The State of Recruiting
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Transcript of The State of Recruiting
The State of In-House Recruiting
Ron MesterPresident & CEO ERE Media, Inc.
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Topics for this morning
I. About our researchII. A Few Findings to Provide ContextIII. The Performance ImperativeIV. Priorities for Improving Performance
Excellent sample, with 1,353 “in house” respondents
• Respondents = readers from ERE, TLNT, and SourceCon (including some of you)– Mostly recruiters and HR– Also hiring managers and C-level execs
• Surveys completed the week of March 24, 2014
• Key demographics captured:– Company Role: recruiting, HR, hiring manager, C-level exec– Recruiting Role: leader, manager, recruiter, sourcer– Industry– Company Size (# of employees)– Location
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Responding recruiters are experienced
Recruiting Leaders12 years
Recruiters
9 years
Recruiting Managers
11 years
Estimates using survey data
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Topics for this morning
I. About our researchII. A Few Findings to Provide Context
a. About the recruiting departmentb. About the recruiting professionc. About recruiters
III. The Performance ImperativeIV. Priorities for Improving Performance
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
‘Talent Acquisition’ or ‘Recruiting’?
58% 25% 60% 24%
53% 26%
47% 26%
54% 15%
‘Talent Acquisition’ ‘Recruiting’
Recruiting leaders
HR
Hiring managers
C Level
Recruiting team members
‘Recruiting’‘Talent Acquisition’
Most of the rest:
“I don’t care”
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Let me start over…
Welcome to the
ERE Talent Acquisition Conference
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Recruiting team size scales with company size
4
9
20
36
51
Up to 999
1,000 – 4,999
5,000 – 9,999
10,000 – 49,999
50,000+
Recruiters per 1,000 employees
9.3
2.5
2.6
1.0
0.5
Size of company Average team size
Estimates using survey data
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Recruiting Leaders are comfortable reporting to HR
75%
15%
10% 11%
19%
69%HR
Currently reporting to Want to report to
CEO / COO
Other
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Key parties are aligned on how recruiting performance should be measured
Rank Metric Recruitment leaders
Others in team
HR Hiring Managers
C Level
1 Quality of Hire 4.5 4.3 4.6 4.7 4.62 HM satisfaction 4.3 4.4 4.3 4.3 4.23 Candidate satisfaction 4.2 4.2 4.2 4.3 4.04 Applicant quality 3.8 3.9 4.1 4.4 4.25 Time to fill 3.7 3.6 3.8 3.7 3.96 Offer acceptance rate 3.6 3.6 3.7 3.7 3.7
=7 Reqs per recruiter 3.5 3.3 3.0 2.6 2.5=7 Interview/hire rate 3.5 3.5 3.4 3.8 3.79 Source of hire 3.4 3.3 3.2 3.1 2.8
10 Cost per hire 3.2 3.5 3.6 3.4 3.511 Diversity of hire 3.2 3.3 3.4 3.3 3.1
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Topics for this morning
I. About our researchII. A Few Findings to Provide Context
a. About the recruiting department
b. About the recruiting professionc. About recruiters
III. The Performance ImperativeIV. Priorities for Improving Performance
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
The growth of in-house recruiting will likely be 3-5% by Dec 2015
Size of team Forecast growth in headcount
Small (2-5) 13%Medium (6-19) 2%Large (20-49) 3%Very Large (50+) 3%All teams 3-5%
• 53% forecast recruiting team will grow (nearly a third say by 10% or more)
• 40% forecast flat• 8% forecast team will shrink
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Would you recommend corporate recruiting to a friend or colleague?
-10%
0%
10%
20%
30%
40%
50%42%
44% 44%
17%
14%11%
-4%
Net Promoter Score
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Topics for this morning
I. About our researchII. A Few Findings to Provide Context
a. About the recruiting departmentb. About the recruiting profession
c. About recruitersIII. The Performance ImperativeIV. Priorities for Improving Performance
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Recruiters are largely unsatisfied with their current job
Others in the recruitment
team
8% JSS
Recruitment Leaders24% JSS
Recruiters
-4% JSS
Sourcers:17% JSS
Managers:17% JSS*
* ”Job satisfaction score” (JSS) calculated like “Net Promoter” score: % of 9-10s less % of 1-6s
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Recruiting leaders of med/large teams are likely to be “directors”
CURRENT TITLE
All Recruiting Leaders
Large (20+)
Medium (6-19)
Small (2-5) Solo
Chief 2% 0% 0% 4% 0%
EVP/SVP/VP 6% 15% 11% 1% 0%
Director 39% 58% 49% 33% 16%
Manager 36% 12% 31% 49% 40%
Lead/Supervisor
12% 12% 7% 13% 16%
Other 6% 3% 2% 0% 28%
Size of recruiting leader’s team
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What keeps leaders and recruiters awake at night?
Candidate experience
Quality of hire
Workload
Workforce planning
Finding cultural matches
Ability to attract candidates
Hiring manager interactions
Recruiting team capability
Recruiting tools/process
Candidate / Skills availability
0% 5% 10% 15% 20% 25% 30% 35% 40%
LeadersRecruiters
% of respondents who commented and mentioned this issue
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Topics for this morning
I. About our researchII. A Few Findings to Provide ContextIII. The Performance ImperativeIV. Priorities for Improving Performance
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
A simple, yet critical imperative
• Why?o Recruiting departments aren’t performing well
enough right nowo Recruiting is about to get harder
Improve performance noticeably, and soon!
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The recruiting department’s report card is nothing to write home about
Grade your recruitment department performance
Recruitment Leaders B
Other team members B
HR B-
C Level B-Hiring
managers C+© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Compared to last year, open jobs are as hard or harder to fill
Hiring managers
C Level
HR
Rest of recruitment team
Recruitment leaders
0% 20% 40% 60% 80% 100%
34%
46%
36%
40%
40%Easier Same Harder
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And many anticipate that filling jobs next year will be even harder
Hiring managers
C Level
HR
Rest of recruitment team
Recruitment leaders
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
44%
38%
44%
47%
54%Easier Same Harder
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In particular, larger companies anticipate that filling jobs will be harder in 2015
Small (100-999)
Medium (1,000-4,999)
Large (5,000-49,000)
Very large (50,000+)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
36%
53%
52%
56%Easier Same Harder
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Virtually every industry forecasts that jobs will be harder to fill next year
Business Services
Gov't/Educ/NFP
Software/IT/Telco
Health/Pharma
Financial Services
Retail
transportation
Manufacturing
Prof Services
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
20%
42%
47%
48%
50%
55%
57%
59%
60%
Easier Same Harder
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Priorities for improving recruiting performance
ALIGNMENT INTERNAL PERFORMANCE INFLUENCE
Metrics
Workforce Plans Approach to the Work
Internal Team
Reporting Relationship
Talent Advisor
(c) ERE Media, Inc.© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Topics for this morning
I. About our researchII. A Few Findings to Provide ContextIII. The Performance ImperativeIV. Priorities for Improving Performance
a. Alignment - METRICSb. Internal Performancec. Influence
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
There is reasonable alignment on what recruiting metrics SHOULD be
Rank Metric Recruiting leaders
Others in team
HR Hiring Managers
C Level
1 Quality of Hire 4.5 4.3 4.6 4.7 4.62 HM satisfaction 4.3 4.4 4.3 4.3 4.23 Candidate satisfaction 4.2 4.2 4.2 4.3 4.04 Applicant quality 3.8 3.9 4.1 4.4 4.25 Time to fill 3.7 3.6 3.8 3.7 3.96 Offer acceptance rate 3.6 3.6 3.7 3.7 3.7
=7 Reqs per recruiter 3.5 3.3 3.0 2.6 2.5=7 Interview/hire rate 3.5 3.5 3.4 3.8 3.79 Source of hire 3.4 3.3 3.2 3.1 2.8
10 Cost per hire 3.2 3.5 3.6 3.4 3.511 Diversity of hire 3.2 3.3 3.4 3.3 3.1
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But recruiting leaders perceive some LACK of alignment in ACTUAL metrics
Metric Recruiting leaders
Their boss Hiring managers
C Level
Quality of Hire 4.5 3.9 4.1 3.8HM satisfaction 4.3 3.9 4.3 3.4Candidate satisfaction 4.0 3.3 3.0 2.8Applicant quality 4.2 3.5 3.8 3.1Time to fill 4.0 3.4 4.0 3.2Offer acceptance rate 3.7 2.6 3.9 2.5Reqs per recruiter 4.0 2.7 2.0 1.9Interview/hire rate 3.3 2.5 2.5 1.9Source of hire 4.1 2.9 2.2 2.2Cost per hire 3.3 3.1 1.9 2.8Diversity of hire 3.5 3.1 2.4 2.7
Recruiting leaders’ perception of:
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Recruiting teams also perceive a LACK of alignment
Metric Recruiting team (other than leader)
Their boss Hiring managers
C Level
Quality of Hire 4.4 4.0 4.4 4.0HM satisfaction 4.4 3.8 4.5 3.5Candidate satisfaction 4.3 3.7 3.1 3.1Applicant quality 4.3 3.7 4.1 3.3Time to fill 3.9 3.8 3.9 3.5Offer acceptance rate 3.6 3.3 3.2 2.7Reqs per recruiter 3.7 3.5 1.9 2.1Interview/hire rate 3.3 2.9 2.6 2.1Source of hire 3.8 3.3 2.1 2.3Cost per hire 3.0 3.4 2.3 3.4Diversity of hire 3.6 3.4 2.6 3.4
Rest of the teams’ perception of:
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Topics for this morning
I. About our researchII. A Few Findings to Provide ContextIII. The Performance ImperativeIV. Priorities for Improving Performance
a. Alignment – WORKFORCE PLANSb. Internal Performancec. Influence
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Although workforce planning helps to align hiring intentions and priorities…
Rank Item Net Encouraged or discouraged
1 Talent forecasting ability -46%
• 21% ‘never/rarely’ do workforce planning
• Worst offending industries:– Professional Services (33% ‘never/rarely’ do)– Software/tech/telecoms (29%)– Retail (27%)
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Topics for this morning
I. About our researchII. A Few Findings to Provide ContextIII. The Performance ImperativeIV. Priorities for Improving Performance
a. Alignment b. Internal Performance – INTERNAL TEAMc. Influence
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Upgrading the caliber of your recruiting team is a ‘no brainer’, but will likely get harder to do
• You probably need to hire MANY new recruiters to:– Grow your team– Replace poor performers– Replace ‘undesirable’ turnover
• So do most other companies – so expect tough competition for talent
• You’re not that excited about contract recruiters
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Many of you need more recruiters on your team
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Size of team Forecast growth in headcount
Small (2-5) 13%Medium (6-19) 2%Large (20-49) 3%Very Large (50+) 3%All teams 3-5%
• 53% forecast recruiting team will grow (nearly a third say by 10% or more)
• 40% forecast flat• 8% forecast team will shrink
In addition, you likely need to replace poor performing recruiters
Performance, as graded by HR
B-
11% of leaders say that concern over capability of internal teams is the one thing keeping them awake at night.
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
And you can expect to lose some unhappy recruiters
Others in the recruitment team
8% JSS
Recruitment Leaders24% JSS
Recruiters
-4% JSS
Sourcers17% JSS
Managers17% JSS*
* ”Job satisfaction score” (JSS) calculated like “Net Promoter” score: % of 9-10s less % of 1-6s
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
You don’t see contract recruiters as an ‘upgrade’
Recruiters
Managers
Leaders - Large teams
Leaders - medium teams
Leaders - small teams
Leaders
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Regular recruiters worse
No idea
No dif-ference
Regular recruiters better
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Topics for this morning
I. About our researchII. A Few Findings to Provide ContextIII. The Performance ImperativeIV. Priorities for Improving Performance
a. Alignment b. Internal Performance – APPROACH TO
THE WORKc. Influence
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You can rethink how the recruiting department does each part of its work
• Don’t do a particular function/responsibility• Do it yourself– With generalists– With specialists
• Get someone else to do it– Another department (in HR or elsewhere)– Outsource
• Use different tools/vendors to get it done
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We asked about many types of recruiting responsibilities / functions
Recruiting processesSourcing
Screening/assessmentInterviewing
Background checkingOnboarding
Planning/AnalysisBig Data / AnalyticsWorkforce planning
Vendor/Tool Management
Temp staffing firms
Search firm
Recruitment technology
Candidate PoolsTech/engineering/scientific
Blue collarHigh volume
Temp/seasonalCollege
ExecutiveDiversity
Military veteransInternational
Candidate AttractionEmployer branding
Corporate career siteSocial Media
Recruitment advertisingReferral programs
(c) ERE Media, Inc.© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
We also asked about many types of recruiting / vendor tools
SourcingAd agencies
LinkedIn paidLinkedIn freeJob Boards
Job aggregatorsReferrals
Recruiting ProcessATS
CRMCandidate profile aggregators
Video interviewing Assessments
Background checking
3rd-Party RecruitingRPO
SearchTemp staffing
VMSMSP
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The most common approach is “do it yourself with specialists”
Medians for all teams across all recruiting functions
Do It Ourselves: 91% Someone Else Does It: 9%
Specialists: 67%
Generalists: 33%
Another dept: 73%
Outsource: 27%
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A few exceptions stand out
• Generalists are commonly used for:– Temp/seasonal recruiting (56% of ‘do it yourself-ers’)– Military veteran recruiting (52%)– Workforce planning (41%)
• Outsourcing reasonably common for:– Background checking (36% of all who do this)– Temp/seasonal recruiting (20%)– Executive recruiting (13%)
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User and satisfaction levels are correlated for vendor categories
3.8 LinkedIn Paid
3.7
3.6 Referrals Background checking
3.5 LinkedIn Free
3.4 Assessment; Job aggregators
3.3
3.2 Video interviewing ATS
3.1
3.0 Temp staffing firms
2.9 Empl ad agencies Job boards
2.8 RPO CRM
2.7 VMS; MSP; Cand prof aggregators
3rd party search
1.5 2.0 2.5 3.0 3.5 4.0 4.5
SATI
SFAC
TIO
N R
ATIN
G
USAGE RATING(c) ERE Media, Inc.
To improve performance, you should RE-THINK these approaches
• Stop doing some things you’re doing. Start doing others
• Consider leveraging other departments to do some work. Or do more yourself.
• Outsource more. Or less.• Specialize less. Or more.
Challenge everything that you’re doing today!
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Topics for this morning
I. About our researchII. A Few Findings to Provide ContextIII. The Performance ImperativeIV. Priorities for Improving Performance
a. Alignment b. Internal Performance
c. Influence – TALENT ADVISOR
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There’s a disconnect regarding the “talent advisor” role (hiring manager relationship)
Rank Discouraged by Net
1 Availability of talent forecasts -46%
2 HM openness to non-traditional candidates -31%
3 HM expectations about what recruiters can do -19%
4 HM incentives to meet hiring goals -14%
5 HM interviewing skills -3%
Rank Encouraged by Net
1 HM working relationships with recruiters +54%
2 Opportunity to act as a talent advisor for HMs +50%
3 Keeping recruitment skills up to date +44%
4 Capability of fellow recruiters +43%
5 Your employer brand +40%
HM = Hiring Manager
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Perspectives about hiring managers vary by recruiting role
Leader Recruitment manager
Recruiter
HM openness to non-traditional candidates
-33% -39% -27%
HM expectations about what recruiters can do
-15% -21% -2%
HM incentives to meet hiring goals -13% -20% -10%
HM interviewing skills
-19% -16% +19%
Net Encouraged/Discouraged
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Recruiters have a tough challenge ahead overcoming hiring manager perceptions
Grade their dept’s performance
C+
Recommend as a profession
-4% NPS
Hiring Managers
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The good news is that hiring managers know they need to improve
Grade managers hiring capabilities
Recruitment Leaders C+
Other team members C+
HR C+
C Level C+
Hiring managers C+
© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Topics for this morning
I. About our researchII. A Few Findings to Provide ContextIII. The Performance ImperativeIV. Priorities for Improving Performance
a. Alignment b. Internal Performance
c. Influence – REPORTING RELATIONSHIP
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HR is currently the primary home for recruiting
Someone else in HRHead of HR75%
15%
10%
HR
CEO / COO/President
Other
Leaders currently reporting to…
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And, overwhelmingly, most believe that it belongs with HR
66%
11% 7%
25%
68%HR
Think it should report to…
CEO / COO/ President
Other
84%69%
12% 27%19%
6%4%
Rec leaders HR Hiring managers C Level
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For recruiting, it’s not ‘home sweet home’ with HR or the C Suite
HR C Level
Grade their recruiting dept’s performance B- B-Recommend recruiting as a profession (NPS) 14% 7%
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The larger the company, the more distanced the recruiting function leaders become from the most powerful decision-makers
Small companies
(<1,000)
Medium companies
(1,000 - 4,999)
Large companies
(5,000 - 49,999)
very large companies (50,000+)
0%10%20%30%40%50%60%70%80%90%
100%
Someone else in HR (be-low HR Leader)
Functional lead (HR, Finance, Marketing, IT)
C Level (CEO/COO/Pres-ident)
Recruiting currently reports to:
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40% of recruiting leaders are unhappy with their reporting relationship
60% OK as is
25% want
an upgrad
e
10% want
to move down
5% want
to move across
54% of leaders who report to the CEO /COO / President
don’t want to
72% of leaders who report to “someone else” in HR
believe they should report to the Head of HR
Of those reporting to the head of HR, 13% want an
“upgrade”, 5% want to move down – and 4% want their
own Talent department
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Final thoughts on the
Performance Imperative
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Ask tough questions. Take action. Improve!
ALIGNMENT INTERNAL PERFORMANCE INFLUENCE
Metrics
Workforce Plans Approach to the Work
Internal Team
Reporting Relationship
Talent Advisor
(c) ERE Media, Inc.© 2014 ERE Media, Inc. Unauthorized reproduction and distribution prohibited.
Example…Action is needed on ‘Quality of Hire’
Recruiting Leaders say..• Should be recruiting’s #1 performance metric, and it’s your
#1 focus; BUT…
• It’s not #1 for your own teams
• Hiring Managers get a ‘C+’ for their hiring skills, so can you rely on their ability to choose “quality”?
• You give yourselves a ‘B’ on performance, and filling jobs is about to get harder. Impact on quality?
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You’d think that ‘Quality of Hire’ would be keeping you awake at night
Candidate experienceQuality of hire
WorkloadWorkforce planning
Finding cultural matchesAbility to attract candidatesHiring manager interactions
Recruiting team capabilityRecruiting tools/process
Candidate / Skills availability
0% 5% 10% 15% 20% 25% 30% 35% 40%
Leaders
% of respondents who commented and mentioned this issue
But it’s not!
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Recruiting Talent Acquisition matters
A lot.
3 cornerstones for building a High Performance Workforce
1. Assemble the right combination of talent2. Establish performance-enhancing infrastructure3. Earn unwavering engagement
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ACT NOW!