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?

 

How did Monster Lose Out in the Job Board Wars?

I’ve been a Monster customer for at least fifteen years.  I’ve used Monster in four different companies that I’ve worked for. I also use (or have used) CareerBuilder, LinkedIn, Indeed, and Dice. So, I’ve got experience dealing with large spends on the Job Board side.

Having a presence on Job Boards is part of almost every recruiting strategy that’s out there, it’s one place most organizations need to be, I truly believe that. If you’re not, you’re going to miss a pool of talent.

For those who don’t know Monster was purchased this week by multi-national staffing and RPO firm Randstad. I’m not going to speculate on why Randstad would buy Monster, but there’s no doubt Monster had a ton of data and clients that a staffing firm would find desirable.

My question is why did Monster lose out in the Job Board Wars?

In the big Job Board game, there are really only three players: CareerBuilder, LinkedIn, and Monster. Dice and a bunch of niche players in that category will always be around if they can actually attract talent to their niche. Here is the reason I think Monster couldn’t keep pace with CB and LI:

The Sales Team: Flat out job boards need to sell job postings, resume database memberships, branding opportunities, etc. CB and LI are modern day sales sweatshops! Monster barely recognizes I’m a customer and a fifteen-year customer. I know three levels of CB sales people on my account. I can’t tell you the last time I even got an email or call from Monster! LI is similar to CB. They constantly hawk me to buy.  In a game of three, the ones who can outsell the others will win.

At least quarterly I sit down live or on a call with my CB rep to take a look at metrics and how my team is utilizing their platform. Did I mention I never get a call from Monster? During these calls with CB I get numerous suggestions on how we can get better. Many times they’re trying to upsell me for more product, sometimes that works.

I get contacted from LI at least six times a year on various solution selling types of things for my business. I get invited to webinars constantly. The CRM machine for LI is strong. A little different than CB, which is more high touch, but LI’s selling automation is relentless.  As is Indeed’s. Indeed is another player in this game that has made all the job board players up their game. Their sales team took a page right out of CB’s selling book. I get at least a call a month from CB.

I got one call from Monster last year. It was to renew my contract. The call came from a person who I didn’t know and who didn’t know who I was or my business.

You can have the best brand (and I would argue of all the job boards Monster has the best brand), the best technology and the coolest stuffed animals to give away, but if you don’t sell, you’re going to get bought by a staffing firm for pennies on the dollar of what you really could be worth.

 

Great Talent Supports Great Talent

Too often leaders put up with a great talent who’s shitty to other employees. The belief is that because the employee is so talented we should be willing to put up with how they treat others. It happens all the time in organizations! All. The. Time.

Ichiro Suzuki is a very successful Major League Baseball player for the Seattle Mariners who just hit his 3,000 hit in the major leagues, that just adds to his thousand plus hits he had in the Japanese professional baseball league. All those hits make him arguably the greatest hitter of all time at the professional level of baseball.

ESPN did an article about Ichiro recently as he was coming very close to the 3,000 hit milestone in the MLB, a very rare feat. What most people don’t know is Ichiro almost left the MLB after only one season because his teammates treated him so badly:

“Suzuki explained later that in the middle of his career with the Mariners, when the team wasn’t playing well but he was an All-Star and Gold Glove winner, his teammates called him selfish and said that he cared only about individual accolades. After Griffey, Sweeney and Ibanez arrived, he says, they stood up for him and encouraged their teammates to worry about their own play first.”

It wasn’t until Seattle brought in other MLB All-Stars that Ichiro felt welcomed. Great talent, supports great talent. Okay, everyone on an MLB roster is talented, but even within those rosters, there are levels of talent. Ichiro is a hall of fame talent. Griffey is a hall of famer.

The point to all of this is your best talent should support the other best talent of your organization.  If you have great talent that isn’t supporting each other, you need to make a move. Great talent is talented if they don’t support the other talent in the organization. That might be the single most difficult thing for leaders to understand.

Your talent is wasted if you can’t find ways to lift up the other talent around you. Seattle was able to find talent that was willing to do that and Ichiro turned his talent into one of the greatest of all time, but he was also very close to just packing it in and going home.

I wonder how much talent walks out your door based on how they are being treated by others in your organization?

I Need A Nurse, Stat!

In the United States, we are facing a major nursing crisis, unlike anything we have ever seen. If you’re in the healthcare industry, you already know this and you’re living this nightmare each day.

Your recruiters are beyond frustrated in trying to fill openings, only to have more nurses leave every day. So, what can you do?

Join Cathy Henesey, ASHHRA Board member, and Director of Talent Acquisition & Workforce Planning at AMITA Health and myself for a free webinar hosted by CareerBuilder that will outline 10 things you should be doing to fill your nursing openings! The webinar is August 3rd at 1pm EST. 

What can you expect to hear:

  • Old school and new school ways to recruit great talent to your hospital or health system.
  • Metrics around what recruiting pools will be most effective for you to be fishing in.
  • What best practice organizations are doing right now to retain their healthcare talent so they don’t have to fill as many openings!
  • What technology is worth the investment when it comes to purchasing recruiting tech.

Register Here! 

It will be fun, fast-paced hour packed full of great tips and ideas to help you energize your recruiting shop!

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!

Why Doesn’t Corporate Talent Acquisition Change The Way They Pay Recruiters?

For the most part, Corporate Recruiters are paid a salary. That salary ranges widely from organization to organization, industry, function and location. I’ve seen corporate recruiters who make $40,000 and ones that make $150,000. The $150K corporate recruiters are overpaid, let me just throw that out there right off the bat!

Agency recruiters are usually paid some salary and a combination of commission and bonus. The average goal for an agency recruiter compensation model is 1/3 salary, and 2/3’s bonus and commission. So, if your base agency salary is $30K, the hope is you’ll get to $60K through commission and bonus. It takes some time to get to $90K-ish total, but it’s fairly common for agency recruiters to make six figures. Again, this depends on what kind of agency, location, commission structure, etc.

On average, you’ll see more six figure recruiters working on the agency side, then you’ll see on the corporate side, by a wide margin.

So, are agency recruiters worth more than corporate recruiters?

Worth is defined by those paying! What I’ll say to this question is agency recruiters are more likely to ‘prove’ their worth than you’ll see on the corporate side. Which begs the question why has corporate Talent Acquisition not adapted their pay structure to something similar to that of a recruitment agency?

I’ve run both corporate TA shops and agency shops. I can tell you, realistically, there is no reason, that makes sense, not to at least test different pay structures on the corporate side! My goal in was always how do I get my corporate recruiters to be 2/3’s salary and 1/3 bonus. I wanted to make sure there was some performance-based compensation as part of their total compensation.

Here are some reasons I ran into each time I changed the pay structure of corporate recruiters”

  • “If you change the pay structure the best recruiters will quit!”
  • “We can’t change the salary structure, it’s the law!”
  • “Paying bonuses to recruiters in a corporate setting isn’t fair to the other people in HR!”
  • “The executives will never agree to performance-based pay in a non-sales role!”
  • “We want our recruiters to be hiring manager focused and paying bonuses would change that!”

All of these excuses are complete B.S.!

I did have Recruiters quit everything I came into an organization, but not because of pay. They quit because I made them actually recruit for the first time in their life! They had to pick up a phone, they had hard measures and weekly and monthly goals, they quit because they weren’t recruiters, they were administrators. But, being paid like they were recruiters.

Corporate TA Leaders don’t change their pay structure because they don’t know what to change it to, and change is scary!

I get it. It was the first time I did it as well, but in the long run, we had higher performing recruiters, better hiring manager satisfaction and we flat out performed better as a department, as compared to what we did previously.  Here are some tips to making this change:

– Make sure your high performing recruiters can actually make more money in the new model.

– Make sure low performers make less in the new model.

– Set black and white measurable goals before changing pay, and work with these goals for a while before aligning them with compensation.

– Be flexible to change. The first time I did this I found major holes and had to make some immediate changes that were fair to the recruiters and the organization.

– Communicate with your team and executives through this process.

– Have written outcomes you want to see from this change and watch those metrics closely.

– Paying per hire is never a bad thing, just make sure the pay matches the effort of the hire. Don’t pay the same bonus for hiring an admin as you do to hire a Java Developer. I tried to equalize this by the time and effort it took to fill each position. If it took 1/10 the time and effort, the bonus was 1/10 the amount of a full effort position. Again, you’ll have to test and adjust this for your organization. Don’t write it down in stone, to start!

– You’ll never really have to have a performance management conversation again! Oh, you want to make more money….

Recruiting, even in a corporate setting, is a sales type role and should be paid as such. There is no reason why you can’t have a more effective pay structure in your corporate TA department.

Want some help in getting this off the ground?  Contact me!

 

 

2016’s Newest Benefit – Baby Sign-on Bonuses!

According to this USA Today article, the U.S. birthrate is in sharp decline and is at it’s lowest levels in the past 25 years.   Here are probably a few facts you don’t know:

– Projected 2013 birthrate in the U.S. is estimated to be 1.86

– Birthrate needed to maintain a population over a 20 year period is 2.1

Why should this concern you?

There are a number of reasons one might be concerned that you need as many young people as old for the simple fact of having enough young people to take care of your older population.  If you turn that equation upside down (Taiwan 1.1 or Portugal 1.3) you have a society full of older people and not enough young people to fill the jobs needed to keep running your society.

The U.S. already has 3 Million jobs left unfilled because of lack of skilled employees today. Imagine if you now have millions of fewer workers to even choose from, and by the way, skilled workers aren’t coming from other countries because their societies are growing and need them as well.  That is what our country’s employment picture will look like in 2032.  I know for many people right now this sounds very good – because of our high unemployment – but this will be

That is what our country’s employment picture will look like in 2032.  I know for many people right now this sounds very good – because of our high unemployment but this will be an HR/Recruiting nightmare for those young HR/Talent Pros starting out their careers in the next 20 years.

Being the Futurist that I am, I’ve already provided a solution to this problem back in 2011 over at Fistful of Talent, Should You Encourage Your Employees To Have Babies, check it out. Basically, my advice remains the same as U.S. employers we need to create a positive, encouraging environment for our employees, with family-friendly policies that make our employees feel like starting a family is a good thing, and that if they do start a family their job and ability to get a promotion won’t be compromised.  This is not the case as many U.S. employers right now for both men and women in the workforce.

As HR Pros and organizations we tend to think this isn’t our issue.  It will take care of itself.  But as we look at countries with low birthrates the issue doesn’t take care of itself and those countries have a worker crisis going on right now.    We need to change our ways right now. We need to be family friendly employers. We need to, as HR Pros, be concerned and find solutions for our employees around daycare, flexible schedules and other practices that will help our employees with families.   I know it sounds a bit the-sky-is-falling-ish, but the numbers don’t lie we are headed for some of the hardest

I know it sounds a bit the-sky-is-falling-ish, but the numbers don’t lie we are headed for some of the toughest hiring this country has ever seen.

One solution I’ve thought of, that I didn’t bring up in 2011, is baby sign-on bonuses!  We already do it for college students! I think we start doing for babies of our best employees.  I mean if parents can arrange their kid’s marriage, what stops us from arranging their first job?  Nothing! That’s what.  Imagine how happy your employees would be to cash a $20,000 check to help with baby expenses for the simple task of forcing their kid to come to work with your company upon college graduation.  It seems so simple, I’m not quite sure why no one has started this yet!

It seems so simple, I’m not quite sure why no one has started this yet!

In Recruiting, Content Is NOT King!

Something happened over the past five years. Content marketing, which is a brilliant way to connect with a customer base and build sales, became very fashionable in the recruiting space.  So much so, that I constantly read vendors telling in the trenches Talent Acquisition pros and leaders:

“In Recruiting, content is king!”

No. No, it is not! In recruiting, activity is king.  I think the confusion comes into play with people treating employment branding and recruiting as the same thing. They’re not the same thing. One build’s awareness of who you are and what kind of employer you might be, possibly you can stretch employment branding into awareness of your job openings as well.

Content in employment branding is important if you’re doing content recruitment marketing. Again, you don’t have to do this to do employment branding. Many organizations build their brand without content. If you have a great consumer brand, you are less likely to need content to build your employment brand.

I’m not against producing great content to build your brand, believe me! It can be super helpful, especially if you don’t have a larger consumer brand behind you.

The point is you can be awesome in recruiting and never produce a single piece of content. I see so many TA shops missing this right now. The question is why? Why are TA shops believing that the only way to recruit is to build content and build an audience?

Employer Branding is a huge business right now! Organizations are spending millions of dollars per year to build, maintain and grow their employment brand. For huge organizations, or organizations in highly competitive environments, this is very important. For many organizations, this is a complete waste of time and resources!

The noise in the employment branding space is so loud right now, most organizations are not going to be heard. In that case, why are you spending the resources? You’re doing this because it’s easier than picking up a phone and calling a candidate! That’s recruiting.

Recruiting are the activities you do to hire people for the jobs you have open. Included in those activities are not only candidate attraction but candidate interaction. Candidate interaction, the function of a recruiter interacting with a candidate, might be the most forgotten skill in all of Talent Acquisition.

The skill of interacting with a live person is lost on most talent acquisition shops. Sure you can connect with candidates via email, messaging, text, twitter, Snapchat, etc. Eventually, though, someone has to speak to a live person. Someone has to close this person on coming to work for you. We, the talent acquisition industry, continue to spend less and less time on this side of our business, and it’s showing.

Great recruiting organizations are activity focused and activity driven. Sales funnel. Candidates come in the top, and hires come out the bottom. It’s not difficult. It’s not art. It’s a process. It’s metrics. Teach your recruiters to be able to engage live people on the front side, and you will see a great return on that investment in more hires. No content needed.