HRGuy

925-275-8102

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