Recruiting can be stressful. Instead of panicking and trying to increase your recruiting quantity, focus instead on putting things in place to improve your recruiting quality.
Join JD Conway of BambooHR and Jan Choi of Jobvite as they share insights on how to proceed with a lean recruiting program and progress toward recruiting success.
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Keep Calm and Recruit Lean: Putting Recruiting in Perspective
We need to hire more people
needed to hire more
people this year.
Global Recruiting Trends 2017
LinkedIn
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Without more recruiters
didn’t anticipate any additional
recruiting headcount.
Global Recruiting Trends 2017
LinkedIn
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Without more budget & resources
reported that their budgets
would remain stagnant.
Global Recruiting Trends 2017
LinkedIn
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Without a strong employment brand
say reputation of a company
as an employer is important.
Harris Poll, April 2017
Glassdoor
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In an economy with
which hasn’t changed since
October 2017
Bureau of Labor Statistics
Department of Labor
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Recruiting Stakeholders
Leadership Hiring Managers
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Leadership Pain Points
• Having employees at full contribution
for upcoming strategic initiatives
• Solving hiring managers pain points
to keep timelines on track
• Maximizing the organization’s long-
term potential
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Hiring Manager Pain Points
• Redistributing workload from missing team
members on understaffed team
• Dealing with stress from missing team
members/overwork
• Keeping up morale and engagement levels
• Preventing turnover contagion
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Recruiting Stakeholders
Leadership Hiring Managers
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Fast Food Recruiting
• Sticks to a few familiar requisitions
• Has trouble with special orders, or
specialized requisitions
• Tries to increase the quantity of applicants,
regardless of applicant quality
• Expects recruiters to do more with less
support from leadership and hiring mangers
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18% turnover rate
$5,000 per replacement
$90,000
EVERY YEAR
Fast Food Recruiting
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• Candidate experience leads to increased
retention rates and improved reputation
• Improvements in reputation help shorten
time-to-hire
• Reduces turnover with better hiring, letting
you train employees once
• Boosts employee morale and engagement
Five-Star Recruiting
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Prioritize Your Requisitions
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Requisition Timeline
Requisition Requirements /
Approvals
Crafting a Job Description Posting Applicant Experience
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Candidate Experience Matters
• 80% of people would take one job over another based on personal
relationships formed during the interview process.
• Almost 60% of job seekers report having a poor candidate experience.
• Of those 60% who had a poor candidate experience, 72% shared
information on it “online on an employer review site, such as Glassdoor,
on a social networking site, or directly with a colleague or friend”.
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Starting the Conversation
• Give new requisitions at least two quarters of lead time
• Find and keep ahead of your organization’s tipping point
• Use national and local averages to estimate time-to-hire
• Factor in time realities of your specific organization
• Busy seasons
• Popular vacation times
• Backfill
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Requisition Requirements /
Approvals
Crafting a Job Description Posting Applicant ExperienceBackfill
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Fast Food Method Five-Star Method
We can only increase referral bonuses
and point out open requisitions on our
career site so much.
Transform your company into an
army of recruiters.
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Educate Your Employees
• Emphasize the impact that recruiting has on company culture.
– The better the referral, the better that new employee can refer your
company’s next great employee.
• Referrals are well known to be higher quality, but they also
stay longer, with an average retention rate of 46% versus
career site hires average retention rate of 33%.
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Equip Your Employees
• Get them on social referral tools. But don’t just stop here.
– Spread the word about open requisitions.
– Make it a competition between teams and departments.
– Enforce team sourcing parties.
• Remind your employees of their own benefits so they’re better
prepared to recruit someone.
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Referral Training
• Why weren’t my friends chosen to work here?
• What happens when I provide a referral?
• Why didn’t you hire my friend? She was more than qualified.
• Why should I give a referral when the last two went nowhere?
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Candidate Experience vs. Engagement
• Candidate experience is about how a candidate feels about those
interactions and the impression they have about your brand. This is not
in your control.
• Candidate engagement is about each interaction you have with a
candidate. It is within your control.
– Get everyone engaged with your candidates: executives, hiring managers,
teammates, receptionists, office managers, and the Marketing Team.
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First Day and Interview Swag
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Candidate
Experience
Survey
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Craft the Job Description
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Fast Food Method Five-Star Method
Hiring managers super-size the job
description and expect you to fill it ASAP.
Hiring managers work with recruiting
to find the right balance of day-one
skills and on-the-job training.
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An Accurate Description
• What are the 5 key skills necessary for this job?
• What will this person spend most of their time on?
• How will success be measured for this position?
• How much experience should this person have?
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The Experience Trap
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Fast Food Method
The only stat that matters is headcount.
There’s no time to tweak the recipe or
make any changes.
Five-Star Method
Hiring managers work with recruiting to
find Benchmark right balance of day-one
skills and on-the-job training.
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• Visitor-to-Applicant Ratio on your career website
– Conversion Rate of Career Website Visitors to Applicants: 8.59% in 2016, down
from 11% in 2015 (Jobvite, 2017 Recruiting Funnel Benchmark Report)
• Time-to-Hire
– Average Time-to-Hire: 39 days in 2016 down from 43 Days in 2015 (Jobvite,
2017 Recruiting Funnel Benchmark Report)
• Cost-to-Hire
– Average cost-per-hire: $4,129 in 2016 (2016 Human Capital Benchmarking
Report, Society for Human Resources Management)
Necessary Metrics
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Net Promoter Score
• Or as I like to call it: Net Candidate Experience Score
• Net Promoters = % promoters – % detractors
• Anything above “0” is considered good, anything
above “50” is considered excellent.
• Promoters are brand ambassadors for your company.
• Detractors had a negative candidate experience.
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Source of Hire
• Source of applicant versus hire
– Although there is a high percentage of applicants from career sites (33.9%) and job boards
(52.17%), the percentage of hires is much less: Career Sites (27.3%), Job Boards (18.7%),
indicating those sources are less effective.
• It shows how effective your tools are and any holes in your funnel.
• Set goals with your executive team.
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Building from Lean Recruiting
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• Prioritize your requisitions
• Create a culture of recruiting
• Craft and serve up the right job description
• Measure your progress
• Stand up for an excellent recruiting program
Building from Lean Recruiting
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Keep Calm and Recruit Lean: Putting Recruiting in Perspective
BambooHR
Download our eBook: 9 Things Recruiters Do That They Shouldn’t
Get your FREE copy here: http://bit.ly/KeepCalmRecruitLeanJV
Check out the eBook that inspired this webinar!
Jobvite
Download your FREE copy: http://bit.ly/18LeanRecruiting
Questions?
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bamboohr.com/blog | jobvite.com
Thank you!
Notas do Editor
JAN:
Speaker: Jan
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More than half are satisfied at work (64%) — but 81% of them are open to new job opportunities. (Jobvite, 2017 Job Seeker Nation Report)
89% of recruiters think it will get more competitive over the next year (Jobvite, 2017 Recruiting Funnel Benchmark Report)
JD:
It’s easy for HR and leadership to see stats like these and think that it’s time to panic.
There are three main groups who have a stake in your recruiting:
Leadership
Hiring managers
For too many recruiting programs, people outside HR or recruiting don’t have a good understanding of everything that goes into an effective requisition. They have a narrow focus on the specific, short-term pain from their recruiting needs and want to limit this pain as much as possible. They want it to end. So they focus exclusively on speed and miss the bigger picture. What are these pain points?
JD:
Leadership cares about contribution on their time table. They want people to be contributing when the organization needs their contribution.
They are also accountable to the hiring managers for solving their issues.
They also want to maximize their long-term potential. There’s the potential for strategic FOMO: a fear of missing out. They might feel that if you don’t fill all of your open positions with the best candidates right now, then someone else is going to snap them up and you’re going to miss out on what could have been.
JD:
For hiring managers these worries are more immediate: how many weeks do we need to operate without being fully staffed? The longer this goes on, the greater the stress, and the organization starts paying in overtime, reduced engagement, and loss of productivity. There’s only so much a team can take before morale drops and people start leaving.
We’re not saying that these pain points aren’t real.
But trying to solve these pain points by having the recruiter do more with less support is a short-term fix that can lead to even greater costs in the long run.
JD:
So that brings us to our message today: Keep Calm and Recruit Lean. Because with the right levels of education, communication, and coordination, your recruiting program can address and resolve all of these worries.
JD:
Let’s put this in perspective: imagine that your stakeholders are the kitchen staff in a fancy restaurant.
Leadership is the head chef, creating new dishes, pairing courses, and setting out the menu
Hiring managers are the sous chefs, specializing in various parts of the menu, like sauces, desserts, or wine pairings.
How do you know if a restaurant is successful? It’s not just because customers ate their food and paid for it. A restaurant succeeds based on its reputation, when diners keep coming back for more and recommend it to their friends. It’s not just about one night’s service, but continued success.
Your organization serves a candidate experience, hoping that the candidate will stick with them and have a great employee experience.
It’s the same with recruiting. Effective recruiting takes coordinated effort from leadership, hiring managers, and recruiters. Otherwise you severely limit the quality of your new hires and the potential of of your recruiting program.
So here’s the question: does your leadership see you as part of the kitchen staff? Or are you more like a fast food worker who just takes orders?
JD:
When recruiters rush to handle everything on their own, they might as well be a fast food worker, maybe keeping up with the lunch rush as long as they stick to a few familiar menu items.
Fast-food-style recruiters stick to a few familiar requisitions and hope that they have enough time to handle any special orders, or that the managers don’t change their mind when they realize they need additional skills.
They post in as many places as possible, hoping that finding a larger quantity of candidates will bring one that works well enough
And often in this situation, the relationship between recruiting and leadership is one-sided: recruiters rush to fill as many orders from leadership as possible, with the sense that this won’t be enough.
This style of recruiting often leads to tradeoffs in the employee experience, as we will explore later in this webinar. Focusing on speed also increases the risk of a mishire, which can have major consequences on your organization.
JD:
Some estimate that the cost of backfilling a position is 6-9 months of that former employee’s salary. Add to that the cost of the hiring process, which can be several thousand, and you’re looking at a pretty big price tag on turnover. Even worse are the bad hires that turnover within a short amount of time. That’s like paying for the hiring process twice.
According to the SHRM 2017 Human Capital Report, the average turnover rate is at 18%. To replace an employee who earns $10/hour, you’re likely to spend about $3500. For a midrange employee earning $40,000, the cost is $8000. When you get into executive positions with $100K salaries, you’re looking at a few hundred thousand dollars per replacement.
In this graphic, we’ve shown an example of the kind of situation your company might be in. If you have an organization of 100 people and an average turnover of 19%, you’re going to have to replace 18 people every year. That means your company is spending $90,000 every year, all because of turnover. And that’s assuming a modest cost of $5000 per replacement—which it could very well be more than that. The larger your business and the higher the turnover rate, the larger that cost becomes.
This is the long-term information that you need to communicate to your leadership, to help put their pain in perspective.
JD:
Effective recruiting focuses on making the best use of the time you have, and sometimes that means trading short-term pain for a more solid long-term positions, including:
Increased retention rates (a big part of this for recruiting is making fewer mis-hires)
Improvements in reputation and time-to-hire
Better value for your training budget
Improved employee morale and engagement
So where does this start? How do you go from fast food to five-star recruiting? It starts in getting on the same page as your leadership and hiring managers and making sure everyone understands everything that goes into a requisition.
JD:
When you work with your executives and managers to prioritize your reqs, then you shift from reaction mode to pre-planned collaboration.
It’s a better experience for everyone involved.
JD:
Returning to our restaurant metaphor, completing a job requisition is like preparing a meal. Each step takes time, and delays at any point can affect the final product—your applicants’ experience.
First, it takes time for hiring managers to put reqs together and to get approval for the recipe of job duties and needed skills.
Then it takes time to craft the job description, not just in the ingredients, but also in how it’s plated and presented.
Then the job description gets posted, and there’s more time before applicants respond.
Then finally we get to the applicant experience, where people take time to fill out applications, complete phone screens, come in for interviews
This takes time for a single req. Unfortunately, there’s rarely a time when there’s a single req.
JD:
Adding more reqs can lead to delays, especially when the same stakeholders are involved in any part of the process for both reqs
A hiring manager can only spend so many hours building job descriptions and conducting interviews.
The delays multiply as you add more reqs and more decision-makers, as they take vacation or go through busy seasons in their day jobs.
Volume vs recruiting quality
Delays between interviews
Incommunicado
JD:
80% of people would take one job over another based on personal relationships formed during the interview process. (Source: Mattersight)
Almost 60% of job seekers report having a poor candidate experience. (Source: Future Workplace & CareerArc study via workplacetrends.com)
Of those 60% who had a poor candidate experience, 72% shared information on it “online on an employer review site, such as Glassdoor, on a social networking site, or directly with a colleague or friend”. (Source: Future Workplace & CareerArc study via workplacetrends.com)
JD:
Start the conversation now
You want to get ahead of the lead time conversation as your executives plan out their strategy. Two quarters ahead can be ideal (tell why)
This helps you keep ahead of your organization’s tipping point, where you have too many requisitions to keep up with.
If your organization is new to this line of thinking, looking at national and local averages can help you gauge a reasonable time-to-hire. (Utah hiring market example)
As you plan ahead you can factor in additional realities for your organization
Busy seasons (bad times for hiring managers of certain teams)
Popular vacation times (One employee told me he’s never been hired during the summer, but that September was solid)
Backfill
JD:
Factoring backfill and other unknowns into your hiring process gives you the cushion you need. (more info as needed)
With all of this, the goal is to reduce the downtime wherever possible.
There’s an excellent principle that helps with this:
JD:
Choose. Focus. Finish. Repeat.
If your reqs are past your tipping point (and if you’re listening to this webinar, then they just might be), then it becomes a question: what do you choose?
Which reqs do you put into your plan? Which do you shelve for later? Which do you scrap altogether?
Part of this conversation has to come from your executive leadership, but it’s an essential conversation to have.
It’s worth fighting for.
JD:
So how do you go about improving this timeline in your organization? We’re going to cover several ways, starting with how developing a recruiting culture can affect the posting and candidate experience phases of your reqs.
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Referral training to avoid referral burnout (JD)
Why weren’t your friends chosen to work here?
Provide an overview
Why don’t we hire overqualified people?
Long-term job satisfaction
Referral education prevents referral burnout
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All of your candidates will have different tastes. As you’re crafting your job description, it’s important to get the recipe just right.
The right job description helps hiring managers get the candidates they’re looking for while respecting candidates’ time.
JD:
A Fast-food-style recruiting program doesn’t put a lot of thought into a job description
a person leaves, and you haven’t looked at that position’s job description since you hired him two years ago.
You have too much to do to replace this valuable person, so you need to tag team with the hiring manager.
So you do what lots of people do: ask the manager to write the job description without any guidelines or input so you can post something ASAP.
And you end up with an exhaustive list of specific skills and attributes that narrows the candidate pool all too well.
A better program has recruiters working with hiring managers to find the right balance of day-one skills and required training.
JD:
Here’s what you should consider as you write the job description with your hiring manager:
First, what are the 5 key skills that a person needs for this job?
Start by outlining the five essential functions that the future employee will perform in this role. Fun psychology fact: the human brain can only hold between five and nine pieces of information in short term memory: it’s why we remember phone numbers as three groups of numbers instead of ten individual numbers. Keeping this in mind can help your candidates get the full scope of the job while reducing the need to reread. Plus, it can help your hiring manager focus on what he or she really needs to be looking for in a candidate during the next step of interviewing.
Next, what will this person spend most of their time doing? What tasks can be learned after being hired?
List the time spent on main daily duties and occasional peripheral tasks. This will help you emphasize the right points in your job posting. For example, If your future employee will spend 75% of their time writing emails and only 5% doing an occasional video script, then listing both as main points might give one skill more emphasis than necessary.
Third, how will success be measured for this position?
Is it based on quantity or quality? Is the team competitive or collaborative? Are goals measured in revenue, leads, user ratings, or some other metric? With this question, the only perfect answer is the honest one: it takes all types of personalities and preferences to create a successful organization. Understanding how you measure success is the first step to helping your candidates honestly evaluate whether they can succeed, and whether they want to.
Finally, how much experience does this person need?
Now that you’ve broken the rest of the description down, there’s one final consideration: how much training your new hire will need. It’s at this point that you can fine-tune your job posting based on your training capabilities, starting with the right level of education and experience for the position. By clearly stating how much experience a candidate should have and which skills they should already have mastered, you won’t need to waste valuable time on unqualified candidates.
At the same time, you don’t want to run the risk of ruling out less-experienced candidates. Automatically assuming that more experience is better can be a trap, and not just because of the job satisfaction issues I mentioned earlier.
JD:
If your job description rules out everyone but the perfect candidate that can step into a job and make amazing contributions with very little training, then you’re hunting for the purple squirrel. It’s a classic case of the perfect being the enemy of the good. So, counterintuitively, relying too much on extensive experience and education alone can be a trap.
But wait, you might think, isn’t more experience always better? This idea makes a couple of assumptions: first, that a candidate’s experience with a previous organization is equivalent to experience at your organization, and second, that experienced employees will cost less to train, both in time and expense. This is an experience bias. Too often you are screening people out that can do the job well, even without those 10 years of experience in “garage band”.
The same thing goes with education, which is really experience by another name. While your candidates went through several years of educational experiences to get their degree, there’s no guarantee that those experiences are the ones that will lead to their success on the team they’re interviewing to join, even if their diploma has the same words on it.
And I’m not just saying this: global accounting firm Ernst & Young (now called EY) removed the requirement for a bachelor’s degree or equivalent. Maggie Stilwell, EY’s managing partner for talent, said the changes would “open up opportunities for talented individuals regardless of their background and provide greater access to the profession”.
She continues: “Academic qualifications will still be taken into account and indeed remain an important consideration when assessing candidates as a whole, but will no longer act as a barrier to getting a foot in the door.” Their own internal research of over 400 graduates found that screening students based on academic performance alone was too blunt an approach to recruitment.
And here’s the kicker: “It found no evidence to conclude that previous success in higher education correlated with future success in subsequent professional qualifications undertaken.”
Now don’t get me wrong, the right level of experience is incredibly important. You likely won’t have the resources in-house to train your own legal counsel. But experience is only one consideration when measuring a candidate’s fit for the job, and it’s often used as shorthand for specific technical skills or personality traits like “persistence” and “adaptability”. It’s naïve to think that these attributes can only be fully formed at a university with a certain name or at a specific company.
JD:
So when we look at our applicant pool there are two considerations: we want to shrink our pool of unfit applicants while including as many good applicants as possible. By creating a job description that is an accurate reflection of the position, you cut out a massive amount of time you might otherwise spend screening. The description does the screening for you, so your funnel of candidates is narrower right from the start. You don’t have to waste time sifting through a bunch of mismatched resumes. Would you rather receive 100 applications, but only 25 are potential fits for the job? Or would you rather receive only 25 applications, but 20 of them are potential fits for the job?
Let’s flip this chart and take a look at an effective funnel structure.
JD:
So the circle we just saw is clear at the left, at the beginning of the timeline and the mouth of the recruiting funnel. Now If I had more space on the slide, I’d make the Application Phase section of the funnel ten to fifty times bigger. There are endless possibilities for customizing your job application, and you only get the applicants you ask for.
In this example, our job description is pulling in a large amount of qualified applicants. It’s also centered on the essentials of the job and optimized for including applicants that might not be purple squirrels, but that have the right base skills and experience for training for the position.
When you start in the right place with the right amount, you can spend the other stages of the process zeroing in on the right applicants. Now let’s take a look at just one of many possibilities for what happens when you don’t optimize your job posting:
JD:
In this one, the job posting was still on target, but they added too many qualifications in their search for the purple squirrel. By the time they got to the interview phase, they narrowed it down to just two applicants. The made the offer to one, and he accepted at first, only to accept a counteroffer. By then, the other applicant had already accepted another job.
They got lucky, though: at least the target was in the same area. They know that they are on the right track, and can loosen their requirements.
Imagine if the job ad just said “Writer: Two years experience, excellent writing skills, passion for details, Proficiency with Microsoft Word and Excel”. You couldn’t zoom out far enough to get that funnel on this slide. And here’s what happens when you blast this ad all over Facebook and every job search board out there: you’ll get applications from screenplay writers, grant writers, underwriters, and someone who wrote the manual for factory machinery at the local soy hamburger plant. If your real goal is to get your holiday catalog out on time, you’re going to need to add more to your job description.
(More funnel stuff as needed)
Are you starting to get the scope of how important refining the job application is? The funnel of good applicants that you can humanly process only stretches so wide, at least during the time you have to fill the position. And every funnel narrows as you focus on what’s truly important in each position and screen out candidates. Defining the role and optimizing your job description helps you hit the target.
Experimenting with new job descriptions is just one of the ways that you can measure the effects of your recruiting. But it’s one of the most important ways to help hiring managers and candidates find what they’re looking for.
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JD:
Your numbers might not turn up a powerful recruiting program. But the good news is that even if you start out in a lean recruiting situation, it doesn’t mean you have to stay there.
Getting the specific metrics for your specific organizations helps you make recruiting plans based on reality, not panic.
Instead of saying what you can’t do, present your metrics and show what you can do.
Hyperfocus on good comms now = good karma later (cNPS) = recommending people to you
Force lead times conversations well in advance. Think two quarters in advance.
Educating in Detail (ATS reporting)
Time to hire steps (national/local average)
Time is our greatest resource. We’re going to address several areas where sharing your calm perspective helps you keep a laser focus on doing the most with the time you have.
Instead of straining to have everything perfect and pain-free right now, rely on these effective strategies to grow your recruiting program on a solid foundation over time.
JD:
So to recap:
Prioritize your requisitions
Req timeline
Killing off reqs
Create a culture of recruiting
Craft and serve up the right job description
Targeted job ad
Posting with candidate personas
Measure your progress
Metrics
cNPS
Stand Stand
Planning ahead beats out rushing forward.