| Purpose: | | | | units |
| For high growth organizations, attracting, hiring and | | | | 6. Manage costs |
| retaining the right talent is critical. Add the right | | | | 7. Analyze productivity |
| players to your team and you have a key source of | | | | 8. Assist in the identification and evaluation of risks |
| competitive advantage. Attract the wrong talent and | | | | A good Recruitment Specialist must be in a position |
| you will have difficulty meeting your strategic goals | | | | to answer the following questions: |
| and objectives. "Hire a wrong person...who is not able | | | | A. How much time and expense does your |
| to fit into an organization...he will leave, resulting in | | | | administrative staff expend to open, respond, and |
| high attrition rate". "Hire a person...give him wrong | | | | route resumes to the hiring team? The best way to |
| information...or misrepresent the policies of the | | | | do this is to figure out an average cost per resume |
| companies and procedure and you will not even | | | | and track how many resumes you receive for each |
| know what harm you have done to the organizations | | | | job to be able to calculate the administrative cost per |
| "public image" ". | | | | job. |
| Introduction | | | | B. How much time does your hiring team / recruiter |
| More than anybody else in HR Department the onus | | | | spend screening through resumes? This may also be |
| is high on "Recruitment Specialist", he is like | | | | an average cost per resume received for the job. |
| "companies" advertising manager. | | | | C. If your organization conducts preliminary phone |
| He must be well versed with the "Business" of the | | | | interviews, how many were conducted and how |
| company, its strategies and policies. | | | | much time was spent by the recruiter to prepare, |
| It is for him to keep himself updated with the latest | | | | conduct, summarize and communicate the results of |
| skill sets, available in the market. | | | | those interviews? |
| It is for him to "keep" him self updated with the | | | | D. Do you have an automated applicant-tracking |
| "Business Competitors" of the organization. Even the | | | | program? This is an indirect cost that you may |
| onus of "retaining people is on "Recruitment | | | | choose to pro-rate across your hires for a specific |
| Specialist". | | | | period of time, somewhat like depreciating a new |
| It is for them to find if the "person" will be able to fit | | | | computer on your taxes. |
| into the "culture" of the organization. | | | | E. Did your hiring team or the interviewee incur any |
| 4 P's of Recruitment | | | | travel expenses that were reimbursed by the |
| Product | | | | company? |
| What positions are you trying to fill? What do you | | | | F. How much time was spent scheduling interviews? |
| have to offer to potential candidates? Who else is | | | | G. How many staff members were involved in the |
| trying to hire similar candidates and how can you gain | | | | interviews? How long per interview? How many |
| a competitive advantage? | | | | interviews? What is the average cost of the |
| Price | | | | interviewers' time |
| How much are you willing to pay top quality | | | | H. How much time and what was the cost for |
| candidates (e.g., salary and benefits, other costs | | | | follow-up with candidates during negotiations and to |
| associated with the hiring process)? Is this more or | | | | notify those that were not hired? |
| less than your competition? | | | | I. What was the cost of referral fees from a |
| Person | | | | recruiting agency or an employee referral? |
| What is your target market? Who are you trying to | | | | J. What costs will the company be paying for the |
| hire? What competencies are needed for the jobs | | | | new hire to relocate? Some costs may include |
| you have to fill? Are these competencies valid? What | | | | moving company, airplane tickets, hotel |
| does the ideal candidate look like? | | | | accommodations, temp housing, house hunting visits, |
| Promotion | | | | assistance with sell/buy, or spouse/dependent |
| Where can your ideal candidates be found? How will | | | | assistance. |
| you let these candidates know about your job | | | | K. What was the cost for background investigations |
| openings and encourage them to apply? What | | | | and/or reference checks? Drug screens? |
| resources can you use to generate a diverse | | | | L. If there was a signing bonus, how much was it? |
| candidate pool? | | | | M. What costs does the company typically incur to |
| Searching for "Right" profile | | | | bring someone onboard - orientation, mentor, |
| 1.Networking - Developing relationships with | | | | benefits enrollment, computers, cell phones, uniforms, |
| institutions that have direct or indirect access to | | | | etc.? |
| culturally diverse candidates | | | | N. How long did it take to fill the position from start |
| 2. Internet - Searching web databases, placing ads at | | | | to hire date? What could you have done to reduce |
| various career sites geared toward a diverse array of | | | | the time to hire and not have impacted the quality of |
| individuals, attending on-line career chats | | | | the hire? |
| 3.Resume Services - Purchasing a packet of resumes | | | | O. What was the impact on productivity while the |
| that match identified hiring criteria and contain a | | | | position was left vacant? This is a very difficult |
| significant level of diversity. | | | | calculation to conduct especially depending on the |
| 4.Direct Mail Campaign - Systematically sending | | | | position. However, it does have an impact on the |
| recruitment materials to culturally diverse individuals | | | | hiring manager and the organization as a whole. If it |
| who meet your hiring criteria and organizations that | | | | can't be quantified, at least keep it in mind. |
| have access to such individuals. | | | | P. How satisfied was the hiring manager / |
| 5.Job Fairs - Participating in job and career fairs that | | | | organization with the hire? This assessment can be |
| cater to culturally diverse job seekers. | | | | done following the hiring but should be repeated again |
| 6.Newspaper/Periodical Advertising - Placing job ads in | | | | 3 - 6 months after the employee has been on the |
| periodicals that cater to culturally diverse individuals. | | | | job to get a real sense of how successful the hire |
| 7.Radio & Television Advertising - Placing job ads | | | | was. |
| on shows that cater to culturally diverse individuals. | | | | Calculations for Recruitment Specialist |
| 8. Professional Associations - Becoming actively | | | | Cost per Hire: |
| involved in a professional association that caters to | | | | (Cost per hire is a calculation you can use any time |
| underrepresented members of a particular profession | | | | you are hiring. Let's say you are a consulting firm |
| Recruitment: Return on Investment (ROI) | | | | bidding on a big project. Cost per hire can help you |
| Recruitment return on investment (ROI) understands | | | | estimate the costs associated with adding new |
| and compares the elements, costs and risks of a | | | | positions as part of being awarded the contract for |
| recruitment related project to the expected benefits, | | | | the new project.) |
| for example; recruitment technology, recruitment | | | | Costs involved with a new hire |
| centre implementation or process re-engineering. | | | | [Advertising + Agency Fees + Employee Referrals + |
| Recruitment ROI can assist in building a business case | | | | Travel + Relocation + Recruiter Pay & Benefits] |
| for the organization's decision makers to evaluate the | | | | Number of Hires |
| benefits and estimated return on the investment to | | | | Turnover Cost: |
| upgrade an organization's recruitment function. | | | | Costs incurred when an employee leaves the |
| In summary, the recruitment ROI process would | | | | organization |
| address the following: | | | | Cost to Terminate + Cost per Hire + Vacancy Cost |
| 1. Tangible and intangible benefits to the organization, | | | | + Learning Curve Loss |
| including increased quality and savings in time and | | | | (Note: Cost to terminate includes severance, |
| money through implementation | | | | unemployment, exit interviews, legal fees, temp |
| 2. Estimated cost of services and associated | | | | replacements, etc) |
| technology | | | | Turnover Rate: |
| 3. Investment/payback period of the recruitment | | | | Measures rate that employees leave an organization |
| project | | | | [No. of Separations During Month ÷ Average |
| 4. Issues and costs associated with not proceeding | | | | No. of Employees During the Month] x 100 |
| with the recruitment project | | | | (Note: Define what status of employee you will |
| Measuring the Effectiveness of Recruitment Process | | | | monitor. It might not make sense, for example, to |
| Collecting data and calculating the ratios is only the | | | | monitor temporary employees. It could skew the |
| first step. Metrics are a tool for a larger analysis of | | | | statistics for your full-time staff and lead you to false |
| your recruiting effectiveness. | | | | conclusions. Consider conducting a position-specific |
| Metrics don't just mean time and cost. It's about | | | | analysis) |
| looking for every point of transaction with a | | | | Time to Fill: |
| candidate and tracking it from the time and cost | | | | Number of days from job requisition approval to new |
| perspective--every activity that pulls a candidate into | | | | hire starts date |
| the process and the path that takes the candidate | | | | Total Days to Fill Requisitions /Number Hired |
| through to an accepted offer. | | | | Conclusion |
| Recruitment metrics measure the effectiveness of | | | | For a Recruitment Professional to be efficient and |
| the recruitment function. These metrics deliver | | | | effective, there is so much to do. They can play an |
| valuable and relevant information back to business | | | | important role in "Organization Transformation", |
| stakeholders. Their purpose and benefits are to: | | | | provided they are "true an fair" in their dealings. I |
| 1. Demonstrate the real value of the recruitment | | | | have also mentioned in one of my "earlier write-up" |
| function | | | | that "Recruitment Professional" are corrupt, there is a |
| 2. Gain the buy-in of business decision makers to | | | | good and bad face of each profession, all that is |
| invest in and optimize the recruitment function | | | | matter is how true you are to yourself and your |
| 3. Provide an accurate picture of current costs and | | | | integrity. |
| outcomes | | | | I will be looking forward to your comments and |
| 4. Demonstrate changes and impacts to the | | | | feedback. |
| organization over time | | | | Feel free to shoot any question, pertaining to this |
| 5. Establish shared accountability between the | | | | article. |
| Recruitment Centre, Hiring Managers and/or business | | | | |
