Or, Eliminating recruitment fees and implementing best practice hiring.
Some advice for you (and please pardon me, just a little pitch too).
How is it in this connected digital age that many of us still find that the traditional fees paid to recruiters for matching CVs to Job Descriptions to be a substantial cost of doing business? This can be an especially important issue in an environment where it is increasingly challenging to find and retain the talent you need.
Many years ago – before the dawn of social media, kids - when I first started out leading a busy finance team in Asia, it was the norm to pay a recruiter 20-25% and sometimes significantly more to find good candidates for you. Recruiters had access to the candidates you needed and the global databases to make a good match for you. The model has been through many evolutions, including onsite support and outsourced services for candidate search. At its core though, the model is still based on paying substantial fees, often combined with complex contracts, to seek out and match candidates to your needs. I believe this is a broken model.
Substantial Process Gaps
From our learning and development work related to hiring and training best practices in selection skills and in consulting on the needs of organisations around talent management and successful on-boarding it is apparent to us that many companies can benefit from doing a better job in the end to end process of getting and keeping and the right person for the right role. With the pressures and costs of recruitment many of these aspects of the end to end process do not receive the attention they deserve and many opportunities are missed in selecting candidates with the right attitude and transferable skills, with gaps also in testing for the evidence that a person can perform a role, never mind the challenges of hiring the wrong person for the job, or failing to retain a competent new hire.
What we are doing: I see a tremendous opportunity to aid businesses in making investments with proven and measurable returns in addressing critical gaps in the end to end process of hiring and on-boarding, while at the same time leveraging the prevalence of social media and the ease of establishing global connections through our own and our clients networks to provide the service of sourcing candidates on a zero fee basis without complex contracts and without the need for exclusive arrangements.
My suggestions for you
Based on our existing work and analysis there are four critical areas where an organisation can improve what it does today that will enhance the brand and increase the potential to both hire and retain the right talent for your needs.
The four process areas are:
In each area, there are significant opportunities to transform the approach and add best practice processes to achieve the following objectives:
In delivering on these priorities I would be willing to bet that you can also generate a measurable return on investment, substantially reduce your average cost per hire and develop the positive perception of your brand in the talent market place.
We recommend you take a three stage approach aligned with each of the primary objectives above:
Stage 1: Improve interviewing and selection to eliminate risks.
Stage 2: Build candidate pipeline generation and brand management approaches with additional pre-screening tools to increase the throughput of good candidates.
Stage 3: Add best practice approaches to on-boarding to accelerate the time to perform for your new hires
We often see three risks with the existing interview and selection process:
Brand risk: Your hiring managers need to be more aware that at interviews they are representing the company's brand and need to all provide a consistent, professional interview process. When candidates talk in the market place, especially those you have not hired, you need them to be saying that they were treated fairly and professionally by you and to be sharing positive impressions of your company.
Compliance risk: Hiring managers must comply with best practice laws and guidelines and there are also things they definitely must not do to ensure they demonstrate that you are hiring based solely on ability to the job. It is critical that your hiring managers play their part in demonstrating that you do not discriminate and that you can, with evidence, prove that your selection practices are fair, consistent and based on only on ability.
Hiring the right candidate for the job: Due to lack of skills or experience, hiring managers today face the risk of hiring someone without demonstrated abilities to perform a given role and they also may be in danger of turning away a good candidate who has transferable skills, the ability to learn, with the right attitudes and motivations for your needs. Both of these issues can be minimised by ensuring all your hiring managers use best practice interview techniques and a structured and data driven approach to evaluation.
To substantially minimise these risks and improve the capabilities of hiring managers we recommend you develop and train proven best practice interview approaches, including:
If your current pipeline relies heavily on recruiters, with a substantial proportion of existing hiring from this most expensive channel. Then you have a real opportunity to leverage what is already out there in developing new channels, you can transform your approach and develop better brand management in the market place and better management of the present and future talent pool to improve the throughput of new, quality candidates and achieve a substantially lower average cost per hire. A wider ranging approach will also enable you to successfully reach candidates who can grow the bench strength of the organisation, increase your innovation quotient and develop industry best practices as you are more able to source people from competitors, your industry in general and from other industries who can bring new ideas and strategies.
With increasing throughput it is also important that you develop appropriate pre-screening methods and tools, so that candidates can both self-screen and that they also be successfully and efficiently evaluated before being interviewed by hiring manages. This will minimise the time your hiring managers need to spend on selection, leaving them freer to focus on delivering the business.
In delivering in these areas you can:
The first impression an organisation makes is often the most critical — not only with customers and key stakeholders but, more importantly, with its employees. As a result, employee on-boarding has become a key business initiative and an accelerator of company growth and performance. Today's leading organisations are thinking more proactively about the way they on-board talent by adopting new practices and investing in both traditional and innovative technology solutions to achieve results.
There are many best practices you can review to transform basic new hire orientations into strategic initiatives and discover how to leverage world-class technology to boost productivity, engagement, and retention.
Best-in-Class Performance. The following key performance criteria distinguish Best-in-Class companies:
>90% of new employees retained at the end of 12 months. The worst performers experience new employee retention rates as low as 30%.
>60% of employees hired in the last 12 months met first year performance milestones. For worst case companies this is as low as 17%.
(Source: Aberdeen Group Onboarding 2013: A New Look at New Hires, April 2013)
Competitive Maturity Assessment. Survey results show that the firms enjoying Best-in-Class performance shared several common characteristics, including:
Required Actions. In addition to the general recommendations above, to achieve Best-in-Class performance, you can:
For these areas we recommend a review of current processes, comparing best practice approaches and developing key metrics and we would recommend the following steps to build on the current approaches you have today.
For further development of successful best practices in onboarding you can evaluate other best practices in the use for technology including deliberatly engaging gen-Y with App based tools and gamification approaches, as we see happening in some of the most successful and innovative companies in the region.
Ultimately my overall advice to you is simple. Take whatever you invest today in recruitment fees and explore how to re-invest it in your selection, hiring and onboarding end-to-end process for a measurable ROI, improved brand in the market place, to create your own pipeline and to simply hire and retain the right people.
Of course now, if you should want some help….. drop me a note and I'll happily arrange a complimentary consultation to see how you can improve and transform what you do today to fully establish these benefits - and I am sure I must have mentioned this already - if we can indeed help, then we can also find people for you without a fee.