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Act While Others Wait – the Arbita Recruitment Genome Report follow this blog post

In May 2009, Arbita revealed the first survey results from the Recruitment Genome Report. The purpose of this multi-year research project is to define the most effective recruitment practices from among the thousands available.

Below are my thoughts about the results, but you can download the full 11-page report for yourself here: http://www.arbita.net/Offer/Recruitment-Genome-Report-Download.html

 

Why is this important to staffing leaders?

There are so many tools and services in our industry, each vying for your attention and promising to be the only solution you need.  However, many of them are mostly "bells and whistles", providing little value to your organization's employment brand or recruitment effectiveness. Don't be alarmed - such is the case among vendors in every industry, not just in recruitment. Our industry has long needed a concerted, vendor neutral, consensus-based approach to answer the question of what works and what is just hype.

Our job as recruiters has always been incongruous. We must be masters of basic human psychology, well-versed in business rules and requirements, savvy in the use of tools and technology, and cognizant of the nuances of the industry and its unique business "ecosystem." All the while, we receive little thanks from the customers we advocate, both our hiring managers with urgent job openings they have a hard time filling, and our candidates who depend on us to champion their cause and provide a good match. Both appreciate us only when we are most desperately needed, and otherwise tend to categorically dismiss us regardless of how often we prove our value.

It doesn't help that the recruitment industry changes so dramatically from day to day. Modern recruiters must truly be project managers. No individual could learn how to handle the multitude of specialties found in all aspects of recruiting on their own in one lifetime. This is why the answer to "what works" must come from a community, not from one single person's biased voice, no matter how experienced or seasoned a leader s/he may be.

The staffing leader's world is extremely complex and not getting easier

Staffing leaders in both corporate and agency roles must contend with the latest and greatest employment branding challenges, online social and professional networks, job boards and resume databases, employment advertising destinations, recruiting exchanges, referral services, leads databases, resume capture and processing technologies, and communication platforms; not to mention contend with organizational requirements around Applicant Tracking Systems (ATSs) and possibly even Contact Relationship Management (CRM) Systems.

"Our service economy has given way to a knowledge economy. Our economic survival now depends on the exchange of knowledge, not the exchange of services. Knowledge comes from people, and people are at the heart of recruiting. Therefore, our jobs will be even more crucial to our organization's growth and progress in the years ahead. However, the recruiting industry has not yet dealt with that shift."

 

As a longitudinal study, Arbita's report is not yet complete but the first stage revealed to me a few surprises and confirmed some suspicions. Perhaps the most salient confirmation is that the recruitment industry, by and large, has not yet realized that our service economy has given way to a knowledge economy. Our economic survival now depends on the exchange of knowledge, not the exchange of services. Knowledge comes from people, and people are at the heart of recruiting. Therefore, our jobs will be even more crucial to our organization's growth and progress in the years ahead. However, the recruiting industry has not yet dealt with that shift.

Decreased Spending on Recruiter Development

Social media is bringing forward unprecedented change in how people network online. Networking is a critical component of career progression, and modern means for networking are evolving so fast that without learning from others, a recruiter could waste invaluable time just keeping up with the changes.

Social media is also disseminating what were closely-guarded secrets in recruiting and sourcing practices, thus making information freely and openly available. Information, however, is not knowledge. In fact, I would argue that what is available is merely data, not even information. The key to translating all that data into information and eventually knowledge is to determine meaning. Knowledge is what happens when we use our experience, and experimentation, to interpret information and make decisions on how to proceed. Expert advice in matters such as Social Media, SEO/SEM and Sourcing Skill Development is critical for survival, lest your recruiters waste too much time sifting through data, experimenting with dead ends, and re-inventing the wheel.

"An overwhelming majority of staffing leadership respondents indicated decreased spending on the development of their recruiters' skill set, on search marketing, and on developing a social media presence. This is disturbing to me because we are in the middle of a digital evolution."

Accomplished vendors, consultants and educators don't just make guesses or relate data they picked up empirically. Instead, they synthesize it, separate what works from what does not, and act as trusted advisors providing significant value through their experience encountering pitfalls as well as successes. Another reason I find this result disturbing is the fact that nearly all responding companies believe that use of the Internet is such a key recruitment strategy that they see the need to keep this skill set in-house, yet almost half of them felt their team is inadequately trained and are dissatisfied with their current sourcing capability.  

 

Recruitment Goals Fail to be Strategic

This finding is already clear to me just in reviewing the survey results from questions around recruiter development. What it tells me is most staffing leaders responding to the survey highly value Internet recruiting, and half feel their sourcing skills are deficient yet they are being directed to spend the same or less on developing those skills among their recruiters. Clearly, this means recruitment goals are not being thought through at the strategic level.

It is a widely held belief that recruitment goals should be tied directly to strategic business objectives. Survey results find most respondents agree with that belief, and in addition 70% report being satisfied that their company's recruitment marketing strategy is driving the achievement of overall recruitment goals. However, being strategic about recruitment is not just something we do in marketing. Marketing is a critical component but it is only one of several which need to be executed with synchronicity and efficiency in order to achieve greatness in attracting the right talent at the right time.

Other components include solid team architecture, the ability to directly source a percentage of critical talent that will not respond to marketing, functioning analytics that clearly demonstrate ROI permitting more efficient spend, grassroots social media involvement, search engine optimization, career web sites providing a good user experience that fully integrates with the ATS and HRIS, and sustainability through a center of excellence that champions internal subject matter expertise. Anything short of an integrated strategy involving all these components remains tactical, no matter how excellently it is executed.  

I didn't cover all the points in the survey. Other strategic components of a synergistic approach to staffing are detailed in the full report here:
http://www.arbita.net/Offer/Recruitment-Genome-Report-Download.html

 

AWOL Metrics

I was not surprised to find 38% of survey participants felt they have the right metrics to support their recruitment marketing decision, until I realized what that means in context with the previous finding. How could this exist while at the same time 70% of respondents are satisfied with their marketing strategy? To look at this another way, 62% of staffing leaders feel they have the wrong metrics, so how could 70% of them feel their marketing strategies are satisfactory? How could anything be proven satisfactory when it is not being adequately measured?

The reason is adequate recruitment marketing analytics are AWOL (absent without leave) for most staffing leaders. Even more disappointing is how few leaders expect to improve their metrics in the coming year. Why? Because however critical, measuring marketing strategy is both very challenging and time consuming without the right tools. One example of missing data is that more than half of the surveyed population utilizes direct marketing, yet that method is in no way reflected under their source of hire metrics. Also absent are detailed metrics around responses to search engine marketing campaigns, social networking activity or even results of organic search engine optimization. Via the survey we know smart companies are employing them, but when looking at their source of hire these methods are inadequately represented.

Blogs, SEO, SEM and Social Networks are Underutilized

Measurement is not the only gap, the other large gap is utilization. Only about 15% of respondents are utilizing blogs as a source of talent, yet blogs in all their shapes and sizes are among the largest sources of information online, larger than any one database. Only a quarter of the respondents have effective strategies for optimizing their organic presence in search engine query results, and fewer than that use search engine marketing to have a paid presence among those same results. Just shy of half the respondents have effective strategies to identify talent via social networks, and about the same percentage utilize search engines to identify online talent. It is clear to me that even if they get good at measuring from where their best hires come, employers have still a long way to go in tapping all the best sources of talent.

Job Boards Are Ineffectively Used

Traditional job boards are an area where I would have expected surveyed staffing leaders to have the most established, refined and perfected recruitment practices, yet I was stunned to find almost half were dissatisfied with their performance and less than 10% will spend more on job posting solutions this year. Is this because job boards are becoming less effective? No, it is because employers continue to approach job boards the same way they always have, while the Internet population has grown in both size and sophistication, and become more resourceful. People are seeking ways to connect, not just be "talked at" by an advertisement. Vertical search engines specializing in finding information in only one discipline, such as cooking recipes (allrecipes.com), movies (imdb.com) or jobs (simplyhired.com), are living proof that advertising works when it connects with the community by adding some value.

Employers shouldn't be surprised when response to their job board activity drops because they publish flat, un-engaging, untargeted and unimaginative content, without regard to their readers' interests. Improvements in those areas would increase results.

But job boards offer more than just advertising; they also have searchable databases full of interested job seeking prospects. It may seem a simple function of "enter keyword and find matching candidates" but that approach often misses talent hidden in plain sight. Though it ultimately means the same thing, employees often describe what they do using language different than what hiring managers use to describe their requirements. As a result resumes, blogs, social network profiles and other relevant content seldom contains the exact same language as in job descriptions, and good prospects go unnoticed.

Appropriate Technology

Through my tour of service in the Peace Corps, working in one of the most remote and inhospitable environments in the western hemisphere, the focus was always to utilize "appropriate technology." This term refers to utilization of technology that leverages local resources and is mindful of the population's cultural and social outlook. Rather than forcing the utilization of resource-draining technology just because it is available, staffing leaders would do well to learn from such a highly sustainable approach and utilize the simplest level of technology that effectively achieves their hiring goals.

Initial survey results clearly indicate that not every available solution is appropriate to every environment, and that inexpensive solutions are often ignored while costly ones are ineffectively utilized. Wisdom is in formulating an integrated strategy that maximizes resources you already have, and makes use of a mix of appropriate technology you haven't yet considered. My recommendation to staffing leaders is that they reach out to trusted external advisors who have their best interest in mind, and not just listen to vendors hawking their product or service as "the only solution you need." Now is the time to act, while others wait for things to get better, and when your dollars stretch much further than they do in the midst of hiring frenzies.

 

Are you curious about any of my conclusions? Would you like to challenge them or find different ones of your own? If so, you can get the full survey report here:

 

http://www.arbita.net/Offer/Recruitment-Genome-Report-Download.html

Cheers, Shally 
LinkedIn | My Bio | Skype | Twitter
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12 comments

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  • 1 point 4 months ago

    Great findings and "Must Hear" material for those that are making decisions.  Much like today's political environment; those making the decisions at the highest level need to "walk a mile in my running shoes" in order to make the right Strategy.

    Thank you for making this available!

  • 1 point 4 months ago

    Great work done by Shally and the Arbita team. This is the message we are endorsing as well. To many people are buying tools without the strategy behind it. Tools don't solve problems but create more problems to have to manage them all. We just released a SEO white paper that speaks about how little SEO is used in recruitment.

    Jason Gorham
    CEO
    Sharkstrike.com
    jg @ sharkstrike.com

     

  • 2 points 4 months ago

    "our service economy has given way to a knowledge economy" = very interesting.

    Shally,

    Do you feel it's currently a Hybrid of the 2 and, if so, what % would you assign to each of 'service' & 'knowledge'?

    Thanks!

  • 1 point 4 months ago

    Its always a hybrid. The shift from an agrarian-centric to an industrialized economy took a long time. And in fact we still have a very strong agrarian sector and continue to be one of the worlds largest producers of food. We'll always have agriculture, manufacturing and services. None of these "go away" completely but what I am suggesting is that the primary focus of economic growth does shift. What I believe we're seeing is that the knowledge based jobs are growing faster than service ones. Globalization and technological convergence are driving it. Keep in mind that many will consider Knowledge Workers to sill be in the "services" industry.

    What affects us as recruiters is that Talent - both the human beings we recruit and their intellectual property - are the center of this economic growth and are becoming even more important. As recruiters, we are going to be critical in the growth and survival of knowledge-based companies. Also, the way we value knowledge-based companies will need to be reinvented. The traditional measurement of assets fails because people are NOT assets. Downsizing is seen as a positive "cost cutting" measure and CFOs count people in the liabilities column (debits not credits). The shift I see is companies beginning to realize that their true value comes through people the employ. As they wake up to how important people really are in this new economy they will begin to recognize how critical the role of a recruiter really is.

    Seasoned staffing leaders already know this, and many are working to convince their CEOs and CFO. One of the goals of this survey is to provide the industry with the language and tools to make that case crystal clear.

  • 1 point 4 months ago

    good feedback, thank you.

    in regards to your point around how "...employees often describe what they do using language different than what hiring managers use to describe their requirements....";

    Do you feel the use of Tagging by Sourcing Recruiters (coupled with a CRM) could help overcome this issue?

    Looking forward to your thoughts, Shally!

     

  • 1 point 4 months ago

    Tagging isn't going to help much. The issue is that hiring managers write requisitions that describe what they need done with relation to their business goals. Candidates write blogs and LinkedIn profiles with language that describes what they do. The meaning is the same but the language is different. For example, if I'm a Recruiter its generally assumed that I know how to use Applicant Tracking Systmes. However, on my profile I don't write "proficient in iCims, Taleo and Peoplesoft." but a hiring manager may very well write "Must be proficient in Taleo" under the "must have" section of the requirements.

  • 1 point 4 months ago

    isn't that what built-in Data normalization is for?

    http://en.wikipedia.org/wiki/Database_normalization

    (link for anyone following along)

  • 1 point 4 months ago

    Ideally, yes, but "the Internet" is an enormous database which is not normalized. Such normalization should work inside a structured database, like LinkedIn, but even there you still have variations in meaning and subtext that make normalization very difficult. Semantic Web shows promise in this, as does Semantic Search. However, we lack the sheer computing power right now to solve this problem universally throughout the Internet. I'm soon releasing a white paper on Semantic Search that goes over how close we are getting to that and gives insight into some of the tools available to make that possible. I think that is potential solution to disambiguate search keywords.

  • 1 point 4 months ago

    i look forward to that paper.

     

  • 1 point 4 months ago

    This is good stuff- I like the report.  I'll be waiting for that (Resumix/Engenium/Resume Mirror/Trovix) magic searchbox too..... aint gonna happen for awhile because the distinctions between candidates are way finer than mere werds can convey. 

    Every hiring authority is like Justice Potter Stewart: "they know talent it when they see it....."   

  • 0 points 4 months ago

    I wish the actual survey questions and multiple choice answers were listed within the report. While I don't neccessarily disagree with many of the conclusions you have drawn, I do take issue with the answers provided and wished the survey scratched beneath the surface for hard data rather than using terms such as "feel", "believe", "satisified", "dissatsified".

    My sense is that there is an even greater gap between those firms who are successfully measuring & optimizing versus the rest. And I have a feeling the gap is widening which is good news for those of us who do successfully develop, launch, measure and optimize recruitment campaigns.

    As a practictioner in this space who measures everything (SEM, SEA, SEO, Job Boards, Banners, Online Videos, Social Media, Cable, Radio, Print, Mobile Mktg, Email Mktg, etc ) and optimizes campaigns just-in-time to derive the best possible response, the questions and answers in the survey are too facile and frankly soft. I measure media to hire by position and location and optimize weekly (if not daily). The Wall Street Journal wrote about it in their Management " Theory & Practice" section a couple of months ago. I participated in the interview along with my client and it was all based upon solid, unbiased metrics

    http://online.wsj.com/article/SB123638064919857503.html

    There seems to be no shortage of people who advise doing these things you have outlined (but do they actually design and successfully execute? Probably not. They talk about that in the WSJ article, too). Based upon this survey there seem to be a fair number of recruiters who think they are doing these things, but my guess is that far fewer than 70% are actually measuring anything at all beyond initial click-through, and they may not even be doing that. I would wager over half of that 70% who claim to measure, base their measurements on candidate self-reporting or recruiter anecdotal reporting rather than a truly objective measurement tool.

    If the respondents are disatisified with their media buy and feel they are paying too much...what is that based upon? A hunch? A gut feeling? Is it based on "cost" or on "value"? "Application" or "conversion to hire"? Do they even have a measurement tool in place to establish a "value"? And to establish it per position? Do they only look at the campaign post-mortem when it's too late to do anything about it. Shame on them.

    Of those respondents who track the effectiveness of the media being used...what do they track? Click throughs? Applications completed? Interviews? Hires? Time to fill? Quality of hire? What costs do they plow in to setting up CPH, CPI, CPA, etc? Is it just media, or do they include soft costs, too, such as recruiter salaries, overhead, T&E for interviews, relo? Do they use a Recruiting Efficency Index to include the premium for sourcing certain positions?

    How many people do they hire? What types of positions? Where do they hire? Do they segment the media and strategy to determine performance by position, volume and geography? I do, but I doubt many others, do.

    If they are disatisfied with performance...what do they do about it? And if they are disatisfied but don't do anything, why don't they? When do they know? How do they know what would be a satisfying performance? Do they have a strategy to do anything about it once an underperforming media has been identified?

    Mike Vangel

    Vice President, Client Strategy

    TMP Worldwide

     

  • 1 point 4 months ago

    Mike - you can see the questions and which choices are given by completing the survey yourself. 

    In fact, I urge anyone who reads this to go ahead and complete the survey! 

    http://www.zoomerang.com/Survey/?p=WEB228PLM55TNK