Tag Archives: Talent Acquisition

Where Do Candidates Come From?

data point tuesday_500 There is a robust conversation in the talent arena about “candidate experience” led largely by Gerry Crispin and Elaine Orler, founders of the Talent Board and the Candidate Experience Awards (#CandE). There are lots of opinions about whether ensuring that candidates for hire have a high quality experience is meaningful. Some think the juice isn’t worth the squeeze. But I think most believe treating candidates like consumers is smart business. Two new vendor publications discuss aspects of candidate experience:

  1. Creating a 21st Century Application Process from RolePoint, and
  2. Beyond Employees: Employee Referral Programs Redefined from Smashfly

Both reports were published within the last month and contain analysis of current data. The Rolepoint whitepaper was written by global recruiting legend Bill Boorman. It highlights Intuit’s approach to embracing a social approach to the apply process, with a particular focus on making the application process streamlined and device agnostic “with equal attention paid to user experience and interface on both desktop and mobile.” Bill is a legend for a reason and his approach to this topic in the whitepaper is compelling. The Smashfly presentation provides insight into the employee/candidate referral landscape with some interesting data:

  • 77% of organizations currently have a formal referral program

  • 32% of new hires come from referrals on average, and rate highest in quality among sources of hire

  • 57% of organizations limit their referral program to employees only

  • 43% extend their program beyond employees to include alumni, contractors, customers, vendors and/or partners

  • Analysis shows those that reach beyond employees get 28% more hires from referrals and 8% better quality candidates

This survey data is interesting, and I key in on the 4th bullet. Extending referrals into other stakeholder groups makes a great deal of sense – and correlates to higher quality candidates. Take a look below: Smashfly May 19 2015 If you’re in the 23% of employers without a candidate referral program, this might be a wake up and smell the coffee moment. If you’re in the 57% of organizations limiting referrals to employees only, this might be a pedal to the metal moment. Either way, whether you’re recruiting programmers, developers, customer service agents, nurses, marketers, HR professionals or executives, approaching your trusted partners – including employees – for referrals makes good, logical sense. And treating potential candidates like consumers, that is, making it as easy for them to press the “apply” button as it is to press the “buy” button seems like a tenant from Econ 101. Check out these reports from Rolepoint and Smashfly.

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Filed under Bill Boorman, Candidate Experience, China Gorman, Data Point Tuesday, Elaine Orler, Employee Referrals, Gerry Crispin, Rolepoint, Smashfly, Talent Acquisition

Starbucks’ Ethical Sourcing: Beans AND Talent

data point tuesday_500I read in the newspaper yesterday morning that Starbucks has achieved an incredible milestone for the ethical sourcing of virtually all its coffee – 99%! This means that more than 400 million pounds of coffee served globally meets really tough economic, environmental and social standards for growers from whom they buy their coffee. According to Starbucks’ website, they take a “comprehensive approach to ethical sourcing, using responsible purchasing practices; farmer support; economic, social and environmental standards; industry collaboration and community development programs.” And it’s all verified by third parties like C.A.F.E. (Coffee and Farmer Equity) Practices, Fairtrade and Certification Global Services. There is much to admire in Starbucks’ commitment to and execution in the ethical sourcing of its primary physical ingredient and I believe this achievement connects to what we could call the ethical sourcing of talent.

Starbucks also recently announced that it is making a full four-year college degree available without cost to all of its more than 140,000 full- and part-time partners (employees) through Arizona State University’s online degree program. Let’s see… Ethical sourcing of coffee beans from farmers all over the world and offering full college tuition coverage to tens of thousands of employees. I see a consistency of approach to trustworthy leadership here that is hard to find today anywhere in the world.

There are thousands of organizations all over the world that are serious about their corporate social responsibility commitments. They have programs that are helping to build communities, reduce environmental impact, improve the public health, educate young people – the list goes on and on. But these are programmatic approaches reliant upon individual leader commitments, not essential strands of the warp and woof of the organization’s foundation. As an observer of corporate culture, I find it rare to observe an organization that sees every aspect of the business as part of the whole cloth of social responsibility. Starbucks certainly sets the bar high in this regard. From a talent acquisition perspective, paying full college tuition for 100% of your employees is the most ethical sourcing strategy imaginable. And it makes sense when it’s lined up next to ethically sourcing 99% of its primary ingredient, coffee beans.

Trustworthy leadership is reliable in its consistency, transparency and ethical behavior. Starbucks is a pretty great example of this.

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Filed under China Gorman, Corporate Social Responsibility, Ethical Sourcing, Starbucks, Talent Acquisition

Who Really Cares About Employer Branding?

Data Point TuesdayIn a recent report by Universum, a tactical view of how organizations are attracting talent and combating problems is given with some fresh insight. The report: State of Employer Branding is part one a four-part 2020 Outlook series, based on responses from 2338 interviews conducted in the winter of 2014 in 18 different countries. Respondents represented a variety of industries and job functions with more than 50% working within HR, 16% being the CEO of their respective organization, and 23% working for organizations with more than 1000 employees in the country. Universum’s report starts by posing a necessarily blunt question to its readers, “How long have executives argued over the need to make talent attraction a corporate strategy rather than an HR strategy?” Point taken, talent acquisition remains an ongoing point of struggle for organizations, but is a critical strategy for organizations to remain competitive.

March 10 2015 Talent Acquisition Concerns

As Universum makes clear, we’ve known this for a while, so what are organizations doing to step up to issues relating to talent? Let’s take a look at the meaty details of Universum’s report….

Talent acquisition and retention is a complex equation involving (among other things) talent management and development, employer branding, and analytics to measure effectiveness. Part of the problem with employer branding is where responsibility lies:

  • 60% of CEO’s feel they own employer branding.
  • 58% of HR executives, 63% of talent acquisition executives, and 57% of recruiting executives say HR owns employer branding.
  • 39% of marketing executives point to HR owning the role and 40% to the CEO owning the role.

Why all this variability? Universum underlines repeated studies that have shown CEOs don’t believe HR is up to the task, as well as studies that say HR itself is not confident in their current approach, or do not feel their approach is innovative. Greater stakeholder cooperation is another broadly identified need when it comes to employer branding efforts:

  • 70% of senior executives see a closer need for stakeholder cooperation in the next 5 years.
  • 77% of HR executives see a closer need for stakeholder cooperation.
  • 53% of CEO’s see stakeholder cooperation as a growing need.

Though this is an identified need, without changing CEOs’ confidence in HR to solve strategic talent challenges, HR will be hard pressed to effect change in this area.

Universum asked respondents about their employer branding objectives, and how these objectives will change in the next five years.March 10 2015 Employer Branding Objectives

Interestingly, of all the objectives listed, none earns much more than one third of respondents’ votes. The most critical need is “to fulfill our short-term recruitment needs” but is claimed by just 36%. This should lead us to ask why so few executives (and CEOs in even lower numbers) are prioritizing such objectives? Universum offers the following explanations

  • Organizations face a lack of clarity about which objectives matter most
  • There is a perceived lack of ownership for the discipline of employer branding
  • Employer branding is not viewed as a critical priority when organizations face many other pressing challenges

To better understand their commitment, Universum studied how organizations are currently investing in employer branding:

March 10 2015 Employer Branding Budget

Overall, we see that organizations are overwhelmingly focused on external employer branding efforts. KPIs, however, often measure almost inclusively internal factors (presenting another potential issue).

Organizations also face a perceived gap when it comes to the association between consumer and employer brands. Recently there has been a concerted effort to more closely align employer and consumer brands, yet when executives were asked how closely they feel these are aligned, the responses indicated there’s still much work to be done:

  • 19% say their employer and consumer brands are the same
  • 36% say “there is a connection today”
  • 17% say there is no connection at all

When marketers were asked this question though, the answers were remarkably different, with marketers much more likely to report a connection between the employer and consumer brand.

How do organizations more forward with an employer branding and talent strategy when there appears to be little consensus about how to do so? Universum’s report cites from PwC’s global CEO survey, which reports that while 93% of CEOs say they know they need to change their strategy to attract and retain talent, 61% say they have not taken steps to do so yet. The first step towards addressing “the talent gap” may just be to get organizations to accurately recognize areas of misalignment and differing perceptions. Employer branding, as we see from this data, is certainly one of these areas. Organizations must also commit to an investment strategy; as Universum states: “If talent is as important to competitive might as capital, it must be managed and measured with the same disciple applied to financial planning and management.”

This report makes me think we have a massive showdown coming between HR and CEOs. I don’t know about you, but I think I know who’s going to win unless something big happens. And the only thing big I see happening is Marketing swooping in to save the day. HR, if you think you’re hearing footsteps, you probably are!

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Filed under China Gorman, Data Point Tuesday, Employer Branding, Talent Acquisition, Universum

The Global Workplace of 2030

Data Point Tuesday

CBRE and Genesis recently released a report “Fast Forward 2030: The Future of Work and the Workplace,” which provides meaningful insight on the behaviors, ideas, and trends, that will shape work and the workplace in 2030. Their report analyzes responses from 220 experts, business leaders and young people from Asia Pacific, Europe and North America who shared their views on how the current workplace is evolving. That report’s focus was to look towards the future and identify trends that will change the way we work over the next 15 years globally, with a key focus on China and Asia. CBRE and Genesis aimed to capture the thoughts and aspirations of this next generation by holding focus groups, instead of traditional surveys or interviews, in 11 cities worldwide, where “more than 150 corporate youth between the ages of 23-29 gave their frank opinions about current work practices, and in particular, what is and isn’t working for them and more importantly how they would like this to change in the future.”

What will work look like in 2030? Through questions considering the nature of society and corporations, CBRE and Genesis ask respondents to identify what the big game changers will be for shaping the workplace between now and 2030. Major game changing trends and ideas included:

  • The Holistic Worker
  • Lean, Agile, and Authentic Corporations
  • The Sharing Economy

“The Holistic Worker” was an idea echoed many times throughout respondents’ answers. This is a trend that we’re already seeing today, probably most prominently in the increasing attention to social responsibility among organizations. CBRE and Genesis report that “The Holistic Worker” will continue to be a significant influencer of change in the workplace. Their research shows an increasing belief that work should be “joyous and more full-filling,” and that within work there should be many opportunities to make meaningful contributions to the organization as well as society. Essentially, the data show that lines between work and life are blurring. People are more and more often expecting the freedom to choose how, where, and when they work, and these attitudinal shifts are slowly, but surely, creating a major change in workplaces and societies.

In CBRE and Genesis’s report, 78% of youth indicated that happiness was as important as financial success. 70% of Korean parents felt happiness for their children was more important than educational and financial success and in Japan, young employees in the focus group echoed the same sentiments, talking about a way of work totally different than the traditional ways of their parents. They spoke to workplace flexibility, going home to spend time with family, and working at many organizations over their career. Thai participants in youth focus groups said they would be willing to be paid 20% less if they could work in vibrant environments with the freedom and choice about how and where they get work done. Workplace flexibility and the desire for CSR are global trends, and certainly not limited to western culture. With the desire for work to having meaning and purpose, quick impact will be key. CBRE and Genesis anticipate that in 2030: “most work will be broken down into small, discreet, comprehensible components. Each component will have a clear purpose and teams delivering will have significant autonomy and control, responding to the many of the desires of the holistic worker.”

Another game changer for 2030, will be the need for organizations to be lean, agile and authentic – specifically, authentic. If organizations cannot be true to their values and contribute to society beyond the bottom line, their main source of talent, the holistic worker (and by virtue, also holistic consumers) will be extremely limited. CBRE and Genesis predict that technology and “artificial intelligence” will be huge game changers for organizations that can leverage them correctly. Organizations with 20-40 people can be just an impactful as large corporations, and by leveraging technology while being “unhindered by legacy processes and mindsets,” they will easily disrupt existing corporate models. The growth of technology, while being extremely beneficial for workplaces, is also a worrisome concept. CBRE and Genesis’s report points out it’s predicted that 50% of the occupations in corporations today will not exist in 2030, and points to evidence that in the U.S technology is already destroying more jobs than it is creating:GDP vs. Employment Growth

“The Sharing Economy” was another major underlying theme in CBRE and Genesis’s research. They define this as a socio-economic system built around the sharing of human and physical resources, whose emergence reflects changing attitudes in societies about ownership and collaborative consumption, fuelled by technology and apps that allow people to rapidly match supply and demand – person to person. Expert respondents in Beijing reported that the sharing economy would have significant impact to the future of work and the workplace in 2030, and used a research study by consultancy Latitude in the US71 as a framework for discussing how the sharing economy might impact real estate: Jan 27 2015 New Opps for SharingCBRE and Genesis also asked respondents about competitive advantage in 2030, and although answers covered a wide range, 10 top sources emerged, with attraction and retention of key/top talent as the number one source of competitive advantage followed by innovation. Jan 27 2015 Top 10 Sources of Competitive Advantage

When talking about innovation, respondents reported that for the future of the workplace “there will be constant innovation and support of entrepreneurial behaviors: micro-innovation within the organization”.

In several past posts I’ve discussed how the workplace is going increasingly global, yet to date most of the research in the area of work and the workplace remains from a western perspective. CBRE and Genesis’s report specifically widens the research to include not only western perspective but also those of developed and developing Asian nations, providing new and unique perspectives on a geographic level. Such perspectives can provide surprising results, such as the determination and excitement of young employees in Shanghai, Beijing and Tokyo to rethink the experience of work and push their superiors to change, vs. more conservative opinions than expected in New York and London. Youth Appetite for Change

The bottom line? The youngest cohort of our employees – worldwide – are describing their preferences for work and the “office” of the not so very distant future as radically different than most work environments today. Those organizations desirous of developing their cultures to attract and retain today’s Millennials might take these findings into account. We Baby Boomers won’t be around forever. And that’s probably a good thing.

Be sure to check out CBRE and Genesis’ full report here.

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Filed under CBRE, China Gorman, Corporate Social Responsibility, Data Point Tuesday, Genesis, Millenials, Work Life Balance, Workplace Studies

What War for Talent?

Data Point TuesdayAccenture’s 2014 College Graduate Employment Survey compares the expectations and perceptions of 2014’s university graduates with the realities of the working world according to both 2012 and 2013 graduates. This comparison casts a focused and specific lens on the issue of entry-level talent development, and gives us some insightful data. Accenture’s survey underlines that at the end of the day, many organizations are not effectively developing their entry-level talent. When we consider that 69% of 2014 graduates state that more training or post-graduate education will be necessary for them to get their desired job, we see that organizations are likely facing a major talent supply problem. New graduates and entry level talent’s perceive that their organizations will provide them with career development training: 80% of 2014 graduates expect that their employer will provide the kind of formal training programs necessary for them to advance their careers. Despite this, the percentage of graduates that actually receive such training is low, creating a significant discrepancy between expectation and reality.Expectation vs Reality

Another concern when it comes to recent college graduates is that 46% (nearly half) of 2012/2013 graduates working today report that they are significantly underemployed (i.e. their jobs do not really depend on their college degrees). This statistic was at only 41% a year ago.Entry Level UnderemployedAccenture’s survey found that 84% of 2014 graduates believe they will find employment in their chosen field post graduation, and 61% expect that job to be full time. Again, we find a stark contrast between expectation and reality, with just 46% of 2012/2013 grads reporting holding a full-time job – 13% percent have been unemployed since graduation. How long do recent graduates stay at the jobs they do have? More than half (56%) of 2012/2013/2014 graduates have already left their first job or expect to be gone within one or two years. Is this be a reflection on the lack of development for entry-level talent? It seems more than plausible…

Recent graduates are also finding discrepancies between expectations and realities when it comes to income and job prospects. Of the 13% of 2012/2013 grads who have been unemployed since graduation, 41% believe their job prospects would have been enhanced had they chosen a different major (72% expect to go back to school within the next five years). Among Accenture’s 2014 survey respondents, 43% expect to earn more than $40,000 at their first job, however, just a minimal 21% of the 2012/2013 graduates that are in the workforce are actually earning at that level. 26% of these graduates report making less that $19,000, a concerning figure when roughly 28% of 2014’s graduates will finish school with debt of more than $30,000.

Accenture’s study does point to some silver linings, however. Increasingly, college students are turning an eye towards what they can do to be more market relevant. 75% of those who graduated this year took into account the availability of jobs in their field before selecting their major, compared to 70% of 2013 graduates and 65% of those in the class of 2012. Another positive is that 72% of 2014 graduates agree or strongly agree that their education prepared them for a career (compared to 66% of 2012/2013 grads) and 78% feel passionately about their area of study. 63% of 2014 graduates stated that their university was effective in helping them find employment opportunities, an increase from 51% among their recently graduated peers. Recent graduates are also increasing their chances of employment by being geographically flexible. 74% of 2014 graduates said they would be willing to relocate to another state to find work and 40% of those would be willing to move 1,000 miles or more to land a job.

Accenture’s study does, however, put into question many of the highly publicized reports that point to human capital/talent acquisition issues as a #1 concern in the C-Suite. If talent is the #1 issues, where is the attention to entry-level talent? Is the attention being placed exclusively on development for upper-level positions? It’s clear that there are multiple factors influencing graduates’ struggles for acceptable employment, including the rise of part-time and contingent work, but training and development is an important part of any entry-level position. The survey points to six areas in which organizations can focus on to help meet talent supply challenges:

  1. Reassess hiring and retention strategies
  2. Hire based on potential, not just immediate qualifications
  3. Use talent development as a hiring differentiator
  4. Remember that tangibles matter, even to Millennials
  5. Cast the net more widely
  6. Use talent development and other benefits as part of a total rewards and attraction approach

These are logical conclusions. But perhaps the biggest logical conclusion is that organizations are just paying lip service to the so-called war for talent and aren’t convinced that the there is, in fact, a shortage of talent. Am I wrong?

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Filed under Accenture, China Gorman, Data Point Tuesday, Human Capital, Millennials, Professional Development, Talent development

5 Talent Acquisition Trends to Watch

Data Point Tuesday
Ultimate Software
(#20 on this year’s FORTUNE 100 Best Companies to Work for list) just released a whitepaper that looks at 5 top talent acquisition trends in today’s market. As much data as we might see on talent acquisition, it’s a perpetually interesting topic to look at because (and Ultimate Software puts it well), “A company can have the right technology, the right infrastructure, the right products and services – yet still fall short of expectations without the right people.” People are the heart and soul of an organization, and attracting, hiring, and engaging the right people for an organization is vital to its growth and success. Ultimate Software highlights that over the past five years we’ve seen a huge change in the landscape of talent acquisition. We’re still in the midst of an ongoing economic recovery and Millennials, who are the largest generation in history, (~95 million compared with ~78 million Baby Boomers) are currently filling one out of every three positions in the United States. By 2025, they are projected to make up 75% of employees in the global marketplace. Add this to the incredibly competitive, fast-paced, technologically advanced, and increasingly inter-connected world that we live in and hiring the ‘right’ person becomes “both more difficult and more important than ever.”

Out of the 5 Top Talent Acquisition trends that Ultimate Software details, “User Experience” is number one. Over the last five years, companies have increasingly focused on the “candidate experience” in talent acquisition (see the ground breaking research done by Gerry Crispin’s and Elaine Orler’s Talent Board), putting themselves in the job seekers’ shoes with a focus on treating them like a unique individual or “the customer.” When Ultimate Software discusses “User Experience” as a talent acquisition trend though, they’re talking about a more recent trend than focusing on candidate experience, one that emphasizes user experience in terms of designing or selecting a recruiting solution. In the same way that people expect exceptional user-experience from consumer-level technology like their smartphones, employees now expect the same level of ease-of use with recruiting solutions technology in the workplace. Candidates themselves also expect an easy (and mobile) user-experience when searching for and applying to positions. Not being able to do this on a smartphone, for example, has become a huge barrier to entry.

Trends two and three are “Personalization” and “Social Connections and Collaborations.” Personalization, in the context of talent acquisition, is described as “the fusion of a positive user experience with an emphasis on the individual.” Essentially, organizations that treat candidates as individuals and potentially valuable employees from the beginning of the recruiting process have a number of advantages. Using a more personal, behaviorally based interviewing approach can lead to better information for the recruiter (they may for example find a candidates fits well for another role) and a more engaged candidate. It may also help candidates leave with a better impression of the organization overall, and prevent what Ultimate Software calls the “candidate black hole” (referring to the statistic that nearly 50% of job applicants never get any response after submitting an application). “Social Connections and Collaborations” refers to talent acquisition solutions integrating with social media platforms (think LinkedIn and Facebook) to leverage more effectively the vast amount of useful information on candidates that these platforms provide. Note that 89% of all job seekers report using social media sites and almost 50% report using these sites every day.

“Global Recruiting” and “Recruiting Millennials” make up the last two trends in the whitepaper. Successful organizations have embraced the advantages of creating a more global workforce, leveling technology like video interviewing and telecommuting to find the right candidate for the job, no matter where in the world the might be. Ultimate Software cites data from a recent KPMG survey, which reports that 71% of HR executives feel that collaborating across international borders is more prevalent today than just five years ago, and more than 50% are considering or have added new international offices. The “Global Workforce” is here to stay. Last but not least, successful talent acquisition programs have been specifically addressing Millennial candidates applying for positions – a smart move when we consider that they’re projected to make up 75% of the workforce by 2025! This attention on Millennials does not necessarily comprise a total remaking of the talent acquisition process, but a purposeful implementation of changes to the recruiting process – like keeping in mind that 83% of Millennials own a smart phone, or that Millennials place a high value on an organization’s mission, purpose, and culture.

Together these 5 trends point to new realities for organizations as they plan to add new talent to their ranks. It’s not just demographics that are changing. Social technologies are changing our ability to engage and retain the right people – where and when we need them. And that spells big opportunity for organizations who believe that people are at the heart of the cultures and their successes.

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Filed under China Gorman, Data Point Tuesday, Hiring, Ultimate Software, Workplace Studies

What are your Sources of Hire?

Data Point Tuesday
A recent report from CareerXroads, “Sources of Hire 2014: Filling the Gaps” by Gerry Crispin and Mark Mehler, aims to continue the conversation about the data collection issues, source of hire trends, and challenges related to the recruiting supply chain. The report looks at 50 large firms (all with well-known brands) that filled 507,425 openings in the U.S. last year. This was the work of ~6000 recruiters and sourcers (80+ openings filled by each).

  • 4% of these companies had fewer than 1,500 full time U.S employees,
  • 8% had between 1,005-5,000 employees
  • 18% between 5,001-10,000 employees
  • 28% between 10,001-25,000 employees
  • 10% between 25,001-50,000 employees
  • 14% between 50,001-100,000 employees
  • 8% between 10,001-200,000 employees
  • 10% had more than 200,000 employees

An initial trend observed was that at 40% of these firms the Talent Acquisition function does not match the full ‘Scope’ of full time hiring. While 62.5% of the surveyed firms’ Talent Acquisition functions agree that they “touch or know about EVERY F/T hire or move,” 8.3% don’t hire for union positions, 18.8% don’t hire hourly workers in their manufacturing facilities, 16.7% don’t hire hourly workers for store level, 14.6% don’t hire for every function (i.e. field sales), 10.4% don’t hire for every location, and 8.3% don’t hire for every division.

Additionally, when asked about employees that are not full time (i.e. contract or contingent workers) firms noted that 1 in 6 employees (or 17.7%, weighted average) were contingent and generally not tracked by talent acquisition or talent management. We’ve seen the hiring and retention of contract workers increasing at many organizations, and while whether this is a positive or negative trend can really only be decided by how a company manages its contingent workers, CareerXroads does pose the question: “Do we even know where purchasing ‘sourced’ these ‘not-employees’? How can employers build strategy without oversight of ALL those who work at the firm?” If you’re at an organization that hires many contingent workers, it’s a good question to ask.

In terms of who is recruiting talent for organizations, recruitment process outsourcing seems to be a popular choice for organizations today. Over 50% of the firms surveyed in CareerXroad’s report stated that they use RPO services in some form:

Chart
Are companies hiring globally? 80% of the firms surveyed report that they do hire globally, though only 41% state that they have access to source of hire information that would allow them to benchmark by country.

The #1 source of hire for organizations, though, is through internal promotion and movement. 41.9% of all openings are filled this way. Of the firms surveyed in 2013, 191,425 openings were filled internally. Interns are another interesting source of hire. Surprisingly, CareerXroads data highlight that organizations aren’t exactly seeing a strong ROI in this area. Only 32% of all interns organizations would want to hire after their internships accept positions. Other hiring trends that are continuing include incorporating sourcing (60.5% of organizations stated that they do have a separate full time sourcing group) and social media. With the rise of social media (and LinkedIn specifically) use of resume databases has declined. When looking at LinkedIn’s impact by sources of hire, it is perceived as a vital sourcing tool:

china2
Like the title of their report, CareerXroads offers some good data here to help “fill the gaps.” Keep this in mind when considering you organization’s approach to talent acquisition, talent management, and sources of hire.

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Empowering Business Leaders as Talent Leaders

Data Point Tuesday
A new research brief by Aberdeen Group looking at Human Capital Management trends for 2014 highlights that talent acquisition, specifically the scarcity of talent available in the external marketplace, is the biggest driver of HCM strategy today. In 2013 we saw a lot of discussion around talent acquisition (in another report by Aberdeen shortages of key skills were cited as a top challenge by 64% of respondents, up 55% from 2011) and as the economy continues to recover in 2014 it appears this trend will continue. What are organizations doing to combat this? According to the report, the most commonly cited strategy by respondents involved developing front-line business leaders as talent leaders to create a vital connection between talent strategy and business execution. The reasoning plays out in a connect-the-dots, A to B, the knee-bone’s connected to the hip-bone, fashion. If employees with the greatest ability to see both business needs and the skills/capabilities of the talent on the ground (front-line leaders) are empowered as talent leaders, it ensures communication between HR and business leaders around talent initiatives and increases the chance of identifying gaps in business strategy.

There’s data to back up this strategy. A study conducted by Aberdeen last year found that top-performing organizations were 73% more likely than all other organizations to have dedicated learning programs for front-line leaders and committed 40% more of their training time to leadership skills. As the brief points out though, for the strategy to succeed it is important front-line leaders are given the necessary support and tools to handle talent processes as well as day-to-day business goals. Technology and automated performance tools provide a plausible solution to this concern, offering greater efficiency to workforce processes. Currently, 56% of organizations report that line of business leaders are accountable for talent management initiatives such as hiring, developing, and performance management within their teams. As you can see in the below graphic, this accountability pays off, increasing businesses likelihood of having employee development plans in place, offering a higher number of employees that exceed performance expectations, and seeing greater retention of high performers (which is especially important at a time when talent scarcity is a top concern).

Accountability Yields Talent Results

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Background Screening: Not So Fast

data point tuesday_500

Well, not so fast, my friend, as Lee Corso likes to say. A new survey results report from EmployeeScreenIQ, Employment Screening Practices & Trends: Not so fast, my friend (Lee Corso)The Era of Heightened Care and Diligence, brings up some important issues and is interesting on several fronts.

First, from a regulatory perspective, it would seem that employers aren’t paying a lot of attention to the relatively new EEOC guidance on criminal background checks that was released in April 2012.  According to the survey, of the almost 70% of respondents who said that their organizations have reviewed the EEOC guidance, only a little more than half of them have not made changes to their screening policies as a result. More interesting, though, is the 32% of respondents who either weren’t familiar with or haven’t reviewed the guidance. Huh.

Second, more than half the respondents report that only 15% or less of job candidates distort their resumes to the extent that they aren’t hired. This is surprising given the perception that distorting resume claims is the best way to be disqualified from employment opportunities. Surprisingly, these survey results may reflect that employers see resume distortion as a minor factor in the screening process. Huh.

EmployeeScreenIQ Resume Distortion Impact

Third, and most interesting to me, is the impact of the legal uncertainty for using social media as a source of background screening information. This uncertainty appears to have scared the you-know-what out of employers. Huh.

Actually, I’m not sure I believe the data here. Or rather, the survey questions may not have been posed to the right people.

EmployeeScreenIQ Social Networking Sites

Really? Only 36% of employers always or sometimes check social networking sites for background information? Huh. Here’s what I think is happening. Those corporate folks responsible for filling out surveys like this – in the recruiting function – know the legal quicksand that is forming around the use of social media for employment screening and are clear that their formal guidelines restrict the use of Facebook, LinkedIn, Google+, blogs, etc. in this way. This doesn’t mean that hiring managers aren’t doing it anyway. In fact, I think it’s a fair bet that although many employers are specific in excluding social networking sites for candidate background screening, as reported in this report, hiring managers do it anyway. All. The. Time.

That’s why the next survey question’s answers seem highly suspect to me.

EmployeeScreenIQ Why Not Social

Don’t have time? Right.  Not relevant? Please.

I guarantee that hiring managers make the time because they think checking out “social” behavior is extremely relevant.

This report brings up some great questions for recruiters and hiring managers and shows the need, I think, for greater communication between these two groups. Staying on top of EEOC guidance is, of course, a critical part of HR’s regulatory and risk mitigation obligations. Evaluating the impact of resume distortion is part of the recruiters’ responsibility. And staying current on the evolving legal decisions in the employment/social media space is a critical new high impact area of contribution for the HR and recruiting functions.

One might not think that the arcane world of background screening would present such an interesting opportunity for HR pros. Think again.

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Filed under Background checks, Candidate Experience, China Gorman, Connecting Dots, Data Point Tuesday, EEOC, EmployeeScreenIQ, Employment Screening, HR Credibility, Talent Acquisition

Sources of Hire: Is Perception Reality?

data point tuesday_500

Along with Quality of Hire, Source of Hire is starting to take center stage in the talent acquisition world. The annual report tracking and analyzing Source of Hire from CareerXroads is out today.  Sources of Hire 2013:  Perception is Reality contains truly interesting data – understandable and actionable.  And the authors ask some really important questions about B2D (Big Bad Data) and how to measure the pre-application talent supply chain.

Early in the whitepaper, Gerry Crispin and Mark Mehler, the principals at CareerXroads, show the following chart of source of hire data from 1997 – collected by SHRM and EMA (now part of SHRM).

Sources of Hire 1997

Talk about a blast from the past! Newspaper ads generated the most hires at 28.7% of hires and Agencies – both contingent and executive search – generated 12.5% of hires. My how the world has changed.  Here’s the 2012 data:

2012 Sources of Hire

Print has fallen from a combined (newspaper and trade journals) 32.9% to 2.3%!  “Internet” has grown from 2.1% (had Al Gore even invented the internet in 1997?) to a combined (career site, job boards and social media) 44.4%!

There is a lot in which to be interested in comparing these two charts, so have fun.

There nuggets of pure gold in this whitepaper.  Two in particular stood out to me. The first is the expectation for increased hiring in 2013.

Total Hires 2013 Source of Hire

If true, we’re about to see a whole lot of domestic hiring!  The national hiring figures are trending slowly upward, but at the same time we read in the press that the implementation of the new health care rules is retarding hiring in the small business sector, the sector credited with being the job creation “engine.” This will be interesting to watch. Will the need for growth overcome the risk and costs associated with that growth?

The second nugget is the reminder that the source of the majority of hires is the pool of existing employees.

Internal Movement Source of Hire

The whitepaper accurately points out that internal movement and promotion are higher during difficult economic periods – and this is evident in the graph above.  However, a steady increase in this category may also be due to the perception of a growing skills scarcity in the outside talent market.

Enjoy the whitepaper. And begin to ask yourself some of the questions posed by Gerry and Mark.  Questions like…

  • How comfortable are you defending the 2013 plan for your budget, recruiters, technology tools, partners, vendors, training and your sources to your peers and colleagues?

  • How much should your 2013 recruiting strategy include improving your collection and analysis methods?

  • Are referrals the best source of hire?

  • What “Sources” interact with each other the most?

  • How can I collect Source of Hire data?

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Filed under CareerXroads, China Gorman, Connecting Dots, Data Point Tuesday, Gerry Crispin, Hiring, Hiring Difficulty, HR Data, Mark Mehler, Quality of Hire, SHRM, Source of Hire, Talent Acquisition