best-in-class talent acquisition: proactive not passive · pdf filebest-in-class talent...

© AberdeenGroup 2011

Best-in-Class Talent Acquisition: Proactive,

not Passive

March 10, 2011

Kevin MartinSVP, Research Operations

Aberdeen GroupTwitter: @kevinwmartin

© AberdeenGroup 2011 2

Talent Acquisition Strategies

“Recruiting may slow or stop, but

talent acquisition never does.”

~ Lou Manzi, March 2009 (former VP of Global Talent Strategy,

GlaxoSmithKline)



What are top‐performing companies doing differently?

What pitfalls are they avoiding?

Why are they achieving greater success?

What technologies and services are enabling them to succeed?

P

A

C

E

Pressures:External forces that impact an organization’s market position, competitiveness, or business operations.P ressures:External forces that impact an organization’s market position,’competitiveness, or business operations.

Actions:The strategic approaches that an organization takes in response to industry pressures.A ctions:The strategic approaches that an organization takes inresponse to industry pressures.

Capabilities:The business competencies (organization, process, etc…) required to execute corporate strategy.C apabilities:The business competencies (organization, process, etc…)required to execute corporate strategy.

Enablers:The key technology solutions required to support the organization’s business practices.E nablers:The key technology solutions required to support the

’organization’s business practices.

Selected PerformanceCriteria (KPI)

Total Respondents

- Top 20%

- Middle 50%

- Bottom 30%Respondents are scoredindividually across KPI

Best‐in‐Class

IndustryAverage

Laggard

• % of Top‐Choice hired• First year retention• Time to Fill

Aberdeen’s Research Methodology



What We Will Discuss

The Business reality and Recruiting’s role in it

What HR and Recruiting must do now to be a strategic enabler

The 2011 HCM priorities of the Best-in-Class

The role and imperative of CRM



Data fromDec 2009

Data from Mar 2010

Data fromAug 2010

Data fromDec 2010(change in

2011)

Anticipated Change in Headcount for Fiscal 2010 *

(1%) * 2% * 4% * 5%



Headcount and Budget Continue to Lag

Source: Aberdeen Business Review Q4 2010

7%5%

2%4% 4% 4%

12%

9%

5%7%

5%7%

0%

4%

8%

12%

Revenue OperatingProfit

Headcount OverallBudget

IT Budget MarketingBudget

Per

cent

Gro

wth

Reported Growth 2009 to 2010 Anticipated Growth in 2011



Expected Headcount Recovery

Source: Aberdeen Business Review Q4 2010

28%

44%

52%

38%

0% 10% 20% 30% 40% 50% 60%

Other

Services

Technology

Manufacturing

Percentage of jobs expected to be recovered



The Strategic Rating of HR

Source: Aberdeen Group, 2010

Scale of 1-5: 5 = HR is very proactive and closely tied to the business' objectives and 1 = HR is reactive, very tactical, and not aligned with business objectives

3.09

2.69

3.40 3.28

3.22 3.17

1.00

2.00

3.00

4.00

5.00

2008 2009 2010

HR

's S

trate

gic

Rat

ing

HR LOB



Critical Skills of the HR Leader

Source: Aberdeen Group, 2011 HR Executive’s Agenda

24%22%

82%

30%32%

70%

0%

20%

40%

60%

80%

100%

Ability to connect HRinitiatives to the strategic

priorities of the organization

General business acumen Understanding of theorganization's industry and

customers

Per

cent

age

of R

espo

nden

ts, n

=439 HR

Line of Business



Top HCM Strategies in 2011

43%46%

51%

30%

49%

38%

0%

20%

40%

60%

Continually align business andtalent strategy

Identify gaps betw eenw orkforce supply and

business demand

Foster a culture of innovationand creativity

Perc

enta

ge o

f Res

pond

ents

, n=4

39

Best-in-Class

All Others

Source: Aberdeen Group, 2011 HR Executive’s Agenda



Do you have a defined HR Strategy?Is your HR Strategy tightly aligned to the Business Strategy? Does your HR Strategy adapt to changes in the Business Priorities?Do you publish your HR Strategy and share it with your business leaders?

Be Visionary!



“The person we seek is currently employed, loyal to his or her company and part of a high performing sales team. It’s

not going to be a first call pitch – it’s going to be multiple calls – and go way beyondthe recruiter level, to the hiring manager

and executive level”.

~ Michael Jones, Aug 2009 (VP of HR Field Operations, Ricoh Americas)



“Relationship Recruiting” in Action

Tight collaboration b/w HR and Field Sales (including development)

Introduced Relationship Recruiting

Realigned recruiting management structure

Universal engagement (managers, training,recruiters, HR)

Recruiting Strategy

Operationalize RecruitingMonthly Operations Review Calls

Enhanced InspectionReporting/Stack-ranked scorecardRequisition Review

Adopted Sales Approach –used Sales language & tools

Tracked/ reported candidate interview progressionScripted objection handlingCreated Blitz calling daysPipeline Management

Drive Execution

100 fewer Sales new-hires

produced $10 million more

in sales! AND

80% y-o-y gain in passive

candidates hired.



TalentAcquisition2011 and Beyond…



Pressures Driving Talent Acquisition

47%

35%

30%27%

23%

34% 35%33%

24%

34%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Shortages of required skills in the labor pool

Increasingly competitive

environment for top talent

Need to scale to meet current

growth opportunities

Changing customer

requirements or demands

Budget cutbacks

Perc

enta

ge o

f Res

pond

ents

, n=3

80

2010 2009

Source: Aberdeen Group, 2011 Talent Acquisition Strategies



Top Strategies regarding Talent Acquisition

53%

42% 40%44%

36%

25%

0%

10%

20%

30%

40%

50%

60%

Proactively build andexpand a candidate

pipeline regardless ofcurrent hiring needs

Strengthen ability toidentify talent that is most

likely to succeed

Emphasize strategicw orkforce planning toaccomplish long-termcompany objectives

Perc

enta

ge o

f Res

pond

ents

, n=3

80

Best-in-Class All Others




Continuous vs. Reactive Talent Acquisition

60%

32%

45%48%

37%

55%

0%

10%

20%

30%

40%

50%

60%

70%

Continuous - Identifying and cultivatingrelationships with top prospects is

always a priority

Reactive - It's something that wepursue only when there are immediate

hiring needs and budget

Per

cent

age

of R

espo

nden

ts, n

= 3

80

Best-in-Class Indusry Average Laggard




Experience Management is Key!

64%

53%

46%

35%34%

22%

0%

10%

20%

30%

40%

50%

60%

70%

Obtain feedback from new hires on the recruiting process

Process to obtain feedback from candidates who rejected your company’s

job offer

Perc

enta

ge o

f Res

pond

ents

, n=3

80

Best-in-Class Industry Average Laggard




“We aren’t necessarily looking for candidates to pay attention today, but in

several months when they might not be as engaged in their current job, we hope that

they’ll then think of us. Of course, this requires much more than

simply planting seeds, it takes work to keep these relationships going.”

~ Gordon Frutiger, Associate Director, National Sales Recruiting, VALIC



Candidate Relationship Management

Provider of retirement savings plans for public sector, non-profit, edu and hospital systems. 1,250 financial advisors

High turnover55 is average ageRetirement a big issue for next 20 years

Goal - Build a deep pipeline of candidates for the future

Implemented CRM technology (Avature)

track candidates from a variety of sourcessend out updates and information to keep engaged and informed

Use social media to build and maintain relationships

In first 8 months of ‘10 hired 275% more candidates via LinkedInthan entire 2009



40%Organizations that indicate they have a formal candidate relationship management

process and also utilize tools to manage and track all candidate communications are 40% more likely to be Best-in-Class as compared to organizations with a formal

candidate relationship management process but no corresponding technology (28% vs. 20%).




The Rise of Emerging Tech in Talent Acq.

Despite only being implemented by 33% of Best-in-Class, another 51% indicate plans to put them in place.

Imperva (case study)Shifted recruiting process from 3rd-party recruiters to an internally managed strategy using social networking Reduced external recruitment agency fees from $800k/year to <$100kReduced time-to-fill from 90+ days to <30 days Increased # of quality apps received 10x



Recap

Know who you want to bring on boardProactively reach out and establish connectionsDo so via the means via which people prefer to communicate

Finding them vs. waiting for them to find youVia modality of their choice

Make Talent Acquisition an organizational imperative



Thanks for your Interest in our Research!

Kevin MartinSVP, Research OperationsAberdeen [email protected]+1 617-854-5314

Twitter: @kevinwmartin

HCM Summit (March 9-10, NYC):http://summits.aberdeen.com

LinkedIn: http://www.linkedin.com/in/kevinwmartin

www.aberdeen.com

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