The State of Hourly and High-Volume Hiring in 2022

It’s Friday. It’s the Summer. Blog traffic is crap on Fridays in the summer! You get my raspy, deep morning voice instead, enjoy! So, here’s a vlog instead:

It’s Your Boy!

Here’s the link to the report – The State of Hourly and High-Volume Hiring in 2022 by HR.com. Here’s the link to Matt Charney.

Greenhouse Adds Sourcing Automation to ATS #Open22

I’m out at Greenhouse Open this week, and Greenhouse made a major product announcement adding Sourcing Automation to their core ATS solution. What the heck does that even mean?

From the press release:

Introducing Sourcing Automation: a new outbound sourcing solution that helps users find, reach and engage top talent quickly and effectively – all with Greenhouse. Sourcing Automation improves email deliverability, scales outreach through personalized and automated campaigns and gives hiring teams the insights they need to become sourcing experts – and turn more candidates into hires.

What does it all mean?

So, isn’t this just Interstellar, the CRM they purchased, finally just launching? A little bit, but to call this “CRM” is a misnomer. CRM in the recruiting space is really designed for large enterprise TA teams that have a team that can run the CRM and gets the value out of it. Greenhouse’s Sourcing Automation is more marketing automation designed for individual recruiters to use daily.

Does this replace HireEZ and Seekout?

No, this is more of a complementary product. How so? Sourcing Automation isn’t a sourcing engine like HireEZ and Seekout are. You use those tools to find the talent you can’t find anywhere else. Sourcing Automation makes it way easier for you to actually connect with those people, plus easily add in candidates from your own database to connect with as well. The reality is one of the biggest challenges we face as recruiters is connecting with candidates as fast as we can, at scale, and this type of automation allows individual recruiters to do that effectively and efficiently.

Do your recruiters need this?

The short answer, in today’s world, yes.

Long answer, it depends on how you want to recruit. If I’m totally honest, way too much of the recruiting we do is a simple post and pray, inbound candidate processing. If that’s what your recruiting is, and that’s what you want to continue to do, save your money. This product is not for you. If you want to give your team a tool to do more outbound recruiting and add capacity to your ability to recruit more candidates quickly, then this product is worth a look and a demo.

I don’t say that in jest. The reality is some of us aren’t in a position to do outbound recruiting for a number of reasons. We are all on various levels of our recruiting maturity, so it really depends on where you are at and where you want to take talent strategy. Sourcing Automation is an amazing tech, but like any tech, you must use it to get the value out of it.

It’s well worth your time to dig into Greenhouse’s sourcing automation product and compare it to full-blown CRM recruiting tech and understand what sourcing automation is and isn’t. I think you’ll find that Sourcing Automation is a tool your recruiters can use every day in their day-to-day outreach and connection.

Why is Walmart Struggling to Find $200K/Year Store Managers?

6.68% of Americans make $200,000 a year or more. Of course, that almost 7% is definitely centered around certain areas. States like California, New York, Connecticut, New Jersey, Maryland, Massachusetts, etc., have a much larger percentage than the average. States like Mississippi, Alabama, Louisiana, most of the Midwest, etc., are under the average.

The Wall Street Journal had an article this week about how Walmart is struggling to fill their store manager jobs. Specifically, their General Manager job, the number one job in a Walmart store, which pays around $200,000 per year.

You would think with so few people making $200,000 a year, Walmart would have smart, ambitious folks knocking down their doors for a chance to make $200,000 per year!

But they don’t. Why?

First, most organizations tend to promote from within. Walmart is similar to this, but reality eventually hits the ceiling. An average Walmart store probably does a revenue of $50-100 million per year. The net income of those locations probably runs around $3-5M per year. There are roughly 350 employees in a Walmart store. Running a single Walmart store is like running a mid-sized enterprise business! Most SMBs in the country have a revenue well under $1M.

This means that Walmart can most likely train an hourly store employee to become a department manager, but to become a General Manager, they are looking for some formal business education. You have to run a giant P&L. You have major risk factors. You need real leadership skills. In many towns, “the Walmart” is probably the biggest business in town!

College kids, on average, don’t want to leave State U for a $65,000 a year job as a Manager in Training at Walmart. It’s not something you go back to the homecoming football game and brag about. Your friends took that $50k per year job with the tech firm in town as an entry-level, you make more, but they look down on you.

I know some folks are reading this and thinking, “So! You make more! You will continue to make more! You run are in line to run a giant business! You f’ing cares what others think!” Young adults do. Young adults care what other people think. If I’m frank, and I usually am, we all care what others think!

What would I do if I was at Walmart?

I love this game. It was the basis of my entire book! What would Timmy do if he ran your shop!

#1 – Stop trying to hire or require any form of formal education. Yes, you need smart folks, so give cognitive assessments. Find smart people who can learn quickly, who also have some “hustle” and “grind” to them. You probably have a ton of folks already working for you that you won’t consider. You also have to look at talent pools we tend to discount, most notably, in this case, 50 years and older, retired military commanders, etc. Walmart wants to solve this by talking new college grads into these jobs, I’d be talking failed executives into these jobs! Big salary. Big team. Big job. College grads don’t want that, your Dad does, and a retired military leader who is used to leading hundreds of soldiers does. Also, your Dad will work 60 hours a week and think it’s normal. A new grad will work a solid 40 and think it’s North Korea.

#2 – Build the Manager School. If a great GM in a Walmart environment makes them $3-5M a year, there are margin dollars to build more great GMs! Part in-person instruction. Part on the job training. Part virtual instruction. All the way in on fully engaging non-stop. Send them to manager boot camp. Make it exclusive. Bring in big-time celebrity speakers around leadership and performance. Do graduation with a gold watch.

#3 – Make it so lucrative they won’t want to leave. $200K is really nice, but you need some other stuff. You need to make folks say, “F! You!” To their friends that don’t think Walmart is cool enough. What is that? I don’t stock options. Partner programs on profit sharing. Company SUV.

Here’s what I know. The profit difference between Walmart’s worse GM store and their best GM store is so big it would make you blush. It’s millions of dollars. So, making sure you hire, train, develop, and take care of the great ones is priority number one. Building the talent pipeline to successful GMs would be the job of a team of people that included great recruiting leaders, brand and marketing leaders, and technology and data leaders.

I’m not saying this is an easy job. It’s enormously difficult and complicated. But, it’s doable. The problem is, that every organization thinks the solution to their problem is new college grads. They can help, but it’s only one sliver of the full pie that is needed.

Scarcity and authenticity are powerful!

I get asked multiple times a day about how organizations can find more talent. The desperation in today’s world around this one topic is concerning. People are losing their jobs and their well-being over it. Corporate recruiter experience is at an all-time low.

The formula for hiring and attracting talent has not changed and it won’t change. Like anything we desire in the world, it comes down to scarcity and authenticity. That being said, that is also extremely difficult to provide to a job seeker.

Why?

99.99% of us can’t present our jobs in a scarce way. Google can, you can’t. Turns out, you’re not Google.

There are very, very few of us who have the luxury of working for a brand that almost anyone would kill to work for. The unicorn brands, as I like to call them. These brands can create scarcity around their jobs. This scarcity feeds upon itself, where candidates will go to extraordinary lengths to get noticed for a job, just trying to get their “foot in the door”.

The “authenticity” part is where we in the 99.99% of us can fight back!

Whether you are big or small, if you have a non-unicorn brand, we can always be super authentic. It’s harder for those running the scarcity game to do this because part of the game is to have some mystery behind door one.

To be able to leverage your job postings with videos from potential co-workers, the hiring manager, and an executive giving deep insight and understanding of your jobs and brands can be something very powerful to pull in more talent.

Can you combine these? Yes, but you rarely ever see it. Mainly because if you’re lucky enough to achieve scarcity around your jobs, you feel like what do we really gain? We already have almost all the candidates we want, why do the extra work for a small incremental increase.

The key is you have to do one or the other really well. One you control, one you don’t.

What I find is too many organizations act like they have scarcity when they don’t. And almost none of the organizations that should be killing authenticity actually do it.

The formula didn’t change.

Mailbag: Can an experienced Recruiter be any good with 378 LinkedIn Connections?

I had a Talent Acquisition Leader reach out to me this week. She is having a hard time hiring recruiters and was looking for some insight. Now, she was looking for more of a professional generalist recruiter. Someone who can hire some hourly, but also corporate positions that include: finance, IT, operations, marketing, etc.

She mentioned she had gotten a resume of a recruiter who had four years of experience, but when she looked her up on LinkedIn, she only had 378 connections. Could this recruiter be any good with so few LinkedIn connections?

The Answer

No.

Okay, before you become unglued, let me explain.

Let’s say this four-year recruiter was only hiring high volume hourly. That would mean this person would never spend time on LinkedIn, since hourly workers, for the most part, do not have profiles on LinkedIn. So, now you’re thinking, “yeah, Tim, LI connections don’t matter for this person so they could be a great recruiter!”

Still, I say no!

Because, for me, a great recruiter builds a network of other recruiters and sourcers to constantly learn from. It basically takes almost no effort or skill to connect with 500 other recruiters, sourcers, HR pros, and your personal network on LinkedIn. Once you get to the 500 mark, no one knows if you have 501 or 30,000.

I challenge my own entry-level recruiters that have no recruiting experience to get to 500 connections as quickly as possible. Within six months, they should be able to do this very easily. So, if you run into a recruiter who is three or four years into their career, and they are under 500, they are showing you that they probably have very little interest in expanding their network and learning from others.

500 LinkedIn connections are like training wheels for a recruiter. I don’t expect every profession to have over 500, but recruiters, sales pros, and people looking for jobs should always have over 500. There’s no reason not to, it’s literally the easiest professional networking available to everyone for free.

Do more LinkedIn connections then equal someone is a better recruiter than another?

No.

But, wait, you just said…

Recruiters, of all types, need to get to 500. After that point, it really becomes more about the quality of the connections that you build. If you just accept every Open Networker on LinkedIn, that network will be full of Life Coaches and Pyramid Scheme sellers!

Great recruiters build networks that help them learn more and recruit better. I would say once you establish a network, you then become much more selective about who you invite and which invites you to accept. Right now, with my network that runs over 20,000, I only accept about 1/3 of the invitation requests I get based on the criteria I want in my network.

I know recruiters that quickly maxed out their LinkedIn networks with garbage and had to go back and scrub their networks, and it’s very time-consuming. But, I also see recruiters who switch industries and skills who do this as well. Your network should grow and change with you based on where you are at in your career.

So, LinkedIn connections matter and they don’t. That’s just reality in today’s world of recruiting. Whether you are recruiting doctors or truck drivers, you should still be using LinkedIn for your own professional development on an ongoing basis.

The Most Brilliant Talent Tips Condensed Into Tiny Sentences!

I wrote a book with a lot of words. One I discovered is that people love for you to have a book, but no one really wants to read 60,000 plus words. They want you to break it down to about 500. “Just tell me what I really need to know!”

Okay – Here you go:

  • Always give personal feedback to candidates you’ve interviewed but didn’t hire. 
  • Make every candidate believe you desire them until you don’t. 
  • Job advertising works. Programmatic Job Advertising works best. 
  • You don’t hire the best talent; you hire the best talent that applied to your jobs. 
  • If your team only uses 50% of your ATS, it’s not an ATS problem, it’s an adoption problem. (which means it’s a leadership problem) 
  • Measuring the recruiting funnel will give you far better results than measuring days to fill. 
  • Only hire Sourcers if you truly have recruiters willing to do outbound recruiting. 
  • 90% of your recruiting is inbound recruiting, but your hiring managers believe 50% of what you do is outbound recruiting. 
  • Your diversity hiring woes can be tied specifically to certain hiring managers, but we are too afraid to connect the dots politically. 
  • 99.99% of candidates will never accept a job without first talking to a real person. Call volume, in recruiting, matters. 
  • If your sourcing tech is failing, it’s not a failure of the tech, it’s your recruiters hate doing outbound recruiting. 
  • They key to being a great recruiter is getting someone who doesn’t know you to trust you with their career. 
  • A candidate will always respond to a hiring manager more than a recruiter on average. They’ll respond to the CEO of your company even more than a manager of a function.
  • On average, there are worse selection strategies than hiring the most pretty people you interview.
  • The most underutilized recruiting resource you have is your own database of clients.

What is your favorite tiny piece of talent advice? Put it in the comments, and I use it in my next book which will only be 2,000 words!

Why do candidates ignore recruiters?

Oh, Lord, let me count the reasons! Can I get an Amen!?

Basically, candidates ignore recruiters because as recruiters we have sucked too many times for them to pay attention any longer! Also, it’s a lie, candidates don’t actually ignore you, they see you, but they don’t respond, because we can be worse than a used car salesman who’s about to be fired if they don’t sell one more car before the end of the month!

There was a brilliant article written recently by a Software Engineer, Alex Chesser, Career Advice Nobody Gave Me: Never Ignore a Recruiter. From his post:

The obvious adaptive response that I suspect the vast majority of us use is to roll our eyes and ignore them. We tell each other jokes about the problem all the time. We’ll gripe and moan about how annoying it is, how obvious and crass it is.

No one ever explained to me that recruiters are also one of the best career resources you can find.

If you think about it, who better to be completely honest with about what you want from your career? Who else has real and direct insight into how much money any given role pays?

Alex shares the script he uses to respond to each recruiter outreach he receives and it’s brilliant –

BTW! Alex says “Steal This and Use it!”

Candidates Ignore Recruiters Because We Waste Too Much of Their Time!

This is the reality. Because we, as recruiters, don’t really know enough about them, we tend to waste a lot of time discovering if a candidate is right for us or not. Maybe, Alex has found a better way to communicate this back and forth that is valuable for both parties. The candidate gets what they want and we get a response, that might lead to a positive outcome. No response leads to no outcome!

The truth is, every candidate does actually want to hear from a recruiter. Recruiters think this isn’t the case. Candidates mistakingly say this isn’t true. But it is. If I contacted Alex, today, and I had his dream job, he wants to hear from me. If I have a crappy job that is four levels lower than his ability, he doesn’t want to hear from me. But, as he found, you don’t know that until you know that!

Alex’s response to every recruiter, while canned, is perfect in getting positive responses from him. If more candidates did the same thing, I’m sure we would see more positive interactions across the board between recruiters and candidates.

Candidates ignore recruiters simply because far too often recruiters are reaching out to them with positions they wouldn’t be remotely interested in. Why do recruiters do this? Desperation. Ignorance. Overconfidence. Lack of clarity on what the hiring manager wants/needs. Lack of basic worldly understanding of what someone would possibly want given the information they have. All of the above.

Candidates don’t ignore recruiters who deliver the goods and treat them as a professional. As someone who values your time. There’s hope, because of the Alex’s out there helping us be better by being very specific about what and how that looks.

In a Corporate Recruiting Department, What Percentage of Hires Should be from Outbound Recruiting?

I went to hireEZs (formerly called Hiretual) Outbound RecruitCon this week and the big topic of conversation was recruiting isn’t working! Surprise! It’s broke!

Well, recruiting probably isn’t broke, it’s just what we normally do isn’t working as well any longer. The reality is, about 90% of corporate recruiting is some form of posting jobs and waiting for candidates to apply. That clearly isn’t working right now! And, it probably won’t work for a long time to come.

Outbound recruiting traditionally has been something only agency recruiters really did a lot of. It’s why recruiting agencies are a multi-billion dollar industry. Even RPO (Recruitment Process Outsourcing) companies don’t do outbound recruiting, they also, primarily just replace the normal inbound recruiting done by corporate talent acquisition departments.

Why don’t we do more Outbound Recruiting in Corporate TA?

First, it’s exponentially more difficult to do outbound recruiting than inbound recruiting.

Why? It’s fairly obvious, one is just contacting people who have already told you they want to work for you (inbound) and the other is convincing someone to come work for you that might have never even heard of you and your organization!

Second, we don’t really train our recruiters to do outbound recruiting.

And since TA leaders grew up only doing inbound recruiting, their training consists of, “Look, it’s not hard, just pick up the phone and call people!” Which is actually really shitty training! It’s incredibly hard, and it takes skill.

Third, we don’t give our recruiters the technology and tools to do outbound recruiting properly.

Almost all corporate talent acquisition budgets are focused on inbound recruiting. It takes a lot of money to fill the inbound recruiting funnel, and since that’s what most of us do, that’s where the money goes. And, no, LinkedIn isn’t an outbound recruiting technology!

What percentage of our recruiting should be Outbound vs. Inbound?

This is a very organizational, job, and industry-specific question. If you do a ton of hourly hiring, your organization will do more inbound recruiting than outbound. If you hire highly skilled workers, healthcare, technology, etc., you definitely should at a minimum be doing a 50/50 split of inbound and outbound recruiting, and some will be in the 70-80% outbound the more specialized you get.

We all know there are some roles that you can post and advertise and they are so specialized you will never get a candidate remotely close to being qualified. And yet, the money is spent because, “well, you never know…” Actually, yes, yes we do know, and I’m not burning any more cash just for the fun of it! All of those resources should be spent on outbound recruiting.

The key to increasing your outbound recruiting is two-fold:

  1. You’ve got to measure the two, inbound and outbound, separately.
  2. You’ve got to have recruiters who aren’t asked to do both, because they won’t. I’ll add here, these two types of recruiters have to be paid differently and you can’t expect the same outcomes from both types.

What we know today is having a talent acquisition strategy that is mostly inbound recruiting will and is failing for most organizations. It’s hard, but in current times, its what is needed.

Exploding Job Offers!

I had a question the other day from an executive outside of HR and Talent. A C-suite type who was frustrated by the lack of hires his “HR” team was making. My first question was, does HR hire for you, or do you have a recruiting or talent acquisition team? He didn’t know. Problem number one.

This guy wanted my opinion, well, he really wanted my agreement if I’m honest, to something he was forcing his HR team to do with job offers. You see, they had many job offers turned down to accept another job offer. Basically, almost all candidates we have are interviewing at multiple places, and these are technically skilled candidates, in IT, engineering, etc.

His plan was to start offering expiring job offers so that the candidate would be forced to accept their offer at risk of losing it!

Brilliant, right!? He asked me…

Here’s my exact reply:

“So, in an employment market where the unemployment rate is around 1% for technical candidates, you feel the best strategy is to force someone to make a decision to come to work for you? Also, who says that they won’t just accept your offer, continue in the process while waiting on other offers to come, and eventually just leave you high and dry? Also, do you really want to start off an employment relationship with someone who felt forced to take your offer?”

His response:

“Well, the hell should we do?”

The Problem with Exploding Job Offers

  1. Expiring job offers only work on candidates who are lower end of the value chain, or have no other vaiable offers to choose from. The best talent, won’t even consider you if you pull that strategy.
  2. If you aren’t a “unicorn” brand (Google, Apple, etc.) you have no shot at getting good talent to accept your exploding job offer.
  3. While it might in theory “end” your hiring process faster, you have a higher chance of a late no-show/decline that puts your team even farther behind in hiring. Especially, if they went back to your other viable candidates and told them they were silver medalist.

What’s a better way? Because it’s not unheard of in today’s world where we put some timing around job offers. The reality is, we can’t wait forever. So, the real question is, how long should we give someone to consider our offer before we have to pull it back?

I like to use this as a great way to find out what I’m up against. Let the candidate tell you a time, and then negotiate it down if you don’t feel like it’s appropriate. First, when I make an offer, I expect a full acceptance the moment I make it! What?! But, you just said…! Yeah, I don’t like exploding job offers, but I also work as a recruiter who has already pre-closed the candidate and knocked out all the objections, so when I make the offer, the candidate and I have already agreed, if I get X, Y, and Z, you’re answer is “Yes”, correct?

That doesn’t mean it works every time!

In the case where the candidate, legitimately needs some time, I give them some time, but also I need reasons to go back to the hiring manager with. Why do you need the time? Are there other offers you are waiting on? What would make you take those other offers over ours? Again, keep closing, with demanding an answer. Changing jobs is one of the top three most stressful things a person does. These decisions don’t come lightly, and we need to respect that.

Offering Exploding Job offers is old advice that has turned into bad advice, similar to not accepting a counter-offer from your employer. Job negotiation has changed a lot over the last few decades, some of the traditional things we did in the past just don’t work anymore.

How can Text Recruiting increase your gender diversity hiring?

Who likes to text more, men or women?

What’s your gut reaction? My initial reaction was it’s probably the same, right? Then I was thinking about my wife and the amount of text messaging she does with her friends, her sister, her mom, her children, okay, its women for sure! Also, if there is ever a real phone call that needs to be made, she will text me to make that call! Like somehow my “superpower” is picking up the phone and speaking to a real person on the other end.

“Dear, it’s just ordering pizza, you can do it!” Fine, I’ll just go online and order it there!

There is actually data to support this:

Statista.com

I’m not sure men would prefer to talk over text, but they definitely are more willing to talk over the phone, on average, than women.

How can we use this nugget of information in landing more female candidates? Obviously, increase the utilization of text messaging outreach when you want to increase the number of female candidates you want to get into your pipeline!

As you are putting together your recruitment communications plan for a requisition where you know you want to gather more female candidates, text messaging should be a primary source of outreach. That doesn’t mean you want also to use email and phone calls, but your primary communication strategy should be focused on text messaging.

What do female candidates like to hear your outreach messages? Most likely that you have their dream job, but here are some other popular highly engaged forms of text messages females tend to respond more to:

  1. Items around important events.
  2. Sharing something about yourself.
  3. Another way to say, “I’m thinking of you”.
  4. Direct response to something public.
  5. A meaningful memory.
  6. A good morning text.

Now, the trick is how do we use this information in a job outreach candidate interaction exchange!?

The first thing you have to ask yourself is, “why would this person reply to this text message?” Your message that says, “Hi, we have an opening for Business Analyst, click the link to see more…” Is not the correct answer to this question! That’s spam, no one likes spam.

How about something like, “Happy Holidays! I’m getting ready to fly home to see my parents in a few days but wanted to send you this in hopes you would get a chance to review it on your time off as well. Please let me know if you have questions. Would love to discuss this with you!”

I can guarantee you, you have a way better chance of that candidate clicking through and viewing your job at the very least. Plus, you are actually setting yourself up for outreach number two which could be, “I hope your holidays were awesome! I had some flightmares, but great to see the family. Did you get a chance to take a look at what I sent? Any interest or questions?”

You are adding numbers 1, 2, and 5 from the list above in two messages!

Adding “personalization” doesn’t always mean you need to share actual personal information. It’s the perception of personalization that also matters. In these text messages, you sound like a real person who cares and you’re beginning to build trust. All are important in getting a high level of response, especially from female targets.

Want more female candidates? Use text messaging, get personal, and build trust.

Want to learn more about how your organization can utilize text recruiting to its fullest? Check out Emissary.ai today!