Recruiting for Quality: Best Practice Recruitment

with Objective Assessment

ERE ExpoSpring 2008Marie Artim

Introduction

• Enterprise – Who we are• Recruiting in the New Millennium - Change

Your Perspective• Traditional Recruiting Methods Becoming

Less Effective• Look at “Talent Pools” Differently

Who are we?

Who are we?

Founded in 1957 Largest Car Rental Company In North America

65,000+ Employees

7,000 locations Worldwide US, Canada, UK, Ireland & Germany

Operate Fleet of more than 900,000 Vehicles

Fiscal 2007 Revenue of $9.5 Billion The “Taylor Family of Companies” now includes

National Car Rental and Alamo Rent-A-Car

“Take care of your customers and employees first…

And profits are sure to follow.”

- Jack Taylor, Founder

Business culture & philosophy

Decentralized structure

Promote from within philosophy

Employees focus:

Profit-and-loss responsibility

Employee income tied to performance

Responsibility to grow local business

Responsibility to develop people

Our model

Enterprise Recruiting

Goals around hiring pipeline for future leadership Efficient sourcing and processes Measuring and metrics

Education of the audience and “Selling the Dream” Overcoming misperceptions Not a typical opportunity

A blend of National strategy and Local implementation

Genuine, grass roots relationships

Technology for consistency and volume

Enterprise Recruiting

8,500 College Grads this year into the Management Training (MT) Program

Management Interns – 2,000 in Summer 2007 Pipeline to MT Program Mirrors the MT Program

Recruiting Team Structure

Corporate Recruiting

Department

Corporate Recruiting

Department

Field RecruitersField Recruiters

Field OperationsGeneral Manger/RVP

Field OperationsGeneral Manger/RVP

National PartnershipsNational Partnerships

Recruitment AdvertisingRecruitment Advertising

National Media PlanNational Media Plan

Training & DevelopmentTraining & Development

Website DevelopmentWebsite Development

Internet RecruitingInternet Recruiting

College RelationsCollege Relations

ERPERP

Internship ProgramInternship Program

Part Time HiringCar Preps & Drivers

Part Time HiringCar Preps & Drivers

Online Application & Assessment

Online Application & Assessment

Components of Success

• The ERAC Recruitment Process• High Tech, High Touch• Local Approach, “Global”

Perspective• Highly Adaptable, Flexible, and

Customer (candidate) oriented

Components of Success

• Use several tools to identify “talent”:

• Targeted Marketing

• Online Assessments

• Online Application

• Integrated Background Checks

Challenging Assumptions

• “Centralization” Myth• Talent pool, or pool of unusable data?

• “Candidate Experience” Myth• Today’s candidates are the “Internet”

generation

• “High Tech = High Touch” Myth• Technology isn’t about removing personal

connections from the process – it enables it

Challenging Assumptions

• “Resume” Myth• Accuracy: 42 percent of resumes contained at least one

glaring inaccuracy in key factual information.1  • Usefulness: A snapshot of past performance – yet we

hire for potential

• “Best Schools/Sources=Best Candidates” Myth

• Are we excluding some of the best potential?• Is there a link between performance and a degree or

school?

1. Source: Resumedoctor.com

14

Thinking Outside the Box

What we often use to identify talent isn’t always the most valuable

Perfect PredictionPerfect Prediction

+.65 Assessment Centers

+.45 Ability Tests/Job Samples+.40 Group Exercise/Personality Assessments+.35 Structured Interviews/Simulations+.30 Background/Past Performance

+.15 Employment Interviews

+.10 Educational Qualifications

Graphology/Astrology/Phrenology

Random PredictionRandom Prediction

+1

Source: Mike Smith, UMIST0

Objective Hiring, Objective Assessments

• Recruiting is Entering the “Age of Objective Assessment”

• Transparency and objectivity in the eyes of the candidate

• Focus on Competence and Potential

• Hidden gems

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

-$8,000 $14,000 $36,000 $58,000 $80,000 $102,000 $124,000 $146,000 $168,000

Value

Pro

bab

ilit

y

Top Performers

Poor Performers

85th percentile15th

percentile

Cost exceeds value Value exceeds cost

Example: Cost/Value of Talent

$40,000 Salary

The Interview Challenge

How many interviews can you do in one day? Maybe 5 or 6

How long are they? Approximately 45 minutes

When do evaluate the information/do your write ups? End of the day, following morning

How many superstars do you see in one day? Maybe 1 or 2 if I’m lucky

How long before you really know someone in an organization and that they are performing to the required level?

6 months

The Interview Challenge

So,you spend at least two thirds of your time interviewing unsuitable applicants; you don’t know much about their strengths and weaknesses in relation to the requirements of the job and you are going to wait six months to find out if you made the right decision?!

This is similar to: Purchasing a new IT system after a 45 minute

sales call Buying a new car without test driving or

researching pricing and performance

Objective Hiring, Objective Assessments

• Technology – Both Requires and Enables Assessments

• Increased candidate volumes: Good or Bad?

• Good – tap into new talent potential • Bad –Manage the flood of candidates

• Effective automation with assessment is key

Focus on Quality

• Quality is Value• Quality assessment = quality candidates• Poor quality can create both business and

brand risks• What quality do you get from your current

process, screening and assessment?

Research from the assessment industry has shown that:

The difference in value between an average performer (50th percentile) and a top performer (85th percentile) is between 40-70% of salary

The average value of output of the average worker is about twice his or her salary

The average cost of employing someone is between 1.2 and 1.4 times their salary

The Value of Quality

Best of Breed Practices

• Recruiting is Changing, Will Continue to Change – Adapt!

• Don’t Assume You Understand Your Candidates

• Challenge Internal Assumptions

• Focus on What Makes a Difference

Thank you!!

www.enterprise.com/careers