Recruitment best practice presentation 2010

1. Employers Essential Guide to
Best Recruitment Practise
Mark Stephens – The F10 Group
March 2010
“99% of business owners state that the quality of candidates hired is
the most important factor in effective company growth”
CIPD 2008 Recruitment Report

2. Mark Stephens
Expert in recruitment Process and Strategy
Executive Summary
• Currently 50% shareholder and joint MD of the F10 Group
Group interests
• F10 Executive Search (Technical Recruitment Specialists)
• Smart Recruit (Fixed Price Mainstream Recruitment Solutions)
• F10 Mobile (Mobile Marketing Managed service)
• Ask The Experts (Technology discussion forums)
Achievements
• Launched and sold for profit 3 companies
• Recruited over 300 people for my own businesses
• Recruited over 2000 people for other peoples businesses
• Consulted with over 50 companies on Recruitment strategy
• Consulted with the Government on Recruitment strategy for the e-Gov initiative
• Generated combined savings of over £2m through improved processes

3. Today’s Presentation
•Introduction
•Recruitment Statistics
•How do business’s recruit?
•Monitoring Agency Performance (CIPD Survey)
•Areas of Improvement
•The Recruitment Process
•Working with just 1 recruitment partner
•Best Practise
•Identifying the right Agency
•Back up Strategy
•Summary
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4. The Importance of hiring the right people
Stats taken from the CIPD 2008 Recruitment survey of Business owners
•99% state that the quality of candidates hired is the most important factor in
effective company growth.
•80% hiring companies stated that attracting the best staff was critical to their
business
•56% said that this was critical to their ability to achieve the organisations
strategic goals and meet future skill requirements
•84% state that they regularly experience difficulties recruiting the right
people:
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5. How do we recruit?
How do Companies recruit and what is the cost?
•80% of business’s use recruitment agencies to sources staff
• Over70% of highly skilled staffing vacancies are filled by recruitment agencies
•Average recruitment cost for filling a vacancy was £4,500 in 2008
•Total average recruitment cost when all additional costs are factored in £7,750
•72% said that they are pro-actively looking at reducing recruitment costs with their
recruitment suppliers
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6. Random facts?
•Over 35% of companies do not adopt any PSL strategy
•Over 60% do not monitor or evaluate agency performance
•Over 80% of companies choose to work on a contingency basis with agencies
•90% felt that the services provided by agencies was often the most determining
factor
•76% felt that the use of agencies significantly increased the cost of recruitment into
the business
•Over 90% of hiring managers from the technology sectors felt that the quality of
staff from agencies was consistently higher than other sources
•61% businesses said that key people involved in the recruitment process had no
formal interview training and they did not have a formal internal recruitment process
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7. Monitoring Agency Performance
Key Criteria – (in order of importance to clients)
•Quality of candidates submitted
•Services received from agency
•Value for money
•Time taken to fill vacancies
•Placement ratios
•Feedback from candidates on the opportunity
•Diversity of candidates
•Feedback from candidates on the Agency
Factors influencing the choice of recruitment agency – (in order of importance)
•Relationship with an individual
•Confidence in their process and obligations
•Commercials terms
•Agencies alignment with clients culture and values
•Agencies track record/reputation/performance
•Feedback from recruiting managers
•Local/National coverage
•Range of services
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8. Areas of Perceived Improvement
(In Order of Importance)
•Reduction in costs
•Better standardised process
•Better relations with fewer agencies
•Improved relationship between agencies and HR
•Better communication between agencies and hiring managers
•Better monitoring of activity and effectiveness
•A range of solutions to best fit the requirement
•Internet recruitment strategies need formalising
•Brochures and Literature
•Interview procedure (better strategy for rare skills)
•Speed of turnaround
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9. What does the Recruitment Industry look like?
Generalist and Specialist recruitment companies
• High Street
• Agency
• Consultancy / Executive Search
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10. High Street recruitment
•Generalist and Specialist
•F2F interviews with local people
•Walk ins off the street
•Newspaper Adverts
•Local online presence
•Mainstream skills
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11. Agency
•Generalist and Specialist
•Internet advertising & Database search
•CV Screening/ Telephone interviews
•70% active candidates
•Limited networking of passive candidates
•Quick turnaround on campaigns
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12. Consultancy / Executive Search / Head Hunters
•Generalist and Specialist
•Detailed requirement capture phase
•Research companies and Industry Sectors
•Operate from a more targeted prospect list
•Internet advertising and database searching to
compliment
•Strategic networking of candidates
•Social media strategy
•Dedicated days/weeks to the campaign
•Sensitive consultancy recruitment process
•Comprehensive search strategy and process
•70% passive candidates
•Retained business
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13. Executive Search Recruitment Process
STAGE 1 - Information Gathering & Requirement Capture
Receiving the requirement
Brainstorm and job clarification
Complete The Requirement Capture form
Trial search campaign
Trial CV sent within 48 hours
Agreement to proceed
STAGE 2 – Candidate Selection and Qualification
A comprehensive search criteria to form a list of prospective candidates
Candidate Intro and Pre Qualification – Consultation phase
Candidate Selection phase 1 – Selling the company and role
Candidate Selection phase 2 – Telephone / skype interview.
Networking and Information gathering
Short listing and Candidate Submission to client
STAGE 3 – Interview and Offer Management
Arrange interviews
Pre interview discussions
Post interview evaluation
Feedback and Offer management
Counter offers and Acceptance
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14. Best Practise
Requirement Capture (Phase 1)
•Do you provide the agency with a comprehensive profile on the organisation?
(presentation/promotional docs)
•Does the agencies you use know about the company history, awards won, recent
contract wins, growth etc?
•Do you check that the RCF will allow the agency to sell your job to anyone?
•Do you check that the job description sounds sexy and exciting to potential recruits?
•Does the role sound challenging
•Do you provide details of the opportunities for potential development and growth?
•Does the hiring manager get involved with the agencies to ask questions and discuss?
•Do you always provide a list of companies that you would like to receive CV’s from?
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15. Best Practise
The Search (Phase 2)
•Do you make arrangements to discuss feedback on the first 1 or 2 candidates with the
agency? (If not why not?)
•Do you set timescales for the agencies to work to, to get their shortlist to you?
•Do you provide a standard cover sheet so that you always get the quality information that you
want on each applicant?
Interview (Stage 3)
•Do you try and book all your interviews’ within 1 week of receiving the CV?
•Do you adapt a different strategy for passive candidates?
•Do you always provide the agency with an overview of interview process, attendees etc?
•Do you always agree to discuss feedback at the earliest opportunity with the agency?
•Do you get the agency and candidates to discuss feedback immediately after the interview?
•Do you work together to secure acceptances and overcome counter offers ?
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16. Why work with just One Agency?
Typical Agency demographics for placement activity
Other
20%
Advertising
Resonce
40%
Database
Search
40%
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17. Multiple Agency activity demographics
The effects of duplication:
•Agencies use the same
website databases
•Results in a reduction in overall
effort by agencies. Most
noticeably within the passive
market space.
•Hastily worked campaigns do
not encouraging a consultative
approach.
Other
Database Search
Advertising Response
Duplication of effort
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18. Blame Culture
What winds us up the most about each other?
Client/Hiring Manager Candidate Recruiter
None or poor Job Poor CV Do not acknowledge
specification emails
Lacks commitment
No or slow feedback
Over exaggerate skills
Overlook good Slow providing details and experience
candidates
Untruths on the CV – Send poor Quality CV’s
HR no control over hiring inaccurate details
managers Always chasing feedback
Doesn’t return calls
Internal applicants? Always putting on
Let you down at the last pressure and selling
Poor IV techniques minute
Pushing the salary up
Don’t sell the role well Change their mind at the
end of the recruitment Charging too much
Offer below requirement process
Doesn’t return calls
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19. Identifying the Right Agency
Different requirements require different solutions!
What type of role are you looking to fill?
Generalist/specialist? High skilled/ low skilled? Low supply/ high supply?
Where can you find the right agency to help you ?
1) Search Engines 2) Agency Central 3) Job Boards
Identify up to 10 agencies and put them through a selection process.
Provide agencies with a check list:
Relevant domain knowledge and experience
Provide a list of similar roles/ other clients they work with
Ask to see their process for recruiting
Their SLA’s
Their rates (for perm and contract) and TOB
Ask if they would consider working at lower rates in return for exclusivity?
Compile a shortlist of the best 2 and send your own proposal.
Advise them both that you are looking to draw up an agreement with one of them and that
you have reached a decision on what you are ideally looking for.....
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20. Your simple Agency Business proposal and SLA
To work on your campaign exclusively at 15% for a period of 2 weeks (possibly retained)
To arrange a conference call between the recruiters and hiring manager on day 1 to run through
Your requirement capture form and JD
Within the 1st 48 hours, you would like to see the 1 st qualified candidates. Immediate feedback will
be provided to confirm if suitable, if not a telephone conversation with the hiring manager can be
arranged.
Once you are happy that the agent has fully understood the requirement and has submitted 1
suitable candidate, a period of 5 working days will be allowed to provide a short list of 3 or 4 more
applicants
Feedback and interview times will be provided with 2 working days of the deadline
Provide the agency with your own candidate cover sheets and insist that they must be completed
properly for every applicant.
You can negotiate on rebate terms but most companies will refuse to extend beyond 3 months –
so look to get an extra agreement to replace for a half price replacement for 1 st 12 months if the
candidate leaves .
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21. Simple agreement and SLA for Mainstream roles
*Negotiate a fixed price for their service in return for exclusivity.
Ask for a money back guarantee and multiple hires at no extra cost
•5 Simple SLA’s
•Provide a trial CV within the1st week
•Cover sheets provided and to be completed
•Insist on a Min – Max number of candidates (4 and 8)
•Shortlist to be provided within 2 weeks
•Interview feedback within 24 hours
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22. Back-up Strategy
•Other agencies to go to
•Extend the deadline
•Increase salary
•Review essential criteria
•Look further a-field and consider relocation
•Recruit a less experienced prospect and train
•Consider using a contractor
•Change agencies and agency strategy
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23. Summary
1) Choose the right recruitment provider for each campaign
2) Use only 1 or 2 suppliers for each job max
3) Dictate the process and SLA’s, (RCF’s and coversheets)
4) Negotiate fees in return for good communication, exclusivity and a
quick turnaround.
5) Encourage a relationship between managers and the agency
6) Review results and metrics and act upon them
7) Build recruitment partnerships with the best agencies. Treat them
like an extension to the company
8) Have a backup plan
9) Hold regular agency review meetings between the recruitment team
and the hiring managers. Get Directors of the recruitment company
involved.
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24. Download our presentation
A full copy of the 2010 Best practice report is
available if you go to our website
www.f10.co.uk
And visit the Smart Recruit page
This document will also include free templates for
Cover sheets Feedback forms
Requirement Capture forms Agency measurement