Understand Important Trends in Recruiting and Hiring in 10 Minutes

If you missed Paycor’s inaugural Make Your Next Hire Day, we’ve got you covered.

For detailed action plans on how to find more qualified talent, leverage big data in the recruiting process, and how to use social media and marketing in the hiring process check out our executive summary. Here’s a sneak peek at what you’ll find:

  • Critical components of the recruiting process
  • Using data to inform your hiring decisions
  • How to hire when your company's culture is less than ideal
  • The pitfalls and positives of social media in the recruiting and hiring process
  • Marketing and selling your company and careers

Moneyball Recruiting

Why should HR, recruiting and corporate executives care about big data? Because a big piece of big data is human capital data, and human capital data can be leveraged to identify and hire more great people more quickly.

What we say now: “We only hire the best talent!” What we really mean: “We only hire the best talent that’s available at the time.”

What IS Moneyball recruiting?

  • Hiring for your needs
  • Hiring what you can afford
  • Hiring proven talent

What would a Moneyball recruiting world look like?

  1. One consistent philosophy of hiring throughout the organization. (simple and easily understood)
  2. Remove the human element – No more gut decisions, use behavioral interviewing and have data to support why one candidate is superior to the next.
  3. Integrate measurable data into the interview process. No cookie cutter plan; the data is very company and position specific, so you have to determine the data that works for you.
  4. A clear definition of what talent is. YOUR talent.
  5. Success is how we define it.

So, how do you do it?

  • Assessments are key. Have parameters for candidates pre-hire(word choice, personality) and for employees post-hire (ratings, operational KPIs). Science is unbiased.
  • Hiring science and analytics - Google found that interviewing is a waste of time. 99.4% of an interviewer’s time is spent confirming the first impression from the first 10 seconds of the interview. (predicts success 14% of the time)
  • The best predictors of success are work samples (29%) and cognitive ability (26%)
  • Make sure your hiring managers are on board with the science, and test the process.
  • What’s your magic hiring metric? Cognitive ability is a good place to start, but it’s not for everyone. Start with the positions you hire for most or that have the most financial impact and build your metrics from there.
  • No more “gut hires.” Talk to hiring managers about hiring bias.

Recruit Like a Pro: How to Effectively Market Your Company & Job Opportunity

With such a low unemployment rate across all industries, finding candidates is more difficult. Going back to the basics of recruiting is the path to successful hiring.

A Xerox study found that 53% of HR pros said that the highest priority in the upcoming year is to retain top talent.

It’s time to change your philosophy from simply filling seats to putting the right candidates in the right roles. You want rock stars who are going to stay with the company and make a difference. You have to ensure that you’re asking for the right skill sets. So, how do you do that? It starts with analyzing the needs of the position and effectively marketing both your company and the job opportunity.

  • Customize everything, starting with your job descriptions. Analyze the specifics of every position; don’t use generic job postings. Managers do a manager’s jobs; employees do the employees’ jobs. They should provide input into a job description.

  • Try having employees complete a job evaluation checklist. Ask very specific questions about what they do; how they do it; how much time they spend on each thing they do; who they interact with and why; their level of responsibility; budget responsibilities; which decisions they can make; what qualities, experience, and education are necessary for the role; what information do we need to know about this role that we don’t know?

  • If the role interacts with, say, the marketing team, also ask the marketing team members how they perceive that particular position. You can gain valuable insight that can round out the job description.

  • If you ask 20 customer services reps to fill out the questionnaire, you’ll likely receive seven or eight different job descriptions. This knowledge might lead you down a path of creating different job levels in that department. You also might discover that people are doing tasks they shouldn’t be or they’re not doing things that should be getting done.

According to a Randstad survey, 75% of HR pros say it takes more time this year than last year to find the right talent to fill positions.

Once you know who you’re looking for, you need to determine where to find those individuals. Some companies only post jobs on LinkedIn or Monster or CareerBuilder. This is a very expensive method that often doesn’t yield great results. Really understand the role to determine if one of these sites is the best place to post. Or, if you should use a different approach, such as:

  • Social Media (Facebook, Instagram)
  • Professional Organizations (especially for highly technical roles)
  • LinkedIn Groups
  • Networking Groups
  • Employee Referral Program
    • Make sure the reward is attractive
    • Market the program, don’t bury it

Applicant Screening

Applicant Tracking Systems (ATS) can be very valuable, especially if they tie in to your HR system. Some of the tools available are incredibly powerful. For example: Pre-screening questions – If there are “deal breaker” conditions for certain roles, you can eliminate applicants who don’t meet the requirements.

Interview Scorecard Guide

Work with your managers to create one for each key position in the company. Use the custom job description you created to build the interview sheet. Also, make sure to have a score sheet related to the important aspects of the role.

Collecting meaningful interview feedback and removing hiring bias will take your recruiting process from good to great. Click here to download our interview scorecard guide and start making better hiring decisions.

According to an AON Hewitt study, 52% of workers said they’re open to new job opportunities.

Why is that statistic important? Because it means that more than half of people who are currently employed are open to a conversation regarding a new job. While they might not be actively searching for a new position, they’re still receptive to discussing what you might have available.

The other reason it’s important is because it means that more than half of your own employees are open to a conversation. You need to focus on employee engagement to help ensure your people stay.

Debrief

When the interviews are over, it’s important to get everyone who interviewed the candidates together in a room to discuss their thoughts. Ask managers not to discuss candidates with each other until you have the opportunity to debrief so as not to influence each other.

Avoid Pitfalls

Don’t let desperation color the hiring process. Don’t settle for someone who’s right for right now.

Candidate Selection

If you have multiple candidates, bring them back in for another interview, take them to lunch, have them meet with a completely different person in the company to get another impression. Keep communication open with candidates.

You’re Hired!

Keep in mind that your company is being interviewed as well. Ensure that your onboarding process is completely smooth and inviting. Everything you’re doing has a selling component behind it. In addition to sending benefits information prior to the first day, send an org chart and contact list of people the new employee will be working with (including photos is a nice touch).

But it doesn’t stop once you hire a new employee. Hiring managers sometimes place so much focus on finding top talent that once an employee enters the fray, he or she gets left behind. That’s why such a strong emphasis is being placed on onboarding, engagement and retention strategies. Here are a few strategies you can consider to create a complete experience for your employees.

Creating a memorable employee experience begins with onboarding.

  • Have a written plan
  • Be ready on day one – Schedule lunch with the team or manager
  • Create a 30-60-90 plan
  • Schedule regular touchbases
  • Listen!

Don’t be among the 35% of employers who spend $0 on onboarding. Download our toolkit complete with best practices and tips to engage your new hires.

Employee Experience – 6 Steps to Retaining Employees

  • Communicate!
  • Coach, don’t manage
  • Establish clear performance metrics
  • Use performance reviews
  • Create growth opportunities
  • Underscore positive feedback with tangibles

Employee Experience – Keeping Employees Engaged

  • Provide regular updates
  • Give employees what they want/need
  • Blend work and play
  • Create an incentive program
  • Set attainable short-term goals
  • Define long-term goals
  • Be transparent

Leveraging Data Driven Talent Communities in a Recruitment-Marketing World

What’s a Talent Community?

A talent community is a medium enabling you to connect with candidates who don’t see an available opportunity with your company that aligns with their interests. Simply put, it’s a hub where candidates can submit their information to your company without committing to a specific position.

Define the Targets

Effective Talent Community sourcing strategies should be equipped with targeted goals as a percentage of hire: It’s beneficial to have the percent of budget spend in each of the areas syncing up with the targeted goals. For example: in FY18, Company A is targeting 25% of all of their hires to come from their Talent Community. Need to ensure that your Talent Community is a source of hire in your ATS.

Recruiting Capacity vs. Demand

  • Use forecasted Talent Community targets
  • Identify recruitment capacity
  • Evaluate the delta while creating a model to bridge the gap

If Recruiter A is capable of delivering 100 client service reps in a given year, and 25% is the targeted goal, that recruiter must deliver 25 client service reps, or roughly 2 per month. You can create a simple XY plot chart like the example below to gauge demand as it relates to your team’s capabilities. TC Hires indicates the target goal. Cap 1 indicates the capacity of a single recruiter. As you can see, there’s a delta between what the recruiter can produce vs. the demand. You can then add another recruiter to help manage the demand.

Optimized Talent Community Funnels

Provides a comparison of what’s needed vs. current status to drive the targeted capacity. These can be created to anticipate weekly, monthly, quarterly or annual recruiter productivity needs. The data can be calculated by recruiter or by team.

Evaluate Your Technology

Technology makes a strong data driven process possible. Determine which technologies are at your disposal. For example, Company A uses an applicant tracking system that leverages bolt-on social media publisher and drip campaign functionality. They also use state-of-the-art contact techniques for candidate engagement and communication.

Talent Community Structure (how you organize candidates)

These are recommended “buckets” for classifying the people in your talent community:

  • High Value Target – You want them, they don’t want you – You have interviewed them
  • Not Ready – You want them, they don’t want you – You haven’t officially interviewed them
  • Green – Too junior for the current opportunity, but you will hire at a later date
  • Friend of Your Company – May not be a fit, but can be a company evangelist

Rules of Candidate Engagement/Experience

So, once you have everyone classified, what do you do with each of those buckets?

  • Intentional Messaging – Be personable, extract specific details from their profiles and use that language as a motivator (example: Mention if their alma mater won a football game).
  • Follow-up Cold Calls – Use read receipts so you can see when your message was opened and then call the candidate.
  • Use drip campaigns to periodically contact candidates.

The art of the Talent Community is transitioning into a sales function mentality: From the way leads are developed to drip campaigns to Talent Community functionality to how we communicate with prospects. We need to leverage the right technology and process to ensure that we have a fully functioning, efficient and optimized program. A successful program will start with identifying roadblocks that stand in the way of success.

Who to Hire When Your Culture Stinks

Regardless of your company’s culture – whether you’re a “best place to work” business or… decidedly not – we’re all concerned about hiring, engagement, and retention. But what happens when your culture is less than stellar? In the current economic environment, acquiring talent and retaining talent is harder than ever.

But when seemingly every major publication has “best place to work” surveys, and companies feel compelled to plaster those logos on their careers pages, touting their company culture as different and unique, the message becomes somewhat meaningless.

As HR pros, we’ve all been trained to promote our companies as great places to work in order to attract the top talent everyone is vying for. But, that’s not actually true.

In a peak economic environment, when recruiting budgets are higher than they’ve been since 2005-6, what we see is that most companies have responded with “recruiting marketing.” You’ll see this marketing in several places, including company career pages where the company will be promoted as having an amazing culture unlike that of any other company. Recruitment marketing is also seen in how a business frames its work space to potential candidates who tour the facility. Companies with the budget invest in pool tables, flashy open space collaboration areas, soft seating and bright colors to wow candidates. But, that can be putting lipstick on a pig in some cases since not every company’s culture is truly special.

The true culture is revealed when managers start talking to employees and they start getting the hard work done in a collaborative fashion. Leadership often has an aspirational view of what culture is (or should be) compared to those of us in HR who experience the reality. You know that you’re only as good, culturally, as your weakest manager. And, quite often, if you brand your company as a special, unique snowflake and you’re really not, it can cause a lot of issues. When companies have a disconnect between the culture they portray and the managers aren’t up to par, they experience problems with the people hired to do the work.

What to do: If you’re experiencing this disconnect, look at your people managers.

You don’t have to hire superheroes to survive a bad culture, but if your company culture is less than perfect, there’s a list of things your new hires need to thrive:

  • Sensitivity – New hires most likely to stick with companies with bad cultures have low sensitivity. A person with low sensitivity who’s presented with negative feedback will quickly move on and not spend time focusing on it.

  • Rules orientation – High rule people respect order and process. Low rules people thrive on chaos. A high rules new hire will reach for the operations manual and will follow all the policies and procedures to a T. A low rules new hire doesn’t want anything to do with the operations manual; they want to come up with solutions on their own. If your culture is less than perfect, you’ll need to hire low rules people who thrive on chaos.

  • Detail orientation

  • Assertiveness – The ability to confront things that need to be confronted. In companies with “hard-knock” cultures, managers tend to give feedback without bumpers (no head-pats or coddling). “Jerks” tend to get more done in these cultures than doormats. But, you’ve got to keep an eye on assertiveness. If you have too many low-assertiveness people in an emerging culture, it won’t thrive. If you look at assertiveness on a bell-curve, you don’t want the 90%-ers. You want people between 75-90% of assertiveness.

Bottom line: HR should be marketers with the employment brand. Create a great careers site with great company stories. Revamp the work space with the budget you have. Continue to work on managers of people – they have to deliver on the culture you promote. The most important thing is that you match your culture with the candidates you bring in. The hottest behavioral profile for new hires in companies that have a less-than-stellar culture is low sensitivity + low rules + high details + high assertiveness. Because these individuals can deal with the chaos and still get stuff done.

Gallup study 2014 – Companies miss on 82% of managerial hires; 1-in-10 of managers is a natural; Companies who invest in training and coaching can get two of the remaining nine where they need to be as managers.

Social Media and Background Screening: If it’s on the Internet, Isn’t it Fair Game?

There’s a statistical certainty that a company that doesn’t screen its employees will hire someone with an unsuitable criminal record or false credential.

What’s the cost to employers?

  • Workplace Violence - Department of Justice estimates 2 million incidents each year

  • Fraudulent Credentials - Up to 40% of resumes contain material lies or omissions about education, past jobs or qualifications

  • Time wasted in recruiting, hiring and training

  • Turnover costs - Cost to replace an employee is 2-3 times their salary

  • Lawsuits for negligent hiring, retention, promotion or supervision - FRCA class actions are now a trend

  • Brand destruction, lost customers and workplace disruption

  • Termination exposure

  • EEOC or regulatory action

Screening in Modern Society

Recruiters and employers need to match millions of applicants to millions of jobs. Social networking sites are a tool that can give a treasure trove of information about candidates, and they’re also a place to find passive candidates. You can also find information about current employees. However, with more than 4.2 billion social media sites to tackle, the process can be pretty daunting. So, it’s important when creating a social media policy for recruiting, to determine which sites are relevant, as well as what type of activity would automatically rule out a candidate.

Recruiting and Social Media by the Numbers

According to a 2017 Career Builder survey:

  • 92% of companies use social media for recruiting
  • 54% of employers have decided not to hire a candidate based on their social media profile because the candidate posted:
    • Provocative or inappropriate content
    • Information about the candidate drinking or using drugs
    • Discriminatory comments
    • Comments bad-mouthing previous employers or fellow employees
  • 3 in 10 employers have personnel dedicated solely to getting the scoop on online personas
  • 70% of employers use social media to screen candidates (up from 11% in 2006)

On the flip side, the survey found that:

  • 57% of employers were less likely to interview a candidate they couldn’t find online
  • 44% of employers found social media content that resulted in their hiring the candidate because:
    • Listed background data that supported resume qualifications
    • Had great communication skills
    • Conveyed a professional image
    • Showed creativity

Most Commonly Used Sites for Recruiting

  • 96% of organizations used LinkedIn for recruiting in 2015.
  • 66% used Facebook
  • 53% used Twitter
  • 35% used professional or association sites

Finding Passive Candidates

A 2016 SHRM survey found that 82% of organizations said the top reason for using social media is to recruit passive job candidates. Recruiters can identify passion and determine if a candidate would be a good culture fit from social media posts.

Key Issues for Employers and Recruiters – Potential Traps for the Unwary

The TMI Problem – Too Much Information: Candidate makes a post revealing age, religion, nationality, medical information or other protected class information. Having knowledge of this type of information could subject the employer to a “failure to hire” lawsuit. Of course, employers are allowed to make judgment calls; however, you must ensure every candidate is on the same playing field without regard to information you might have seen online. When sourcing a passive candidate, EEOC rules still apply since it’s part of the selection process.

Strategies for Recruiters

  • Have a well-written job description that states the essential functions of the job.
  • Have a clear policy and documented training on non-discrimination
  • Document an objective and consistent search approach, such as identifying online sources or keywords
  • Establish and maintain objective metrics for online recruiting
  • If a candidate meets the objective criteria, document why a person wasn’t included in the pool
  • If sourcing, use an ethics wall. Do not pass on any potentially discriminatory info

Strategies for HR and Hiring Managers

  • Have a well-written job description that states the essential functions of the job.
  • Have a clear policy and documented training on non-discrimination
  • Establish and maintain objective metrics for the hiring process
  • Do not let decision maker view unfiltered social media data
  • Perform through an employee/3rd party ethics wall that doesn’t make hiring decisions. Only provide related data after an offer has been made.
  • Less risk if internet searches are done after a conditional job offer has been made and written consent secured.

The use of Private Behavior for Employment Decisions: Candidate posts about drinking on the job.

Strategies

Some states have prohibitions on using private behavior for hiring decisions Employers have broader discretion of behavior could damage the company

Privacy in the Brave New Online World

  • The Constitutional right to privacy ONLY protects against government intrusion and not private employers.
  • Most states have passed privacy legislation for employers.
  • If privacy is invaded, the issue is whether the employer’s conduct is overly intrusive.

Social Engineering - Pre-texting or False Aliases: Employers who use social networking sites must understand privacy risks if they violate a term of use or do not have consent.

  • Risk is higher if employer uses pre-texting (posing as a friend) or false alias (creating a fake Facebook identity) to get information
  • Some states have laws limiting requiring passwords or “shoulder surfing”

Outsourced Social Media Screening

  • Third-party background screening companies can be used for social media searches
  • Must have candidate’s consent
  • If information is the basis for adverse action, must comply with FCRA pre-adverse action notice requirements

What is Real? Issues Concerning Identity and Authenticity

  • With more than 300 million Americans, most of us have people who share the same name
  • How do you know the candidate actually wrote the post?
  • It’s very easy to create a fake page about someone
  • Mistakes can be made

How Paycor can help

Hiring managers and recruiters in practically every industry are concerned about the lack of available talent and understandably so. Earlier this summer, the unemployment rate dropped to 4.3 percent, the lowest it’s been in nearly two decades. With this lack of available candidates, it’s no wonder that recruiting has become even more competitive.

If you’re facing a shortage of qualified candidates and need to optimize your current recruiting processes, download Paycor’s new Recruiting & Hiring Toolkit.

Inside, you'll learn:

  • Tips to ensure your career site isn't turning candidates away
  • How to eliminate disconnects between hiring managers and recruiters
  • Tips to create a job description your candidates want to read
  • How to add context to your interviews
  • What to include in a formal offer letter
  • Keys to creating a memorable first impression for new hires

Click here to unlock your toolkit.

Please Note: This content is provided for informational purposes only and should not be considered legal advice.