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Category: Recruitment

Posted on July 26, 2011August 9, 2018

Adecco Announces Plan to Acquire Drake Beam Morin

Adecco Group, the world’s largest staffing firm, plans to acquire New York-based outplacement firm Drake Beam Morin Inc.


The transaction is expected to close in the third quarter.


Adecco’s Lee Hecht Harrison outplacement division ranked as the second-largest outplacement firm on Staffing Industry Analysts’ 2010 lists of largest staffing firms. Drake Beam Morin ranked as the third-largest. ManpowerGroup Inc.’s Right Management divison was the largest that year.


Adecco reported Lee Hecht Harrison’s main markets were in the United States and France, and the acquisition of Drake Beam and Morin will expand its geographic reach and give it a leading position in the United Kingdom, Canada and Brazil.


“I am very pleased that Drake Beam Morin Inc. is joining forces with Lee Hecht Harrison,” said Adecco CEO Patrick De Maeseneire. “The combined businesses will provide a global presence in the outplacement and talent development services sector, enabling us to better serve our clients internationally. This fits very well with our customers’ increasing needs for global solutions across the full range of HR services.

“The move strengthens Adecco with an effective counterbalance to the temporary and permanent staffing business, given the counter-cyclical nature of the career transition sector.”


Drake Beam Morin was founded in 1967. It was owned by Compass Partners, a London-based private equity firm.  


Filed by Staffing Industry Analysts, a sister company of Workforce Management. To comment, email editors@workforce.com.


 


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Posted on May 20, 2011June 29, 2023

NASA’s Mission: Launching More Young Careers

For Garth Henning, it must have felt as if the planets were aligned at NASA. “When you saw somebody in the hall who was kind of close to your age, you’d stop and introduce yourself. This was very unusual behavior for introverted scientists and engineers,” recalls Henning, an engineer in the Space Operations Mission Directorate at NASA headquarters in Washington, D.C., which oversees the Space Shuttle and International Space Station programs. Henning, who is 36, says there were so few employees under the age of 40 that younger workers almost instantly gravitated toward each other.

Most workplaces aren’t nearly as “monogenerational” as NASA, which employs 18,000 people. Because of a big recruitment surge in the mid-1980s, followed by a hiring freeze lasting through most of the 1990s, the average employee age at NASA exceeded 47 by 2007 and less than 20 percent of the federal agency’s workers were under 40. Aside from limited social interaction with other young employees, Henning says, “We had difficulty seeing any promotion potential for ourselves.”

Clearly, NASA needed to prepare for its future by trying to recruit more people from both Generation X and the millennial generation and create an appealing workplace for younger employees. Like many employers, NASA also had to develop programs to integrate younger workers with the older baby boomer and traditionalist generations. Indeed, it was Gen Xers like Henning who got the ball rolling. Younger workers found one another and began organizing. They tackled social stuff first. “Most people wanted to know more about softball teams than retirement planning,” Henning says. Grass-roots groups gradually sprang up in more centers, and people with contacts at multiple centers began stitching together an agencywide group known as “Next Geners.”

Toni Dawsey, NASA’s former assistant administrator for human capital management, brought some Next Geners to a Strategic Management Council meeting in 2008. The workers identified significant concerns, including the need to gain leadership training and experience, a perceived lack of advancement potential and limited communication and collaboration across generations. Impressed by the feedback, then-administrator Mike Griffin charged center administrators with setting up cross-generational meetings to address the Next Gen concerns.

Dawsey, who retired from NASA in 2010, was put in charge of implementing changes agencywide. One of her first acts was to dust off NASA FIRST, a leadership development program for early-career professionals that had languished on a shelf for two years. FIRST, which stands for Foundations of Influence, Relationships, Success & Teamwork, targets GS-11 and GS-12 employees—on the federal government’s 15-grade General Schedule wage system—who are usually in their 20s. “Professional development is a huge part of the NASA culture, but the Next Geners had identified a gaping hole,” says Erica Bovaird, FIRST’s program manager.

The competitive program guides 40 high-potential participants, who are selected by judges, through a yearlong leadership development curriculum. Participants work in small groups on projects, and the teams are each assigned a sponsor, adviser and mentors. Many individual centers have created their own mentoring programs and social groups. For example, a Developing Professionals Club at Glenn Research Center in Cleveland focuses on career growth, community service and networking. Its members interact with senior management at various events.

Another priority identified by Next Geners was a desire for formal employee orientation. In response, Ames Research Center at Moffett Field, California, formed a multigenerational group called OpenAmes that eventually spread to the agency level. “Our onboarding programs are now very advanced and multigenerationally friendly,” Dawsey says. Each new employee is paired with an experienced sponsor who serves as a guide.

New technology often provides opportunities for collaboration across generations. At Goddard Space Flight Center in Greenbelt, Maryland, Next Geners assisted with the redesign of the intranet and launched Spacebook, a NASA version of Facebook, to help workers connect. Spacebook proved so popular that it was soon adopted agencywide. Despite such efforts, the percentage of NASA workers under the age of 40 stubbornly remains below 20 percent. But the space agency remains hopeful that its programs for the younger generations will ultimately produce a galaxy of new stars.

Workforce Management, May 2011, p. 16 — Subscribe Now!

Posted on April 7, 2011August 9, 2018

How to Hire 50,000 People in One Day

McDonald’s is looking to hire 50,000 people across America on April 19.


Before you get snarky and start brainstorming the ad campaign they need, you have to ask the obvious question: Why set a goal as an employer to hire 50,000 people in a single day?


The answer is equal parts need, call to action, PR and production line. Follow along as I use McDonald’s to break down when it makes sense for a company to draw a line in the sand and hire 50 (or 50,000) people in a single day. I use 50 as an alternative to 50,000 because most of us will never have a goal of 50,000 hires. But 50 in a day can be as intimidating as 50,000.


Simply put, hiring 50 (or 50,000) in a single day makes sense when:


1. You need to make a bunch of hires but your time-to-fill has died out in recent months. You’ve got open positions, but the sense of urgency across your recruiting organization resembles the look you get when you ask a Kmart worker for help. That line in the sand looks like a good way to get your recruiting team’s attention.


2. You have multiple openings for the same position to set your focus. Lots of openings across the same position means you use the same hiring funnel to make multiple hires. That’s called economy of scale by folks who understand production.


3. Your hiring managers have de-prioritized recruiting and you need a call to action (the risk of public humiliation) to get them motivated. Time to fill/hire is the metric for which you are held accountable, and managers tend to use it to point the finger at you. There’s no better way to create accountability among line managers for hiring than with a BHAG (big, hairy, audacious goal) that’s supported by your C-suite.


4. By focusing on a single day for hiring, you can create a sense of urgency with candidates and maximize your PR/advertising spend. If you have to hire a bunch of people by a specific day, it makes sense that you can maximize your awareness among candidates by putting a perishable date on your process. Raise awareness regarding the date by advertising and working traditional PR channels for media coverage.


5. You’ve got the discipline, recruiting skills and infrastructure to execute on the plan once established. Ah yes. It’s easy to create a date, but you can only use the “big day” approach if you’ve got the recruiting infrastructure and ability to deal with the volume hiring 50 (or 50,000) people in one day can create.


Not sure what infrastructure is needed to pull off that many hires in a single day? Here’s your cheat sheet of what you’ll need as a talent/HR/recruiting function to make it happen:


1. A big fishing net across all digital sources of hire. You need applicant volume to hit your goal—and lots of it. Have a detailed plan for your use of big and small job boards, job board aggregators and search engine optimization to ensure you have the top-level volume (candidates) to work through the hiring funnel and get to your goal (hires).


2. An analog promotion and sourcing plan. If you’re planning on hiring 50 or 50,000 people at once, simply spraying all digital sources with postings isn’t going to give you all the flow you need. You’ll need feet on the street to hit job fairs, community sources and to also source candidates via the phone who don’t directly apply to your company. You cast the net through the job board and aggregators; this is the part where you go find the candidates. Track your success and have an idea related to what percentage of your prospect flow will come from the analog side/hunting.


3. A PR/advertising presence to help you get the word out. You’ve created an event, so it makes sense that you’ll also try to develop candidate flow by having a PR person or firm work the local media on your behalf, and don’t forget that a hiring day like the one you’re pondering is one of the actual times that the old model of traditional media advertising actually can work.


4. Technology to help you handle all the flow that’s going to spill into your organization. Don’t try to hire 50 or 50,000 people in one day without an advanced applicant tracking system, and don’t attempt it without a comprehensive review of how candidates come in, are categorized and handled during the process. Optimize the system for what you’re about to experience.


5. Pipeline management that looks more like Salesforce.com than anything you’ve seen out of your current HR/recruiting setup. Your sales organization handles forecasting through an activity known as “pipeline management,” which places all incoming leads at the top of a funnel and then starts eliminating leads deemed as nonviable through a five- or six-stage process. Your volume in this type of recruiting process is going to be so high that, unless you think like a director of sales, you’ll fail. You need to know how many applicants/prospects it takes to get one phone screen, one live interview and one actual hire. Only by knowing your pipeline like you know your pets or kids will you hit the number you’ve promised on the day in question. Be ruthless in your projections.


6. Early stage assessment tools to weed out candidates who will waste your time. You’re dealing with enough volume that it makes sense to use assessment tools designed to help eliminate candidates who don’t fit. Find the right tool and put it in play. The tool is cheaper than an hour of the hiring manager’s time.


7. Reporting that forecasts whether you’re going to make your goal. Got a month until the big day? Use the pipeline described in No. 5 to let everyone know where the company stands versus the goal. Use the reporting to embarrass those who won’t commit to the process. Your applicant tracking system described in No. 4 should be optimized to do that reporting for you.


8. Recruiters with the ability to confront and negotiate quick outcomes. There’s going to be a lot of volume flowing through the system with this type of hiring initiative. It’s no place for a passive, farming recruiter. Your recruiting team is going to have to drive the post-interview conversations with the hiring manager to close—getting to a yes/no, go/no-go decision on every candidate. Your volume is going to be so high you don’t have a choice; force the organization to make the hiring decisions quickly and on the fly.


Still want to hire 50 (or 50,000) people in a single day or within a one-month window? Start thinking more like a director of sales; monitor the volume in your sales funnel and close candidates quickly—and you’ve got a chance.


Workforce Management Online, April 2011 — Register Now!

Posted on March 7, 2011August 9, 2018

U.S. Automakers Comb Colleges to Engineer Industry’s Future

Two of Detroit’s Big 3 automakers have embarked on a hiring binge in recent months, and they’re not just seeking blue-collar assembly-line workers to re-staff recently reopened facilities.

Late last year, General Motors Corp. announced the addition of 1,000 engineers during the next two years to focus on its next generation of electric vehicles, while Chrysler Corp. committed to hiring 1,000 researchers and engineers by the end of the first quarter of 2011 to help with global growth and the expansion of its small and midsize vehicle lineup.

Yet recruiters face challenges in wooing candidates to an industry and a region beset by years of financial hardship, plant closures and massive layoffs. Though American auto buyers seem to be warming again to the Detroit 3’s products, skepticism remains in and around the Motor City about its ultimate recovery—particularly among residents of Michigan who suffered through the industry’s decline that culminated in bankruptcy for GM and Chrysler.

Kristin Dziczek, director of the Program for Automotive Labor and Education and a director of the labor and industry group at the Center for Automotive Research, says despite a sluggish recovery, auto companies can’t skimp if they want to entice top talent.

“For automotive engineering and technical jobs, it is quickly becoming a candidates’ market—especially for those with advanced powertrain, electrification or embedded software skills,” Dziczek said. “Any company looking to acquire talent in this market will need to have attractive economic packages as well as other job qualities that are attractive to these people.”

Dziczek said automakers must commit to hiring full-time employees rather than temporary or temp to permanent workers. The brightest talent, she said, will only be attracted by full-time work with a salary and benefits.

Potential employees also will be looking for incentives like assurances of advancement on a technical path and not just a promotion into management, as well as company support for additional training and education to develop their skills.

Dziczek added that the automakers must give their employees the freedom to innovate if they want to attract the most gifted and creative engineers.

According to Chrsysler spokesman Michael Palese, the automaker’s recruiting efforts are under way and on track to have completed hiring 1,000 new employees by the end of 2011’s first quarter. Many of the new hires are coming straight from the classroom.

“We are very aggressively recruiting at colleges and universities and are currently on approximately 35 college campuses where we have teams of employees who are working with those colleges and universities to develop different recruitment programs,” Palese said. “We are certainly working with associations like the Society of Automotive Engineers and within organizations that we have close associations with such as National Black MBA Association and Black Engineer of the Year and others to attract talented people and a diverse workforce.”

Palese says employees who were laid off from Chrysler are “welcome to apply” for the current job openings, as are other applicants. The company, he said, seeks and selects, “a diverse array of candidates who can contribute to the success of our business.”

The booming overseas auto industries aren’t a target for Chrysler, Palese said.

“There are so many people here who are looking for work, and we are working with them,” he said.

The aggressive on-campus recruiting effort received a push from newly elected Michigan Gov. Rick Snyder’s Reinvent Michigan initiative. The newly elected governor has pledged to keep more of the state’s brightest students in the Michigan workforce after graduation.

The amount of students leaving the state in recent years was startling; in 2008, 53 percent of Michigan-native grads of the University of Michigan fled the state, according to the university.

According to Garth Motschenbacher, academic specialist for electric and computer engineering at Michigan State University, automakers have made their presence known on college campuses.

“Engineers are very hands-on and they like technology,” Motschenbacher said. “Ford had a night in November where they brought some of their new, slick automobiles on campus, including the new cruisers they are putting out to the police departments across the nation. That got a lot of attention.”

GM held an event last summer where students, faculty and staff could test-drive new vehicles, Motschenbacher said. The automaker plans to hold a similar event in the fall.

Motschenbacher said face-to-face encounters with students are as important to the recruiting process as compensation and benefits packages. While he encourages all companies he works with to meet job candidates, he believes it is especially important for automakers, whose reputations have been tarnished in recent years. Convincing students that the American auto industry is regaining its health will be the first step in the hiring process.

These students, particularly those from Michigan, “have seen the free-fall and near demise of the domestic car companies up close and personal,” Motschenbacher said. “Although students these days can be quickly engaged, they are also a brand-loyal group who has seen loyalty in the auto industry personally affect the lives of family and friends.

“If you are going to come recruit them and advertise a job, you first have to convince them that what they grew up knowing and learned is not what the future holds for them.”

Workforce Management Online, March 2011 — Register Now!

Posted on February 25, 2011June 29, 2023

Recruitment Process Outsourcing Is the Wave of the Present

Recruitment process outsourcing, or RPO, has matured and grown quickly over the past few years, with no small help from the economy, which drove many companies to limit or even dismantle their internal recruitment efforts in cost-saving measures.


Now that the economy is beginning to pick up and companies are in a position to hire, RPO providers are bounding up to the plate wielding a heavy bat.
 

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   In many traditional human resources departments, recruiting skills have slipped or nearly disappeared in recent years because of budget cuts. But RPO providers have held on during rocky economic times, and many now stand to reap the benefits from their continued skill building, global expansion, and development of new recruitment tools and technology.


Analysts noted robust growth in the RPO industry in 2010, with twice as many deals signed last year as in 2009. And they predict more big gains in the coming year. According to the 2010 annual report on RPO by Everest Group, a Dallas-based consulting and research firm, the $1.1 billion RPO market is projected to grow by as much as 30 percent in 2011, reaching $1.45 billion.



Despite steady growth, however, the RPO industry has been kept at arm’s length by some wary companies. A November 2010 report by Aberdeen Group Inc., a Boston-based research organization, said top concerns of those hesitant organizations are cost and the ability of the RPO provider to represent the corporate brand well. In the survey of 200 companies, only 40 percent currently use RPO. Twelve organizations, or 6 percent of those surveyed, had returned recruiting to an in-house function after trying outsourcing. They said that RPO providers didn’t hold costs down, failed to provide enough quality candidates, and didn’t successfully communicate their culture or brand to job candidates. In some cases, companies dropped RPO because the recession brought recruiting to a virtual standstill.


“RPO is not for everyone,” says Jayson Saba, a research analyst and author of Aberdeen’s report. “One thing came clear to me and that is a lot of organizations are not ready because negative connotations associated with outsourcing outweigh the possibility of having a conversation with a senior executive at a company to get their buy-in.” Smaller companies, in particular, are reluctant to discuss RPO, and, in Saba’s opinion, need to be educated about how RPO really works and to hear a strong business case for it. Selling the idea of using an RPO is especially challenging after a small company has just laid off recruiters. The attitude, he says, is: “Now you’re telling me that we have to spend money on RPO after we just let two people go?”


But such concerns are slowly disappearing, according to industry leaders. Paul Harty, president of the Boston-based RPO firm Seven Step Recruiting, recently attended an RPO conference and noted a common observation that buyers are overcoming previously held prejudices. “The fear is loss of control, cost overruns and managing a contract well,” he says. But, he adds, more buyers are growing comfortable with the notion of partnering with RPO providers.



“The type of companies that do it well,” Saba adds, “are the companies that really nailed the partnership piece with the providers.”


But getting to that point takes time. “We saw buyers wanting to tiptoe into the RPO side of the picture, and as they move along and become more comfortable with this idea, we expect them to expand their scope,” says Rajesh Ranjan, the New Delhi-based research director for Everest Group. “They’re wanting to start because they have a need, but they don’t want to go the whole hog, and hence they’re starting small.”


At Hydro One Inc., the largest electricity transmission and distribution company in Ontario, Canada, the efficiency and scalability of its RPO provider won over the HR department after a few initial concerns. “It took a little while to get used to not having our own recruiters,” says Cedric Stevenson, leadership development and recruiting manager. There was uneasiness about not having direct control as well as concern that the RPO provider would not understand the business as well as internal staff. But, Stevenson says, “That’s a matter of time and exposure and education—on both sides, I think.”


After a trial period, the benefits of greater efficiency became clear. “The external folks held our managers a little more to datelines and timelines in order to make their service level commitments to me and the HR function,” Stevenson says. At the same time, he adds, the managers appreciated the ability of the RPO provider to quickly scale up or down recruitment according to fluctuations in hiring needs.


Buyers’ fears of cost overruns are best allayed by RPO providers that diligently measure performance. “We aggressively measure everything because our clients and our prospective clients really like the idea of being able to see the ingredients in the recipe,” Harty says. “Providing that level of transparency is something we concentrate on.” Seven Step provides data to show how clients can increase efficiency and thereby reduce costs. For example, Harty says, if the buyer’s hiring manager fails to respond in a timely manner to a candidate after an interview has been completed, the RPO can make suggestions on how to expedite the process.


Some savvy buyers have overcome the fear that an RPO firm won’t properly represent their brand by allowing it access to company operations. But for wary companies, that is easier said than done. Carolina Figoli Padron, HR director at Merrimack Pharmaceuticals in Cambridge, Massachusetts, says her company was at first reluctant to allow such access to its RPO provider, the Bowdoin Group. “When we first started working with them, we didn’t know how involved we wanted them to be,” she explains. “But we started realizing that they didn’t have all the information that they needed in order to sell the position.”


Now, with confidentiality agreements in place, Padron is comfortable with allowing Bowdoin to learn the inner workings of Merrimack in order to represent it well. “We want a close partnership,” she says. “What we are as a company depends on the people we bring in, and if they don’t bring us good people, then what are we going to become as a company?”


An additional benefit of RPO is the time it saves. “It has freed up time in our department to deal with other team issues around conflict resolution, teamwork, development or motivation, among others,” Padron says.


Terry Terhark, CEO of the RightThing Inc., considers learning the corporate culture such an important part of the partnership that he’ll send his recruiters in to load trucks or work in call centers, which increases understanding of the company. Recruiters also often sit with recent hires during orientation.
RPO firms also are branching out geographically to better meet the needs of multinational clients. A recent report on RPO by Horses for Sources, a blog and research firm, and EquaTerra advisory services, notes that many RPO providers have extended their global reach.


For example, the RightThing, based in Findlay, Ohio, and London’s Alexander Mann Solutions have been partners for three years. Between them, they pretty well cover the world. But not quite. After realizing that growing demand for candidates in Latin and Central America could no longer be handled by its offices in North America, the RightThing opened a branch last summer in Buenos Aires, Argentina.


“Most of our clients are fairly large multinational organizations,” Terhark says. “They’ve always had Central and Latin American needs, but we’ve continued to capture more and more of those openings as we’ve grown our global footprint.”
 


Workforce Management, February 2011, pgs. 12, 14 — Subscribe Now!

Posted on February 15, 2011August 9, 2018

Study: Insurance Industry More Optimistic About Hiring

A study of insurance industry hiring finds that companies are more optimistic than they were six months ago, with 44 percent of those surveyed indicating they expect to add staff during the next year.

The percentage of companies expecting to add staff was an 11.6 percent increase from the percentage expecting to do so in the previous Ward Group and Jacobson Group Insurance Labor Market Study six months ago.

The latest survey, released late last week and conducted in January, also found that 44 percent of those surveyed expect to maintain their staff size during the next 12 months, with 13 percent anticipating staff decreases, down from 15 percent who indicated they expected staff cuts in the previous study.

Of the top reasons given for anticipated staff increases during the next year, 30 percent cited business expansion, 26 percent cited anticipated increases in volume, 23 percent said they are understaffed and 15 percent said they planned to add staff to improve service.

Of those planning staff decreases, 20 percent cited automation as the reason, 16 percent said they are overstaffed, 15 percent cited reorganizations and 14 percent said they expected to cut staff because of anticipated decreases in volume.

The Ward-Jacobson study surveyed 106 companies, 82 percent of them property/casualty insurers and 18 percent life/health companies. It was the fourth such survey conducted by Chicago-based staffing and executive search firm Jacobson Group and Cincinnati-based consulting firm Ward Group.   

Filed by Rodd Zolkos of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

 

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Posted on February 8, 2011August 9, 2018

Benefits of Workplace Ranking Programs Extend Beyond Recruiting

As teenagers, Kari Yuers and her brother did their chores in the factory founded by their dad, an inventor and entrepreneur.


At the Vancouver, British Columbia, headquarters of Kryton International Inc., Yuers hauled buckets and cleaned floors—and experienced life as a Kryton employee firsthand. As Yuers advanced through the company that her father founded, becoming general manager and eventually CEO in 2001, she resolved to add the personnel systems and programs Kryton was lacking.


“When I became CEO, I was keen to build a great company to work for,” she says.


Yuers has since achieved her goal. Kryton was named the top manufacturing workplace by BCBusiness magazine in 2010 and the No. 2 workplace overall. Yuers began entering workplace ranking programs in 2008.


“One of my goals when I hired a full-time human resources professional was to win one of these awards,” she says.


But Yuers’ objective wasn’t just publicity. She saw the ranking program, which surveys the employees of organizations that enter the competitions, as an opportunity to get feedback on what Kryton was doing well—and what it wasn’t. In 2008, the company placed ninth; Yuers used the results to identify the 10 lowest-ranking areas and created a plan to address each.


Organizations enter workplace ranking programs for a variety of reasons. The National Rural Electric Cooperative Association, or NRECA, has been entering since 2003, primarily to attract qualified candidates.


“Our employment brand is not a big name. We felt we needed something extra special to get the attention of candidates,” says Paul Hvidding, director of human resources at the Arlington, Virginia-based association.


The organization regularly enters four major programs: the Northern Virginia Family Services Companies As Responsive Employers, or CARE, Award, Washingtonian magazine’s Great Places to Work, Computerworld’s 100 Best Places to Work in IT, and the AARP’s Best Employers for Workers Over 50.


The positive PR generated by the awards extends beyond recruiting, says Hvidding. “The recognition reassures current employees as to our value proposition, and it sets the bar pretty high. Our managers and supervisors aspire to create a work environment we can all be proud of.”


Hvidding also uses the information generated as a benchmark and a driving force. When NRECA entered its first program in 2003, it did not win. “We learned from that experience and made some substantive changes to our benefits and programs,” he says. Hvidding also reviewed the information submitted by the winners and realized that NRECA did do some things he hadn’t highlighted well.


Medallia Inc., a Palo Alto, California-based maker of customer experience management software, is new to the rankings game, having entered its first program last year. Employee recruitment was the goal, says Amy Pressman, president and co-founder. “The company had doubled in size in the previous year. We had a great culture but were kind of a well-kept secret,” she says. “Although we have a strong employee referral program, we wanted to cast our net wider.”


To enter the program sponsored by the Bay Area News Group, Pressman permitted an online survey of all of her employees.


“I like that employee participation eliminates a company’s ability to spin” the information submitted, she says.


The reward was twofold: Medallia received customized survey results that showed how it did in various dimensions as well as how it compared with other companies. Recruiting benefited, too, although not exactly as Pressman had planned.


“The payback was slightly different from the goal,” she says. “I’m not sure how many candidates [the award] attracted, but it added to our credibility and made [working here] a faster sell.”


Some companies find that the benefits of workplace ranking programs can extend over time. Beryl Cos., headquartered in Bedford, Texas, entered and regularly placed high in workplace ranking programs for about seven years. The company, which was named No. 2 in the nationwide Great Places to Work program in 2007, stopped entering programs about a year ago.


“We had won the best of the best,” explains Lara Morrow, who goes by the title “queen of fun and laughter.” “It is a lot of work to gather the information, and we felt that we were inundating our employees with surveys.”


Morrow estimates that completing the application for the Great Places program took about 100 hours. However, the company has reaped significant advantage from the recognition, and continues to do so.


“Employees, vendors and clients want to work with us. Our recruiting costs have declined by half, and we now enjoy a 60 percent employee referral rate,” Morrow says.


She also notes that the awards aid retention. “People are aware that they have found a job someplace special and are much less likely to jump ship for 50 cents or a dollar more per hour.”


Workforce Management Online, February 2011 — Register Now!

Posted on January 12, 2011August 9, 2018

The Five New Rules of Using Social Media to Evaluate Candidates

As an HR pro, you’ve had it drilled into your head that, above and beyond all else, you need to be concerned with liability.


After all, there’s liability everywhere, isn’t there? Hiring, firing, promotions, credit checks, performance plans … tell me when to stop.


You know you like it. That’s your job. You’re the HR pro.


All the talk about liability can make HR pros a risk-averse group, so much so that a running joke somewhere in your company goes something like this:


Question: I hate this initiative. How do we guarantee our company will never take action on it?


Answer: Include a member of the HR group on the due diligence team and have them report on the potential discrimination risks. Make sure there’s a formal report that’s distributed to everyone.


That’ll kill it—and kill it good.


Liability is so top of mind that there’s a whole industry dedicated to telling HR pros what can get their companies sued and how to avoid it. Much of that advice is well-intentioned and valuable, but occasionally it feels more like fear mongering.


Translation: There’s one thing the HR police/risk management industry will never evaluate for you: the liability associated with not using your common sense as an HR pro.


Case in point: The current trend of pondering the liability related to viewing the social media accounts of candidates in your recruiting process.


Go to any HR conference these days and you’ll hear speakers waxing poetic about the risks of viewing the social media accounts of candidates in the selection process. It’s the obvious stance when you think about it. You viewed a social media account, saw something you didn’t like and made a hiring decision that had nothing to do with someone’s ability to do the job.


Shame on you if you judge candidates based on what they share via social media, they say.
I say shame on you if you don’t judge candidates based on their profiles.


There’s a new set of rules related to using social media to evaluate whether candidates are the right fit for the job and your company. You can’t afford to be scared; you’ve got a job to do.


Need the CliffsNotes? Here are the five new rules of evaluating candidates using social media:


1. You can’t afford not to Google a candidate and see where the digital trail takes you. Ask your CEO the following question: “Do you expect me to do everything legally at my disposal to ensure the hires we make can do the job and are great fits for our company?” It’s a hypothetical question, because the answer is always yes. Your CEO expects you to deploy all legal measures you can reasonably afford to make sure you’re making great hires. He or she doesn’t want to get sued, but doesn’t want you to be a wallflower. Rule No. 1—maybe the only one you really need to understand—you’re expected to be in the game. You’re an agent of the company, first, last and always.


2. Hiring managers and HR pros are becoming much more tolerant about what they see in a candidate’s social media footprint. The transparency of social media created a bit of a blowback effect in the early days. We never had access to pictures of candidates drinking before, so there was some shortsighted judging going on as a result. Now? We’ve seen enough to remember that people drink socially. As a result, we’re much more tolerant when we find out that a candidate’s not spending weeknights at church. Our threshold for what constitutes a red flag is much higher and more related to whether someone can do the job. That’s a good thing.


3. You don’t give many candidates the real reason they were rejected, and that doesn’t change simply because social media is at play. Unless the candidate in question has a skills gap, most organizations don’t share the real reason for rejection. As a candidate, you had a personality issue and seemed a little angry at the world during the interview process. Did the company provide you with candid feedback? Of course they didn’t. We’re already trained on what not to say that might present liability in the feedback process. Why should questionable pictures or content mined through social media be held to a higher standard?


Stop me when you’ve heard this risk reducer: “We’ve elected to make an offer to a candidate who was a better fit for the role in question.” The statement is true when you don’t think someone can get along with the hiring manager and it’s true when they’ve blasted opinions via social media that most at your company would find objectionable.


4. Privacy settings have eliminated much of the liability related to social media. By far, the biggest risk to your company is digging into a social media account that is intended for nothing but personal use by a candidate. Facebook is the choice of most candidates when it comes to communicating events in their personal lives, and privacy settings now allow a candidate to wall off what they don’t want the world at large to see. As a result, liability has been greatly reduced during the past two years.


5. Evolution means some species don’t advance. You pay your employees to exercise good judgment related to what, with whom and how they communicate. This requirement is on display daily in your company, and when someone shows they can’t do it, you separate them from the mother ship (that’s called termination, folks).


Even though we’ve grown up dramatically related to our reaction to personal details shared via social media, occasionally someone will share something so egregious you know there’s a judgment issue at play in their DNA. That means they don’t get to play in your company at which time you share the talking points detailed in item No. 3.


Your CEO wants you to use all tools available to make the best talent matches possible. The HR risk management industry wants you to be scared.


What should you do? Don’t be scared. Manage the risk and engage.


Workforce Management Online, January 2011 — Register Now!

Posted on December 28, 2010June 29, 2023

What Employers Should Know About Hiring Independent Contractors

Using independent contractors to perform work that is not usually performed by an employer’s regular employees is a very popular concept. It allows the employer to save money by paying the independent contractor on a contract or hourly fee basis without having to withhold employee taxes or to pay for employee benefits or workers’ compensation coverage.


There is a downside, however, to hiring independent contractors, notably the potential liability for the work of the independent contractor or for mistakenly considering an individual to be an independent contractor when the individual should be classified as an employee. How can you protect yourself against these forms of liability?


Work of the independent contractor
Under normal circumstances, the entity using an independent contractor is not liable for the work of the independent contractor. However, you can still be sued for the negligence of the independent contractor based on several legal theories such as subcontractor or agency principles. To protect against third-party claims, the responsibility of the independent contractor for the work it performs should be clearly defined in an agreement that provides that: (a) the independent contractor agrees to “defend and indemnify” the employer for any liability arising from the work or the work product; (b) the independent contractor maintains sufficient liability insurance coverage to protect the employer; and (c) the independent contractor’s liability policies name the employer as an additional insured. Employers should periodically check on the insurance coverage of the independent contractor to ensure that necessary coverage continues to be in place.


Misclassification of independent contractor status
Determining independent contractor status can be complicated. Although there are hundreds of pages of regulations and a list of factors that have been adopted by the U.S. Supreme Court and the Internal Revenue Service, one of the most determinations is whether the independent contractor has control over the “manner and means of performing the work.” If this question cannot be answered in the affirmative, it is likely that the individual you are using will be considered an employee and you may be held responsible for not withholding employee taxes, not paying overtime and any penalties for failure to do so. In addition, based on the length of time that the independent contractor has worked on the project and other factors, you could also be required to provide employee benefits to those individuals, including pension benefits. Although the IRS is hard-pressed to make many investigations of this nature, it still manages to bring in millions of dollars a year in fines from those employers who are liable for misclassification.


As far as staffing services, it could be a serious mistake to employ an independent contractor simply because the customer wants you to. The entity paying the independent contractor will be exposed to liability regardless of whether the customer made the determination of independent contractor status or where the independent contractor is working. If you desire to accommodate the customer in this situation, you should (a) accurately verify independent contractor status; (b) require that the customer contractually assume responsibility for making that determination; or (c) hire an outside firm to handle the administration of the independent contractor payroll, including actual payment.


Workforce Management Online, December 2010 — Register Now!

Posted on December 6, 2010June 29, 2023

Employee Referrals Remain a Recruiters Best Friend

The old adage “People are our most important asset” is particularly true when it comes to stocking the workforce.


Consider that 88 percent of employers rate employee referrals as their No. 1 source of above-average candidates, says John Sullivan, a San Francisco State University professor of management, who adds that employee referrals top executives’ lists in terms of quality and longevity of hire and return on investment. And, Sullivan says, turnover of new hires from employee referrals is 32 percent lower after six months.


“Employees refer candidates with similar qualifications and skills,” says Anne Murguia, vice president of marketing at Jobvite, a site that merges referral and tracking capabilities with social networking. “They’ve set the candidate’s expectations, so there’s likely to be a better fit.”


Murguia adds a statistic discovered in Jobvite’s research: One in 10 employee referrals are hired vs. 1 in 100 applicants who apply over the transom.


Chicago-based consulting firm Accenture has been recognized frequently for the quality and strength of its employee referral program. Its goal, says John Campagnino, senior director of recruitment, is to make current employees Accenture’s top source of talent.


“The quality of employee referral candidates tends to be very high,” Campagnino says. “There’s a strong sense of stewardship and understanding among our employees.”


Policy and process is key to the program’s success is two critical elements. Campagnino says to build a policy that lays out internal rules and regulations as well as reward and recognition potential. Then craft a process that is easy to use and that lays out intelligence—how the program will be tracked and measured—upfront.


Rewarding employees who make referrals are common and help organizations demonstrate their appreciation. At Accenture, more than one-third of new hires are generated by referrals; rewards range from $2,000 to $7,000 or more.


“We run special campaigns for specific skills” that might net higher rewards, Campagnino says.


R.J. Morris, director of staffing for McCarthy Building Cos. in St. Louis, regularly encourages the company’s 1,600 employees to refer candidates. His program includes a variety of rewards, ranging from gift cards at the interview stage to bonuses up to $5,000 for a successful hire.


Accenture recently launched a one-step referral website that allows employees to suggest candidates for specific openings or to make general referrals; its use is open to all employees as well as Accenture alumni.


Morris says it’s important to make the referral process easy for employees. He relies heavily on referrals as a source of qualified candidates and ensures company colleagues that the staffing team will do the legwork.


“All you have to do is give us a name and a phone number or e-mail address; we will do the rest,” he says.


To Morris, the ability to accommodate outliers is crucial.


“I would much rather spend my day trying to figure out how to fit a really good person into our organization than trolling social networks looking for candidates,” he says.


Company culture underlies policy and process, Murguia says.


“Building a culture of referral is fundamental,” Murguia says. “Employees must be excited about their company, and the company must send the message that recruitment and hiring are everyone’s job.”


If employees feel that they are a part of the company and its success, they won’t refer unqualified people, says consultant Simma Lieberman, who blogs about recruiting for the website Fast Company.


Lieberman says that a robust referral program can also help to increase the diversity of a candidate pool, but “you need to let employees know that you desire that greater diversity,” she says.


Accenture has created an internal marketing campaign that includes a variety of communications strategies and a special landing page on the company intranet that includes photos and testimonials of successful program participants; employees can even shoot and upload their own videos. The referral site also features online help that allows employees to track the progress of their referrals in real time.


To promote the referral program, Morris posts stories about employees and their successfully hired referrals on the McCarthy intranet. He does presentations on the program at new employee-orientation programs at the company’s annual meeting and peppers all staff members with regular e-mails reminding them about the program, its rewards and any special skills the company needs.


Morris says the effort has paid off. In 2009, 36 percent of new hires came through the referral program and received referrals from more than 10 percent of his employees.


Workforce Management Online, December 2010 — Register Now!

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