Beyond the Dollar: The Real ROI of Internal

Headhunting

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

and Pure Recruitment Training.

Direct Sourcing Value Model

Internal Headhunt Strategy

The Headhunt Process

Background

Defining Headhunting In The Internal Context

AdministratorResourcer/Researcher Recruiter Headhunter

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

Creating/Posting job ads, sourcing candidates through job boards, CV screening .

Creating/Posting job ads, sourcing candidates through job boards/online, CV screening, Interviewing, process management.

Competitor organisation mapping, direct research, cold call head hunting, interviewing, shortlist preparation. Competitor intelligence.

Headhunting is any effort to proactively seek out and make verbal contact with a potential candidate, establish if they’re open to a conversation about a potential career move, and the conversation therein.

Why Headhunt?

Direct Sourcing Active Candidates

Widening The Talent Pool

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

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

Internal Recruiter

Internal Headhunter

0

100

Number of roles worked

per year

Recruiters

Headhunter

Direct Sourcing Value Model

Internal Headhunt Strategy

Internal Recruiter

Internal Headhunter

0

100

Number of roles worked

per year

Candidate Sourcing

Candidate Sourcing

Internal Bench

Internal Bench

Advertise InternallyAdvertise Internally

Employee ReferralsEmployee Referrals

External PipelineExternal Pipeline

Advertise Externall

y

Advertise Externall

y

Headhunt

Headhunt

Internal Bench

Advertise Internally

Employee Referrals

External Pipeline

Advertise Externally Headhunt

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

Do we need to headhunt?Do we need to headhunt?

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

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

When the role cannot be advertised for confidentiality reasons.When the role cannot be advertised for confidentiality reasons.

How many niche roles

did we have?

How many senior roles

did we have?

How many confidential roles did we

have?

What direct market data

did we retain?

How much did we spend

on headhunters?

Gather historic data from last year

69 1 Not much!$562,500($150k x 15

@25%)

Think about the year ahead

How many headunters

will we need?

How many roles will we headhunt?

What will we spend

externally?

What market data do we

want to gather?

What will it cost

internally?

116 0

Mapping and competitor intelligence on all roles

$150,000

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

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

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

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

The Headhunt Process

Starts with a well written job spec Starts with a well written job spec

Your internal clients market knowledgeYour internal clients market knowledge

Your market knowledgeYour market knowledge

PreliminaryPreliminary

Online Research including Linked InOnline Research including Linked In

Speaking to well known internal and external candidatesSpeaking to well known internal and external candidates

Head Hunt callsHead Hunt calls

SecondarySecondary

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

Three Headhunt Call ObjectivesThree Headhunt Call Objectives

Gather market intelligence and further understand our competition.Gather market intelligence and further understand our competition.

Get referrals and further map out our competition.Get referrals and further map out our competition.

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

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

Information to gatherInformation to gather

Get a brief overview of their background and current role.Get a brief overview of their background and current role.

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

Find out what their salary and bonus is.Find out what their salary and bonus is.

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

Get Referrals.Get Referrals.

Building Org Charts – The Mapping Process

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

You have to be consistent and diligent in asking all of the questions and pursuing your objectives outlined in the headhunting training. You have to be consistent and diligent in asking all of the questions and pursuing your objectives outlined in the headhunting training.

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

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

Names Identified Percentage of Candidates Selected From These Sources

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

Referrals are the most important source of quality candidates.Referrals are the most important source of quality candidates.

The importance of calling candidatesThe importance of calling candidates

Market Information – what’s happening at our competitors?Market Information – what’s happening at our competitors?

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

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

Salary and bonus information.Salary and bonus information.

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

Competitor organisation structures.Competitor organisation structures.

Your job being a lot more fun and interesting.Your job being a lot more fun and interesting.

If agencies are doing the work for youIf agencies are doing the work for you

Who is actually sourcing for these roles? (Not the account manager, but the person doing the resourcing? Who is actually sourcing for these roles? (Not the account manager, but the person doing the resourcing?

What qualifies you (in the given product area or LOB) as an expert in talent in this space?What qualifies you (in the given product area or LOB) as an expert in talent in this space?

Who are our top three competitors in this space? Who are our top three competitors in this space?

What can you tell me about their business, their strategy and their presence in our region?What can you tell me about their business, their strategy and their presence in our region?

Who in your opinion are the key players in the organisations you mentioned? Who in your opinion are the key players in the organisations you mentioned?

Who is your biggest competition in this market space? What makes you say that?Who is your biggest competition in this market space? What makes you say that?

How do you build your talent pipeline?How do you build your talent pipeline?

Social media is not the solution, it simply enables us to get closer quicker to our target audience and limits our reliance on agencies. We still have to make the calls and build relationships.

Beyond the Dollar: The Real ROI of Internal Headhunting

Market intelligence and relationships

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

Fraser Hillfraser@headhuntin.com