Corporate TA is Doing Contract Hiring All Wrong!

In every university on the planet in every Economics 101 class, professors teach a very simple concept of FIFO (First In, First Out). It’s basically meant to describe the way products/material move through a system. There are two basic types, FIFO and LIFO (Last In).

FIFO is you get some supplies shipped to your warehouse, but you first use the supplies you already have in your inventory.  LIFO is you get those same supplies shipped to you, but instead of using the inventory you already have, you first use this new inventory to fill orders.

Unfortunately, in Talent Acquisition we really haven’t figured out the basic economic theory when it comes to Contract labor.

We’ve built Vendor Management Systems (VMS) and Managed Service Provider (MSP) which we thought were the answers to our prayers, but I find most corporate TA leaders and most vendors being pushed through these systems, are unsatisfied with the results on both sides.

So, How Do We Fix It? 

The pain point in bad contract hiring is caused by speed!

Yes, that same speed we desperately want is causing us to hire poorly!

Stick with me. VMSs work as a middle person between vendors and corporate TA. They’re basically a wall so your hiring managers and TA pros aren’t taking a million calls a day from bloodsucking recruiters.

VMSs have tried to fix quality issues, but the reality is in their veal to deliver talent quickly, that get caught in this LIFO dilemma. Almost every VMS on the planet runs their submission process in the same way:

  1. Job requisition goes out to suppliers
  2. Suppliers have some sort of limit of candidates they can put in (like 3 each), and the requisition has a limit of submissions it will accept as in total from all suppliers (like 25)
  3. Suppliers are on the clock to put candidates in before the competition puts them in.
  4. Riot mentality ensues and suppliers put the first garbage they can find into the system for fear of missing out.
  5. The “first-in” candidates are interviewed and a candidate is hired on contract.

The hiring manager is told this the best talent available, sorry, you’ll have to do.

This is a lie. 

One small change by VMSs and corporate TA could easily fix this problem. Do everything exactly the same way you’re doing it now, but don’t allow any vendors to submit talent for 48 or 72 hours. With this ‘window’ of time, your vendors would actually contact more talent, better talent, and not have the fear of missing out in shoving talent into your system as fast as possible. They would still be limited to three, but now they could actually select their three best – NOT – the first three they get in touch with.

Simple. Easy. Effective.

The two or three days of waiting, is nothing, compared to the increase in candidate quality you would get.

The contract hiring world has actually gotten to the point where it moves too fast. Too fast to give recruiters a chance to find the best talent that is interested in your openings. Indian call center recruiting shops are killing VMSs because of how they are set up. It’s all about meeting a number, it has nothing to do with actually finding great talent for your organization.

Contract hiring is increasing in all markets. This isn’t going away, so we need to find better ways of doing this. As you look into 2018 and beyond, and start to analyze your total workforce (ftes, contractors, temps, consultants) the portion of the total that will be contingent is growing. The more it grows, the better quality you need to have. Moving fast is great until it isn’t.

Company aren’t hiring the best contract employees they can right now, they’re hiring the fastest. There’s a big difference between those things.

The Talent Acquisition Trends You Need to Focus on for 2018!

Hey gang!

My buddy, Kris Dunn, and I will be leading a free webinar tomorrow talking about the talent acquisition trends you should be focusing on in 2018 that will have the fastest and most lasting impact to your talent strategy success.

Artificial intelligence, Google for Jobs and other hot topics are dominating conversations across the recruitment industry. But at the end of the day, do they really impact your business?

With new recruitment trends popping up all the time, you need to know which ones are worth getting behind — and which fleeting ones you can afford to ignore. Most importantly, you need to be able to cut through the noise and align your business around strategies that will position you firmly ahead of your competition in 2018 and beyond.

Talent acquisition experts Tim Sackett and Kris Dunn will join CareerBuilder’s Scott Helmes to address these issues and more in a new CareerBuilder webinar, “AI, Google for Jobs & More: Talent Acquisition Trends You Need to Focus on in 2018 (And Buzzwords to Ignore)” at 1 p.m. EST on Tuesday, Dec. 5th. (That’s tomorrow!) 

You will walk away with:

  • Tips on how to position your business to have the best staffing and recruiting year ever in 2018
  • Insights on key talent acquisition and staffing trends — and how they will impact your business
  • Strategies to be more efficient and productive so you can show 2018 who’s boss

Register Now

Come join the conversation and start off 2018 on a great path of recruiting success! 

4 Things Great Recruiters Do Every Day!

I’ve hired over one hundred recruiters in my career.  Not a ton, but a pretty good sample size.  I’ve had some of those hires go on to become great Talent Acquisition pros, as well as some who have completely bombed in the profession.  It’s not an easy profession to be successful at, but I’ve seen some basic things that the most successful recruiters, I know, do every single thing day:

  1. Daily motivation. Great recruiters are self-motivated by nature, but the best ones still find ways to give themselves that extra little kick every day. It might be one client or job order they decide they will close on that day. It might be an activity number they challenge themselves with for the day.  It might just be re-centring on a larger overall goal they are chasing and what they’re doing in that day will mean to reach that goal.
  1. Critical of their own work. The best recruiters I’ve worked with own their orders, candidates, interviews, etc. There is no blame.  An interview is a no-show, they own it.  They can look inward and go, next time I won’t have this happen because I’m going to do that one more thing to ensure it’s successful.
  1. They step up. Hey, guys, we have a really critical position that just came open from a hiring manager, who wants it? The best recruiters always step up and want to work those high profile openings.  They want the challenge, and they are comfortable with the pressure.  They also step up with their ideas on how the organization can get better, and share freely.
  1. Daily focus. Successful recruiters can focus in and finish, every day. It’s so easy in recruiting to get pulled in a hundred different directions.  The most successful people stay focused on the job at hand and don’t allow the ‘noise’ to take them off their plan.  They find ways to lock themselves in and keep going until they reach their outcome.

HR and Recruiting both have the same main daily issue we face, we turn ourselves into firefighters.  We run from made up emergency to made up emergency.  It feeds our need to feel like we accomplished something today and became a saviour.

The most successful recruiters are no different.  They get the opportunity to be firefighters, just like we all do, but they make a conscious decision not to allow themselves to slide down the pole. How can you make yourself more successful today?

What is the right diversity mix of employees for your organization?

This is a question I think many executives and HR and TA leaders struggle with. SHRM hasn’t come out and given guidance. ATAP has not told us at what levels we should be at with our diversity mix. So, how do we come up with this answer?

Seems like we should probably be roughly 50/50 when it comes to male and female employees. Again, that’s a broad figure, because your customer base probably makes a difference. If you’re selling products and services mostly women buy, you probably want more women on your team.

The more difficult mix to figure is when it comes to race. Should we be 50/50 when it comes to race in our hiring? Apple has taken it on the chin the last few years because of their demographic employee mix, and even as of this week, are still catching criticism for having only 1/3 of their leadership team is female, and only 17% of their entire team being black and Hispanic. 55% of Apple’s tech employees are white, 77% are male.

So, what should you diversity mix be?

The most recent demographics of race in America show this:

  • 61.3% are white
  • 17.8% are Hispanic/Latino
  • 13.3 are black
  • 4.8% Asian

Some other interesting facts about American race demographics:

  • 55% of black Americans live in the south
  • White Americans are the majority in every region
  • 79% of the Midwest is white Americans
  • The West is the most overall diverse part of America (where 46% of the American Asian population live, 42% of Hispanic/Latino, 48% of American Indian, 37% of multi-race)

So, what does this all mean when it comes to hiring a more diverse workforce? 

If 61.3% of the American population is white, is it realistic for Apple to hire a 50/50 mix of diversity across its workforce? I go back to my master’s research project when looking at female hiring in leadership. What you find in most service-oriented, retail, restaurants, etc. organizations are more male leaders than female leaders, but more female employees than male employees.

What I found was as organizations with a higher population of female employees hired a higher density of male employees as leaders, they were actually pulling from a smaller and smaller pool of talent. Meaning, organizations that don’t match the overall demographics of their employee base have the tendency to hire weaker leadership talent when they hire from a minority of their employee base, once those ratios are met.

In this case, if you have 70% female employees and 30% male, but you have 70% male leaders and only 30% female leaders, every single additional male you hire is statistically more likely to be a weaker leader than hiring from your female employee population for that position.

Makes sense, right!

If this example of females in leadership is true, it gives you a guide for your entire organization in what your mixes should be across your organization. If you have 60% white employees and 50% female. Your leadership team should be 60% female leaders.

But!

What about special skill sets and demographics?

This throws are demographics off. What if your employee population is 18% black, but you can’t find 18% of the black employees you need in a certain skill set? This happened in a large health system I worked for when it came to nurse hiring. Within our market, we only had 7% of the nursing population that was black, and we struggled to get above that percentage in our overall population.

Apple runs into this same concept when it comes to hiring technical employees because more of the Asian and Indian population have the skill sets they need, so they can’t meet the overall demographics of their employee population, without incurring great cost in attracting the population they would need from other parts of the country to California.

Also, many organization’s leaders will say instead of looking at the employee base we have, let’s match the demographic makeup of the markets where are organizations work. At that point, you are looking at market demographics to match your employee demographics. Again, this can be difficult based on the skill sets you need to hire.

If I’m Apple, I think the one demographic that is way out of whack for them is female hiring. 50% of their customers are female. 77% of their employees are male, but only 33% of their leadership is female. It would seem to make demographic sense that 50% of Apple’s leadership team should be female.

Thoughts? This is a really difficult problem for so many organizations, and I see organizations attempting to get more ‘diverse’ in skin color without really knowing what that means in terms of raw numbers and percentages.

What are you using in your own shops?

The Recruiter Name Generator! What’s Your Recruiter Name? @atapglobal

I’ve noticed that certain recruiters have it easier than others. If you have a ‘unique’ name, you know what I’m talking about! You might spend the first two minutes on your conversation trying to get the candidate to say your name correctly! If you leave a message and they call back to your office it’s often hilarious at what name they ask for.

It’s a real problem for our industry, especially in America, where we tend to only want to respond to names we know we can pronounce. Think this isn’t a problem? Go out on LinkedIn and search for recruiter working for Indian RPO services. You’ll find a ton of these recruiters have changed their name to a more ‘American’ version because it helps get higher responses.

The thought process is, from the candidate’s perspective, is that if a recruiter’s name is “Paul Raja” vs. “Praveen Raja” that “Paul” probably speaks great English, so I’ll call him back, but “Praveen” might not speak as well. Is that dumb logic? Yes! Is that happening? YES! (By the way, this has happened for decades with Chinese engineering students as well, who will take very American first names because recruiters are more likely to call “Joe Lee” then “Huang Lee”)

So, what does it take to the have the perfect Recruiter name to get candidates to call you back?

First, you need a name that is recognizable and easy to say for the population you’re trying to recruit, and usually, one syllable is better. Thus, if you’re recruiting traditionally Hispanic employees, you would want a traditional Hispanic name, etc.

– In America: Mary, Mark, John, Jill, Jose, Maria, etc.

– In England: Holly, Simon, Henry, Olivia, etc.

Second, you shouldn’t have a name from a TV show or movie:

– Theon, Skyler, Tristen, Miley, etc.

Third, you want a last name that is common, but not too common, like it’s made up:

– Smith is out, but Brown is okay, as long as Brown isn’t paired with Charlie

– Bonernose is out, as would be Newbutt.

Finally, you don’t want to be the person with two first names or two last names. It’s too confusing for candidates:

– Kevin Johns or Mary George

– Turner Wilcox or Lee Nelson

That’s why I put together this easy to use Recruiter Name Generator! All you need to know is the month you were born in, and your favorite color, and BAM! You’ve got your very own, easy to use, will probably get a callback, new Recruiter Name:

So, using the easy to use charts above my new Recruiter name is: Mark Wilson!

Wouldn’t you want a call from “Mark Wilson”? Doesn’t “Mark Wilson” sound official, while also being competent and kind? Of course, he does!

What’s your new Recruiter name?

The Recruiter Nation Live Hangout Series – With Jobvite and Fistful of Talent!

Our first hangout is at 1 pm ET on Tuesday, November 14th 

Google for Jobs/ROI of Recruitment Marketing Spend! What You Need to Know to Look Smart!!

 REGISTER FOR THE HANGOUT BY CLICKING THIS LINK!!!

If you’re a client or follower of Jobvite, you know the Recruiter Nation Live series.  It started with the Recruiter Nation Live Conference in San Francisco last June and continued with the Recruiter Nation Live Roadshow that brought real recruiter talk to 9 cities in North America over the last three months. 

The feedback was great – you loved it, so they are back with the latest in the series – the Recruiter Nation Live Hangout Series.  Once a month, they’ll be hosting a Google Hangout designed to keep the conversation among recruiters going – focused on things you can use, like the best-kept secrets of today’s smartest and most efficient recruiters, Jedi-mind tricks proven to make you more persuasive/ get great candidate response and strategies to hold your hiring managers accountable for their choices–so everyone wins.

I’ll be on the first hangout and it is at 1 pm ET on Tuesday, November 14th and will be hosted by Kris Dunn and me, focused on the following juicy topic:

 Google for Jobs/ROI of Recruitment Marketing Spend! What You Need to Know to Look Smart!!

 REGISTER FOR THE HANGOUT BY CLICKING THIS LINK!!!

Let’s have some fun and learn from each other at the same time.  See you at 1 pm ET on November 14th!!!

Are Recruiting Layoffs a Sign of an Economic Downturn?

Have you been watching the recruiting news lately?

My good friend Stacy Zapar (who runs The Talent Agency focused on recruiting recruiters!) and I send notes back and forth on stuff we hear in the industry. She’s in California, I’m in Michigan, we swap all the rumors and verified stuff we are hearing to get a better understanding of what’s going on. In the past few weeks – it’s been a bloodbath on the corporate recruiting front!

Snap, Blue Apron, CareerBuilder, Facebook, etc. and those are just the ones that have gone public!

So, the big question is “Are layoffs of recruiters a ‘canary in the coal mine’ indicator of an economic downturn?”

My first reaction is “Oh, hell yes!” Recruiter layoffs happen when you know you won’t be hiring! So, it has to be some kind of indicator about your business. The broader question would be are those layoffs an indicator of overall economic health across the board? I’m not quite as sure of.

There are a number of factors at play here:

  1. Too many organizations across too many geographic areas have announced recruiter layoffs for this too coincidental. So, something is happening. So…
  2. Could it be just another tech bubble bursting, or is it wider than that?
  3. Is this just a normal 4th quarter correction after TA Leaders see their budgets for next year?
  4. Has TA technology, A.I., and Intelligent Automation, finally started making some impact on how we staff our recruiting teams?
  5. Did TA Leaders over hire over the past few years because we came out of the great recession with almost no TA staff, went right-ditch-left-ditch in our correction, and now we are correcting back to the proper staffing levels are teams should be?

I think it’s all of these things.

I don’t see any economist calling for a major downturn. I do see economist calling for things to slow down, but all of that has been expected for a while. Since the Great Recession, almost ten years ago, we’ve been on a cycle of really good growth, almost historic in nature. What we know is that can’t continue. So, there is some slow down happening, and it will hit certain segments harder than others, like every downturn.

I do think TA Tech automation, A.I., etc. has to have an impact on TA Team size moving forward. As TA Leaders, much of the ROI built into your TA Tech purchase is headcount. It’s the only way it works out. Either you’ll lose some of your team, or you’ll be in a position not to add team members, that’s how ROI works!

So, what do you think Recruiters? Are you feeling anything? Hit me in the comments!

Building the Perfect TA Tech Stack! #HRTechConf

Arguably the hottest tech at HR Tech will be in the Talent Acquisition space. TA Tech has blown up over the past decade with billions of dollars entering the marketplace in investment. It seems like every single day I’m getting an announcement in my email about the launch of a new TA Tech company.

All of this has caused massive confusion amongst TA leadership in trying to keep it all straight. The common questions are:

  • What does the tech even do?
  • Do I need this tech?
  • Doesn’t my ATS do this?
  • What is my competition using?
  • What should we be using to attract more talent?
  • Etc.!

It’s really just a never-ending list of questions because the TA Tech marketplace has been moving at such a fast pace and the innovation within the space is truly unparalleled in comparison to anything we’ve seen in the overall HR Tech space, ever!

Luckily, the HR Technology Conference is here to help you feel much smarter about the TA Technology space.  On Wednesday at 11am PT in the Venetian Ballroom A & B (come early they tell me this will be a standing room only session), a group of brilliant TA leaders and I, will take the stage tackling the dilemma of Building the Perfect TA Tech Stack! The experts on the panel are some of the top TA Tech brains on the planet – Jessica Lee from Marriott, Allyn Bailey from Intel, and Graham Pionkowski from Bazaarvoice (and of course me!).

The session is designed for both TA leaders and practitioners, but also all those TA Vendors trying to sell to us!

Completely vendor agnostic, which is a fancy way to say, we’ll be talking about the TA Tech we love, the TA Tech we use, the TA Tech we wish we could use, and maybe even a few TA Technologies we wish we could punch right in the face!

Our goal is to completely share our own TA Tech Stacks with the audience and have an open dialogue around what’s working and what’s not working. To help us all have a better understanding around the TA Tech that we see is foundational to our success, and what TA Tech we will need in the future to maintain our success.

It might be the most topical session of the entire show! We all need talent in a big way. Most of us will increase our chances to getting that great talent by having the perfect TA Tech Stack!

What if you and your competitors recruited talent together?

Think about most U.S. cities. What do they have in common? I travel all over the U.S. and to be honest, it’s all starting to look a lot alike!

Every city has a mall or three. At these malls, you’ll find the same restaurants. Chilis, Olive Garden, Applebee’s, Bravo, steak places, some random Japanese hibachi place, etc. Usually, down from the mal, you’ll find a Home Depot. Across the street from Home Depot, you’ll find a Lowes. Down from those are the car dealerships.

Sound like your city!?

Our cities are set up like this because it works. Putting all of these competitive places close together works for the consumer. They like all the choices close together.

Talent really isn’t much different.

If I’m a nurse, I want to be close hospitals. The more hospitals the better. That way if my job at one hospital isn’t working out, I don’t have to commute all the way across town to another hospital. If I’m in IT having a bunch of tech companies in the same area is desirable for the same reason.

What we don’t find, normally, are employers working together to solve their talent issues. A cook at one restaurant might be begging for more hours, but we never think about sharing that cook with the restaurant next door. We force the talent to go figure this out on their own.

Traditionally, I think career fairs thought they were doing this. Bring all the employers to one location and then all the talent can come and pick who they want to work with. It’s a start, but this isn’t really organizations working together to bring in more and better talent.

A modern-day equivalent to the traditional career fair might be cities working to ‘attract’ talent to their cities from places like Silicone Valley. In recent years, Minneapolis has been working to position themselves as a Midwest IT hub, so local and state government dollars have been working to get workers from other cities to come to Minneapolis.

What I’m talking about is what if two companies came together to share their talent databases for the benefit of both? Could it work? What would get in the way?

I think it could work. I think the organizations involved would be some forward-thinking leadership, some tight rules of engagement, and a very new way of thinking about collaboration.

So often we make a hire of someone we know if talented, but it doesn’t work out for a number of reasons, many times those reasons are self-inflicted by the organization. What if you could ‘move’ that talent to your ‘talent partner’ organization for a fresh start, and vice versa?

I love times when talent is tight because it forces us to start thinking about different solutions and ways of doing things. We all have talent in our databases that we aren’t using and might never use, but someone else might have exactly what we need in their database.

Instead, we sit on our unused, expensive inventory of candidates and do nothing. That doesn’t seem like a smart business practice…

Do you pay your employees more for referring Diverse candidates?

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 to recruit 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 lay out 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, then 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 diversity 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 HR Department across the world, this exact thing is happening in a number of ways.

First, what is your cost of hire for 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 diversity 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 who are really pushing diversification of workforce, I find that this figure is usually 2 to 1.

So, you will easily spend more resources of 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, or an Asian, or 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…