Category Archives: recruiting

Thriving in a Data-Driven World

It’s impossible to have a conversation about recruiting these days without talking about the role of data.

Magnifying glass and documents with analytics data lying on tablSo, I suppose it’s no surprise then to hear John Sullivan, author and professor at San Francisco State University, focus his opening keynote presentation at Recruiting Trends 2016, at the Hilton in Austin, Texas, on the role of data in the hiring decision-making process. (Recruiting Trends, which was acquired by LRP Conferences last November, is being held this week in conjunction with the Talent Acquisition Tech Conference.)

During his keynote titled “Forget the Hype: Data-Based Recruiting Reveals What Actually Works,” Sullivan told attendees that employers need to be much more data-driven.

If you ask CEOs what the biggest challenge is that they’re facing, human capital turns out to be No. 1, Sullivan said. “What’s not so good is that we’ve been a challenge for four straight years,” he continued. “And if you’ve been a challenge for four straight years, it means something needs to change.”

These same CEOs also said they believe recruiting the right talent has a huge impact on business success, Sullivan added.

So, if the impact is that significant, he said, that begs the question, “How come [recruiters] have no money?”

“I would argue it’s because we don’t make a very good business case,” Sullivan said. “We say we hired 20 people, but we don’t say those people brought in $20 million.”

In a fast-changing world, he explained, data tells you what works and what doesn’t work. But you need to be looking at the right data, he added. Google at one time looked at a candidate’s GPA, but the research found that grades made no difference in the quality of talent it hired—so it stopped paying attention to that metric.

“Stop having opinions about what’s the best source for hiring people,” he said. “Sure, you can have opinions, but if you want to influence hiring managers, you’re going to want to have facts that back your recommendations up.”

Sullivan also pointed out that CEOs care about quality of hire, and you should, too.

Most employers pay close attention to metrics such as the cost of hire, he said, but they should be focusing their attention instead on measuring the impact of their hiring decisions.

When you hire Cleveland Cavaliers basketball star Lebron James, what you should be measuring is the impact he’s going to be having on your organization over the next 10 years, he said.

In other words, employers need to be thinking about the big picture.

Sullivan also pointed out that most companies don’t measure the failure rates of the people they hire, but should. He used the example of birth control, where there’s a 9-percent failure rate. If birth control doesn’t work, he joked, you might end up with 20 years of misery. Well, the same could be said of hiring. If you get it wrong, that bad hire could be in your organization forever.

Transforming Talent Acquisition

As a talent-acquisition leader, it’s your job to take care of three constituencies: your organization’s hiring managers, the job candidates and, last but not least, the people who work within the TA function.

That was the recurring theme from two TA leaders who spoke about their roles in transforming the talent-acquisition function during two  separate sessions earlier this week at the ERE Conference in New Orleans: Tracie Montgomery, director of talent acquisition and diversity at firm Sedgwick, the nation’s largest third-party administrator; and Steve Knox, General Electric’s head of global talent acquisition, strategy and operations.

At GE, the Boston-based conglomerate’s efforts to recast its image from that of a stodgy industrial firm to a hotbed of digital innovation has, by necessity, included its talent acquisition function as it seeks to attract the software engineers and computer science majors who might otherwise never consider the company as a place to build a career.

“We’re closely partnering with our marketing department on our employee-value proposition,” said Knox.

GE has also has hired an “employee experience leader” to transform its recruiting experience into “a candidate-centric one,” said Knox. “We got some pushback from hiring managers on this, but we reminded them that it’s about the candidates.”

Candidate care is also a priority at Memphis-based Sedgwick, said Montgomery. “I tell my team: ‘Advocate for your candidate. Prep them to let them know who’ll they’ll be interviewing with, explain the career path for that position — it’s TA’s job to get that person ready.’ ”

Knox and his team have also been paying close attention to candidates after they’re hired to see how they’re performing, which marks a change from before, he said.

“We’re now holding TA accountable to how well the people we hired are doing,” he said, adding that determining quality of hire isn’t quite so straightforward now that GE has discontinued its performance ratings. The team relies on regular feedback from managers instead, said Knox.

GE has also replaced its 15-year old applicant-tracking system, which had been “customized by us to the point that it was no longer useful” with a new, mobile-enabled system; using tools such as LinkedIn Elevate to send out tailored content to candidates on a daily basis; using Tableau software to monitor metrics and putting in place GE’s first-ever dedicated sourcing team, said Knox.

Line managers at GE are also helping the company enliven its job descriptions with short videos in which they explain what they’re looking for in candidates, said Knox. This is helpful in attracting diverse candidates, which is a major priority for GE, he said.

“When female and minority candidates see someone who looks like them talking about GE, they tend to say ‘Hey, people like me can work there,'” said Knox.

After Montgomery joined Sedgwick in 2014, she created an internal “talent acquisition college” for Sedgwick’s recruiters to help them become talent advisors, not just recruiters .

“Recruiting is recruiting, but talent acquisition is consulting,” she said. “I had to get my team’s mindset from recruiting to talent acquisition.”

Montgomery put in place a team of three managers to ensure the TA function is hitting its goals in areas such as time-to-hire and regularly surveys hiring managers on their satisfaction with the TA function. Talent acquisition professionals on her team are expected to be able to forge and maintain strong relationships with candidates and hiring managers, she said. “Getting those relationships established is absolutely key.”

GE’s Knox is also focusing on helping his TA team enhance its skills. “It keeps me up at night, wondering how we keep our TA team motivated and developed,” he said. GE has established competencies for the TA team and is using assessments to determine where gaps lie, said Knox. Members of the TA team can also do self-assessments to find their own gaps and are provided with resources to fill them, he said.

“Our goal is to build a world-class TA function,” said Knox.

Recruiting Takes to the Air

Recruiters dreaming up new ways to reach passive talent are going to have to dig down pretty deep—or go sky high—to top Kiwi.com.

The online travel agency, based in the Czech Republic city of Brno, recently deployed a fleet of “HR drones” in hopes of catching the attention of technology developers who were about to be relieved of their jobs at a handful of area companies.

Just to clarify, the agency sent actual drones—unmanned aerial vehicles, not spiritless employees from the HR department—to hover around the nearby offices of organizations such as AVG Technologies and NetSuite, after catching wind that the recently-acquired companies were laying off developers.

These drones came with a message, delivered via the blue banners affixed to each of the undersized aircraft. On one side: SMART PEOPLE WANTED, along with the email address join@kiwi.com, for interested applicants. The other, meanwhile, promoted the company’s website, www.kiwi.com.

Captured for a YouTube video, the recent “stunt,” as it was described in a Kiwi.com statement, was meant to give would-be candidates a taste of the creative climate they would find if they became one of the organization’s roughly 750 employees.

“To get smart people, sometimes you need to do something really stupid,” according to a Kiwi.com employee appearing in the video, which notes that the competition to find developers is “fierce” in Brno, “the Silicon Valley of Central Europe.”

“Recruiting the best in the industry is always a challenge, as smart people need to work somewhere that challenges and inspires them,” adds Kateřina Gábová, head of HR at Kiwi.com. “We wanted to dramatically show that, at Kiwi.com, we foster an environment in which clever people will thrive, and that we are looking for the brightest new talent in technology.”

This recruitment mission just took place less than one week ago, so we’ll have to wait and see if it ultimately draws developers to Kiwi.com. But you have to give the company credit for trying something bold to set itself apart from the pack.

Overtime Rules and Flexible Work

The U.S. Department of Labor’s proposed overtime rules may or may not go into effect on Dec. 1 of this year.

But if the new regulations do become reality, large employers could face unintended and unanticipated consequences, according to new WorldatWork research.

The Scottsdale, Ariz.-based non-profit HR association’s recent Quick Survey on Implementation of New FLSA Rules survey polled 948 WorldatWork members with compensation and HR generalist in their titles.

When asked how they are addressing or plan to address employees that were exempt under the old overtime rules who fall below the new standard salary level threshold, 73 percent of employers said they did or will raise some to the new minimum threshold, while reclassifying others to non-exempt. (Fifteen percent indicated that they did or will raise all to the new minimum salary threshold and maintain exemption, while 9 percent intend to reclassify all to non-exempt, and 4 percent said they were unsure of their plans.)

Among those who plan to reclassify employees to non-exempt, 49 percent said their workplace flexibility options will decrease. The number of large organizations planning to go this route is “of particular concern,” according to a WorldatWork statement summarizing the findings.

For example, 62 percent of responding companies with 10,000 to 39,999 employers said they intend to reduce the flexibility options they offer workers.

“The fact that larger employers are more likely to decrease flexibility will obviously affect more employees,” says Kerry Chou, senior practice leader at WorldatWork. “That being said, this result could be a byproduct of the fact that larger organizations are more likely to have formalized flex programs as opposed to ad hoc programs.”

Naturally, the new rules figure to have a significant financial impact on employers, with 69 percent of respondents telling WorldatWork that their overall costs have already increased or will increase as a result of the new standard salary-level threshold. Just 13 percent said that net costs have stayed or will stay the same, and they won’t require taking separate actions such as reclassifying employees as non-exempt to contain costs.

Some employers may look at cutting flexible work options as one way to offset additional expenses connected to new overtime rules, says Chou, adding that workplace flexibility can be a big factor in recruiting and retaining talent.

As such, companies that choose to offer fewer flexible work options may ultimately see higher turnover and greater difficulty in attracting replacements for departing employees, he says.

“The increased cost of overtime compliance, coupled with high turnover—or at least lower job satisfaction of current workers—are consequences that will need to be addressed.”

War for Talent Hits Retail

Although seasonal hiring for the retail industry is expected to be mostly flat compared to last year, finding employees to fill positions for the holiday season is expected to be tougher this year, given changes in the economy and in the retail sector itself. Macys, Target and Toys R Us have announced they’ll hold their first-ever nationwide recruiting events for seasonal workers at all of their stores and facilities during a single day or over several weekends, CNBC reports.

The lower unemployment rate and higher minimum wages in many states and localities means that finding workers to fill seasonal retail positions this year will be more difficult and expensive for retailers than last year — average hourly pay for seasonal workers is up by $4 from last year, to $14 per hour, according to Snagajob. But the growth of e-commerce means that they’ll be struggling to fill warehouse positions at fulfillment centers as well as cashiers and the like — and those jobs can be tougher to fill.

Retailers encountered difficulty filling warehouse jobs in areas such as central Ohio, Memphis, Tenn. and Louisville, Ky., Steve Osborn, a director at the Kurt Salmon consulting firm and supply chain expert, told CNBC.  “The same group of [retailers] that were fighting over people last year will be fighting over people this year. And there’s a few less people to fight over and a few more positions to fill,” he said.

Unlike most customer-facing positions, warehouse jobs tend to be more labor-intensive, which can make them less appealing, Osborn said. Plus, the facilities tend to be located in rural areas, where land is cheap but people are few, he said.

Some companies are responding to the challenge by opening “micro hubs” closer to large urban areas. “This not only helps them get goods to customers faster, but it solves some staffing issues pressing on them,” Challenger, Gray & Christmas CEO John Challenger told Multichannel Merchant. “They can find more people willing to do that work in city neighborhoods, who don’t want to do an hour commute to the exurbs or have transportation issues.”

Other companies are adding perks such as on-site child care to their facility, offering eight-hour days with no work requirement on the weekends, and removing their English language requirement to attract more Hispanic workers. “We have bilingual staff and our temp agencies support us with bilingual supervisors and coaches,” Christine Miller, director of operations for American Eagle Outfitters in Hazleton, Pa., told Multichannel Merchant.

Workers Open to Working Elsewhere

dissatisfied employeeAs you walk through the cubicle farm/office maze/factory floor of your organization, know this: More than half the people you’re passing are open to finding a new job elsewhere, and of those employees, 44 percent are actively looking for new jobs.

That’s according to Aon Hewitt’s latest Workforce Mindset study, which surveyed 2,000 employees. What are the factors most likely to lure employees away from their current jobs? The following are the five key differentiators, according to the survey:

1. Above average pay (62 percent)

2. Above average benefits (61 percent)

3. A fun place to work (58 percent)

4. Flexible work environment (57 percent)

5. “Strong fit with my values” (56 percent)

Of course, the common prescription for avoiding turnover has been keeping employee engagement levels high. But that’s hardly a cure-all either, according to “The Dark Side of Employee Engagement,” a new Harvard Business Review piece by Lewis Garrad and Tomas Chamorro-Premuzic. They cite a number of studies showing that highly engaged employees can be too satisfied with the status quo, more prone to burnout and its attendant ill effects and “too positive” — in other words, highly engaged people can crowd out the more introspective, less-extroverted types who nonetheless are often key to a company’s overall success.

So what to do? Try “training employees to leave their jobs,” writes Hootsuite’s Ryan Holmes, particularly if you want to retain your star employees. Many workers, particularly younger ones, leave companies not necessarily because they’re dissatisfied with their compensation or their manager but because they want to try something new, acquire new skills and push themselves in new directions, he writes. Holmes found that giving employees stretch roles at Hootsuite to try out new positions and acquire new skills without having to leave the company has yielded positive results.

Jobseekers Seeking Attention

seeking attentionThe unemployment rate may have dropped to its lowest level since before the Great Recession, but there are still plenty of people out there seeking work (or a better job than the one they have), and some of them will go to some pretty amazing lengths to try and nab that position. Witness CareerBuilder’s latest survey results on “13 Unusual Things Job Seekers Have Done to Get Noticed,” in which hiring managers offer examples of some of the unusual tactics they’ve seen. Here are the standouts:

1. Candidate had a priest contact the hiring manager and ask for the candidate to be hired.

2. Candidate bought a first-class upgrade to sit next to the hiring manager on a trans-Atlantic flight.

3. During the month of October, candidate came dressed in a costume for Halloween.

4. Candidate asked hiring manager to share an ice cream cone.

5. Candidate sent a pair of embroidered socks with a note saying he would knock the company’s socks off if hired.

6. Candidate sent a shoe with a flower in it as a thank you after the interview. The note said “Trying to get my foot in the door.”

7. Candidate mailed the hiring manager money in an envelope.

And finally:

8. Candidate kissed hiring manager.

Of course, in order to land a job interview in the first place, job seekers need to get noticed — and in certain highly competitive  industries, such as advertising, hiring managers tend to see even crazier stunts than what’s on CareerBuilder’s list. These have included challenging a firm’s co-founder to a one-on-one basketball tournament and hacking into a firm’s internal communications system and sending emails to its creative directors with links to the jobseeker’s work samples.

Brexit: The Human Resource Implications

Flags of the United Kingdom and the European Union DividedFew people seemed as surprised by the results of last week’s vote for the United Kingdom to leave the European Union than the British themselves. Meanwhile, other countries in Europe are witnessing similar “exit” movements of their own — in Spain (“Spexit”), France (“Frexit”) and even Germany (“Gexit”), although the consensus seems to be that those campaigns are unlikely to result in more countries leaving the 28-nation bloc. The reverberations are even echoing here in the U.S., where some Texas secessionists are calling for the Lone Star State to have a “Texit” referendum.

The process of formally unwinding the U.K. from the E.U. will be long and complex, and won’t begin until the country’s leadership formally invokes “Article 50,” perhaps in the fall. As such, experts say most multinational companies with operations in the U.K. are taking a “wait and see” approach in terms of how the changes in employment law, benefits and immigration may affect them.

“There’s still a significant amount of uncertainty as to how companies are going to proceed,” says William Sheridan, vice president for international human resources services at the National Foreign Trade Council in New York. “Brexit is going to have a range of implications — it’s a real mess.”

One of the biggest uncertainties is whether companies with U.K. operations will continue to enjoy unfettered access to the E.U. market once the separation is complete. Another big worry is over the “free movement” of people throughout E.U. member countries that is one of the pillars of E.U. membership — once that’s gone, it may be much harder for U.K. companies to hire and transfer foreign nationals. Indeed, some U.S.-based companies — most notably JP Morgan Chase — have indicated they may shift major portions of their employee base out of the U.K. This means the U.K. may become a less-attractive destination post-Brexit because it will no longer offer easy access to talented people from throughout the E.U.

“Many companies have established in the U.K. because … they access a large pool of qualified employees from other E.U. countries,” writes Ashley Craig, a partner at international law firm Venable. “If the U.K. leaves the E.U., that will likely no longer be the case.” Further complicating matters, Craig writes, many E.U. professionals — such as lawyers — may no longer  have their credentials recognized in the U.K., as they currently are under E.U. rules.

The E.U. has indicated that it will not be inclined to let the British retain the trade advantages that come with E.U. membership, probably as a way to discourage other countries from exiting. Manufacturers with a heavy presence in the U.K., such as Ford and Caterpillar, may end up having to move some plants, offices and staff to countries that remain in the E.U. in order to maintain their ready access to that crucial market, says Terry Gallagher, president of international executive-search firm Battalia Winston.

“The biggest challenge will be to engage and retain talent in this environment of more global uncertainty and more possible exits from the E.U. … ” he says. “Those companies that are nimble and proactive will do better than those waiting to see the impact and putting everything on hold.

HR leaders at multinational companies will want to pay especially close attention to developments once the U.K. invokes Article 50, which will begin the two-year separation process from the E.U., says Sheridan.  “Major law firms have been cranking out webinars and presentations on how Brexit may affect all sorts of regulations … it’s important for HR to stay attuned to what’s going on.”

3M Displaces Google Among Millennials

220px-3M_wordmark.svgThe maker of the Post-it Note has displaced the world’s best-known technology company atop the list of organizations that millennials most want to work for. 3M, which in addition to the aforementioned product makes Scotch tape, packaging products, laminating systems and a whole host of other things you can actually touch or hold in your hand, has displaced Google for the No. 1 place in this year’s 2016 Millennial Career Survey, conducted by the National Society of High School Scholars. Google was the top choice in the 2015 survey.

3M CEO Inge Thulin was so delighted when he heard the news that he walked over to CHRO Marlene McGrath’s office and gave her a hug, he told the Minneapolis Star Tribune. “This is a big, big statement,” Thulin told the paper. “This is incredible. It’s fantastic. When you look at Google and Apple and the others, we left them in the dust.”

Google didn’t do so shabbily, actually: It ranks No. 2 on this year’s list, followed by St. Jude Children’s Research Hospital at No. 3, Walt Disney Co. at No. 4 and “local hospitals” at fifth place. The FBI, Buzzfeed, Apple, Amazon and the Central Intelligence Agency also made the top 10.

The NSHSS defines “millennial” rather generously as people ages 15 to 32; other definitions of millennials identify them as people who were ages 18 to 34 in 2015 while those born after are called Generation Z.

3M appeals to young people because of its sustainability projects and its three-to-12-month leadership development program, Thulin told the Star Tribune. Its commitment to diversity is another big attractor for millennials, he said. Indeed, research has confirmed that young people are very interested in leadership development, as well as diversity, and that they’ll look for the exit signs if they find the development opportunities at their current employer lacking.

The NHSS survey results are based on responses from a big and diverse group: 13,000 high schoolers, college students and young professionals ages 15 to 32, 48 percent of whom are African-American, Hispanic or Asian, 23 percent first-generation college students and 39 percent multilingual.

“Currently, the top career interests of this group are STEM, business and arts, and entertainment and media,” says NHSS president James W. Lewis. “Millennials hope to find in the workplace fair treatment, corporate social responsibility and strong company benefits, which include flexible work schedules.”

It’s the Eve of Digital Disruption

As its name suggested, HireVue’s Digital Disruption 2016 in Park City, Utah was, for the most part, all about distrupting HR through technology. More precisely, the vast majority of the content surrounded hiring, HireVue’s roots. But as CEO Mark Newman made quite clear during an opening general session titled “New Wave of Disruption,” the South Jordan, Utah-based firm is no longer just about talent acquisition. It’s now about coaching and developing talent, too.

Rusty Rueff
Rusty Rueff

Though still a small portion of its business, with around 30 clients, Newman noted that HireVue Coach, a recent addition to the firm’s Team Acceleration Software Platform, is already growing at a fairly fast clip. He predicted that it soon will become a substantial piece of HireVue’s overall business. To date, he noted, training has been ineffective; it doesn’t stick. But by leveraging the power of video, he said, employers can now change employee behavior (primarily for those in customer-facing positions) in a fundamental way.

Of course, as you might expect, Digital Disruption (now in its third year), like most user events, was chock full of client success stories. Hilton. United Airlines. Vodafone. Netflix. But it also featured a number of speakers who looked at bigger-picture issues impacting HR.

One who personally stood out for me was Rusty Rueff, a former recruiting executive at PepsiCo and Electronic Arts who now sits on a number of boards and is an investor in several Silicon Valley start-ups. (I personally had an opportunity to meet Rusty a number of years ago at a much smaller gathering of CHROs.)

Rueff, in a general session titled “Craft(ing) of the Future,” suggested that those in recruiting need to stop thinking of recruitment as a profession and begin to think of it as a craft.

“A profession is defined as an occupation requiring prolonged training and a formal qualification,” he said. “Doctors and lawyers are a profession. But a crafts person [exercises a skill] in making something. We make something of people. We make something of organizations. We make something of cultures.”

To illustrate his point, Rueff recounted his days running recruiting at Frito Lay, where he was charged with interviewing candidates all day long, week in and week out.

“One day, I said to myself, ‘I’m the most powerful guy in the company?’ he recalled. “My other voice said, ‘What are you talking about?’ And I said, ‘No, I’m the most powerful guy in the company! because if I wanted everyone to have green eyes, I could do that. I could screen out everyone who didn’t have green eyes.’ That’s pretty scary, because I’m out there deciding what the organization’s culture is going to be by who I let in and who I screen out.”

Rueff recalled that he believed at the time that the HR function at Frito Lay needed change leaders—so that’s who he brought into the organization.

“I was a lowly little guy [at Frito Lay],” he said, “but I got to change the culture.”

Rueff told those attending that a crafts person needs to be, among other things, agile—someone who is able to adopt new ways of thinking. He added that such a person is like “an actor who can play many different kinds of roles on many different kinds of stages.”

To be successful, Rueff said, those in HR and recruiting are going to need to begin thinking like data scientists. “You don’t have to have a degree [as] a data scientist,” he said. “If you’re good with numbers, you can be one.” In other words, it’s a skill people can learn.

In addition, he said, they have to “think like the software-design architects of today, not yesterday. [People] who are fast and nimble.”

And they need to think like personal trainers, he said. “One size fits one when it comes to talent in the future.”

Speaking to this notion of one size fits one, another presenter, Molly Weaver, offered up a great example during a session titled “Stop Screening Out Great Talent.”

As director of talent acquisition at Children’s Mercy, Weaver said she was saddled by a hiring process that was way “too long” and “cumbersome” for applicants. So about a year ago, Weaver and her team unveiled a unique program called “Interview First.”

Instead of encouraging job candidates to apply for a specific job, “Interview First” enables them to submit a video via the company’s website in which they share something about their background and what they would like to do at Children’s Mercy. (Yes, you guessed it: Children’s Mercy, headquartered in Kansas City, uses the HireVue platform.)

Each day, two recruiters are assigned to review the videos that come in and parse them out to the appropriate recruiters (Children’s Mercy currently has 10 recruiters and jobs are divided into clinical and nonclinical). The idea behind the initiative, Weaver said, was to just give people a chance to tell their stories. By putting these videos at the front end of the process, she said, Children’s Mercy is able to quickly capture a lot of great talent, people who otherwise might have left the process.

Just because they aren’t the right candidate for one particular job, she said, doesn’t mean they aren’t right for something else at the company or an opening down the road.

Once the videos are evaluated, potential candidates are told they should consider applying for a particular position right away, there may be something for them down the pike or they’re not really a good fit.

Weaver pointed out that affirmative-action laws aren’t a concern for Children’s Mercy (a government contractor) here, since these individuals aren’t applying for a specific job.

So how is it working out for Children’s Mercy? To date, 120 positions have filled through “Interview First,” including nine individuals who were rehires. Interestingly, the new hires, on average, had applied seven times before.

Certainly, a pretty good start in disrupting a process that is clearly in need of some serious disruption, I think.