New Challenges And Trends Are Reshaping HR Management

With the New Year already well underway, HR departments are facing new challenges and trends in the way talent is managed. Based on the insight of global leaders in HR, research by NTMN, client experiences and dialogues at the Talent Management Institute, the following trends are considered to be the most important in 2017.

Over the past few years, consultants and leaders in HR have been preoccupied with factors relating to the topic of performance management, expressing many factual opinions and arguing for and against various issues about the subject in articles that appeared in Harvard Business Review. However, if those in charge put the same amount of effort into rectifying performance management as they do writing and grumbling about it, the process would be far more advanced by now. The downside has been the never-ending debate regarding a minor aspect of performance management, namely ratings.

As increasing levels of evidence from impartial sources such as CEB and the Center for Effective Organizations reveal that companies achieve more positive results with ratings, the debate will eventually come to an end. The sense of urgency surrounding improvements to performance management will continue, egged on by the vocal opinions of managers and leaders in HR. Disagreement and well-meaning efforts to facilitate goal-setting, coaching and reviewing appear to be the driving force behind these vocally expressed thoughts. Although all the activity surrounding PM may encourage efforts to simplify the process, it is doubtful whether it will help the majority of companies appreciate the real potential of PM.  Skilful goal setting, not top-rate reviews, is the power behind PM. Therefore, until companies have the responsibility and determination to achieve in that department, the search for really effective PM will be in vain.

A focus on predicting potential will overtake a fixation on performance as senior leaders differentiate their investments in talent and insist on more precise forecasts to guide them. The one challenge that HR professionals and consultants need to acknowledge is that just two facts have been proved scientifically to predict potential in every scenario and that is intelligence and the finer aspects of personality. Therefore, should consulting firms indicate that they have found the magic formula for predicting a rise in potential, they are either giving those two traits another label or stretching the truth. Two potential examples emphasise the challenge of being able to precisely assess performance. Both Korn Ferry and CEB provide a potential model and diagnostic tools that they claim to be accurate. Significant differences are evident between the two, meaning that either one of them is right and one is wrong, or both are incorrect. However, promising sub-trends could be of assistance here. In the majority of companies, data analytics is regarded as glorified turnover analysis, but capabilities are swiftly evolving. More stable predictors of potential should be achievable within five years. Likewise, a bit more work is being done on understanding how the other half of the equation, namely the company situation, factors into accurately predicting the potential of an individual.

In 2017, companies will be forced to show more transparency, partly because younger generations are insisting on it, but mostly because firms that are transparent are showing zero negativity as a result of being honest. Also, proprietary data from executive teams at 50 companies reveals that when it comes to communicating potential and performance, management personnel support a philosophy of almost total transparency. The same data shows that at the moment most companies are at least moderate in their transparency. If being transparent is not part of a company’s agenda, it raises the question as to how long they will continue to lie to employees about their performance and potential.

The period between 2005 and 2015 saw the evolvement of talent management into a more strategic, data-driven and process-orientated field – a development that defined the capabilities that differentiate great leaders of talent management. That initial assemblage of talent is now being resolved with talent-oriented generalists and business-loving OE types acquiring the VP positions and learning, OD and leadership development individuals sub-specialized beneath them. It is believed that the key variable in the data accounting for this trend is that those who are learning disclose the fact that they are less interested in the success of their company and more concerned with helping individuals achieve their desired goals.

Job Seeker Experiences Can Affect the Business Levels of Employers

It is a well-known fact that poor customer service has a negative impact on any business, severely affecting customer loyalty and the potential of attracting new business. Many of us have added comments on the review page of a business website or used a social media platform to express dissatisfaction or to highlight the need for some action to remedy a situation that is substandard.

The same can be said for candidates looking for employment, because for some time, employers have avoided treating a candidate as the main customer of recruiting. However, according to the Talent Board Candidate Experience (CandE) Awards and Benchmark Research, that situation is improving at last. Many of the CandE award-winning employers already provide an excellent service to job seekers, after a period of transition when changes were made for the better. This means that both internal and external candidates are regarded as being the principal customers of talent recruitment and are treated as such. The candidates come first, not the hiring manager or other recruitment peers or colleagues.

Six years of benchmark research by the Talent Board CandE Awards has revealed without doubt that of the number of candidates seeking employment, on average 41 percent of them across the globe say that because of an overall negative experience, they will move on and establish a relationship and make product purchases elsewhere. This could be bad news for businesses that rely on the consumer for their revenue, including referral networks for all companies. However, based on very positive job seeker experiences, feedback from 64 percent indicated that they will certainly increase their employer relationships. This does not only apply to applicants who have reached the final selection stage, but to most individuals who carry out their research and apply for jobs, yet end up not even being considered for a role.

It is obvious from the 2016 data that there are a number of employers who continue to improve their communication and feedback with candidates. Candidates who reported a satisfactory overall experience were only waiting for a response 32 percent of the time after making an application, compared to over 45 percent of those who regarded their experience as being inferior. It is regrettable that 47 percent of all North American job seekers were, after two months or more, still waiting for a company response after making an application, a trend that has been ongoing over the past few years.

When one examines the job interview stage, 87 percent of candidates who had a less than enjoyable experience, were never requested to give feedback on this process, while 32 percent of those who felt their interviews had been successful were asked for different levels of feedback, an important factor when it comes to securing top talent. Research data also reveals that the main reason unhappy candidates walk away from the hiring process 31 percent of the time is because their time during appointments and interviews was disrespected. Also, once the recruitment process for candidates was completed, 43 percent of those who had experienced five-star treatment received a direct response from hiring managers, compared to just 18 percent of applicants who had an overall poor candidate experience.

Finally, word-of-mouth can be a powerful method of advertising or getting the message across. Over 81 percent of the time, candidates will share their positive experiences with their friends, family or peers, while 66 percent of the time is devoted to their negative experiences. Online social media platforms such as Facebook, LinkedIn and Twitter also play a large part in spreading the word, with 51percent sharing positive experiences and 34 percent reporting negative episodes. Once more, it is the less-than-ideal experiences candidates have undergone that can have a significant impact on an employment brand and financial implications for a business that is customer-based. In a competitive job market, an employer’s search and selection process for sought-after talent is also affected, along with the referral networks that accompany them.

The Advantages of Outsourcing Tasks to a Service Provider

In the world of recruitment, although many hiring managers would like to retain the tasks of job posting and resume screening in-house, the processes are time-consuming, and many do not have the resources to carefully screen each resume among the hundreds that are received. By outsourcing these responsibilities to an external service provider that specializes and has the expertise to assess and identify candidates with the most potential, it reduces the need to hire in-house staff and therefore becomes more cost-effective.

The biggest benefit of outsourcing is that a particular task can be completed quickly by an expert within a certain time frame. This helps to control costs, whereas employees hired to do the same work incur more operational expenses, such as the ongoing payment of salaries, training of new staff and the acquisition of resources required to execute their tasks. Offloading posting and screening give recruitment managers more time to focus on their priorities. Also, when outsourcing jobs, there is the opportunity of being able to benefit from different currency exchange rates and receive a quality service at a lower rate.

Many businesses that have a web development project will outsource their requirements to get a quality website with the very latest technology. This is important when introducing a business to new markets, as an upmarket site helps to engage an audience and a global reach contributes to business growth. Collaborating with experts around the world allows a company to tap into the global knowledge and have access to world-class capabilities. Job posting and resume screening outsourced to specialist service providers that deliver a satisfactory result also help to establish long-term working relationships that become solid contacts to get the job done when needed.

Latest Corporate Recruitment Processes That Are Breaking The Mould

With the ongoing development of social media and accessibility to an assortment of tools designed to promote an employment brand, research has shown that recruitment processes used by companies have moved on from the usual routine of managing candidate relationships to one of building a talent network. This network is not only a place to post jobs but also a facility to attract an audience such as candidates, employees, fans, and alumni, not forgetting customers. Many companies now have these talent networks (AT&T, Microsoft, IBM) which are viral product and service communities, where an irresistible attraction is created among customers, potential employees and partners. Assistance in building them is available from vendors such as Avature, Jobs2Web, BraveNewTalent, Smashfly and Oracle Taleo Social Sourcing Cloud Service. 

Making use of the web to source candidates is essential to attain success. The largest professional network, LinkedIn, sells the LinkedIn Recruiter tool to HR organizations. Although many recruiters depend on LinkedIn, it is no longer seen as being unique or having the edge in a competitive environment, because more and more people are making use of it. To facilitate the search and find techniques of organizations, a whole barrage of exciting tools has been created. These include Entelo, Gild, TalentBin, and RemarkableHire. They are keeping an eye on your social media footprint to assess your technical ability. Based on this social data, these companies mine your personal code, postings and other social information to create a profile and real competency ratings.

Because more and more companies are operating on an international basis, their search for specialized skills is becoming more critical. This is where the role of the recruiter becomes indispensable. However, should they be spending the bulk of their time interviewing individuals or sourcing great candidates? Hiring managers in top-performing companies are now being handed more responsibility, freeing up recruiters so that they can focus on high-powered sourcing and initial screening. Specialist recruiters at Oracle are provided with administrative support for social networking, scheduling, and ad management. They operate at a senior level and are rated on their talent for strategically sourcing and attracting passive candidates, quite frequently from competitors. When it comes to the recruitment process, hiring managers play a major part and work with recruiters on sourcing and assessment.

Human assessment techniques are always developing. Tools such as Myers-Briggs and numerous other personality or skills evaluations have existed for many years. Nowadays, there seems to be an eruption of new assessment tools, driven mainly by the power of the cloud. Leading tool providers include Evolv, Logi-serve, PeopleAnswers and SkillSurvey, as well as larger providers such as SHL, DDI, Hogan, Kenexa and much more. The market is growing with new companies not only providing validated tests, as they also gather employee performance data that enables them to deliver real-time feedback on the actual tests. 

It is important to build a new talent brand that is highly specific and authentic to attract people who are exactly right. Dynamic recruiters of today work directly with the SVP of Marketing to create an authentic employment brand based on research and then promoting it on the front page of the company website. Most of the people visiting a company site are looking for work, so they need to be captured as quickly as possible. Being honest and real helps to attract talent of a higher caliber and also saves money on screening. Many experts can help build and promote an irresistible talent brand – companies like TMP, Futurestep, Pinstripe and Kenexa.

Applicant tracking systems are not very popular because of the time-consuming process of having to fill in several fields when applying for a job. However, they are a necessary evil with many companies spending millions of dollars trying to make them easier to use. More modernized applicant tracking tools are slowly emerging which focus on managing the whole recruitment process, monitoring ad campaigns and creating a first-class experience for candidates. Included amongst many others that are available, are new versions of Taleo (Oracle), SuccessFactors, Lumesse, Jobvite, SilkRoad, Kenexa (IBM), Peoplefluent and Bullhorn. 

The days of employers creating very complex websites to attract candidates are slowly diminishing. Websites that are not user-friendly can damage a company’s brand, new research by the Talent Board has shown. Companies that make job applications difficult do not give feedback to candidates or administer poor treatment during the interview process, causes additional harm. To measure and continuously improve the recruiting process, it is even more important now than before, for a company’s recruiting team to do their net-promoter score using tools such as “manage the candidate experience.” The word soon spreads if a candidate has had a negative experience when trying to apply for a job at a particular company.

The $140 billion recruitment industry is filled with experts who want to provide recruitment solutions that cater for every scenario.  The actual hiring process is not easy and varies widely by role, geography, and industry. To help find the right people for crucial roles, a new class of high-value recruitment outsourcers has emerged. It was assumed that with the growth of online job boards, staffing firms and outside recruiters would disappear, but this is not so. With the eruption of new tools that have become available, it has become even more significant than before to find experienced professionals and specialists that can assist in locating the right matches for roles.

In HR, the top application for Big Data is recruiting. According to research, the most progressive thinkers in HR analytics begin by measuring recruiting. Which are the most effective and efficient sourcing or advertising channels?  Where do the most competent candidates come from? What backgrounds and experiences make the best sales people? To help with the assessment, analysis and improvement of recruiting functions, companies like Broadbean, BurningGlass, and LinkedIn plus many others are now offering data, tools and analytics services.  When it comes to performance, organizations that measure recruiting well are leaving their contemporaries behind. The recruitment market is evolving and undergoing a massive change. It is, therefore, necessary to bear in mind when working on HR, talent and leadership programs, that it becomes imperative that the right people are hired from the start.

Key Metrics To Follow To Keep Recruitment On Track

Conducting recruitment processes in a haphazard way, without measuring the effectiveness of your output and relying on guesswork to get the desired results, can be compared with trying to find your way while blindfolded. However, analytics will show the way and reveal what is actually working, so that you are able to prioritize strategies that can have a positive impact on performance.

One question that crops up is whether everything should be measured. These days most people are enthusiastic about analytics, but there is still a lack of clarity as to which are the best metrics to measure. Should they all be measured or would it be better to be more selective? Although data is very useful in most cases, you can’t go wrong by measuring everything. However, for those who prefer a less general methodology, there are some key metrics to consider to make sure you are on track.

First of all, top recruiters need to know the source of their best candidates, as it has huge repercussions on advertising and job board spend and should have some bearing on where most of the time is spent sourcing. If your ATS or CRM fails to identify your source of hire, the main sources of traffic to a careers site can be tracked by using Google Analytics. It is not a foolproof solution but should give a good idea of where your content is proving to be popular.

Another issue is the length of time it takes recruiters to get candidates accepted in a specific role. Hiring is fundamental to the future success of a company, so adopting a slow but sure policy is understandable in order not to make mistakes. However, hiring too slowly means that the opportunity of securing the very best candidates will slip through your fingers. The top 10% of talent tends to be off the market in 10 days. The best way to avoid this scenario is to be vigilant by tracking status changes in your CRM or ATS software, as this will reveal where the bottlenecks are in your hiring funnel.

To reduce hiring time and recruit faster there is some help at hand. First, stop doing data entry as you could be wasting thousands of minutes and dollars each year. More time can be spent making contact with candidates if menial daily tasks are outsourced. Secondly, build a talent pipeline. Although this is not an immediate solution, it will assist in the long run. Meet with your team and address your hiring objectives for the next 6-12 months, discuss key positions that need to be filled and begin communicating and building relationships with potential candidates, so that you are prepared in advance and can therefore fill vacancies more quickly.

Estimates with relation to hiring costs also enter the picture, as without any idea of expense it becomes difficult to set aside a budget for recruitment. These costs need to cover advertising, agency fees, candidate expenses, training costs for new hires, management time spent interviewing and lost productivity from vacancies.

What about conversion rates? Are you aware of the number of individuals who visit a careers page and actually decide to apply? Usually, of all the visitors that visit a careers page, 97% will leave without taking any action at all. How is this measured? Data can possibly be found in your ATS or CRM, otherwise Google Analytics is your best source of information. If applications are set up as a “goal” in Google Analytics, the precise conversion rate of a careers page should be available. Having access to factual data will show the exact number of job seekers who actually apply for a position and how many promptly leave the page.   

Lengthy application times also have a negative effect. Many interested candidates are being lost when confronted with several forms to fill in. It has been found that 43% of candidates spend more than thirty minutes to complete the average online application – a time-consuming activity if a candidate is applying for several positions in their job search. This can be measured very easily. An excellent way of gauging the length is to complete and time your own company’s application form, pinpoint any problems and to then trim it down so that it is more user-friendly. That way you should receive more positive results.   

As a recruiter, check if there are any weaknesses in your team’s performance. There are some quick and easy ways of making sure that everyone is working equally hard. Start by tracking email metrics to establish each recruiter’s effectiveness in connecting with candidates and monitor their ‘open rates’, ‘click’ rates and ‘reply rates’. This can help in noting the difference between individuals who take the trouble to create personal messages that are more likely to convert top talent and those who rely mostly on the law of averages. To improve efficiency, you can standardize high-performing templates across the team. Another good sign of efficiency is keeping track of which recruiters are making the most calls to candidates and scheduling the most meetings, as it will also show who is more successful at ‘closing’ candidates.

Additionally, to find out what candidates really think of their recruitment experience, you can conduct surveys by constructing a questionnaire. The facility of allowing candidates to give feedback with the click of a button has been found to be especially effective. Less than ideal comments will give an indication of where improvements need to be made in your recruitment process. Finally, you won’t know what’s working unless you measure it. It is best to remember this when considering the analytics that a recruiting team needs, as having key data at your disposal will help you work faster and more efficiently.

Candidate Attraction Techniques That Produce Results

Although most business leaders realize that sales and marketing strategies are essential in order to produce revenue, creating specific techniques to attract candidates to a business are seldom considered. Routinely using the same adverts with just a list of job requirements, without giving candidates an incentive to work for your company, means that your recruitment efforts will not yield quality results. As much as a candidate is willing to emphasize their skills and qualifications, it is equally important to promote your company or vacancy to potential employees.

With the internet providing a constant supply of information, job seekers now have more choices and access to the best jobs. This leads to many employees moving between different jobs as they seek the next step on their career ladder. It also   means that unsurprisingly, the average length of time spent with one employer is usually less than two years. If you are losing your best staff to other businesses, it might be time to investigate ways of improving employee/job satisfaction and to also make sure that the methods you are using to market your company and vacancies are better than your competitors. By heeding the following advice, you can enhance your own tactics of attracting and engaging with the top available talent in the market.

To identify your target market, ascertain what sort of person would make the perfect candidate for your business. What is it about your company that will appeal to them? Communicate with your present employees and find out what they like about working in your company and emphasize this in any correspondence.

Create an advertisement that immediately grabs the attention of prospective employees. In much the same way as a message is customized for customers, you need to identify the unique selling points of your business so that they are successfully relayed to interested candidates.

In the same way that customer testimonials are used to help confirm your products or services really benefit the consumer, employee testimonials also provide proof to prospective staff members, that by working for your company they could experience a more enriched working life.

If your competitors are attracting most of the top talent, it is time to find out why you are losing out. Even though their opportunities are probably the same as yours, their success is likely due to the type of message they have generated. They have simply included content that has greater impact, in order to get top candidates through the door. 

Wherever your target market spends their time online, you need to make sure that your vacancies are visible on relevant sites and platforms in order to get your company name in front of the right people. Potential candidates can be engaged via corporate social networks. If you are already using social media as your vehicle to market and sell your products and services, you should have been able to accumulate a captive audience supporting your brand. To expand your audience even further, you need to ensure your vacant roles are visible so that they can be ‘shared’, ‘liked’ and ‘re-tweeted’.

In the world of sales, a great way of getting repeat business is to ask for referrals. Word-of-mouth advertising is a personal endorsement of having delivered an excellent service. The same situation can apply to recruitment.  If a candidate has had a satisfying experience with your company, they are more inclined to refer and recommend someone to join your staff complement. It has been established that referrals by employees are more likely to yield workers that are more loyal and of a better quality.

To keep ahead of your competitors, it is always better to think proactively when sourcing high-caliber candidates. With all the information that is easily available online, your HR and recruitment teams should be able to recognize potential talent for your business much sooner. With your specific message already in place, engagement with these individuals should be relatively simple. Basically, your recruitment strategies should echo those of your sales and marketing. The results may not be immediately discernible as a growth in revenue, but sooner or later, with accomplished personnel in your employ, your business will continue to develop and move forward into the future.

Aim Of Indeed.Com Owner Is To Prevail Over Its Competitors.

For the 12 months ending March 31 2015, global jobs aggregator, Indeed, nearly doubled its net sales revenue, increasing from $201.3 million U.S. to $386.8 million. As far as revenue is concerned, the company is on a par with Monster, CareerBuilder, LinkedIn and Dice. All recorded considerably larger revenue streams, but much lower rates of growth. Amongst the top job sites, LinkedIn registered the biggest increase from 2013 to 2014, with their recruitment revenue growing by 47.5 percent. Japanese conglomerate Recruit Holdings Co., the owner of Indeed, revealed in its annual financial report that growth at Indeed was 92.2 percent.  According to Recruit, this was due to the SMB market, noting that, “Net sales trended favorably, reflecting smooth growth in service use by small and medium-sized clients”.

The 2014 fiscal year at Recruit ended on $5.66 billion, with growth in sales of its staffing business up by 10.3 percent. Internationally, staffing sales reached $2.4 billion, with its operations in Japan making up the balance. Management at Recruit also announced in the financial report that their aim in the long term is to become the leading provider in the HR media and staffing operations across the globe by the year 2020, with expansion being achieved mainly via acquisitions and mergers. Subsequent to its successful IPO in October on the Tokyo Stock Exchange, Recruit Holdings and its CEO, Masumi Minegishi, put forward a detailed company strategy that will concentrate on the overseas HR services market and connect it with its “Lifestyle” and “Life Events” operations.

The Nikkei Asian Review referred to Minegishi when it mentioned that the strategy of the company was to expand abroad. By dipping into funds raised when it went public, it has as much as $850 million available to use, with even more borrowing on the cards to acquire companies. It was in this way that Recruit first entered the U.S. market. Its list of purchases included the CSI Companies, an employment and staffing services business based in Jacksonville, Florida, which was bought in 2010, followed a year later by the acquisition of Staffmark and Advantage Resourcing International. More recently, U.S. speciality staffing firm Attero was bought by Recruit for $37.8 million, as well as Peoplebank and Chandler MacLeod, two Australian staffing firms for which they coughed up a combined $290 million.

In its position as the fifth-largest staffing company in the world, Recruit is making rapid progress towards its goal and realization of its long-term vision of becoming the top provider and achieving domination in the HR media, although challenges exist in the job board arena. According to Jeff Dickey-Chasins, a job board consultant, the industry is undergoing changes, with large job boards such as Monster and CareerBuilder doing more than just job posting and resume searches. He noted that CareerBuilder specifically is “making a pretty big shift in becoming a cradle-to-grave HR supplier”. Chasins added that Indeed has not really developed much beyond its original business model as a jobs aggregator, generating most of its sales from pay-per-click advertising. Also, it faces a lot of competition from more than twenty other job aggregators, which includes its main competitor, SimplyHired. The competition has become even more intense, as within the last two years, Monster and LinkedIn have also started to aggregate jobs.