Beyond  the  Dollar:  The  Real  ROI  of  Internal  

Headhun6ng  

Presented  by  Fraser  Hill,    Founder  of  Headhun6n.com,  Bremnus,  

and  Pure  Recruitment  Training.  

Direct  Sourcing  Value  Model  

Internal  Headhunt  Strategy  

The  Headhunt  Process  

Background  

Defining  Headhun6ng  In  The  Internal  Context  

Administrator  Resourcer/  Researcher  

Recruiter   Headhunter  

Managing  diaries  for  interviews,  pos2ng  jobs,  dealing  with  job  board  suppliers,  managing  invoices,  general  admin.  

Crea2ng/Pos2ng  job  ads,  sourcing  candidates  through  job  boards,  CV  screening  .            

Crea2ng/Pos2ng  job  ads,  sourcing  candidates  through  job  boards/online,  CV  screening,  Interviewing,  process  management.  

Compe2tor  organisa2on  mapping,  direct  research,  cold  call  head  hun2ng,  interviewing,  shortlist  prepara2on.  Compe2tor  intelligence.    

Headhun2ng  is  any  effort  to  proac2vely  seek  out  and  make  verbal  contact  with  a  poten2al  candidate,  establish  if  they’re  open  to  a  conversa2on  about  a  poten2al  career  move,  and  the  conversa2on  therein.  

Why  Headhunt?  

Direct  Sourcing   Ac2ve  Candidates  

Widening  The  Talent  Pool  

IN  the  market  versus  ON  the  market  “Have  we  truly  done  everything  we  can  to  find  the  best  candidate  in  the  market  and  not  just  the  best  available  candidate  on  the  market?”  

Internal    Recruiter  

Internal    Headhunter  

0  

100  

Number  of  roles  worked  per  year  

Recruiters  

Headhunter  

Direct  Sourcing  Value  Model  

Internal  Headhunt  Strategy  

Internal    Recruiter  

Internal    Headhunter  

0  

100  

Number  of  roles  worked  per  year  

Candidate  Sourcing  

Internal  Bench  

Adver2se  Internally  

Employee  Referrals  

External  Pipeline  

Adver2se  Externally  

Headhunt  

Internal  Bench  

Adver2se  Internally  

Employee  Referrals  

External  Pipeline  

Adver2se  Externally   Headhunt  

The  more  senior  the  role  the  more  likely  it  will  be  the  preferred  method.  

Do  we  need  to  headhunt?  

The  more  niche  the  role  is  the  more  likely  it  is  that  it  will  be  the  preferred  method.  

When  all  other  methods  have  failed,  headhun2ng  will  be  the  next  default  method.  

When  the  role  cannot  be  adver2sed  for  confiden2ality  reasons.  

How  many  niche  roles  did  we  have?  

How  many  senior  roles  did  we  have?  

How  many  confiden2al  roles  did  we  

have?  

What  direct  market  data  

did  we  retain?  

How  much  did  we  spend    

on  headhunters?  

Gather  historic  data  from  last  year  

6  9   1   Not  much!  $562,500  ($150k  x  15  @25%)    

Think  about  the  year  ahead  

How  many  headunters  will  we  need?  

How  many  roles  will  we  headhunt?  

What  will  we  spend  

externally?  

What    market  data  do  we  want  to  gather?  

What  will  it  cost  

internally?  

1  16   0  

Mapping  and  compe2tor  intelligence  on  all  roles  

$150,000  

Last  year  we  spent  $562,500  on  headhunters  for  our  15  most  senior,  niche  or  confiden6al  roles.  We  didn’t  retain  any  

significant  market  data  or  rela6onships  with  key  people  in  the  external  market.    

This  year  with  the  same  demand  we  can  save  73%  on  costs  by  hiring  an  internal    headhunter  for  $150,000  and  retain  a  

significant  amount  of  market  data  and  compe6tor  org  chart  informa6on  that  we  can  make  further  future  hires  from.    

The  Headhunt  Process  

Starts  with  a  well  wri`en  job  spec    

Your  internal  clients  market  knowledge  

Your  market  knowledge  

Preliminary  

Online  Research  including  Linked  In  

Speaking  to  well  known  internal  and  external  candidates  

Head  Hunt  calls  

Secondary  

Find  out  if  they’re  a  suitable  candidate  and  interested  in  a  career  move.  

Three  Headhunt  Call  Objec2ves  

Gather  market  intelligence  and  further  understand  our  compe22on.  

Get  referrals  and  further  map  out  our  compe22on.  

When  we  work  on  a  search  with  typically  30  to  50  candidates  to  contact,  only  3  to  5  of  these  will  make  it  to  a  shortlist.    That  means  that  90%  of  the  people  we  speak  to  will  not  be  right,  but  the  conversa2ons  you  have  with  the  candidates  who  are  not  right  are  just  as  important.    

Informa2on  to  gather  

Get  a  brief  overview  of  their  background  and  current  role.  

Find  out  who  they  report  to  and  where  they  sit  in  the  organiza2on  structure.  

Find  out  what  their  salary  and  bonus  is.  

Find  out  as  much  as  you  can  about  their  business  strategy.  

Get  Referrals.  

Building  Org  Charts  –  The  Mapping  Process  

Building  complete  org  charts  is  probably  the  most  challenging  part  of  direct  sourcing.    

You  have  to  be  consistent  and  diligent  in  asking  all  of  the  ques2ons  and  pursuing  your  objec2ves  outlined  in  the  headhun2ng  training.    

The  only  way  to  find  out  what  the  current  structure  looks  like  is  to  speak  to  the  people  that  exist  within  it.    

You  have  to  become  a  refined  head  hunter,  which  like  a  hunter,  has  to  be  almost  stealth  like  in  your  approach.    

Names  Iden2fied   Percentage  of  Candidates  Selected  From  These  Sources  

When  conduc2ng  name  gathering  research,  we  must  do  more  than  just  a  LinkedIn  search.  

Referrals  are  the  most  important  source  of  quality  candidates.  

The  importance  of  calling  candidates  

Market  Informa2on  –  what’s  happening  at  our  compe2tors?  

An  understanding  of  what  mo2vates  them  in  their  career  –  push  and  pull  factors.  

Referrals  –  hugely  valuable  and  oien  the  source  of  the  candidate  that  gets  hired.  

Salary  and  bonus  informa2on.  

The  opportunity  to  build  rapport,  establish  on-­‐going  rela2onships  in  the  industry  and  have  opportuni2es  to  ask  for  favours  in  the  future.  

Compe2tor  organisa2on  structures.  

Your  job  being  a    lot  more  fun  and  interes2ng.  

Social  media  is  not  the  solu6on,  it  simply  enables  us  to  get  closer  quicker  to  our  target  audience  -­‐  We  s6ll  have  to  make  the  calls  and  build  rela6onships.    

Beyond  the  Dollar:  The  Real  ROI  of  Internal  Headhun6ng  

Market  intelligence  and  rela6onships.  

Quality  of  hire  –  is  this  the  best  candidate  in  the  market  (versus  on  the  market).  

Beyond  the  Dollar:  The  Real  ROI  of  Internal  Headhun6ng  

To  get  a  return  on  investment  we  need  to  invest  in  more  recruiters  working  on  less  roles.  

The  internal  model  needs  to  move  more  towards  a  “return  model”  over  a  cost  model.    

We  need  to  move  from  RPO  towards  RVI  (Recruitment  Value  In-­‐sourcing).  

Fraser  Hill  fraser@headhun6n.com