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Transcript of Hudson - Next Generation Recruitment - Australia, Newzealand
next generation recruitment: battle strategies for the talent war
next generation recruitment: battle strategies for the talent war
the hudson 20:20 series
the hudson 20:20 series is hudson australia/new Zealand’s
flagship research publication. the series investigates talent and
recruitment issues with a critical impact on business performance.
titles in the series include: Positioning for Growth: Building a
Dynamic Workforce in the New Economic Era; Talent Tightrope —
Managing the Workplace through the Downturn; Candidate
Buying Behaviour; and Seven Key Drivers of Mature-aged Workers.
about hudson
hudson is a leading provider of permanent recruitment, contract
professionals and talent management services worldwide.
from single placements to total recruitment process outsourcing,
hudson helps clients achieve greater organisational performance by
assessing, recruiting, developing and engaging the best and brightest
people for their businesses. the company employs more than 2,000
professionals serving clients and candidates in around 20 countries.
auspoll research
hudson commissioned auspoll research to conduct a wide-ranging
qualitative and quantitative research study into the employment
market and how current recruitment practices are impacting on
hiring outcomes.
further information on auspoll research can be found at
www.auspoll.com.au.
© hudson 2011
contentsForeword 4
executive summary 5
introduction 7
1. the employment and recruitment market: complex and challenging
australia and new Zealand: economies moving forward 10
optimism is on the up 11
growth is on the cards 12
organisations are getting fit for growth 12
baby boomers are preparing to exit the workforce 12
employees are becoming more elusive 12
candidates are becoming choosier 13
employers are more cautious too 13
breaking the cycle of insanity 14
the new grail for recruitment 15
2. what are employers up against?
the pursuit of talent 18
the quest for quality 20
the right recruitment model: getting the balance right 26
3. battle strategies
no. 1: take a talent-centric approach 30
no. 2: create an authentic employer brand 36
no. 3: utilise best practice attraction strategies 39
no. 4: create a future talent pool 44
no. 5: assess attitude, motivation and cultural fit 45
no. 6: develop a flexible and efficient recruitment model 48
4. Future Forecast and conclusions
future forecast 52
conclusions 52
5. research methodology 53
the recruitment landscape has
changed significantly over the last
12 months. a year ago the balance
of power sat with employers but as
the labour market has tightened we’ve
seen a shift towards employees.
strong candidates now attract multiple
job offers, particularly in the areas of
the greatest skills shortages. they
are very selective, making sure an
organisation they are considering
joining is a place that will give them the
opportunities they’re looking for, will be
financially rewarding and is going to be
a good fit for them, both from a lifestyle
perspective and culturally, in terms of
the work environment.
for more senior roles it is still difficult
to extract candidates from an existing
employer. senior people are very aware
of the global economy and really weigh
up what they’re going to have to give
up to move, not only from a monetary
perspective — senior people these days
get tied in with stock and options — but
in terms of walking away from
something they know well and an
environment where they’ve spent years
building their personal brand.
those in the earlier stages of their
careers when the gfc struck learned
the value of career development
opportunities and readjusted their
expectations around remuneration.
that has changed. australia has
become an incredibly expensive place
to live and that, combined with the
pressure on certain skills, means wage
pressures are back with a vengeance.
in new Zealand the overall economy
is still somewhat deflated. from an
economic perspective they’re not at
the same point in the cycle as australia
but we do still see strong demand in
infrastructure and technology.
organisations looking for skills and
resources locally need to understand
you have to pay for those in the
current market. your target market is
probably not those who are currently
unemployed but those who already
have jobs and are not necessarily
actively looking. to interest them you
have to offer something that is really
differentiated and attractive.
people are an organisation’s biggest
asset: with the people comes the
culture which determines the success
of the work environment. other things
can be replicated — such as process
and technology — but it’s the people
you bring on board, how well they fit,
how well they team, how well aligned
their motivational drivers are, that
will differentiate organisations from
their competitors.
recruiting the right people has
never been more critical. the cost of
a bad hire is very expensive. current
approaches to recruitment can deliver
unreliable outcomes. if we know
that, why aren’t we doing something
different? and the only answer to that
is that we either don’t believe it or
we don’t value it.
our business objective is to help our
clients find great people to help them
achieve great performance. our aim
with the hudson 20:20 series is to
share some of the latest thinking
to help them do that.
mark steyn
ceo, hudson australia/new Zealand
foreword
4
confidence is returning to the |
australian economy. hiring
intentions are strengthening.
the New Zealand economy is in |
recovery mode. organisations are
becoming more optimistic in their
outlook, translating into modest
hiring intentions.
as organisations develop their |
growth strategies, talent is
back on top of the agenda.
good quality candidates are
increasingly hard to find.
In this tight talent market, the |
balance of power has swung to
candidates. organisations wanting
to attract, retain and engage the
best people must adopt a more
talent-centric approach.
central to this approach is the |
development of a strong employee
Value Proposition (eVP).
organisations report that 44% of |
hires are ‘not good.’ such hires
come at a high cost to business.
recruitment processes tend |
to focus predominantly on
a candidate’s technical skills
and experience (‘know how’).
these are relatively simple to
measure but are low indicators
of high performance.
organisations aiming to attract |
the best talent must improve
the rigour of their selection
processes. this means placing
greatest emphasis on measuring
a candidate’s capability and
attributes (‘can do’) and
motivational fit and career fit (‘want
to’). these are the most accurate
indicators of high performance.
organisations should develop |
long-term sourcing strategies
to meet their needs for talent.
cultivating a talent pool is
essential to such a strategy.
Innovative digital sourcing |
strategies are now in play and
help organisations find and
engage with passive job seekers.
the web and social media have |
an increasingly important role
in recruitment, particularly for
identification and research of
potential candidates.
recruitment functions must adapt |
to survive this talent-poor market.
many organisations are reviewing
the balance between recruitment
insourcing and outsourcing, to
ensure they have the most flexible
and efficient option in place.
executive summary
introduction
Next Generation Recruitment: Battle
Strategies for the Talent War is the
latest white paper from hudson. it
takes a close look at the tightening
recruitment market and assesses the
implications for employers as talent
shortages bite.
central to this year’s hudson 20:20
series is the question of how and why
current recruitment procedures are
failing organisations — and how they
can be improved. it also discusses the
key elements of an effective attraction
strategy including the significance of
employee value propositions and the
role of technology.
the white paper also looks at the
importance of creating talent pools
and how employers can do more
to achieve a greater proportion of
optimum hires. by optimum hires,
we mean employees who will be
engaged in their roles, achieve high
performance, be more productive,
and stay with the company for longer.
such employees are the strongest
ambassadors for an employer brand,
attract more high-calibre employees
like themselves, and deliver more value.
it explores how australian and new
Zealand employers can balance
current market dynamics to achieve
the best, long-term and most
effective recruitment solutions for
their organisations — in short, how
organisations can win the battle
for talent.
the white paper contains new research
findings from hudson. this year’s
research comprised qualitative in-depth
interviews and discussions with key
hudson clients and candidates.
this was followed by online surveys.
close to 1,000 employers participated
in a survey covering the employment
market, resourcing levels, staff
shortages, what employers are looking
for and approaches to candidate
sourcing and selection. the research
demonstrates how current hiring
practices are impacting on
organisations’ quality of hires —
and highlights opportunities
for improvement.
more than 1,300 employees
contributed to a survey about what
they are looking for in a new job and
their experiences of the recruitment
process. this research highlighted the
disconnect between the perceptions
of employers and employees, and shed
further light on how the recruitment
process can be improved to benefit
both parties.
we hope you will find the findings of
the hudson 20:20 series interesting
— and wish you victory in the talent war.
7
the employment and recruitment market: complex and challenging
australIa aNd New ZealaNd: ecoNomIes moVINg forwardaustralia emerged from the gfc
relatively unscathed in comparison with
other developed economies. although
the economy, buffeted by the brunt of
floods and cyclones, reported negative
gdp for the march quarter, it is
expected to bounce back by the end
of the year. the resources boom is
expected to help deliver growth and
economists are typically forecasting
growth of around 3% for the next
financial year. unemployment is fairly
steady at 4.9%1.
the resources sector is helping drive
a two-speed economy. the sector is
a powerful magnet, attracting every
ounce of available sector-specific
talent and drawing in talent from other
sectors, inflating salaries and reducing
the size of the talent pool for other
industries as a consequence.
while customer-facing industries are
struggling, overall, the economy is
accelerating. australia’s future depends
to a large extent on the talent it trains,
nurtures, and attracts as migrants.
new Zealand has gone through
a domestic recession followed by
a global recession. then just as the
economy was returning to growth at
the end of 2010, the christchurch
earthquake hit. as we go to press,
the aftershocks are still continuing.
the impact has shaken gdp,
economic outlook and therefore
business confidence.
nevertheless, optimism is slowly
returning to the market. unemployment
is at 6.6%2 and the economy has been
given a short-term boost with
rebuilding projects in christchurch.
export commodity prices are strong
and the retail sector is performing well.
the prospect of the rugby world cup
in september and october is bringing
back some of the feel-good factor. all
these elements translate into positive,
albeit modest, hiring intentions.
the employment and recruitment market: complex and challenging
10australian bureau of statistics, figures for may 2011.1
statistics new Zealand, figures for march quarter.2
oPtImIsm Is oN the uPnearly 85% of australian employers
believe their overall outlook is
either ‘upbeat and opportunistic’ or
‘cautiously optimistic.’ outlook varies
according to industry: the resources,
private healthcare and utilities sectors
are predictably buoyant, while non-profit,
it, construction/property/engineering,
professional services and financial
services are also confident and poised
for growth. overall, of the employers that
survived the gfc, many find themselves
leaner, stronger and hungrier than they
were several years ago.
sentiments are similar in new Zealand.
in spite of the multiple blows of global
recession, domestic recession and
the christchurch earthquake, 74% of
new Zealand organisations say their
future outlook is either ‘upbeat and
opportunistic’ or ‘cautiously optimistic’.
30All respondents
Australia
The overall outlook is upbeat and opportunistic
The overall outlook is one of cautious optimism
The overall outlook is one of uncertainty
The overall outlook is bleak
Don’t know/can’t say
New Zealand
34
18 56 23
50 14
51 16 12
12
12
THE OVERALL OUTLOOK
how would you describe the overall outlook of your organisation in today’s post-downturn market?
11
growth Is oN the cardsin both countries, most organisations
have now moved out of survival mode
and are gearing up for growth. those
that have delayed hiring to keep
headcount and overheads down can
stall no longer. having the right team
in place is vital for expansion.
the need has never been more acute:
while skills shortages are here to stay,
more than half (53%) of organisations
say they are very or somewhat
under-resourced. senior management
is the hardest category to find: 65%
of organisations say it is ‘very difficult’
or ‘quite difficult’ to find staff at
this level. where and how will
organisations find the talent they
need for future growth?
orgaNIsatIoNs are gettINg fIt for growthas organisations develop their growth
strategies for the months and years to
come, workforce planning is a priority.
those lean companies that have shed
fat and muscle during the months of
recession will want to ensure they
build muscle — a strong, flexible and
enduring team — to stand them in
good stead for the future. building
such a team is an investment strategy
— more about quality of candidate
than speed of hire, about looking at
the potential for future performance
rather than ticking off experience on
the resume.
BaBy Boomers are PreParINg to exIt the workforcethe workforce is ageing and the first
of the baby boomers are starting to
retire. we could be facing a retirement
spike — and consequent loss of skills
and knowledge — or at least a change
in working practices as the boomers
ease their way into retirement by
working fewer hours or days or on a
contract basis. where will employers
find the employees to fill their shoes?
emPloyees are BecomINg more elusIVewhile employers are getting hungry
for new blood, employees are
somewhat ambivalent:
81% of employees in australia and |
new Zealand3 are not engaged or
are actively disengaged in their
current roles.
employees are voting with their feet |
— hudson research shows around
six in 10 employees are actively or
passively seeking new jobs.
Somewhat under-resourced
About right in terms of resources
Somewhat over-resourced
Very over-resourced
Don’t know/can’t say
Very under-resourced
48
40
6 51
ORGANISATION’S CURRENT RESOURCING LEVEL
the world’s top-perForming
organisations understand that employee engagement is a Force that drives perFormance outcomes. in the best organisations engagement is more than a human resources initiative — it is a strategic Foundation For the way they do business.
Global research company, Gallup
how do you currently find yourself resourced as an organisation in terms of staff?
The State of the Global Workforce,3 gallup consulting, march 2011.
the employment and recruitment market: complex and challenging
12
81% of employees plan to leave their |
employer within the next two years.
most believe they will find an
equivalent role easily.
92% of employers ‘strongly agree’ or |
‘agree’ that staff shortages are
increasing the pressure on existing
staff in their organisation.
employers may be losing employees
almost as fast as they are hiring them.
staff shortages are beginning to bite
— how can organisations attract and
retain the best employees?
caNdIdates are BecomINg choosIerthe pendulum has swung in their
favour and good quality candidates
are becoming choosier about potential
employers. remuneration remains
important, but in many sectors has
stayed relatively static. strong
candidates are likely to attract multiple
offers with similar levels of pay, so other
factors such as opportunities for career
development, work life balance and
organisational culture come in to play.
emPloyers are more cautIous tooemployers recognise that employees
are getting choosier — 87% agree
this is the case — and 70% say it is
a good thing for their organisation,
believing that choosier employees
are likely to be more committed and
better suited to their roles.
Actively seeking a new job — in the process of applying for jobs
Passively seeking a new job — thinking about changing jobs
Plan to stay in current job
All respondents
Working full time
On a contract
Australian workers
New Zealand workers
31
26
32
32
27
29
29
31
29
28
40
45
37
39
45
JOB SEEKING BEHAVIOUR — LIKELIHOOD TO STAY OR LEAVE
Yes, good quality candidates are becoming choosier in the roles they are willing to accept
No, good quality candidates are not becoming choosier
85Line managers
HR professionals
Total
92
87 13
8
15
ARE GOOD QUALITY CANDIDATES BECOMING CHOOSIERIN THE ROLES THEY ARE WILLING TO ACCEPT?
which of the following best describes your current job seeking status?
do you think good quality candidates are becoming choosier in the roles they are willing to accept?
13
better fitting employees are good
news for organisations. with up to
44% of hires currently described
as ‘not good,’4 there is a great deal
at stake. hiring the wrong person
for the job can have serious
consequences. not only does it
compromise the rest of the team
and affect the engagement of those
employees, but is likely to increase
levels of absenteeism, impact on
customer service, reduce productivity
and ultimately affect profitability.
BreakINg the cycle of INsaNItyJust as employees are learning to
be more selective in their choice of
employer, employers themselves are
realising that the ‘tried and trusted’
recruitment techniques they’ve relied
on for decades frequently deliver poor
results. albert einstein suggested the
definition of insanity is to do the same
thing over and over again and expect
different results.
so why are companies continuing with
recruitment strategies that are serving
them so poorly? is it lack of knowledge,
tools or resources? is it lack of belief
that things can change? or is it that
they don’t know how to go about it? in
truth, traditional recruitment strategies
have their place. assessing skills and
experience (the ‘know how’) will remain
important for many roles.
understanding a candidate’s ability
and personal qualities (the ‘can do’)
is necessary too. but motivational
and cultural fit (the ‘want to’) are the
greatest indicators of an employee’s
performance — and yet only a miniscule
proportion (6%) of hiring managers
usually assess this area (see page 20).
here lies the opportunity to break the
cycle and use expert methodologies to
achieve optimum hires.
Impact on teamwork/engagement
Loss of productivity
Impact on staff morale
Opportunity cost toyour organisation
Impact on customer service
The cost to your organisation ofback-filling the role
Decreased businessearnings/revenue
51
9
17
18
21
33
34
CONSEQUENCES OF A BAD HIRE
56
31
13
A good hire
An average hire
A bad hire
PROPORTIONS OF GOOD,AVERAGE AND BAD HIRES
employers: comparatively, what is your level of concern with the following possible consequences of a bad hire? (respondents chose two.)
employers: based on your past experiences, approximately what proportion of hires in your organisation would be considered good, average or bad?
Positioning for Growth: Building a Dynamic Workforce in a New Economic Era, 4 hudson 20:20 series, august 2010.
source: Positioning for Growth: Building a Dynamic Workforce in a New Economic Era, hudson 20:20 series, august 2010.
source: Positioning for Growth: Building a Dynamic Workforce in a New Economic Era, hudson 20:20 series, august 2010.
the employment and recruitment market: complex and challenging
14
the New graIl for recruItmeNtmotivational and cultural fit will become
the new grail in recruitment. scientific
data shows using formal procedures
to measure motivation and cultural fit
results in more hires with an overall
excellent level of performance 5.
cultural fit is the alchemic ingredient
which delivers high performance. yet
few companies assess it formally — gut
feel is a frequent measure — possibly
because it seems intangible and
therefore more difficult to measure
than experience and skills.
refining the recruitment process
means giving greater weight to those
qualities, attributes and competencies
that are the greatest predictors of
success. for most companies such an
approach requires a fundamental shift
in thinking about the hiring process.
the potential rewards of such a
process are great. recruiting
employees who are best suited to their
role and to the environment in which
they work can deliver exponential value
to organisations: the more engaged the
employee, the greater their contribution
to the business. superior employees
deliver superior outcomes, which are
reflected in the company’s stock price
and market value 6.
how can australian and new Zealand
employers balance these dynamics and
achieve the best, long-term and most
cost-effective recruitment solutions for
their organisations? in short, how can
they win the battle for talent?
robertson & smith, ‘personnel selection’, 5 Journal of Occupation and Organisational Psychology, 2001, 74, 441–472; and schmidt & hunter, ‘the validity and utility of selection methods in personnel psychology’, Psychological Bulletin, 1998, 124(2), 262–274.
‘employee engagement at double-digit growth companies’, 6 Hewitt Research Brief, hewitt associates, 2004; and ‘understanding what drives employee engagement’, The 2003 Towers Perrin Talent Report, towers perrin hr services, 2003. 15
what are employers up against?
the PursuIt of taleNtfinding good quality candidates for
roles is hard and getting harder. only
around half of all organisations say
they ‘always’ or ‘mostly’ have enough
applicants for roles to ensure they
find a high quality candidate. added
to the pressure of finding sufficient
candidates is the need to improve
quality and reduce costs in the
recruiting process: more than half
(55%) of respondents said they are
under equal pressure to control the
cost of the recruiting process and to
improve the quality of the candidates
they source and select.
the implication is clear: in an
increasingly tight employment market,
organisations need to do more to
attract those high-calibre candidates
who deliver the greatest long-term
return on investment because they are
more productive and stay longer.
these are, of course, the very people
who are most likely to be already
employed, satisfied with their employer
and only passively (at best) looking for
a new role. how can employers reach
these hard-to-find passive job seekers,
and ensure the bulk of their recruitment
resource goes towards attracting the
most desirable employees?
overseas or over here?
once upon a time, the solution to
the lack of quality candidates might
have seemed to be to cast the net
wider. international sourcing is now
commonplace; expats and migrants
have certainly brought knowledge and
skills with them into our marketplace.
however, international sourcing is
beyond the scope and means of some
organisations and many of them are
looking to develop a sustainable
sourcing strategy that focuses on
attracting — and retaining — the best
local talent.
what are employers up against?
We are under more pressure to control the costs of the recruiting process.
We are under equal pressure to control the cost of the recruiting process and to improve the quality of the candidates we source and select.
We are under more pressure to improve the quality of candidates we source and select.
27
55
18
PRESSURES TO IMPROVE QUALITY AND REDUCE COST IN THE RECRUITING PROCESS
organisations are often faced with a need to control the costs of the recruiting process and to improve the quality of the candidates they source and select. which of the following best characterises the focus of your organisation’s recruiting process?
18
the wonder of the web: bringing people closer
the impact of technology on
recruitment has been huge. identifying,
tracking and communicating with
people is now possible on a scale that
was unimaginable a decade ago. the
web is the best way to find and engage
with those hard-to-reach passive job
seekers; it’s possible to find and
connect with them via social media,
industry bodies and professional
networks. getting on their radar in this
way takes time and investment of
specialist resources. doing it badly can
be a huge drain on resources and is
probably worse than not doing it at all.
it’s not a quick-fix recruitment solution
but a long-term strategy that creates
a deeper talent pool of prospective
candidates for clients — and makes
those candidates more interested in
the client from the outset.
clear command of the web may be a
core competency for the 21st century
recruiter, but employers should be wary
of those who rely on technology more
than technique. the best recruiters
(in-house or agency) still operate
within specialised markets and know
the best candidates — and their career
paths — well.
a strategic and well-managed digital
presence is most powerful when
combined with specialist knowledge,
applied intelligence and networking
with people in person. technological
tools are just that: no more, no less.
they are not an end in themselves but
wielded with skill and insight can bring
unprecedented scope and breadth to
the recruitment process.
company referral programs: risk or reward
social media allows us to network with
people we don’t yet know; employee
referral programs bring people on the
periphery of a network closer. such
programs are popular with employers
(over a third say they have used more
word-of-mouth to find suitable
candidates than before), who believe
that employees are most likely to
introduce good people who will fit in
with the company — and that it will
cost less than advertising or using
a recruitment firm. the trend for
companies to offer increasingly
generous incentives for employees to
introduce their own contacts makes it
more likely employees will want to take
advantage of this.
while employee referral programs can
be a useful source of prospective new
employees, problems can arise — for
both employer and employee — if a
normally rigorous recruitment process
is compromised because of the source
of the lead.
19
the quest for qualItypoor hiring decisions are costing
organisations dearly: nearly half
(44%) of all hires are ‘not good’7
according to australian and new
Zealand companies and the cost is
significant. in addition to the negative
impact on the rest of the team and
consequent reduction in engagement
and productivity, there is also the
missed opportunity of making a good
hire and the potential benefits it could
have brought.
a closer look at the recruitment
methods used by most companies may
reveal some of the reasons why hiring
is such a hit and miss affair. there are
three factors that predict a person’s
ability to do the job: know how, can do
and want to.
it’s important to take all these factors
into account when hiring. hudson
research shows the most commonly
used recruitment techniques are
reference checking, resume screening
and background interviews. practices
and the thinking behind them haven’t
changed much for decades. all of
these techniques measure know how
rather than can do or want to: as much
as 62% of employers’ current hiring
practices focus on the first know how
category, only a third of techniques
measure the can do category and just
6% measure the want to category.
the problem here is that scoring
highly in the know how category
of technical skill and experience
is not an accurate indicator of high
performance8. the want to category,
which typically receives the lowest
emphasis in the hiring process,
is the greatest indicator. by high
performance, we mean someone
who doesn’t just do the job well —
we mean someone who outperforms
the expectations of the role.
skills and knowledge are the easiest
and quickest factors to measure, so
the problem is compounded when
employers add speed of getting a
person into a role and the cost of
the recruitment process as additional
metrics. that is, they put the focus
on the least effective indicator.
tools/procedures currently being used by employers by %
KNOW HOW technical testing skill testing resume screening background interviewing reference checking
CAN DO behavioural interviewing assessment centres Job trial personality testing intelligence testingbusiness simulation role plays
WANT TO cultural fit measures
62
32
6
employers: which procedures/tools does your organisation currently use during the hiring process?
HUDSON PERFORMANCE DRIVER MODEL™categories measures
KNOW HOW technical skills
experience
CAN DO capability
attributes
WANT TO career fit
motivation
CU
RR
EN
T FO
CU
S
EFFEC
TIVE
NE
SS
low INdIcator of PerformaNce
hIgh INdIcator of PerformaNce
Positioning for Growth: Building a Dynamic Workforce in a New Economic Era, 7 hudson 20:20 series, august 2010.
robertson & smith, ‘personnel selection’, 8 Journal of Occupation and Organisational Psychology, 2001, 74, 441–472; and schmidt & hunter, ‘the validity and utility of selection methods in personnel psychology’, Psychological Bulletin, 1998, 124(2), 262–274
what are employers up against?
20
it seems employers want
to hire someone who is already doing that exact job. i don’t want a job i can already do 100%. where is the challenge in that? i want a job that i can grow in. turnover is going to be high iF you always choose the perFect candidate. soon they will be bored.
Employee Survey Respondent
creating a virtuous employment cycle
employers looking to consistently
recruit high performers must review
their hiring processes. assessing
potential employees’ attitude,
motivation and cultural fit with an
organisation pays greater dividends
in the longer term. an employee that
‘fits’ his or her employer is more likely
to be happy and engaged in their
work, leading to greater productivity
and profitability and increasing the
amount of time they are likely to be
retained by an organisation (and the
longer they stay, the more productive
and profitable they are likely to be).
additionally, a highly engaged and
motivated workforce will attract more
employees of the same ilk and help
create a virtuous employment cycle.
selecting the best
if selecting candidates based on
attitude, motivation and cultural fit is
key to identifying the highest potential
employees for an organisation, it
follows that a far greater proportion
of the hiring process should focus
on these attributes.
employers report that motivation,
attitude and the right behaviours and
capabilities are the most important
attributes they are looking for when
hiring new employees. the right
functional skills (cited by 49%), the
right cultural fit (45%) and having
enough appropriate experience (47%)
are all seen as moderately important
while specific industry experience
is seen as less important (28%)
(see page 22).
in our experience over 90% oF
employee problems can be traced back to what was said (or not said) and what was done (or not done) during the hiring process.
Australian Federation of Employers & Industries
21
what are employers up against?
% who think this is the most important attribute
% who think this is the second most important attribute
% who think this is the third most important attribute
The right behavioursor capabilities
The right motivationand attitude
The rightfunctional skills
The right cultural fitfor our organisation
Enough appropriateexperience
Experience in ourspecific industry
The right traitsor personal style
21
19
18
15
12
12
3
18
21
15
15
20
7
9
17
19
16
15
15
9
4
ATTRIBUTES THAT EMPLOYERS ARE LOOKING FOR IN HIRING CANDIDATES
ATTRIBUTES THAT EMPLOYEES BELIEVE EMPLOYERS ARE LOOKING FOR
% who think this is the most important attribute
% who think this is the second most important attribute
% who think this is the third most important attribute
The right behavioursor capabilities
The right motivationand attitude
The rightfunctional skills
The right cultural fitfor our organisation
Enough appropriateexperience
Experience in ourspecific industry
The right traitsor personal style
11
11
13
14
24
23
4
12
13
16
13
22
18
10
17
16
15
12
16
13
7
the idea oF transFerable
skills and the ability to learn about a speciFic market seems to have gone out the window. i Find recruiters will give every encouragement but when it comes down to the line, employers always play saFe.
Employee Survey Respondent
employees have a different
perspective, seeing a discrepancy
between what employers say they are
looking for and what they value in
practice. they believe employers are
looking for ‘enough appropriate
experience’ (62% say this is one of
the three most important attributes
employers look for) and finding
candidates with ‘experience of a
specific industry’ (54% cite this as one
of the three most important attributes).
it seems employees consider
employers to be more conservative
than they admit — and unwilling to
consider less experienced candidates
even when they have the right
motivation, attitudes and capabilities.
which of the following do you think organisations are looking for most when they assess candidates during the recruitment process?
22
hudson research shows determining
whether a candidate will have the right
motivation and attitude is the most
difficult attribute for employers to
measure during the selection process
(75% of employers say this is one of the
three hardest attributes to determine).
determining whether candidates will
have the right behaviours or capabilities
is not considered to be much easier
(68% rated this in the top three for
difficulty). cultural fit (rated among the
top three by 58%) and the right traits
or personal style (rated in the top three
by 64%) were considered moderately
hard. in contrast, it was considered
relatively easy to assess whether
candidates have the right amount of
experience/experience in a specific
industry (only 6% rated these in
their top three hardest attributes to
determine) or the right functional skills
(23% cited this among their top three).
% who think this is the hardest attribute to determine
% who think this is the second hardest attribute to determine
% who think this is the third hardest attribute to determine
The right motivationand attitude
The right behavioursor capabilities
The right cultural fitfor our organisation
The right traits orpersonal style
The rightfunctional skills
Experience in ourspecific industry
The right amount ofexperience (no of yrs)
2 2 2
2830
2422
1721
2117
67
32
17
22
20
26
10
ATTRIBUTES THAT EMPLOYERS THINKARE HARDEST TO DETERMINE
1
what are employers up against?
which of these same attributes do you think is the hardest to determine when selecting candidates?
24
the ‘too-hard’ box
one of the reasons organisations
rely on measuring the skills and
experience of a potential employee
may be that these attributes seem
easier to measure.
difficulty in assessing attitude and
motivation may in part be caused by
the belief that candidates misrepresent
themselves in the interview process
and that measuring motivation and
attitude, the less visible qualities, may
simply be too hard.
although psychological assessment
tools such as psychometric testing can
provide a measure of a person’s ability
and aptitude for tasks they are still far
from a standard part of the hiring
process and are generally reserved
for senior level hires.
the survey results demonstrate that
the most important qualities can also
be the hardest to find. measuring these
less tangible candidate attributes
requires commitment, time and a
bespoke selection process.
more haste, less speed
ironically, it is often organisations with
the greatest need to attract superior
talent who say they do not have the
time to invest in ensuring they make
the best possible hires. yet hiring
without due attention to a candidate’s
motivation and attitude simply makes
it more likely that the outcome will be
a poor hire and that the organisation
will be looking to recruit again sooner
rather than later.
i don’t understand why a business in
these times would not place importance on motivational and cultural Fit. iF your recruitment decision is primarily based on technical skill levels you are putting your ultimate success rate at risk. we preFer to train and coach in skill gaps and maximize the motivational and cultural aspects oF our candidate pool; just because you can do something doesn’t mean you want to and without the motivation and desire to work within a speciFic cultural environment you will not be the best you can be and will ultimately become disengaged.
Sheryn Grant, Group Manager HR, Sourcing, Retention & Systems, Sensis
making a poor choice means
you will have to go through the hiring process a second or even third time.
Beverley Saidel, Communications Manager, SkillsDMC
25
the rIght recruItmeNt model: gettINg the BalaNce rIghtover the past 10 years in australia and
new Zealand a variety of different
recruitment models have evolved as
employers seek to win the war for talent.
these include the hiring manager
diy model, utilisation of recruitment
consulting firms, preferred supplier
model, centralised model and hybrid
model. all differ in two essential ways:
1) the degree of insourcing or
outsourcing; and
2) the level of centralisation or
decentralisation.
there is no ‘perfect’ model; each
organisation must choose the model
most appropriate for that point in its
evolution. in addition, we often see a
blending of models for maximum results.
overview of recruitment models: their evolution, challenges and benefits
the dIy model
in the early 2000s, hiring manager diy
models were relatively commonplace
and, in some areas, remain so today.
while superficially flexible and cost
effective, these models resulted in
a lot of inconsistency in brand
representation, candidate care and
selection and assessment practices.
the result was often poor quality hiring
and, over time, increased staff turnover.
moreover, the focus on recruitment
took the hiring manager away from
their other core responsibilities, adding
to the indirect costs of this model. the
hiring manager often supplemented
their efforts with ad hoc use of
recruitment agencies which failed to
create agency loyalty or leverage the
client’s buying power.
the preferred supplier model
the problems with the diy model
encouraged hr and procurement
to join forces and formalise their
relationships with recruitment agencies.
the result was a series of preferred
supplier agreements (psa) between
an organisation and its suppliers to
standardise service levels, fees and
commercial terms.
while this model saved money and
freed up the hiring manager’s time,
these agreements often resulted in
low fees and arduous processes that
caused many recruitment consultants
to allocate their time and best
candidates elsewhere. in addition, the
model did not resolve issues associated
with inconsistent hiring practices.
what are employers up against?
26
the centralised model
as hr and procurement saw the
advantages of innovative overseas
recruitment practices, new models
started to emerge. these models tried
to achieve many of the commercial
benefits of the preferred supplier
model while avoiding the challenges.
a key theme was the desire to create
a centre of recruitment excellence,
either by establishing an internal
function or by outsourcing the function
to specialist recruitment process
outsourcing (rpo) experts. the role of
these teams was to strengthen the
organisation’s employment brand
and diversify sourcing channels
to increase direct hiring levels
and thereby save money, while
implementing centralised, standardised
and streamlined processes to improve
quality, service and speed of hire.
organisations sought to supplement
the work of these teams with specialist
recruitment agencies under a psa
model. however, the big difference now
was that the roles given to recruitment
agencies to source were much more
specialised and harder to fill, and often
the psa fees were not changed to
reflect this new reality.
the hybrid model
today we are seeing the models
change again. during the gfc, the
high fixed costs of many insourced
recruitment models were seen to be
a drawback. likewise, once business
demand returned and companies
needed to increase headcount quickly,
insourced models were not always able
to scale up quickly enough to meet this
demand. in this context, flexibility and
scalability of the recruitment model
became key and this is where rpo
models deliver very effectively.
as a consequence, we are seeing
clients move from insourced to
outsourced models and, in some
instances, a blending of both
approaches in the hybrid model where
the team is jointly staffed by the
organisation and an rpo provider. the
use of recruitment agencies for these
solutions is also becoming far more
selective and focused on the hardest to
fill, highly specialised and senior roles.
there is growing recognition that cost
cannot be the key driver in this talent
equation as organisations understand
that, in the longer term, a cost focused
strategy can impact organisations
dearly in terms of delivering poor
quality hires and a higher churn rate.
no place for complacency
in today’s market there is a variety
of recruitment models, tools and
technologies to choose from to help
win the talent war. organisations need
to continually review their performance
and benchmark themselves against
others to ensure they are a step ahead
of the competition. there is no place
for complacency and while investing in
talent acquisition remains critical for
most organisations’ growth strategies,
it is important to recognise where to
invest in order to achieve the greatest
value and return on investment.
27
battle strategies
No. 1: take a taleNt-ceNtrIc aPProachquality talent is in short supply; many
companies are not in a position to
import expatriates or migrant workers.
they are under pressure to find
high-quality people close to home.
during the gfc, there was a lot of
talk about the liquidity of the talent
market, even though the so-called
abundant supply did not necessarily
deliver a greater proportion of
high-quality candidates.
as talent shortages start to bite, it’s
time to treat quality candidates as the
scarce resource they are. managing
them appropriately is a strategic
priority: the best candidates will
always have multiple options. so
we must re-evaluate our approach
to sourcing, communicating and
engaging with the people who have
the greatest potential to add enduring
value to the organisations for whom
they work.
prioritising talent
the first step in adopting a talent-
centric approach is identifying and
prioritising the different talent needs
of your organisation as follows:
1) strategic: people essential for
delivering business strategy and likely
to be the most challenging to source.
the greatest allocation of resources
should go to attracting and retaining
this business-critical talent.
2) critical: people who are important
for the day-to-day running of the
business but who are not especially
hard to find. this category is the
second priority for investment
of resources.
3) core: people who may be relatively
easy to find but may have a high
turnover. this is the lowest priority
— cost-efficiency is key in this
category.
battle strategies
30
understanding what makes candidates tick
having identified the distinct segments
of your talent pool, you can then start
planning how to attract those potential
employees who are most important to
you. doing this means paying close
attention to their motivators, attitudes
and behaviours — just as you would to
any other target audience or customer.
having a model that defines and
measures motivation, attitude and
behavior is a non-negotiable element of
recruitment. it is not required simply to
assess candidates when you’ve found
them. it is critical in determining how you
market to them in the current climate.
our research shows that candidates
take immediate and longer-term
benefits into account when
considering a new role. employees say
the most important thing they will look
for in their next job will be finding a
role that they are more interested in
(54% ranked this is as one of the
three most important factors). this
was followed by finding a job with
better career opportunities (43%),
finding a job with more pay (43%) and
finding a job in an organisation that
will make them happy (42%).
employees were also asked which of
these same aspects are the hardest
to find in a new job. comparing the
two sets of results yields crucial
insights for employers seeking to
improve their employee value
proposition to attract talent.
% who said this was the most important aspect
% who said this was the second most important aspect
% who said this was the third most important aspect
Finding a role that I am more interested in
Finding a job with better careeropportunities than I currently have
Finding a job with more paythan I currently have
Finding a job in an organisation witha work culture that will make me happy
Finding a job with strong leadersand a boss I respect
Finding a job with better working conditionsthan I currently have (e.g. more flexibility)
Finding a job with more seniority andresponsibility than I currently have
Finding a job in an organisationwith values that I believe in
Finding a job with better educational andtraining opportunities than I currently have
4
4
5
7
7
14
17
18
23
7
7
10
7
11
14
13
13
17
8
8
9
10
12
14
13
12
14
THE IMPORTANCE OF VARIOUS ASPECTS IN LOOKING FOR A NEW JOB
which of the following aspects will be most important to you in looking for your next job?
31
a good Job is hard to find
results showed employees find it
most difficult to find a role they are
more interested in (45% ranked this
as one of the three hardest aspects
to find). given this is also the most
important aspect it needs to be
a core component of an employee
value proposition.
finding a job with strong leaders, and
a boss that employees respect, is
perceived to be the second hardest
attribute to find (41%). there is
therefore an opportunity for employers
to use this to differentiate themselves.
finding a work culture that makes
employees happy is the third hardest
aspect to find (37%) and given its
weighting should also be central to
an employer’s value proposition.
finding a job with better working
conditions (for example, greater
flexibility) was nominated as the
fourth hardest aspect to find (36%)
and accordingly presents another
opportunity for employers to
differentiate themselves.
% who said this was the hardest aspect to find
% who said this was the second hardest aspect to find
% who said this was the third hardest aspect to find
Finding a role that I am more interested in
Finding a job with strong leadersand a boss I respect
Finding a job in an organisation witha work culture that will make me happy
Finding a job with better working conditionsthat I currently have (e.g. more flexibility)
Finding a job with more paythan I currently have
Finding a job in an organisation withvalues that I believe in
Finding a job with better careeropportunities than I currently have
Finding a job with more seniority andresponsibility than I currently have
Finding a job with better educational andtraining opportunities than I currently have
16
15
13
13
14
9
8
8
4
13
14
13
11
11
10
11
9
8
16
12
11
12
8
10
13
11
8
THE HARDEST THINGS FOR CANDIDATES TO FIND IN LOOKING FOR A NEW ROLE
as i am looking more at a long-
term career as opposed to a role, then it is important that i’m in line with the culture oF the company and vice versa.
Employee Survey Respondent
battle strategies
which of the following do you think is the hardest to find when looking for a new job?
32
when employees were asked about
triggers that would cause them to
consider looking for a new job, there
was a 7% increase in the proportion
of employees who cited boredom or
looking for new experiences compared
with 2010. there was a 6% increase
in the proportion that would consider
leaving because of relations with
colleagues and managers. there was
no change in the proportion that would
leave for financial reasons.
Finding a company with a work culture
that is right For me is deFinitely the most important thing. to get the most out oF myselF in the role, i need to be in the right team that i respect and enjoy working in.
Employee Survey Respondent
33
broadening horiZons
these changes characterise
a workforce with expectations
broadening beyond financial
considerations to self-fulfilment,
better relationships at work and an
improved work environment.
the importance of culture and
values alignment was a mid-ranking
trigger for all employees leaving a job
(35% cited this) but it was more
important to employees in high-level
management (44%) and middle
management roles (42%). attracting
culturally aligned candidates is
therefore vital for senior roles where
candidates are most difficult to find.
the importance of communication
these findings represent an
opportunity for employers to do a
much better job in promoting these
aspects in communications to potential
candidates. importantly, the research
also showed an ongoing correlation
between communications performance
in the selection process and the
engagement of employees.
around seven in 10 employees (71%)
who said their organisation did a good
or excellent job in communicating
expectations of their role, and what
was needed to be successful in it,
also agreed they feel motivated and
engaged at work. in contrast, only 23%
of those who said the organisation
did a poor or very poor job of
communicating the expectations of
the role and what was needed to be
successful in it agreed they felt
engaged and motivated.
44
The organisation’s culture orvalues are incompatible with
how I want to work
42
34
28
THE IMPORTANCE OF CULTURE ACCORDING TO JOB LEVEL
Senior Management
Middle Management
Non-managerial professional/Specialist
Admin/Support staff
the proportion of respondents who noted that an organisation with an incompatible culture or values is a trigger, or would be a trigger, to them considering leaving their job.
battle strategies
34
employees who met the team they
would work with during the interview
process were more likely to agree they
were engaged and motivated.
a poor work culture is the biggest
concern for candidates when
accepting a new job. more than half
of respondents (55%) were most
concerned that the work culture and
environment would be poor.
how would you rate the performance of your organisation in communicating the following to you when you were recruited by them? how much do you agree, or disagree that the following statements describe your current situation at work?
Agree I feel motivated and engaged at work
Neither agree nor disagree
Disagree that I feel engaged and motivated at work
71My organisation did a good or excellent job
in communicating the expectations of my roleand what was needed to be successful in it.
23
16
28
13
49My organisation did a poor or very poor job
in communicating the expectations of my roleand what was needed to be successful in it.
THE EFFECT OF COMMUNICATING ROLE EXPECTATIONS AND SUCCESS CRITERIA DURING THE INTERVIEW PROCESS ON WHETHER PEOPLE FEEL ENGAGED AND MOTIVATED AT WORK
% who said this is the most concerning aspect
% who said this was the second most concerning aspect
% who said this was the third most concerning aspect
That the work culture andenvironment will be poor
That the job will not be securefor as long as I expect
That the level of remuneration willnot meet my expectations
That I won’t get on withmy boss and colleagues
That the working conditions willnot meet my expectations
That I will have to work harder/longer hours than I expect
That I won’t have the skillsor abilities to do the job well
18
19
16
16
11
9
11
18
13
16
18
16
12
7
19
12
13
14
19
14
9
KEY CONCERNS IN ACCEPTING A NEW JOB
battle strategy no. 1: recognise that talent-centricity helps attract,
engage and retain the best candidates.
which of the following aspects are you most concerned about in accepting a new job?
35
No. 2: create aN autheNtIc emPloyer BraNdas competition intensifies for talent,
organisations must find a way to
distinguish themselves from their
competitors. the strongest candidates
are likely to find themselves with
multiple offers, and organisations
must offer more than attractive
salaries and benefits to secure
the best talent. that ‘something more’ is a uniquely
powerful employer brand that will
attract prospective employees and
make them want to work for you more
than any other employer who is looking
for their skill set.
building a positive employer brand
doesn’t happen overnight, nor is it
possible to whip one up to suit hiring
needs. developing a strong employer
brand is a long-term process and
results in being known for more than
the goods or services you offer
customers. it means being known for
your company values, for the way you
conduct business, for the way you treat
and speak to employees, in good times
and in bad.
research shows that only around one
in five organisations (17%) currently
put a lot of effort into branding —
but those that do reap dividends:
organisations who put a lot or a fair
amount of effort into branding are 37%
more likely to ‘always’ or ‘mostly’ have
enough candidates apply for roles
compared to organisations who don’t.
Quality talent is always hard to
Find. however, good employment branding and talent acQuisition practices decrease the level oF diFFiculty ten-Fold. without the investment we have made in our value proposition For existing and potential employees and our investment in our recruitment capability, partnerships and systems, we wouldn’t be as competitive as we are now in the candidate market.
Antony Hall, Head of Talent Planning & Strategy, Telecom NZ
battle strategies
We are putting a lot of effort into this
We are putting a fair amount of effort into this
We are putting a little effort into this
We are not putting much effort into this at all
We aren’t doing this at all
17 30 25 13 15Investing in the branding of our organisation
with the specific objective of attractingbetter quality candidates
INVESTMENT IN BRANDING TO ATTRACT HIGH QUALITY CANDIDATES
the amount of effort being invested in an organisation’s branding to attract better quality candidates.
36
creating a positive employer brand
means managing the business with
authenticity, integrity and transparency
on a daily basis. these qualities must
be evident in all the organisation’s
transactions with every stakeholder.
communicating the employer brand
effectively is critical of course, but we
are not talking about hollow claims and
promises. employees are looking for
tangible values that align with their
own belief systems, giving them a
reason to ‘buy’ one employer brand
rather than another.
We always or mostly have enough candidates apply to ensure we find a high quality person
About half the time we have enough candidates apply to ensure we find a high quality person
We rarely or sometimes have enough candidates apply to ensure we find a high quality person
We are putting a lot ofeffort into this
We are putting a fairamount of effort into this
We are putting alittle effort into this
We are not putting mucheffort into this at all or not
doing it at all
63
56
51
46
20
28
30
31
16
16
20
23
INVESTMENT IN BRANDING RELATED TO SOURCING ENOUGH CANDIDATES
the relationship between the amount of effort organisations are putting on sourcing-related branding and the ease with which they are able to find high quality people to fill roles.
an evp that’s clearly deFined and broadly
understood by your hiring managers and candidates is vital to attract people oF great Quality and, most importantly, great Fit. it’s about attracting people who truly believe in and relate to the goals oF the business and thereFore choose to contribute discretionary eFFort to ensure its success.
Ryan Atkins, HR Manager, sanofi
37
acting to attract
as the talent pool dwindles employers
must maximise the value of their
employer brand ensuring they:
incorporate a strong employee value |
proposition (evp) in every facet of
the recruitment strategy.
speak with an appropriate corporate |
‘voice’ — the way in which they ‘talk’
to and engage with current and
prospective employees. language,
tone and content all contribute to
employer voice.
promote career development |
opportunities within their
organisation. organisations
committed to development and
growth programs for employees
should promote them whenever
and wherever appropriate.
ensure communications always |
reflect the culture of the employer
organisation. authenticity and
transparency are paramount; accurate
projection (and therefore reception)
of the cultural vibe is most likely to
attract candidates who will be happy
and flourish with the company.
communicate salary packages |
clearly alongside other less tangible
benefits such as flexible working
practices that may be valued highly
by employees. hours and conditions
of work are also very important
to employees, and should be
communicated clearly and any
areas of flexibility highlighted.
the best brand ambassadors
employees are the most powerful
ambassadors for an organisation’s
employer brand. their experience and
advice will be sought by potential new
employees long after they have left the
company. hudson research shows that
speaking with people who have worked
for an organisation is considered the
most useful source of information by
candidates. organisations ignoring
this dynamic do so at their peril.
a high proportion of candidates
evaluate numerous sources of
information about organisations for
which they are considering working.
in their last job search, most employees
evaluated the organisation through its
website (80%), via a google search
(59%), through contacts in the industry
(56%) and via word-of-mouth (55%).
linkedin was also a source; 22% of
candidates used the site to research
prospective employers. speaking
with people who had worked for the
organisation was considered the most
useful source of information.
hudson research also shows that
organisations doing a better job
of promoting the benefits of their
organisation are significantly more
likely to:
have enough candidates applying |
for roles
find it easier to source employees |
have low staff turnover. |
Recruitment company/agent
Organisation’s website
Personal contacts within the industry
Word-of-mouth
Industry specific websites
Current employees of the organisation
News websites
Other
Other social networking sites
% who said they used this source during their last job search
80
3
1
5
6
22
38
40
46
55
56
59
80
SOURCES OF INFORMATION EMPLOYEES USED IN THEIR LAST JOB SEARCH
which of the following sources of information did you use to research a potential organisation or role during your last job search?
battle strategy no. 2: distil a meaningFul and appropriate evp — and work,
communicate, recruit and live by it.
battle strategies
38
No. 3: utIlIse Best PractIce attractIoN strategIeshudson research shows job search
sites and recruitment firms are the
most popular methods employees
use to look for new positions.
the common links here are ease, range
and independence. Job search sites
allow people to quickly research, in
their own time, a wide variety of roles,
presented on a level playing field.
I always use this
I often use this
I sometimes use this
I rarely use this
I never use this
Job boards (inc. Seek, MyCareer,CareerOne and others)
Recruitment company/agent
Contacts within the industry
Word-of-mouth
Industry specific job search websites
Newspaper advertisements
Contact organisations that I would liketo work for directly
Referral program for existing employees
Industry-specific magazine advertisements
Other
57 32 8 21
30 44 18 6 2
12 25 34 14 15
12 26 36 14 13
7
7
7
18
17
12
25
26
25
15 34
24
22
27
34
5 8 18 20 48
3 8 20 20 49
2 6 16 23 53
11 5 12 81
142 10 731
12 8 88
METHODS EMPLOYEES USE IN LOOKING FOR NEW ROLES
how often do you use the following methods when you are looking for a new role?
39
when job seekers turn to recruitment
agents they are looking to streamline
the process by accessing a range
of options through a single source,
reducing the time they need to put
into their job search. they also value
independent insights into what it might
be like to work at a particular company.
if these are the ways job seekers
behave, it is important for organisations
to optimise these online and offline
channels, for example by reviewing the
performance of online ads (hit rates,
response rates, success rates) and
considering the candidate segments
most likely to be working through
recruitment firms.
first stop — the web
the impact of technology on
recruitment has been enormous:
today the web is the first stop for any
employee who is feeling even mildly
curious about what other opportunities
might be available to him or her. in just
a few moments, he or she can be
browsing opportunities near and far.
smart phones mean the workforce
can access job boards 24/7 and we
are seeing significant shifts in job
seeker behaviour as a result of more
people searching for jobs on the way
to and from work.
knowing this may change the way
you market roles, strategically and
tactically. it forces consideration of the
job seeker’s online journey, from the
moment they click on an ad to their
experience of a potential employer’s
website. information should be
presented in compelling, authentic
chunks that will create interest in an
organisation’s culture. staff should be
ready at these peak times to answer
questions about the role.
employers should also bear in mind
that any message must suit its medium.
this means considering optimising a
website to make it mobile user-friendly.
for example, tailoring information to
the size of the mobile internet screen
rather than expecting a reader to scroll
down a lengthy page, and ensuring it is
easy to take action when needed.
translating evp into attraction strategies
there is great opportunity for
organisations to promote their
employee value proposition online
in an authentic and meaningful way
by providing passive job seekers
with engaging content in areas of
professional interest. podcasts,
webinars and live online discussion
forums can all be used to engage
passive job seekers and gather market
intelligence. the fluidity and constantly
evolving nature of this space means it
is essential to keep abreast, at the very
least, of innovation and to generate
superior quality content.
a compelling corporate website
one of the first things prospective
candidates do is research companies
on the web and they do this before
they apply for a role, making it a critical
part of an attraction strategy.
so a good careers section is essential
for every corporate website. provide
video content where possible to make
it engaging. let them see the ceo
and divisional managers in action,
and provide cultural insights from
employees speaking freely. wherever
possible, supplement this with the
opportunity to speak with current
employees who can answer questions
either in person or online.
battle strategies
40
social media and online communities
social media is about people and
connections, making them a perfect
recruitment tool. while current
statistics suggest they are not the main
way people look for or find jobs, we
know it is increasingly the means by
which they interact and consume
information. they will almost certainly
become the main channel for attracting
talent to an organisation. social media
must be part of an organisation’s
attraction strategy, building capability
and preparing for the future.
one of the greatest challenges in
recruitment is finding the best passive
job seekers — those desirable, high
calibre employees who are more likely
to be satisfied in their current roles and
not actively looking for work. finding
quality passive job seekers through the
web is both an art and a science.
consider employing dedicated digital
experts as part of the recruitment
function and use these experts to
develop skills within the organisation.
core functions include:
identifying key job seeker markets |
to target; that is, important role
categories with an active
online demographic.
choosing the best way to engage |
with this market. start an online
community or join an existing group.
starting your own community is more
costly but you will learn more and
have significantly more potential
and freedom in how you engage
with prospective candidates. the
two main ways this is done in
recruitment are either directly as a
potential employer (for example, via a
company facebook page) or through
some common interest shared by the
target audience (for example, around
their specific discipline).
selecting the appropriate channels |
when building your own community;
for example, facebook, linkedin and
twitter, and keeping goals simple
and focused, such as increasing the
number of ‘likes’ on facebook or
number of followers on twitter.
using existing networks (such as |
current employees, their friends and
job applicants) to build membership.
keep it focused on your target
segment (don’t encourage everyone
and anyone to join) so that your
messaging will be relevant to the
members. build momentum from
there with other marketing strategies.
measuring your success in numbers |
of referrals, applications and roles
filled from the group.
battle strategies
42
building social media skills
social media is very accessible and
stories abound of instant fame and
success (along with failure). however,
it is important to look past the hype
and recognise there are skills and
knowledge required to make this work
for your business.
eventually recruiters will all be social
media experts — knowing their
audiences, the media they prefer,
the content that will be relevant and
engaging, their place in a particular
community and the appropriate
frequency and type of interaction they
should achieve. until that point, and
as part of the journey of getting there,
dedicated digital experts are going to
be an essential part of the
recruitment equation.
using market intelligence to attract candidates
organisations are sitting on
goldmines when it comes to
marketing to job seekers.
individual resumes contain much
information to help profile and segment
the market. every interview is an
opportunity to spend an hour getting
to know and understand a member of
the target audience — which is what
recruitment consultants do every day.
organisations should use their
recruitment databases and start
collating this intelligence. there is a
real opportunity for digital specialist
agencies and recruiters to work more
closely together, using this information
to take some of the guesswork out of
digital campaigns.
battle strategy no. 3: incorporate best practice attraction
methodologies into your recruitment strategy.
43
No. 4: create a future taleNt Pool the inconvenient truth is that there
is no quick way of creating a pool of
talent for an organisation. those that
have invested their time and other
resources into developing a bespoke
talent pool know it is an ongoing
process, requiring constant nurturing
and cultivation. if done well, it is the
best and most strategic source of
talent for organisations and can deliver
huge competitive advantages.
the starting point for every talent pool
is market intelligence. before you can
effectively identify, communicate and
engage with passive job seekers you
must have a clear idea of who they
are and where you might find them.
search engines and social media are
the talent hunter’s friend here but the
task is much more sophisticated than
simply identifying a group of individuals
and trying to strike up an online
conversation with them.
recruitment is now more than ever a
marketing function. like any other such
function, it must segment its target
audience or consumers. in times like
these, when talent is king, the scarcest
talent with the potential to bring the
greatest value to organisations must be
the highest priority. for organisations,
trying as many are to do more work
with fewer people or simply to achieve
greater return on investment from
the recruitment budget, it’s essential
to allocate the greatest share of
resource to attracting the highest
calibre candidates who will add most
value to the organisation.
rewarding relationships
in practice, this means the best
in-house and agency recruiters will
be specialists who invest time with
those individuals and operate in niche
areas throughout their own careers.
they will keep up to date with their
candidates’ professional progress,
remuneration and career goals; be
able to offer strategic career advice
and alert them to appropriate
opportunities throughout their careers.
social media enhances but is no
substitute for this kind of relationship.
networking
on and off line, networking remains
the most effective method of
establishing a talent pool. it is a
medium to longer-term strategy, and
employers and their recruiting partners
should network with key bodies and
individuals including professional,
specialist and industry groups together
with high profile, high performing and
highly engaged employees.
battle strategy no. 4: create a niche talent pool oF individuals at various
stages in their careers who, based on their skill set and expertise, might be appropriate employees oF the Future.
battle strategies
44
No. 5: assess attItude, motIVatIoN aNd cultural fIt as we’ve seen, many employers
continue to make hiring decisions
based almost solely on assessment of
past experience and technical skills.
reference checking (‘always’ or ‘often’
used by 95% of employers), resume
screening (‘always’ or ‘often’ used by
75% of employers) and background
interviews (‘always’ or ‘often’ used
by 75% of employers) are the most
common techniques used in the
selection process.
while traditional recruitment
techniques have their place, they are
given a disproportionate amount of
focus; the most effective recruitment
strategies incorporate a framework
structured around know how, can do
and want to. moving forward means
focusing on the attributes that are
the greatest indicators of performance
and therefore deliver the greatest
return on investment.
We always use this
We often use this
We sometimes use this
We rarely use this
We never use this
Reference checking
Resume screening
Background interview (past work experience)
Behavioural interviewing
Cultural fit measures
Personality testing
Technical testing
Intelligence testing
Practical skills testing
Job trial
Assessment centres
Business simulation
82 13 4 1
54 21 12 6 6
47 28 14 5 6
43 22 15 7 13
13 16 25 20 27
10 15 23 20 32
8 17 41 17 17
8 11 24 20 37
6 17 38 19 21
4 7 19 27 44
3 7 21 23 46
2 7 22 26 42
Role play 2 8 21 25 43
TECHNIQUES USED IN THE SELECTION PROCESS
which of the following techniques does your organisation use during the hiring process?
the recruitment industry hasn’t
moved with times as Fast as it could have. in an age oF social networks, internet communications, technology and global communities, some oF the old recruitment practices are no longer relevant.
Antony Hall, Head of Talent Planning & Strategy, Telecom NZ
45
for years, organisations have struggled
to identify the factors that determine
whether a hire will be good or bad.
even though it has long been known
intuitively that attitudinal, motivational
and cultural fit have a major impact on
the outcome, even the most forward
thinking organisations have struggled
to develop formal assessment criteria
and tools for this.
assessing attitudinal, motivational
and cultural fit is the biggest indicator
of hiring success: 91% of hires were
regarded as ‘excellent’ or ‘good’ when
formal procedures were used to
measure motivation or cultural fit.
using these procedures results in
significantly more hires with:
overall excellent level of performance |
excellent cultural fit |
excellent functional skills and abilities |
excellent motivation and attitude. |
this knowledge is now widely accepted
in the hr and business communities:
we know that finding the right person
for a particular team or business
means much more than finding
someone with just the technical skills
to do the job. a candidate who has
the right attitudinal, motivational and
cultural fit is much more likely to be
engaged and will therefore stay longer
and be a more productive employee.
it is critical therefore that employers
have a very clear understanding of the
role they are trying to fill to enable
them to select a candidate who:
is the right fit for the role |
will suit the company culture |
will stay |
will perform in their role. |
many organisations have been slow
to embrace this thinking and put it
into practice. barriers to doing so
typically include perceived difficulty
of implementing formal procedures to
measure these attributes, as well as
time pressures, difficulties in evaluating
results and caution about costs.
Excellent Good Fair
Poor Very poor
39Formal procedures were
used to measure motivationor cultural fit
30
52
55
7 2
12 3Formal procedures were notused to measure motivation
or cultural fit
THE EFFECT THAT USING FORMAL PROCEDURES TO MEASURE MOTIVATION OR CULTURAL FIT HAS ON THE OVERALL PERFORMANCE OF HIRES
thinking again about these recent hires, were there any formal quantitative or qualitative procedures, specifically designed to measure these candidates’ motivation or cultural fit, used as part of their recruiting process? how would you rate the quality of these hires on each of the following attributes?
battle strategies
46
invest to excel
so how can employers know whether
implementing such procedures is
worth the investment of time, effort
and budget?
to examine whether these procedures
actually make a difference we asked
employers to rate the performance of
the three most recent hires they were
personally involved with, and then to
indicate whether formal procedures
were used during the selection process
for each hire.
results show that 39% of hires ended
up being excellent performers in the
cases when formal procedures were
used. however, when formal procedures
were not used, only 30% of hires
ended up being excellent performers.
this represents a significant 27%
increase in the proportion of excellent
performers resulting from the use of
formal procedures.
there was also a 37% decrease in the
proportion of fair or poor hires in the
cases when formal procedures were
used (9% of these hires were fair or
poor) compared to the cases when
formal procedures were not used
(15% of these hires were fair or poor).
similar results show that the use of
formal procedures also resulted in hires
who were significantly more likely to be
superior in regards to their cultural fit,
functional skills and motivation.
the marked improvement in quality
of hire when formal assessment
procedures are used suggests it is
worth investing in this aspect of
recruitment. dividends will include the
benefits of hiring a greater proportion
of high-performers and minimising the
risk of bad hires.
battle strategy no. 5: assess candidates’ attitude, motivation and cultural
Fit wherever possible: to deliver high-perForming employees who stay with your business and
add value For years to come.
47
No. 6: deVeloP a flexIBle aNd effIcIeNt recruItmeNt model most companies today realise that
talent lies at the heart of an
organisation’s strategic advantage. they
understand they need to invest in talent
acquisition and develop a differentiated
strategy that is well executed, and they
need to do this better than their
competitors. in today’s market there is a
variety of recruitment models and tools
to choose from to help win the war for
talent. the choice can be overwhelming,
so where do you start?
start by asking some fundamental
questions:
1. Business strategy — how are we
performing as a business? are we in
start-up mode, growing locally or
internationally, reducing headcount
or changing our business mix?
2. culture — do we have a culture of
insourcing or outsourcing? what
have been our past experiences
and learnings?
3. roles — how many roles do we
expect to recruit each year? is this
volume regular or sporadic? are our
roles largely homogenous or made
up of many one-off skill sets?
4. segmentation — which of the roles
in my organisation are strategic,
critical and core? how well should i
distribute my hiring resources to
optimise my results in each segment?
5. Pain point — what, if addressed,
would create the most value for
my organisation?
a) employment brand — how are
we viewed as an employer,
internally and externally?
B) quality — how is the quality of
our talent viewed internally and
externally? how long do our staff
take to reach productivity?
c) retention — what are our rates
of staff retention and how do they
compare to industry averages?
why are people leaving? how
many employees do we lose to
competitors and why? how can we
change our recruitment practices to
stop people leaving?
d) cost — what is our average cost
per hire (total spend divided by total
number of hires per annum)? how
does this cost break down by our
talent segments? are we trying to
save money, invest or keep costs
steady? would we prefer to vary
our costs or fix them?
e) speed — how long does it take
us to hire new talent? what most
often causes delays?
battle strategies
48
f) service — what is the experience
like for all stakeholders — including
candidates, hiring managers, hr
and suppliers?
g) compliance — what is our
compliance to our recruitment
model? what is the reason for
non-compliance? what is our
compliance to policy?
h) reporting — what management
reporting is available and is this
effective? how is it used to inform
decisions?
review the range of options
available.
once you have answered these
questions, you can begin to review the
range of recruitment options available.
you don’t need perfect answers for
everything as it is often hard to find
complete data. what you need is
directional information that will help
you answer these questions and
pinpoint the key issues.
for example, maybe your cost per hire
is low but you are losing talent to
competitors. or maybe your quality and
retention of talent is good, but you
believe you are paying too much.
alternatively, maybe your recruitment
process is too long and you are losing
good candidates as a result, or maybe
you are growing quickly and
recruitment can’t keep pace with
demand. most organisations have a
recruitment ‘pain point’ and this is what
you need to uncover. this might be
different by business unit, geography
or talent segment so it is helpful to
segment your analysis in a way that
matters for your business.
for small start-up businesses with
restrictions on cash flow, maybe the
‘do it yourself’ (diy) model might be
right for a period of time. for cashed
up new business ventures, using a
recruitment agency or recruitment
process outsourcing (rpo) specialist
is more common.
for organisations open to outsourcing,
but recruiting either sporadically
or frequently but with much role
differentiation and specialisation, then
maybe alignment with a small number
of specialist recruitment agencies
makes sense.
for other companies who recruit
homogenous and specialist roles on a
very regular basis and have a culture of
insourcing, then an internal recruitment
function might work, supplemented by
a specialist recruitment panel. if these
same types of companies are open to
outsourcing, growing rapidly and
wanting to variabilise their cost base,
then maybe an outsourced rpo model
makes more sense. there is no right or
wrong answer and no ideal model. it is
a matter of putting in place the
right model for your size, maturity,
business strategy and pain point,
and committing to an ongoing cycle
of continuous improvement.
in summary, recruitment functions must
evolve to meet the needs of a talent-
poor market. those organisations that
take necessary steps to put in place the
optimal recruitment model for them and
commit to a continuous cycle of review
and improvement will ensure they stay
at the forefront in the war for talent.
we will continue to partner with
specialist recruiters to complement us by selling the story oF the journey we are on, thereFore assisting us to strengthen our evp and identiFy candidates with speciFic skill sets.
Tina Morgan, Recruitment Manager, New Zealand Post Group
battle strategy no. 6: review your recruitment Function and commit to
developing the most Flexible and eFFicient model to serve the needs oF your business.
49
future forecastand conclusions
there is no prospect of the tight labour
market easing: the only solution for
employers is to make sure they hire
to a model that will deliver high
performing, best-fitting talent for their
organisation every time.
to this end, forward-thinking
recruitment strategies will include:
focusing on quality of hire and |
cultural fit rather than cost per hire.
implementing more reliable and |
science-based recruitment methods
that take the risk out of recruiting.
building evps that not only attract |
candidates today but also appeal to
passive job seekers in the longer
term (eventually quality candidates
will seek out these employers
for themselves).
developing a tailored and flexible |
recruitment operation; outsourcing
where appropriate and working with
specialist recruiters to source
candidates for business-critical
and hard-to-fill roles.
greater use of technology in |
the recruitment process: not to
save time, but to garner more
sophisticated market intelligence
and candidate data.
employing experts to develop a |
proactive talent pipelining function
for the organisation.
as australian and new Zealand
employers battle the challenges and
constraints of the current recruitment
market, the question remains: how can
they win the battle for talent?
hudson believes there are three critical
areas to be addressed in answering
this question:
attraction
development of sophisticated and |
effective attraction strategies to
ensure a pool of quality candidates
for roles. this includes creating
an authentic and compelling evp
and establishing an appropriate
digital presence.
selection
employers should adopt a scientific |
approach that measures motivation,
attitude and cultural fit, to help select
the best and most appropriate
employees for their organisations.
model
whether insourced, outsourced or a |
combination of the two, organisations
must ensure they have a strategic
and flexible recruitment function able
to meet the human capital needs of
the business. the model should be
flexible enough to manage volume,
and specialist enough for niche skills.
future forecast
conclusions
52
research methodologysummary
employer survey
comBINed data rePort
includes results of both surveys
employee survey
20-minute online survey of hudson’s employer clients from ·australia and new Zealand.
respondents either working in hr, or are involved in hiring process. ·respondents were sourced from a range of industries ·and professions.
margin of error associated with sample size of 999 =+/- 3.1%. ·
20-minute online survey of hudson’s employee candidates from ·australia and new Zealand.
respondents currently working in either a casual, part-time, contract ·or full-time role.
respondents were sourced from a range of industries and professions. ·margin of error associated with sample size of 1,321=+/- 2.7%. ·
research methodology
All percentages in this report are rounded to whole numbers and consequently graphs may not always total exactly to 100%.
53
sample characteristics employers employees
% of sample no. in sample % of sample no. in sample
male 51 509 59 777
female 49 490 41 544
under 30 years 9 91 22 291
30–39 years 35 346 34 444
40–49 years 37 365 28 365
50–59 years 17 173 14 182
60 years and over 2 24 3 39
Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.
industry employers employees
% of sample no. in sample % of sample no. in sample
advertising/marketing/media 1 12 4 56
construction/property/engineering 6 62 5 71
education 5 45 4 52
financial services/insurance 15 151 12 160
fmcg 2 22 1 16
government 18 178 14 187
healthcare (private) 3 31 2 31
healthcare (government) 2 24 2 22
information technology 6 57 14 190
manufacturing 6 55 4 53
non-profit 3 34 2 29
professional services 5 50 7 91
resources/mining 5 54 5 65
retail 3 27 3 36
telecommunications 3 34 5 60
tourism/hospitality 2 16 2 29
transport 3 29 2 29
utilities 4 40 3 41
wholesale/distribution 2 24 2 31
other 5 54 5 72
Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.
research methodology
54
current work situation — employers
sample sub-segment % of sample no. in sample
involvement in hiring processes
i am involved in the hiring process as an hr
manager or part of the hr team
32 315
i am involved in the hiring process, but my main role is not as an hr or hiring
professional
68 684
i am not involved in the hiring process or
workforce planning at all0 0
number of full time employees
25 or less 4 43
26–100 13 128
101–200 9 93
more than 200 74 735
Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.
current work situation — employees
sample sub-segment % of sample no. in sample
currently employed
full time 52 685
part time 2 22
contract 41 536
casual 6 78
number of full time employees
25 or less 13 176
26–100 11 142
101–200 8 108
more than 200 68 895
time in current role
3 months or less 28 371
4 to 6 months 23 309
7 to 12 months 25 331
13 to 18 months 5 70
19 to 24 months 3 38
2 to 3 years 5 69
3 to 4 years 4 55
4 to 5 years 2 26
more than 5 years 4 52
Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.
55
location employers employees
% of sample no. in sample % of sample no. in sample
australia 74 742 75 986
new Zealand 26 257 25 335
australian capital territory 5 35 7 68
new south wales 31 231 30 297
northern territory 0 0 0 2
queensland 14 106 16 157
south australia 13 93 12 121
tasmania 0 0 0 2
victoria 28 210 25 249
western australia 9 67 9 90
auckland 42 108 40 134
christchurch 14 37 14 46
wellington 44 112 42 141
other 0 0 4 14
Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.
personal profession employers employees
% of sample no. in sample % of sample no. in sample
accounting and finance 17 170 15 204
human resources 29 291 5 72
ict 15 145 24 323
financial services 5 45 3 45
legal 2 18 3 35
technical and engineering 5 51 11 143
office support 6 56 10 133
public sector 4 42 2 31
sales, marketing and communications 9 92 13 177
other 9 89 12 158
senior management
not applicable
9 123
middle management 22 296
non-managerial professional/specialist 47 617
admin/support staff 19 247
none of these 3 38
Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.
research methodology
56
adelaide
auckland
brisbane
canberra
christchurch
hunter/central coast
greater western sydney
melbourne
mount waverley
perth
sydney
wellington
hudson.com
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