What is your most valuable hiring source?

As many of you know I’m a writer over at CareerBuilder’s recruiting blog called The Hiring Site. Great group of industry practitioners writing about everything related to talent and recruiting. Because of my relationship, they share cool data with me, that I can share with you!

Some of the most eye-opening stuff I’ve gotten recently is all around hiring sources, and it’s not stuff you normally hear about or see.  Let’s face it. We (Talent Acquisition Pros) hate sharing our data because it makes us feel like we’re giving up our secret sauce!

It’s not really secret sauce, that’s the secret, we all pretty much do the same thing when it comes to talent attraction. We get referrals, we leverage our internal databases, we use job boards and postings, we pray. We pray a lot!

Here’s the data that CB shared with me from crunching the data of 1600+ CareerBuilder clients in 2015:

– 21% of hires came directly from using CareerBuilder.

– 41% of hires actually could have come from CareerBuilder, if the client was fully utilizing the technology they purchased!

– 45% of companies added more sources of hire over the past five years

– On average a candidate will use 18 sources to search for a job!

What does this really mean?

Every organization’s talent acquisition strategy has to have a multi-pronged approach.  You have jobs that you can post on CareerBuilder and find great talent. You have jobs that you will need a great referral strategy to fill. You have jobs that you’ll need outside specialized help to fill. You have jobs that need hardcore sourcing and bust-your-butt on the phone recruiting to fill. You need all these approaches, just one won’t work.

You need all these approaches, just one won’t work.

The key is are you fully utilizing the easiest, fastest sources you have?  We tend to want to discount our job board vendor (mine is CareerBuilder), but the numbers usually tell a different story.  41% of hires seems like a lot, but the data is deep! 1600 clients equal ten’s of thousands of recruiters banging on CB technology. The data is real.

What does this really mean, to you?

1. Make sure your recruiting staff is fully trained on the technology you give them. Then, retrain them!

2. Make sure you’re accurately measuring your source of hire. This is the single most important thing that recruiting leaders miss, consistently. It drives all of your purchasing decisions. I can’t tell you how many recruiters I speak with that truly believe LinkedIn is their most valuable source, and, so far, 100% of the time, the data says it’s not when we pull the numbers.

3. Are you looking at your existing internal database first? It’s the most valuable source in the industry and this is consistently underutilized.

Happy recruiting my friends!

 

Hiring Means Your Organization Failed

Henry Ward, the CEO of eShares, wrote a post on Medium recently on How to Hire.  It’s a great piece from an executive point of view regarding the concept of talent acquisition.  Basically, Henry feels that if your organization needs to go out and hire external talent, you’ve failed as an organization:

“Hiring means we failed to execute and need help. First, let me quell a misconception. Hiring is not a consequence of success. Revenue and customers are. Hiring is a consequence of our failure to create enough leverage (see eShares 101) to grow on our own. It means we need outside help. The perfect business is a computer plugged into the internet. Starting with me, every human thereafter is overhead. And we are increasing overhead by 50%.

I want to repeat this point. We are increasing overhead by 50% because we failed to execute. It is not something to be proud of. It is humbling to go back to the labor market, hat-in-hand, asking for help…”

Want to know why your executives don’t respect HR?  Read above.  Executives think about the business differently than we do in HR and Talent Acquisition. I’m 100% sure any head of TA would believe hiring, because of business growth, equals success, not failure.

Even if you take out Henry’s example of the perfect business model being a computer plugged into the internet, he could still argue that any organization that can’t self-sustain its own growth of labor is a failure. Think about it from a training and development point of view. You hire entry level candidates and train and develop them into every part of your organization. You have a succession plan. If everything works perfectly, you never hire ‘talent’ from the outside. You just hire new, clean, entry level bodies, and create your own clone army!

Okay, at this point we still need to use outside bodies. I would guess at some point Google will create real, live human clones, then the process could be completely self-contained.

So, how does Henry Ward hire at eShares?  Here is his hiring philosophy:

  1. Hire for Strength vs Lack of Weakness
  2. Hire for Trajectory vs Experience
  3. Hire Doers vs Tellers
  4. Hire Learners vs Experts
  5. Hire Different vs Similar
  6. Always pass on ego

Pretty solid. Some of it might depend on your industry, company, etc. I’m not a huge believer in always hiring for difference. Difference causes conflict. In some organizations that is great. In some organizations that is catastrophic. Just as similar, group think, etc. is bad in many cases, it’s perfect in some cases.

Give his article a read, he goes into detail on each step with an explanation.  One of the best executive written pieces I’ve read on hiring.

T3 – @Lever #ATSDifferently

This week on T3 I get to look at a rather new entrant to the applicant tracking system (ATS) field, Lever.  Lever was designed from the ground-up to be different than every other ATS on the market.  Most ATS software are built for the recruiter in mind. The thinking being this is a software used by recruiters, we need to design it so the recruiters will love it.

That all makes perfect sense, if the basis is true – used by recruiters for recruiters.  Lever decided that basis wasn’t totally true. ATS software should be used by everyone in the company. Yes, recruiters definitely need to use it. Also, hiring managers need to use it. Those in the interview process need to use it, etc. If attracting talent is a key component of your organizational success, then you need an ATS that is designed to be used by everyone, not just recruiters.

Lever is designed for organizations who are really focused on talent attraction, where hiring managers own the talent on their teams and are keenly involved in the talent acquisition process. Lever isn’t trying to be the ATS for everyone. They’re trying to be the ATS that companies in tough talent markets use, where talent is an organizational priority, not an HR or TA priority.

5 Things I really like about Lever: 

1. Lever structured their database differently so that you don’t end up with duplicate profiles within your ATS.  It’s structured around the candidate, not requisitions, so you end up with a much cleaner database overall.

2. Lever is designed around CRM functionality, it didn’t bolt on a CRM to it.  This makes a difference when it comes to the functionality of how it automatically follows up in the future for you.  The hope is you don’t end up with a gold mine of talent in your database that you can never mine. Lever is constantly working to mine the gold you already have.

3. Lever’s reporting is a step above most ATSs in that they, again, went at it from an organizational need, not HRs need. Within Lever you can instantly see your pipeline speed and conversation rates all at a granular level to see the detail you need to make quick decisions.

4. Candidate interview scheduling is built within Lever, and integrates all parties, the candidate, hiring managers, interview teams, HR and TA. No back and forth stuck in the middle go between any longer. You select who to involve and the system will instantly show you when and what conference rooms are available to get it done. All in one step.

5. Collecting candidate feedback is another strong functionality within Lever.  It’s a simple interface any hiring manager or anyone on the interview team, can use easily. Plus, there are auto reminders that will continue to bug all involved until it’s done!

Lever is fairly new but already has over 700 customers, with some major tech companies who have recently switched over from some very big ATS products, which really speaks to how they are doing things differently within the ATS space.  Definitely worth a demo if you are not happy with your current ATS, or in the market looking for something new.

Lever is led by a great team, and I suspect you’ll continue to see innovation come out of this camp.  I met with them personally at HR Tech, and their CEO, Sarah Nahm, was one of the few HR Tech executives who truly seem to care what I thought about the product and took written notes as we discussed it. Most just want the free publicity, she wanted to know how to make her product better. That’s rare, and exciting!

T3 – Talent Tech Tuesday – is a weekly series here at The Project to educate and inform everyone who stops by on a daily/weekly basis on some great recruiting and sourcing technologies that are on the market.  None of the companies who I highlight are paying me for this promotion.  There are so many really cool things going on in the tech space and I wanted to educate myself and share what I find.  If you want to be on T3 – send me a note.

The Advanced Class – Recruiting Edition

As my friend Laurie Ruettimann pointed out last week, recruiting is easy and can be done by basically anyone, so just go hire some soldier to do it.   Laurie might not be that all far from the truth.  Recruiting isn’t brain surgery, it’s a process.  A process that is hated by the majority of human resource professionals around the world, which is why it is a $9 Billion dollar industry.  Not a hard skill, but many times, a really hard job to be successful at.  Old school recruiters like to believe recruiting is an Art form.  It’s not.  New school recruiters like to believe you can just source everyone you need off the internets. You can’t.

Recruiting is all about activity.  It’s a sales cycle.  The more contacts (phone calls, emails, handshakes, etc.) you make, the more candidates you will find.  The more candidates you find and get interested in your jobs.  The more jobs you will fill.  Not hard, right?  The problem is, ‘most’ recruiters look to do things that allow them not to make contacts!  They will buy every kind of technology imaginable to get people to call them.  They’ll do just about anything, besides picking up the phone and making that one call.

Want to be successful at Recruiting? Find people who are willing to make 100 calls per day and who love your company.  Go ahead, go find those people!  It might be a soldier, it might be your neighbor, it might a former crackhead, who knows!  The fact is, most people do not want to do this, even when you hire them and pay them to do just this!

So being a successful recruiter is basically easy.  You must find the sweet spot in the amount of activity you need to do each week that will get you the amount of contacts you need to get enough people for the jobs you want to fill.  Once you find that level, you need to maintain that level forever. Easy. I’m not kidding.  You don’t need fancy branding, and big ATS Systems and a bunch of processes.  You need people who will bang your internal resume database and job boards constantly, and faster than your competition.  That really isn’t that hard to do, because most shops don’t even do the basics well!

Now for the Advance Class participants:

Want to be Ridiculously Successful at Recruiting?

Do that which is written above and add just one thing.  Maintain a relationship with your companies Alumni.  There is this funny thing about human nature.  When we leave some place, we always want to know what’s going on back there!  If we move to a new city, we love updates from our old city.  When we run into past coworkers at the mall, we love updates on who is still there and who is running different departments, who got fired, who got promoted.  If we know this about human nature, why aren’t we giving it to our Alumni?

It doesn’t have to be constant but is has to be consistent.

Do a quarterly Alumni update via email to everyone who has every worked for you. Even the crappy ones who you are glad they are gone !  Give them some juicy details about promotions. Let them know some new things you’re working on.  Let them know what jobs you’re trying to fill, and how they can refer people.  Do this every quarter for 2 years.  Want to be class valedictorian?  On a monthly basis call a handful of alumni and just have a chat, build some relationships, check on where are they now.  As them if you mind if you share their story in the next Alumni News going out next quarter.  If you commit to do this for 24 months, you will start to see positions fill themselves.

This is advanced course stuff because 99% of companies aren’t doing this with their recruiting!

GE’s “Owen” Employment Branding is Brilliant!

If you haven’t seen these TV commercials for GE (they also have a ton of radio ads in the same genre) you’re missing out on one of the best employment branding campaigns that have come out in years! “What’s the matter with Owen?” is the series and they’re very funny!

The ads show that GE knows who they are and what the perception is about them in the technology industry.  They also know, like many other giant established primarily manufacturing companies (see Big 3 Autos, Boeing, Lockheed, General Dynamics, etc.), that they need engineering and IT talent, just as bad as those companies in Silicon Valley.

Here are a couple of the ads:

We talk constantly about how important employment branding is to organizations to attract talent. We also say that small companies have an advantage in employment branding because they can be more creative.  I think GE just gave big orgs a roadmap to how they can flip the script when it comes to be creative and having fun with their employment branding!

Want to have a better understanding at how bad the labor market, truly, is for STEM talent?  GE, one of the most established brands in the world for decades and one of the most conservative with their branding, is making fun of itself and it’s perceived culture!  I can’t even explain at what a huge shift this is within the industry!

Quality of Hire Metrics are an Illusion

LinkedIn released their annual Global Recruiting Trends 2016 report last week and it had some great information.  I have to give LI credit, this report, each year, has some really great information that always makes me think!  This year’s report was no different, and one stat struck me as really telling:

When Talent Leaders were asked: “What is the single most valuable metric that you use to track your recruiting team’s performance today?

They said:

“39% of Talent Leaders agree the quality of hire is the most valuable metric for performance!” 

It was the single highest answer to this question!

You know what?  Quality of Hire is an Illusion for about 99% of organizations!  They have no freaking idea how to actually measure quality of hire, or what they’re actually measuring doesn’t haven’t the faintest correlation to actual quality of hire.

So, why is this interesting to me?

It shows me that TA Leaders still don’t have the guts to use real metrics and analytics to measure the performance of their teams!  Using a subjective, at best, measure, like Quality of Hire, allows them to continue to just make up what they ‘feel’ performance is, and one that doesn’t truly hold themselves or their teams accountable.

If you think this isn’t you, tell me how you actually measure quality of hire of your employees?  It’s very complex to even come up with something I could argue is an actual quality of hire metric!  Most organizations will do things like measure 90 day retention as a quality of hire. “Oh, look, they stayed 90 days! Way to go recruiters you’re hiring quality!” No they’re not! They’re just hiring bodies that decided to stay around 90 days!

Quality of hire metrics only work if you are actually measuring the performance of your new hires to the performance of those employees you already have.  This measure, then, becomes one that you can’t even measure until you have a true measure of performance (which is a whole other issue!) of both the new hire and your current employees. Also, you have to give that new hire, probably a year, to truly see what kind of performer they are in your environment.

How many organizations are waiting a year to measure the quality of hire of the employees they hired a year ago?  Almost none!

The other issue here is why is Quality of Hire a recruiting measure to begin with? Are the recruiters ultimately choosing who gets hired and who doesn’t?  That’s what I thought.

So, the recruiter can give the best candidate in the world to a hiring manager, but she instead hires a gal from her sorority who bombs out, and the recruiter gets killed on the quality of hire metric? That sounds fair.

Quality of hire metrics only became something because TA Leaders didn’t have the guts to tell the executives in their organizations that this isn’t really something that matters to the effectiveness of the TA function.  Quality of hire is a hiring manager metric.  You know how it’s measured? By looking at their operational measures and seeing if they actually met them.  If they didn’t it one of three things: they don’t know how to hire, or they don’t know how to manage, or both.

Regardless, check out the LinkedIn report. It has some good data points that are fun to discuss!

Sustainable Talent Acquisition

Here’s what I know.  A sustainable talent acquisition process can’t happen if it’s human run. A manual, human run talent acquisition process eventually falls apart.

Think about your employee referral program.

It was an awesome program when you launched it last month, last year, etc.  Now it’s dead in the water. Why?  Because it’s almost impossible for you, and your team, to keep it going on your own.  Other things become a higher priority, things move fast, eventually, even the best programs get pushed to the side, or forgotten about completely.

I’m not just talking about employee referrals. Every part of your TA process is exactly the same.  Sourcing, assessments, background checks, onboarding, exit interviews, etc.

To make talent acquisition sustainable, you need to integrate technology, it can be human driven.  TA technology allows you to automatically sustain these efforts simultaneously without you actually having to do anything.  Technology can reach out and source and attract. Technology can screen and assess. Technology can drive employee referrals 24/7/365, without you ever touching it. Technology can interview.

Basically, technology allows you to sustain and ongoing recruitment effort without you ever taking your foot off the gas.  The best of us fail at this. We have the best intentions, design the best programs, then life happens and things fall through the cracks. We then come to a point, where we do it all over again.  This is where and why most talent acquisition processes and functions fail, because they are just not sustainable.

Everything is going great, then Mandy leaves for a new job, Sue goes on maternity leave, and Tim who used to be great, has now lost his mojo, and we can’t seem to do anything right. Humans screw up your process! We need them, because humans also make hires, but boy can they make it difficult sometimes!

How can you make your talent acquisition sustainable for years in your organization?  Utilize your technology to it’s fullest. Add technology to the parts that give you the biggest headaches. Then, utilize your humans to build relationships with candidates and hiring managers. Let the tech run the process, let the humans run the people.

Your CEO is a Better Recruiter Than You

Lou Adler, a great thought leader in the recruiting industry (I love to refer to him as “Uncle Lou” – endearingly), has one of the best recruiting articles of the year up on Inc. titled, “An Open Email from a CEO to All Outstanding Candidates“.   The concept of the email was getting your CEO to send out an email directly to candidates you are trying to source.

Just that idea alone is a brilliant strategy, because 99.9% of organizations will never do it!  That means, you’ll standout from the crowd. That’s good recruiting practices.

The article goes on to give you how you should actually write the email and what you should say:

1. No silly, classic job descriptions.  Instead tell them about what they’ll actually be doing.

2. Describe why the job could be a career move to the candidate.  They’ll believe this from coming from the CEO.

3. Don’t tell them to apply. That can actually be the last step. Get them interested first. Applications scream we have no idea what we are doing.

4. Provide an open invitation and a direct way to have a real conversation with someone with direct knowledge of the opening.

5. Let them know what the process would look like and next steps, if they are actually interested in moving forward.

6. Make sure the candidates have access to your hiring managers as well.  I’m assuming if your CEO is this involved, your hiring managers will be onboard as well!

Great stuff, right?!

It probably doesn’t work for high volume hiring when you have a lot of candidates. This isn’t meant for that, it’s meant for hard to find, critical to the business type positions.

I absolutely love this technique!

Here’s what I know. Most companies, and most CEOs, will never do this. Those who do, will have great success in getting candidates to respond. Put yourself into your candidates shoes. You’re sitting there some idle Friday and an email pops up from a name you don’t recognize. You open it and find out it’s coming from the CEO of a pretty good company in town. You better believe you’ll read it.

You will also ‘trust’ what is in that email, over if the exact same thing is sent by a recruiter. Why?  You believe that a CEO would never put themselves in a position to lie.  Right or wrong, you believe this. Plus, you’re flattered that a CEO sent you a personal email, not some marketing email, from their ‘real’ work email address, with their contact information in it.

None of your friends have gotten an email from a CEO telling them they are wanted! This is cool. This feels good. This feels different.

This is a winning strategy.

Thanks Uncle Lou!

The Only Candidate Available

Almost every single week of my life for the last twenty years I’ve had to deal with an issue that just seems to never go away. I didn’t matter if I was in a HR or TA role, I was always involved with working with hiring managers who always had some sort of opening, even in bad economic times.

The scenario went something like this:

1. Hiring Manager  has an opening. I/We find this hiring manager a really good candidate. Not perfect, but probably better than many we have already hired in the same position.

2. Hiring Manager interviews candidate. Likes Candidate.

3. I go to speak with the Hiring Manager.

4. You know what happens next…

5. Hiring Manager says she really liked the candidate, but (wait for it)…She would certainly like to see other candidates to compare.

6. I put gun in my mouth and pull trigger.

This same scenario has happened weekly for twenty years across multiple companies, multiple industries and multiple states. It’s an epidemic of enormous proportion across the world.

Here’s the real problem that we face with hiring managers, and it’s completely psychological. The Hiring Manager always assumes that the ‘last’ option, or ‘only’ option is a bad option.

Pretty simple.  We all do this.  If you go to a farmers market and you go to pick out some produce, let’s say a head of lettuce, and the farmer only has one head of lettuce left on the stand. We will assume something must be wrong with that one head of lettuce!  If the farmer puts three other heads around that one, you would gladly pick up the original head, now believing you ‘picked’ the best head of lettuce.

Candidates are heads of lettuce!

When you show a hiring manager one, they assume it’s not as good as the others they are not seeing.

This is actually pretty easy to solve, but very hard to do. Never present a hiring manager with one candidate.  HR and TA are classic economist when it comes to candidate generation. We are FIFOs! Do you remember your Econ class from college? First In, First Out.  The first candidate we find, we immediately send out to the hiring manager.

This starts the problem.

The hiring managers seeing one candidate will discount this candidate as bad. If you just wait a few days, put one or two other candidates with this candidate, not the hiring manager will ‘pick’ the best.  This works pretty well, most of the time.  But, it’s hard to do because we get so excited about finding a good candidate we want to show it the hiring manager as fast as possible.

Stop that!

Be patient. Find a good ‘slate’ of candidates to present all at the same time. Reap the benefits.

The only candidate available will always be that lonely head of lettuce on the farmers stand.  Find more heads, and present them together. No one likes to pick from a pile of one!

1 Sign That Shows Google Now Controls HR

It was just a matter of time. The company that vows to do know evil, would eventually take over the function that is the most hated in the world.  Don’t get me wrong, Google didn’t come into your organization and start giving your employees performance reviews, yet.  What Google does is much more stealth.

Remember back in April of this year (2015)? Laszlo Bock, the head of HR for Google, released his book “Work Rules!” He then went on a national book tour and was famously interviewed, everywhere, telling anyone who would listen that you don’t need a college degree to work at Google. In fact, Google has found that your college GPA and transcripts to be ‘worthless’ in terms of making a quality hire.

We all kind of chuckled.  Well, there goes Google, being Google again.

Let’s fast forward to today. Jobvite recently released their 2015 Recruiter Nation Survey.  It’s always an interesting read, with great data and metrics, but one metric stood out, to me, above all others:

“57% of Organizations now report that GPAs are unimportant.”

Do you see what just happened?

If Jobvite would have asked organizations and recruiters in January of this year, this same question, prior to Laszlo’s announcement, how do you think this number would be different?  I’m telling you the number would have been around 5% or less!

GPA are unimportant. Really?

Here’s what Google, I mean Laszlo, forgot to tell everyone about why Google can hire people who have never gone to college.  THEY HIRE FREAKING GENIUSES THAT HAVE BEEN CODING IN THEIR PARENTS BASEMENTS SINCE THEY WERE 12! These kids don’t need college. College would bore them. They know more than the professors teaching them. Google gets to hire the top 1% of people, not just college grads.

You won’t get these geniuses, who don’t need to go to college.  You get half-baked nitwits who need college, a good spanking, a few years to grow up and probably deep therapy.  You are not Google.

Yet, here we are, and you are answering Jobvite’s survey questions and acting like your Google.  Thank you Google.  Thank you for setting HR back a decade.  For not telling the full story, just swaying opinion by making bold statements.  We now get a generation of workers who think they can just jump off their Xbox and into a job paying six figures.  That’s really helpful.  You’re brilliant Laszlo.

Check out Jobvite’s 2015 Recruiter Nation Survey, it’s good stuff, even the stuff that Google brainwashed you to answer.