America’s Greatest Threat is Lack of Labor!

America’s Greatest Threat? Lack of Hourly Workers!

I spoke to a group of upcoming high graduates yesterday, and it got me to thinking about the future. I don’t dump on young kids like most people do today. My feeling is we all sucked when we were young. We grew up. Got experienced. And we suck less. But we look at young people and we are shocked they suck at mostly everything. We. All. Did. When. We. Were. Young!

Businesses, big and small are desperate currently for workers. Low-skill, semi-skilled, people who have no skill but are willing to be trained. The hourly rate is anywhere between $12-22/hr. I’ve spoken to companies in every market and industry, many of whom will tell me they’ll hire as many people as they can find, they just can’t find anyone!

Now, I don’t want to get into all the reasons why organizations are struggling to find hourly workers. There are many, and it’s a complex situation that isn’t going away anytime soon. I want to focus on how not having enough hourly workers puts America at a competitive disadvantage in the world.

What Happens When America Can’t Hire Enough Workers?

First, organizations will do what it takes actually to hire talent. They increase wages and benefits, which initially seems like a big win for workers. Businesses will also raise prices to pay for those additional expenses. Say hello to inflation. The supply and demand dynamics of labor all happen fairly quickly.

Organizations will look to become more efficient and add technology that, in the long term, can be a better value than workers. Let’s be honest, this has been happening since the beginning of time, but in times of true pain in hiring, all this speeds up and happens faster than normal. Say hello to the robots!

Companies will offshore more more than they already do to countries with an abundance of hourly workers. China, Mexico, India, and various countries in Africa if they can get politically stable, will gain millions of jobs from organizations looking to sell their products in America. Say hello to more jobs leaving our shores. Also, as we’ve seen with the Pandemic, this will cause further issues with our supply chain in critical times.

What Should We Be Doing In America To Ensure We Have The Hourly Talent We Need?

Okay – I’ve got some ideas. Some you’ll agree with, some you’ll hate, but something has to change. American demographics are not changing. Our labor force is shrinking and we are getting older as a country. We have a crisis staring us in the face, and we are too divided to even see what’s really happening!

  1. Major investment into trades and apprenticeship programs at the high school and post-high school levels. Free College? Screw that. Rich folks can pay for college. Let’s have Free Trades and Apprenticeship programs. Let’s start these in Junior High and High School and continue their post-high school. Let’s have 22-year-old kids making $40-60K a year in skilled occupations.
  2. Blow up public education as we know it. It’s broken. Can we all admit to this? About 70% of kids are not college kids, but we force them down the path of college. Let’s have public education that promotes our best and brightest but also promotes kids who want to work with their hands, who want to work in the arts, etc. If we are the most powerful country on earth, why can’t we have multiple avenues for our kids, whether they are rich or poor?
  3. Encourage our children to once again be firefighters, police officers, home builders, big truck operators, cooks, delivery drivers, etc. Both boys and girls. I was struck when I was in Australia how many construction workers and road workers were female. You rarely see that in America. Our children should feel proud to have an occupation that is helping their community and others, but instead, we, as parents, talk down these occupations. Our children are constantly listening.
  4. Open the Mexican border. Uh oh, he didn’t just say that!? Yeah, you know who has millions of people who want the jobs that Americans don’t want? Mexico. If you don’t want to work that $15/hr job, step aside, there are people that do want those jobs. Plus, actually having a great labor force strengthens America! Would you rather have Mexican citizens come to America and make American products, or have American companies go to China and have the communist government of China make the products sent back to America and much of the profit goes to China or India, or somewhere else outside of America?
  5. Pay Equity laws limiting the spread of pay between the highest-paid executive and the lowest-paid employee. I’m not saying that entrepreneurs and executives don’t deserve great salaries for their efforts and their risks. They do. But should a CEO of a company make a $100M a year and the workers make $17/hr? That just seems a little bit out of line, right? Should a college football coach make $5M a year? It’s a stupid game. A game I love to watch, but come on! We’ve got a bit out of line with the haves and the have-nots.
  6. National Occupation Corp. What if every single American child upon graduating high school, put in one year of service into a select list of hourly occupations? Road workers, infrastructure projects, building affordable housing in their community, building parks, etc. Mormon kids do a two-year missionary to spread their word, and it doesn’t seem to harm them one bit, in fact, most would argue it actually helps them become better adults. Doing a national occupation corp would show some kids they actually love this type of work.
  7. End or fix programs that encourage workers not to work. We need people collecting unemployment to prove they can’t find a job. They can’t get work. Because, for the most part, it’s a lie! There is work everywhere! Our Unemployment Insurance system is broken and needs an overhaul.

How do you like those ideas!? A little GOP, a little Dem, a little socialism! If you’re a regular reader of the blog some of those ideas, coming from me, probably surprise you. This is how desperate I think this situation is! We are facing an economic meltdown in the future if we don’t fix this issue, that will make the great recession look like child’s play. America can not be without a great labor force, and right now, we are quickly trailing the rest of the world in the one thing we always hung our hard hat on.

Your Weekly Dose of Recruiting Tech – @SmartRank_ai

Today on the Weekly Dose, I take a look at recruiting applicant ranking and automation technology SmartRank.ai. I first ran into SmartRank at the 2022 HR Technology Conference, and I was immediately interested in learning more.

I’m trying something new with the Weekly Dose, and I’m going to try doing these mini demos and Q&A. Take a look and let me know what you think:

TL;DW: (Too Long: Didn’t Watch)

SmartRank is a piece of recruiting technology you and your team have to demo! At first glimpse, it seems like it’s just an applicant ranking software, but it’s really a transformative way of hiring that is completely different than what you’re doing now. It’s one of the only recruiting technologies I’ve seen in the past five years that puts your recruiters in the driver’s seat to truly become Talent Advisors to Hiring Managers!

SmartRank also has embedded a ton of recruiter automation that they don’t really even talk about as part of their primary product, which is really state-of-the-art technology within the recruiting industry. Also, SmartRank has some of the best applicants to hire analytics on the market. Built by a former hiring manager, this is a product that will help you recruit higher quality and also one that will immediately get your hiring managers involved in a much more robust way within your hiring process.

The 5 Reasons Your Recruiters Aren’t Recruiting!

Oh boy, here we go. Buckle up, gang!

I guess I need to start at what the hell is “recruiting” and what’s not “recruiting.” We have to because what most of you are calling “recruiting,” I call processing candidates who applied to your job. To me, that’s administering the recruiting process, not really recruiting.

If you post a job and someone applies, technically, most of you call that recruiting. You’re paying a full-functioning human anywhere from $65K to $165K for them to be a “recruiter,” and they are posting jobs and waiting for someone to apply. I used to say I could train a monkey to do that job, but now I get to say I can easily train A.I. to do that job for pennies on the dollar.

Posting and Praying is not recruiting. Posting, collecting candidates who applied, and screening them, is what I like to call “Inbound Recruiting,” and that’s not really recruiting. It’s just administering the recruiting process. Do. Not. Get. Me. Wrong. Being amazing at administering your recruiting process is still valuable and needed. The best “outbound” recruiting shops will still have about 70% of their hires filled by “inbound” recruiting!

Outbound recruiting is then “real” recruiting. That’s when a recruiter has a requisition and really has no valid candidates for the hiring manager, and thus they have to go out and find valid candidates. Now, part of that process might still be finding new places to share and post jobs, but that’s only one small part. The larger part of “real” recruiting is cold outreach to people who don’t know your job is open or might know, but they need some persuasion.

Okay, Why Aren’t Your Recruiters Doing Any “Real” Recruiting?

1. They don’t have capacity because, as humans, we naturally fill our time with what gives us the most success, and in your current state, that is “Inbound recruiting.” This means you tell your recruiters, and you expect your recruiters to do outbound recruiting, but they can easily fill their day with inbound recruiting, and it pays the same. So, why not take the easier route?

2. They don’t know how to really recruit. Honestly, most corporate talent acquisition pros who have never worked in an agency have spent most of their career doing 99% inbound recruiting. That’s just the truth, and we know why from what I said in #1. So, we have to teach them how to do outbound recruiting! (Side note – HireEZ’s own internal Recruiter, Vivian Jiang, will be doing an Outbound Recruiting Session specifically for Corporate TA Pros at the Michigan Recruiters Conference on Nov. 10th in Detroit!)

3. They aren’t rewarded and recognized for doing real recruiting. Almost every time I work with corporate TA teams, I find that the recruiter who fills the most jobs is looked at and rewarded like they are the top recruiter. What I find is they rarely are the top recruiter, but they are the recruiter who processes the most fills through inbound recruiting.

4. Your TA Shop is not structured to do real recruiting. See #1, but basically, you should have “processors” who only do inbound recruiting, and they are amazing at it, and then you have recruiters who only really recruit in a modern TA function. You can get processors for half the price of real recruiters, and they are measured completely differently than outbound recruiters.

5. Your hiring managers don’t know the difference. Right now, today, your hiring managers honestly believe that your TA team is recruiting for their opening. They have no idea that you are only posting jobs and collecting whatever person applies. Those people applying might be the worst talent in the industry, but you are selling them on they are the best. If they knew the truth, they would demand change. What I find is real recruiters work with hiring managers to actually uncover the best talent together in the best TA shops.

This isn’t easy!

I get it. The change management alone from moving from inbound recruiting to outbound recruiting is painful, which is why I think the best approach is to break up the function into two very specific processes of inbound and outbound. It never, and yes, I’m saying never, works to have and expect recruiters to do both.

We built the Michigan Recruiter’s Conference to specifically work with Corporate Talent Acquisition teams to start to work on these challenges and pain points, and I’m super excited to bring it back on November 10th in Detroit with our awesome corporate TA team sponsor DTE Energy onsite at their beautiful and modern campus. Join us!

The Recruiter Texting Rules!

Here we go! Your boy is back with some more rules! You know I love me some rules! I’m high rules, and low details, which drives most people crazy!

I was having a conversation recently with some recruiters about texting candidates. For the most part, in recruiting, we’ve gotten to this point where we believe every candidate prefers texting over every other kind of communication. And, if they don’t want a text message, then they want email.

This isn’t exactly true! I did some research and surveyed over 1600 candidates we screened to find out the facts and published it – 6 Things Candidates Want You to Know – you can download it here for free. But I’m not here trying to sell you a free whitepaper!

The entire reason we believe candidates prefer text over any other form of communication is some creative marketing around text vs. email response rates in overall text vs. email communications. Now, this is where all of this falls apart. I get over 500 emails per day. I get maybe 25-50 messages. Of course, I’m going to respond more to text messages vs. email. But that doesn’t mean, as a candidate, I want text vs. email, necessarily!

This all lead me down a path where I believe we need some rules around texting as recruiters!

The Recruiter Texting Rules:

Rule No. 1 – As the first outreach to a candidate you don’t know, texting is not preferred by candidates. They don’t know you, and they certainly don’t want you jumping into their private text messages with a spammy job offer!

Rule No. 2 – No one of quality ever accepted an interview and job offer through text message without first speaking to a real human. Pick up the god damn phone. Once a candidate is all in with you, then yes, they will most likely only want texts from you.

Rule No. 3 – Give me a way to opt-out of your bad text recruiting automation hell! For one, it’s the law. But, most still make it way too difficult to stop the automated texts.

Rule No. 4 – Just because you have my number as a candidate does not give you permission to stalk me for a date. It’s super creepy!

Rule No. 5 – If we aren’t friends, don’t text me like we are friends. Avoid sarcasm. Keep it professional and short.

Rule No. 6 – If it feels like you’re sending candidates too many text messages. You are sending candidates too many text messages! Also, don’t text me a novel! Send long stuff in an email.

Rule No. 7 – If I ask you a question, answer the damn question! We are adults. You can tell me the truth I don’t need some run-around answer that doesn’t really answer my question.

Rule No. 8 – If you expect me to respond within minutes. I expect you’ll respond within minutes. Set the ground rules around expectations early.

Rule No. 9 – Never! And I mean, NEVER! Text with a green bubble! Just Kidding! 😉

Okay, peeps, what did I forget? Give me your favorite rule for texting candidates in the comments below.

The Baby Bonus Program You Never Knew You Needed!

In HR and Talent Acquisition, we tend to be in crisis mode constantly. We are some of the best firefighters are organization has! Our functions tend, by their very nature, to be short-termed focused. This month, this quarter, this year. Rarely are we able to think and plan further than twelve months ahead.

The problem is, currently and in the future, we (the U.S. and pretty much every industrialized country on the planet) are not making enough humans! In the U.S., we are early Japan. This means our birth rate has dipped below the replacement rate. Japan has been facing this crisis for decades; we are just starting down this path.

Why does this matter?

  1. If we can’t replace our humans, we have a shrinking workforce, and it’s very hard to grow.
  2. If we aren’t going to grow enough humans, we have to find another path to get more humans, and that’s immigration, and in the U.S., we have been awful at immigration.
  3. If we can’t get real humans, we have to build robots. The problem is, why robots will come faster than humans, it still takes time, and robots can’t effectively replace humans in most roles.

What is the solution?

This might sound a bit controversial, it’s definitely out of the norm, but HR needs to build a policy that encourages our employees to have babies!!

“Wait, what?! You want us to encourage our employees to have s…”

Okay, hear me out! Japan knew it had an issue decades ago and did nothing to address it, believing nature would take its course. But it didn’t! We have the opportunity to reward and compensate our employees for growing our next employees!

In the U.S., historically, we’ve also sucked at parental leave policies, and we’ve held parenthood against workers for promotion. Having kids, for the most part, has been a negative to your career. We need to change that! We need to make it a reward and benefit to your career. Like, imagine if Mark and Mary had seven kids! They both should be promoted immediately to Vice Presidents or Chief Growing Officers or something!

I’m only saying that half-joking! We are in a crisis and to get out of a crisis takes bold moves.

The hard part of encouraging our employees to procreate is that HR has spent its entire existence trying to stop our employees from doing this very thing! Now I’m asking you to become the Chief Baby Officer.

Um, are there other solutions?

Yes, but America tends to hate both of these options, traditionally.

The first option is to completely revamp our immigration policy and allow in millions of immigrants in both skilled/educated backgrounds and non-skilled/labor backgrounds. Traditionally, both political parties are against this because of the belief immigrants take jobs away from current citizens. Labor Unions hate this. Conservatives hate this. It’s usually a political non-starter.

The UK recently made a major change to their immigration policy because, like the U.S., they are facing a similar human challenge, and we should all take note because it’s an amazing policy. Basically, it allows professionals to come in with a Visa before getting a job, as long as they can prove they can pay their own way. This works because one of the biggest hurdles in U.S. immigration policy is we force an immigrant to have a job before they can enter, and for most U.S. employers, that just doesn’t work from a timing perspective.

The second option is more automation and robots. This is another one that labor unions tend to fight because it takes jobs away from humans. Unfortunately, this one is moving forward because we just don’t have enough workers, and even unions can’t produce more unions. More and more, we’ll see automation take the place of traditional roles we are used to seeing humans in. Cashiers, order takers, warehouse workers, truck drivers, etc. This is scary for many but a necessity for employers looking to run their day-to-day operations.

You might think that encouraging your employees to have babies is a very out-of-the-box idea, but in HR, we need to start thinking more long-term about how we’ll manage our workforce. If you believe your company will be around twenty years from now, a part of our job, strategically, should be thinking about this workforce concept.

Would You Pay A Referral Bonus Specifically For A Black Employee?

I know a ton of HR Pros right now who have been charged by their organizations to go out and “Diversify” their workforce.  By “Diversify”, I’m not talking about diversity of thought, but recruiting a more diverse workforce in terms of ethnic, gender, and racial diversity.

Clearly, by bringing in more individuals from underrepresented groups in your workforce, you’ll expand the “thought diversification”, but for those HR Pros in the trenches and sitting in conference rooms with executives behind closed doors, diversification of thought isn’t the issue being discussed.

So, I have some assumptions I want to put forth before I go any further:

1. Referred employees make the best hires. (Workforce studies frequently list employee referrals as the highest quality hires across all industries and positions)

2. ERPs (Employee Referral Programs) are the major tool used to get employee referrals by HR Pros.

3. A diverse workforce will perform better in most circumstances than I homogeneous workforce will.

4. Diversity departments, if you’re lucky enough, or big enough, to have one in your organization, traditionally tend to do a weak job at “recruiting” diversity candidates (there more concerned about getting the Cinco De Mayo Taco Bar scheduled, etc.)

Now, keeping in mind the above assumptions, what do you think is the best way to recruit diverse candidates to your organization?

I’ve yet to find a company willing to go as far as to “Pay More” for a black engineer referral vs. a white engineer referral. Can you imagine how that would play out in your organization!?  But behind the scenes in the HR Departments across the world, this exact thing is happening in a number of ways.

First, what is your cost of hiring diverse candidates versus non-diverse candidates? Do you even measure that? Why not?  I’ll tell you why, is very hard to justify why you are paying two, three, and even four times more for a diverse candidate, with the same skill sets, versus a non-diverse candidate in most technical and medical recruiting environments.  Second, how many diversity recruitment events do you go to versus non-specific diversity recruitment events?  In organizations that are really pushing diversification of the workforce, I find that this figure is usually 2 to 1.

So, you will easily spend more resources for your organization to become more diversified, but you won’t reward your employees for helping you to reach your goals?  I find this somewhat ironic. You will pay Joe, one of your best engineers, $2000 for any referral, but you are unwilling to pay him $4000 for referring his black engineer friends from his former company.

Yet, you’ll go out and spend $50,000 attending diversity recruiting job fairs and events all over the country trying to get the same person.  When you know the best investment of your resources would be to put up a poster in your hallways saying “Wanted Black Engineers $4000 Reward!”.

Here’s why you don’t do this.

Most organizations do a terrible job at communicating the importance of having a diverse workforce, and that to get to an ideal state, sometimes it means the organization might have to hire a female, an Asian, an African American, or a Hispanic, over a similarly qualified white male to ensure the organization is reaching their highest potential.

Workgroup performance by diversity is easily measured and reported to employees, to demonstrate diversity successes, but we rarely do it, to help us explain why we do what we are doing in talent selection.  What do we need to do? Stop treating our employees like they won’t get it, start educating them beyond the politically correct version of Diversity and start educating them on the performance increases we get with diversity.  Then it might not seem so unheard of to pay more to an employee for referring a diverse candidate!

So, you take pride in your diversity hiring efforts, but you’re just unwilling to properly reward for it…

Here is the Average Time to Fill a job for most employers in the U.S.!

I gathered data from around 13,000 sources to get the most accurate Days to Fill metric that I could. It is one of the most asked questions I get from the audience!

So, what’s the number? 37*.

Cool, now can we stop asking? Did that just solve all of your hiring problems?

No, it didn’t. Why?

Because Time to Fill is a worthless recruiting metric for the most part. There is zero correlation between how fast you fill a job to how well your talent acquisition function is performing.

37 days is meaningless out of context, as a comparison, every job is different, every organization is different, and every market is different.

So, if you are currently at 37 days time to fill a job, and in 2022 you magically get to 36.2 days to fill, are you better at recruiting? Are you? Maybe you hired too fast and now your turnover is increased. Maybe the economy went south for a bit and increased the labor pool and now you have more candidates applying. Zero. Correlation. To. Talent. Acquisition. Success.

So, why do we use it? Frankly, and this hurts because you know I love talent acquisition and the pros that work in it every single day, we’re lazy. We’re too lazy to measure what really matters. That hurts. That should make you mad. We are better than this.

Can your Time to Fill matter at all? Yes, as a health metric of your TA function. If your industry average is 37 days, and you’re at 54, your function might have cancer! That being said, you have to support that with other stuff. Your 54-day hiring process might have reduced your turnover to 15% in an industry that has 50%, then your 54 days is understandable. But, what I usually find in most industries and jobs are fairly close to the mean on time to fill. So, it can be used as a universal health TA metric.

But, once you start trying to reduce by .4 days or .3 days, you’ve lost your way.

*For those wanting to now use “37” days as the average time to fill in the world, I totally made that metric up! Stop it! Be Better!

Why are we always trying to move up? #SHRMTalent

Yo! I’m still out in Denver at the glorious Gaylord Rockies for SHRM Talent. If I don’t make it back to Lansing, MI, there’s a 74% chance I got lost in the Gaylord and I’m thriving off the food small children dropped along the way.

Some common themes coming out of SHRM Talent:

  1. Hiring is hard.
  2. Employees seem changed. Neither good nor bad, but different.
  3. There’s a new normal, but we don’t know what that normal is yet.

One of those things that a lot of folks are talking about is what most of us consider the normal career ladder. You start at the bottom and then you spend the next 40 years of your life climbing up it, and then you die. Turns out, people seem to think that isn’t as glorious as we make it out to be.

The problem is we still view this climb and desire to climb as one of the main characteristics of a great employee. Another problem is people want more and more money and the way to get more money is to get promoted. Another problem is many times the people who want to move up, actually suck at the next level. Another problem is we use the promise of promotion as a way to retain talent when our total compensation isn’t great.

We’ve got 99 problems, and moving up the career ladder is one big one!

How could we burn down the ladder and create something else?

If I had this answer, I would not be writing blog posts from the desk at a Marriott hotel in Denver on a Tuesday evening! Let’s be honest.

What I know is the future of talent development is going to look different. There will be ways for employees to move horizontal, down, and on an angle, not just up. We will figure out the compensation stuff. I mean we already have, but we get caught up in traditional compensation design and philosophy, another problem. Traditional labor seniority systems really did a job on us over the decades! We fight constantly to stay within those constraints at all levels and within all industries.

I think it starts with us developing employees around a concept of professional competence and skill development, and not around the next level up within the organization. There use to be a time in our world were we valued mastery. We devalue mastery in today’s world, and we overvalue one’s ability to navigate the path upward. Our children are taught that they should strive for and desire upward levels. Instead of reaching mastery within a field.

That’s a hard organizational culture shift to make happen.

I think the tech world might have a better chance of reaching it faster. In that world, the value of mastery is greater. You can be a master developer and definitely make more and bring more value to a company than the manager of product management. And that’s not dumping on someone who wants to lead people, because we all know how difficult that is as well. But, just because you lead people doesn’t mean you necessarily are more valuable than the people you lead individually.

It’s such a complex and difficult topic, which makes it fascinating to talk about the future and its potential. To work in a world where each person is valued on their individual skill set and not based on the level of organizational ladder achievement would definitely be something to see. I think we all know some managers that would be in for a pay cut!

Should Corporate Recruiters Get Paid Salary & Commission?

First, shoutout to @Hervbird21 (Recruister) on Twitter for starting this conversation (Editor’s Note: Hervbird21 I don’t know who you are but send me a note and I’ll share your LinkedIn if you’d like) Also, take a look at the Twitter thread as there are some exceptional recruiting thought leaders who had thoughts on this subject.

Link to the thread

I’ve written about this a number of times over the years, but with the recruiting market being so hot right now, I’ve actually had a number of Recruiter compensation calls with corporate TA leaders trying to figure out three main things: 1. How do we retain our recruiters; 2. How do I attract more recruiters; 3. How do we reward great recruiting performance?

First, I’m all in on the fact that recruiters should be paid in a pay-for-performance model. That doesn’t mean that corporate recruiters, agency recruiters, and RPO should all be paid the same way. All three of those roles are different and should be compensated based on what the organization needs from each recruiter.

Let’s take a look at the Pros and Cons of Performance Pay for Corporate Recruiters

Pros:

  • You get more of what you measure and more of what you reward.
  • Your best recruiters will be compensated more, and higher compensation is tied to longer tenure.
  • Low performers and internal recruiters who actually hate recruiting will hate it and self-select out.
  • It will most likely raise individual recruiting team member performance in the aggregate.

Cons:

  • You will most likely have turnover with this type of change
  • Potentially, you could get behaviors that aren’t team-oriented. (IE., senior recruiters not helping junior recruiters)
  • Potentially, you could lower your quality of candidates as recruiters move quickly to gain performance comp. (the quantity over quality argument)
  • It actually might increase your compensation budget, initially, until you can find the model that is most effective.

Okay, wait, why did I say “potentially” on the Cons? Primarily, because it truly depends on the model design. Just making a decision to pay more for hires is ridiculous and leads to bad outcomes. But, developing a model that rewards individual performance that is based on recruiting behaviors that lead to better hires, quickly, and in a team setting, well, now you diminish the negative outcomes of pay for performance.

How could we make pay for performance work for corporate recruiters?

I’m not trying to dump on all the folks who commented on “Quarterly Bonuses” but stop that! “Quarterly Bonus” really means, “I don’t want to be individually measured and held accountable, but I also want more money on top of my great base salary”. Quarterly bonuses in most corp TA shops are a joke. They are usually based on Hiring Manager satisfaction and days to fill, two of the most subject measures that have zero correlation to better recruiting.

Also, internal recruiting pay for performance is not just a modified agency or RPO model. Corporate recruiters do much more than just recruit in most TA departments, so if you reward them to just recruit, understand, you’re just standing up an in-house agency model. Your internal recruiting model for corporate has to be unique to the job.

Some thoughts and ideas:

– Spend a bunch of time deciding what you actually want from your recruiters and from your function as a whole. Those two things must be aligned.

– Before going to a pay for performance model you need to get your arms around your recruiting funnel data. Otherwise, you’re just guessing at what and who to reward.

– In most cases, you can’t make the rewards the same because recruiters have different requisition loads and levels of position. Also, in most cases, certain areas of your organization hire at different times. So, get ready to test and be flexible to do the right thing at the right time.

– It’s okay if a recruiter makes more than you think if the model is producing what you want it to produce. Too often I hear from TA leaders that are like, “Jill is making too much!” But, Jill it killing it and the top recruiter.

– If you can’t get your head around paying for hires, pay for the behaviors and activities that lead to more hires.

– Start with a month or quarter test, make sure during the test no one will lose money. The goal is to try and reach some sort of outcome of better performance, to see if it can work. If they are only concerned they might make less money, you won’t truly see what can work or not work.

– It’s not about quality or quantity. It’s about quality and quantity. I’ve never led a recruiting team in a corporate or agency where good recruiters would ever send a crappy candidate on purpose. That just doesn’t happen, normally. If it did, that recruiter didn’t belong on the team.

I don’t believe in recruiting “team” rewards as pay for performance in most cases. Most teams are not designed and measured for “team” performance, so many on the team are getting the reward for a few doing most of the heavy lifting. You can still have team rewards, but you truly have to think about how you reward your most effective recruiters, short and long-term.

I think the ideal ratio for compensation for corporate recruiters should be 75% base salary and 25% pay for performance, where your best top recruiters can make 125% of their normal total comp if they are killing it. As I mentioned above, you will have recruiters quit because you have “recruiters” on your team that didn’t take the job to recruit, but to administer a recruiting process and collect a nice base salary.

Okay, tell me what I missed in the comments or if you have a model that is working you would like to share with everyone!

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.