Talent Acquisition Is Dead!

So, I wrote this little eBook called, “Talent Acquisition is Dead: Talent Attraction Takes Root“, just click through to read the entire book. It’s built on the concept that for decades, truly the entire history of hiring employees to work for companies, we’ve only ever worried about acquiring talent.

When you think about acquiring something, like assets (“Employee are our most valuable asset!”), the process you go through to acquire something is very different than the process you go through ‘attracting’ something. I believe we are entering a new era in human resources where we no longer look to acquire, we now look to attract!

The concept of acquiring talent is one-sided. I want to acquire something, I go out and acquire it. Hiring people for your organization is not a one-sided affair, but we’ve treated it like that for the history of talent acquisition. The best talent does not like to be acquired. They want to be attracted!

So, how do you attract talent?

Well, that’s what the entire eBook is about, the ideas and technology used in today’s most innovative companies to attract talent.

What we have learned over the past decade is just doing what everyone else does, does not attract great talent. If everyone has ping pong tables and beer on tap, that is no longer an attraction, and many would argue it was never an attraction, to begin with!

How do you attract someone you would eventually like to marry?  You do many things. You might change your outward appearance. That might help attract, but it might not help retain. A true attraction between two people usually happens when their visions of life are comparable. I like you, you like me, we like living on the coast and want a puppy, one child, we hate mean people, and love the environment. We should spend out lives together!

That’s tricky when it comes to hiring, but that’s exactly what talent attraction is all about. How do we share our stories and find out if we are compatible? In the eBook, I lay out five detailed ideas that will help you attract talent into your organization.

I’m thankful for Appcast in giving me the platform to write this, and the help on the editing and design side. Check out the eBook, “Talent Acquisition is Dead: Talent Attraction Takes Root” and let me know what you think!

The 7 Deadly Words You Should Never Say To a Candidate

Communication is a tricky thing. It’s so easy to turn off another party by simply using just one wrong word, especially when you’re trying to build a relationship with a candidate you potentially want to hire.

I think there are some words and phrases that have a high probability of turning off a candidate to want to come work for your organization. I speak to students a few times a year about interviewing and I tell them something similar, which is what you say can automatically make a hiring manager not want to hire you!

Think about being an interview and the candidate starts to tell you why they’re no longer working for ACME Inc. “Oh, you know it was just a ‘misunderstanding’, I can explain…”

“Misunderstanding” is a killer word to use while interviewing! It wasn’t a misunderstanding! You got fired!

So, what are the 7 Deadly Words you should never use as a recruiters? Don’t use these:

-“Layoff” – It doesn’t matter how you use it. Even, ‘we’ve never had a layoff!’ Layoff isn’t a positive word to someone looking to come to work for you, so why would you even add it to the conversation!

-“Might” – Great candidates want black and white, not gray. “Might” is gray. Well, we might be adding that tech but I don’t know. Instead, use “I’m not sure, let me check for you, because I want to get you the truth.  Add

-“Maybe” – See above.

-“Unstable” – You know what’s unstable? Nothing good, that’s what! If something isn’t good, don’t hide behind a word that makes people guess how bad it might be, because they’ll usually assume it’s worse than it really is!

-“Legally” – “Legally” is never followed by something positive! Legally, we would love to give you a $25K sign-on bonus! It’s always followed by something that makes you uncomfortable. When trying to get someone interested in your organization and job, don’t add “Legally” to the conversation!

-“Temporarily” – This is another unsettling word for candidates. “Temporarily” we’ll have to have you work out of the Nashville office, but no worries, you’ll be Austin soon enough! Um, no.

-“Fluid” – Well, that’s a great question, right now it’s a fluid situation, we’re hoping hiring you will help clarify it! Well, isn’t that comforting… Add: “Up in the air” to this category!

We use many of these words because we don’t want to tell the candidate the truth. We think telling them exactly what’s wrong with our organization, the position, our culture, will drive them away. So, we wordsmith them to death!

The reality is most candidates will actually love the honesty and tend to believe they can be the one to come in and make it better. We all want to be the knight on the white horse. Candidates are no different. Tell them the truth and you’ll end up with better hires and higher retention!

The Cost of a New Hire is $1000-$5000!?

Ryan Holmes, the CEO at HootSuite, recently posted an article over at LinkedIn. Ryan is, of course, an “Influencer” for LinkedIn, because he’s a CEO and because he works for a cool brand like Hootsuite. Who cares if he knows what he’s talking about, he’s from Hootsuite, muthfucka!! He must be influential!

Anywho.

Ryan was actually talking about Google’s “bungee” program (see if you’re influential you talk about Google!) and how millennials only care about being developed. Because if we know anything we know young people are great judges of what they actually want. So, Ryan and Hootsuite are actually coming up with their own copycat program and calling it “stretch”.

This program basically allows Hootsuite employees to try out other roles within Hootsuite one day per week, and if it goes well to eventually into that role full time. The basis of the program being that “great employees will be great employees in any role, given the change”.

But, one other big thing jumped out from the post. Remember this is a CEO of a major company. He based all of this program on cost of turnover and believes his cost of turnover is $5000 per employee leaving! $5000!? Now, if you spent 17 seconds in Talent Acquisition you know there is no way $5000 covers the cost of a top employee, probably not even a crappy employee.

SHRM, and other organizations, continually throw numbers at HR and TA that say they believe the cost of turnover is usually 1 to 1.5 times the salary of the person leaving. Do you see the problem with the HR math we have?

CEO believes that it cost $5000 to replace an IT Developer in your company making $85,000. You believe is costs $85,000-125,000 to replace that person. THIS is a major problem and disconnect!

It would be easy for me to say, “well Ryan just pulled some bad data from some crappy content put together by a TA tech vendor to help shape their own story”, but it’s truly the reality for most executives. This is why I constantly caution TA pros and leaders to stop using the 1-1.5 times metric and start asking your executives what they think it is.

In my experience, what I find is most executives, for a professional position will usually give you a number around $10,000. The biggest miss of executives is they never calculate the revenue and profit a great employee produces versus a bad employee or having that position left open. This is where the SHRM number comes from.

This is problematic because most executives won’t tie revenue numbers to someone who’s not in sales, wrongly, since everyone in your organization has an impact on revenue and profit. So, you can fight this battle, which you’ll mostly lose, or you can just go with what they believe and build your story from there.

$5,000-$10,000 per lost employee aren’t small numbers, it’s still significant dollars to work with as a TA leader, and you’ll get better buy-in from CEOs like Ryan!

 

Want to live like a rock star? Move to Detroit!

Glassdoor recently published a list of the Top 25 Cities where your pay will go the furthest. Who topped the list!? Yep, it’s DETROIT! GD found that the Cost of Living ratio in Detroit is 50%! That basically means that when living in Detroit you get to use 50% of your income for things other than bills! What is the Cost of Living ratio in San Fransisco (the lowest of all American cities)? 11%! Basically, you only get to use, for your own enjoyment $.10 of every dollar you earn in San Fran!

What is the Cost of Living ratio in San Fransisco (the lowest of all American cities)? 11%! Basically, you only get to use, for your own enjoyment $.10 of every dollar you earn in San Fran!

So, if you read this blog a couple times you know I’m a fan of Detroit! Everyone loves a comeback story and Detroit might be the single biggest comeback story on the planet right now. Being at the top of this list just confirms what others in and around the Midwest have already been seeing.

Here’s the Top 10 in order:

  1. Detroit, MI
  2. Memphis, TN
  3. Pittsburgh, PA
  4. Cleveland, OH
  5. Indianapolis, IN
  6. St. Louis, MO
  7. Cincinnati, OH
  8. Birmingham, AL
  9. Kansas City, MO
  10. Louisville, KY

So, what jumps out about this list?  For the most part, it’s mid-sized, midwest cities.  Low cost of living. Four seasons. A lot of Applebee’s restaurants (at least that’s what the people on the coasts think!). One southern city on the list in Bham – which I hear from Kris Dunn and Dawn Burke is a hidden treasure.

I’m a midwest guy, born and raised. Went to college in the front range of the Rocky Mountains. Have visited every big city in the U.S., multiple times. Big cities are great, but not the best place to raise a family. California’s weather is awesome if you like paying $1 million dollars for 700 square foot home next to a highway.

The reality is startups and Fortune 500 companies are beginning to see what Glassdoor found in putting this list together. Google has a growing campus in Ann Arbor, MI, located about 40 miles from downtown Detroit, about 15 miles from the Detroit airport. It’s easier to attract and retain a Midwest workforce than it is when you’re primarily trying to recruit to the coasts.

This is especially true when your workforce starts to get to the age where they want to settle down, start a family and buy a house. Sure, it’s fairly easy to get college-aged kids to relocate from the midwest to California, New York or Boston. The trick is keeping them there! In Michigan, I see this every summer. The kids come back to have their weddings. Once they’re back, they begin to feel that pull to stay ‘home’.

This is why Midwest companies that are great at recruiting all have some sort of Boomerang recruitment strategy. Most are diving deep in their databases to find students who graduated over the past five years and building a database of 1-5 year experienced pros they are reaching out to constantly, ‘welcoming’ them to come back and enjoy the riches of the Midwest!

College Students Don’t Know You Want Them!

For part of my career, I did the standard corporate college recruiting gig. It sounds “super-cool” when you first think about it. “Wait, I get to fly around the country and go the best college campuses and recruit people who actually want to be recruited?!”

The reality is college recruiting as a corporate recruiter is much less sexy. Think a lot of Courtyard Marriotts, a pizza, and a six-pack, while you watch crapping hotel TV and follow up on work email. Then wake up early and get to the next campus. You quickly begin to hate travel, hate college campuses and miss actually being in the office!

But, corporations believe they must be on campus to recruit the best and brightest college students. Here where the problem begins. College students don’t even know you’re there! A recent study by Walker Sands found out that the majority of college students don’t even know you were on campus:

Walker Sands’ new Perceptions of Consulting Careers study, 56 percent of college students don’t even know if consulting firms recruit at their school. On top of that, 82 percent feel that major firms only recruit from a limited group of select universities.
Okay, this study focused on consulting firms, but the reality is the students don’t really know the difference between Deloitte and Dell when it comes to getting a job!
What can you do to make your company stand out and be remembered while you’re on campus? Try these five things:
1. Develop a Pre-visit communication strategy. Work with the schools you want to recruit from most to find out how you can get your message in front of them (email, text, student newspaper, billboards on campus, etc.). Each school has a way to reach every student, you need to find out what that is, and how you can tap into that, even it costs a little money.
2. Come in early and take over classes in the majors you’re most interested in. Professors are like most people, they don’t want to work hard if they don’t have to. So, if you build 45 minutes of great content, most Professors will let you ‘guest’ lecture as long as it’s not one big sales pitch. Come up with great contact professors will find valuable for their students, then go deliver it the day before the major career fair. Then invite each class to come see you.
3. Make a splash in high traffic areas the day of your visit. College kids haven’t changed much, they like free food and drink, free stuff, basically anything free! So, find the highest traffic area on campus and give away free stuff college kids will like. If you’re only interested in one specific school within the university, find out where those students hang out.
4. Stay a day later after everyone else leaves. Whether it’s the day after or even another time altogether, find a time to be on campus when you don’t have any competition to getting your message out. 99% of employers only show up on career fair day. Stand out and be the employer that is there when no one else is!
5. Post-visit communication strategy. Most organizations never contact the students who show interest in them after they leave campus.  They’ll contact a handful of the ones who stood out to them, but so is every other employer. Recruiting kids after you leave is more important than the time you spend on campus. Most kids will see 20+ employers and will only remember a couple. If you stalk them after the fact, they’ll remember you!

Recruiting Secret #9

Everyone wants to know the secret to great recruiting. Candidates want to know how to get into companies. Recruiters want to know each other’s secrets to finding great talent. No one seems to be sharing their secrets, so I thought I might as well tell you mine…

Recruiting Secret #9

We’ll tell you we only hire the best talent, but what we really mean is we only hire the talent who quickly applies to our job posting, willing to accept our at below market pay rate we are requesting, our average culture, and vanilla benefit package. Since we do minimal screening, it’s really a FIFO (first-in, first out) system. So, you might be great, but 20 other mediocre candidates beat you to it, so, yeah, you’ve got no chance.

Welcome to the world of ‘we only hire the best talent’.

Inbound Recruiting Is Killing Your Talent

Most recruiting done today is inbound recruiting. This is organizations posting jobs everywhere, people seeing these jobs and then applying. These candidates are coming ‘inbound’ to you in some form or fashion – into your ATS, into your email, showing up at your front door, whatever it takes for them to find you.

Outbound, then, is the opposite. It’s you finding them.

Too much inbound recruiting kills your overall talent.

Why?

Inbound recruiting relies on active applicants. There are hundreds of studies about who is actually active, but most fall around the 20-25% of the total workforce are actively looking for a new job (this includes those unemployed looking and employed). So, you’re filling most of your jobs with 20-25% of the overall talent that is available.

You aren’t even touching 75-80% of the total workforce by using inbound recruiting. But, Inbound Recruiting is great because that 25% is still a huge number and boy can we still get a bunch of applicants and, well, it’s easier.

I don’t have stats on this (if you find them please share!) but I would guess 90% of organizations only use Inbound Recruiting!

Now, a bunch of people will tell you that ‘active’ applicants aren’t the only thing. CareerBuilder’s Talent Behavior study recently found that if you combine Active and Those Open to Hearing About Openings that number climbs from 25% to 75%! Okay, now we’re talking! The problem is that extra 50% isn’t responding to your Inbound Strategy!

To get the full 75% of the workforce who might be interested in your job you must have outbound recruiting strategies. These include getting your butt on the phone and talking people into why you’re the best damn place on the planet to work! These people might actually love you as much as those people who are freely sending you their resume, but they’re waiting for you to contact them!

This is confusing to many people in Talent Acquisition.

If you only post jobs and wait to see who applies to your posts, no matter how many places you post, you’re only possibly getting 1 out of 4 possible candidates.  In a perfect scenario of using both inbound and outbound, you could get 3 out of 4. No one gets 4 out of 4 because about a quarter of the workforce is considered truly passive, meaning you and G*d couldn’t talk them into leaving their current job.

Also, you calling a candidate who has applied to your job is not considered outbound recruiting! You need to go out and find talent that doesn’t even know you have a job opening and entice them to apply, to fall in love with you, to show interest! This is ‘real’ recruiting. This is the recruiting most organizations have lost, or never had, to begin with.

This is why sourcing became a thing. Sourcing, in its best form in a corporate structure, is only about outbound recruiting. About uncovering that talent that most organizations aren’t even going after and getting them interested in your organization.

The interesting piece to all of this is annual TA spend. Take a look at your own inbound vs. outbound spend. What I find is most organizations tell me they want the best talent but they are spending the majority of their budget going after the minority of the talent. Shouldn’t it be the other way around, the majority of your budget going after the majority of talent?

Recruiting Secret #36

Everyone wants to know the secret to great recruiting. Candidates want to know how to get into companies. Recruiters want to know each other’s secrets to finding great talent. No one seems to be sharing their secrets, but I will!

Recruiting Secret #36 – 

Most hires you will make as a recruiter will find you. You don’t find them.

The secret is to make it easy for them to find you!

There is still a prevailing idea in recruiting, especially on the corporate side, you should make it difficult for candidates to be able to get in touch with and find you. Great recruiters. The best recruiters in any industry, are easy to find.

Are you?

 

The First Sign You Suck at Hiring!

Hiring people to work for you directly is probably the single hardest thing you’ll ever have to do as a manager of people. To be fair, most people are average at hiring, some are flat out kill and probably 20% are awful at hiring.

The first sign you suck at hiring is your new hire turnover is an outlier in your organization, your market, or your industry.

So, what constitutes new hire turnover?

I find most organizations actually don’t measure their hiring managers on new hire turnover but use this to judge effectiveness on their talent acquisition team. That’s a complete joke! That is unless you’re allowing your TA team to make hiring decisions! New hire turn is a direct reflection of hiring decisions. Period.

When should you measure new hire turn?  Organizations are going to vary on this based on your normal turn cycles and level of the position. Most use 90 days as the cap for new hire turnover. That is safe for most organizations, but you might want to dig into your own numbers to find out what’s best for your own organization. I know orgs that use one year to measure new hire turn and orgs that use 30 days.

How do you help yourself if you suck at hiring?

1. Take yourself out of the process altogether.  Most hiring managers won’t do this because their pride won’t allow them. If you consistently have high new hire turn comparable to others, you might consider this, you just have bad internal filters that predispose you to select people who don’t fit your org or management style. Don’t take it personally. I suck at technical stuff. I shop that part of my job off to someone who’s better. You might be an exceptional manager of your business, but you suck at hiring. Shop that out to someone who’s better!

2. Add non-subjective components into your hiring process and follow them 100% of the time. Assessments are scientifically proven to tell you what they’re designed to tell you. If you follow what they’ll tell you, you’ll be much more likely to make consistent hires. If that assessment gives you better hires, then keep following it, or find an assessment that does give you that consistency.

3. Analyze your reasons for each misfire hire. Were there any commonalities in those? What I find is most poor hires stem from a hiring manager who gets stuck on one reason to hire, which has nothing to do with being successful in your environment. Example: “I want high energy people!” But then they work in an environment where they are stuck in a 6X8 foot cube all day. It’s like caging a wild animal! 

Numbers don’t lie. If you consistently bomb your new hire turnover metrics, it’s not the hires, it’s you! In the organizations where I’ve seen the best improvement in reducing new hire turnover, it was in organizations where new hire turnover metric results were solely the responsibility of each hiring manager, and nothing to do with talent acquisition.

It’s the 80/20 rule. 80% of most new hire turn is usually coming from around 20% of your hiring managers. Fix those issues and ‘magically’ your new hire turn improves.

Recruiting Blocking and Tackling!

This week I was at CareerBuilder’s Empower Roadshow talking with a few hundred Talent Acquisition pros and leaders in the Dallas/Ft. Worth area. Great event, great group of pros that were super engaged.

I led a panel on tips and tricks for in-the-trenches TA pros and leaders and one of my panelist was Bryan Rice, TA leader from Stryker. The title of this post came from him, he was big on getting TA pros back to blocking and tackling!

What’s blocking and tackling in talent acquisition?

Here’s what I would call the building blocks of great recruiting (Bryan’s blocking and tackling):

1. Phone skills. Have your recruiters conquered their fear of being on the phone? When they need to reach someone is their first thought, “Oh, I should pick up the phone and just ask the person.” Versus, sending them an email.

2. Ability to sell the position they are recruiting for. Can your recruiters effectively talk to a candidate and get them excited about the position, the supervisor of the position, the direction of the company, all the opportunities you can provide them, etc.? Bryan believes today’s recruiters might struggle with this the most, over anything else, and yet, as TA leaders we do very little to ever develop this skill!

3. Building relationships with hiring managers. Do your recruiters meet face-to-face with their hiring managers when they are working a position for that manager? Not only the first time but every time! You don’t build a strong relationship and find out how to add value if you don’t put in quality time with hiring managers. Today’s recruiters are moving too fast, to understand this value, and how it ultimately saves them a ton of time and effort!

4. Building relationships with candidates, that goes beyond the initial screening interview. Can your recruiters share with the hiring manager the candidate’s ‘story’ for each candidate that is presented to the manager? My goal as a recruiter should be that a manager shouldn’t be able to ask me a question about a candidate that I can’t answer. That’s tough, but that’s my goal!

This all seems so basic, yet most recruiters are weakest in these skills.

Why?

I believe the industry struggles here because TA leaders don’t know how to train these skills, and we don’t have off-the-shelve training programs that really go deep on these skills. So, instead of training recruiters properly, we just give them more technology so they can do a bad job, faster.

The training for four things above is very much a hands-on, one-on-one training. Sitting face-to-face and going over and practicing what these conversations look and sound like, and correcting in the moment, and doing them again and again.

The phone skills are just down and dirty getting recruiters on the phone and seeing who will conquer their fear! My first three weeks as a recruiter in training was calling 100 candidates a day. I couldn’t leave until I made 100 outgoing calls, each day, for three weeks.

At the end of those three weeks, I didn’t know if I could recruit, but I knew I wasn’t afraid to pick up the phone and talk to someone!

Make sure you connect with Bryan, he’s one of the TA leaders in the industry that really gets it!