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Brave New Recruiting Metrics: Do They Figure?

  • Author: Amitai Givertz
  • Posted: February 21, 2007
  • Category: Talent Management
  • Tags: Metrics, Performance Staffing
  • Comments:

Dave Lefkow posts an interesting article on ERE, Proactive Recruiting Metrics. Dave observes that there is a basic shift going on inside organizations worldwide; employers that are moving away from requisition-driven models to a proactive model for recruiting.

In line with this realignment comes a different emphasis on which metrics matter most. Traditional measures like time-to-fill and cost-per-hire — key benchmarks in a reactive setting — are becoming less important in the context of the new recruiting model that Dave describes. Here, new performance measures reminiscent of a sales operation become the norm: number of inbound enquiries received, contacts made, candidates engaged and so on.

While Dave makes a reasoned case — and we like it — I still wonder if he is not ahead of his time, as visionaries often are.

Dave describes an approach that — from want I can tell — would most appropriately fit the proactive recruiting model that has been envisioned variously as Just-in-Time Recruiting (JIT), Lean Staffing, or Total Quality Management (TQM). Hardly understood by the majority who would be charged with its execution, this approach to re-engineering the talent funnel assumes that some very basic changes — not to be confused with easy — have already taken place. Unfortunately, in my travels I do not see much wholesale, elemental change going on, at least on a scale that makes Dave’s argument relevant in the vast majority of U.S. staffing environments.

As long as most organizations view recruiting as an expense not an investment and/or a transaction-driven process, not a strategic business orientation, then time-to-fill and cost-per-hire metrics will remain both easier to quantify, digest and rationalize. Similarly, as HR and recruiting continue to grapple with their strategic roles and relationships, I believe the changes Dave calls for will be slow in coming.

I also wonder if the brave new metrics Dave references were available…

  • Candidate identified
  • Unknown level of interest/have not contacted
  • Connection established
  • Not interested
  • Contacted
  • Willing to listen to opportunities
  • Willing to refer others
  • Interested in opportunities
  • Passed on to hiring team
  • In the hiring cycle for a specific opportunity
  • Hired
  • Rejected (would hire in future)
  • Rejected (do not hire)
  • Declined

…how many employers would be enabled with the corporate leadership, mindset and analytics to use it effectively, at all? I guess we wait for wholesale changes on these fronts too.

That is not to suggest that employers should ignore the business case for improving their recruitment processes and metrics, or take immediate steps to get there. Nor is it to suggest front-runners have not emerged, implementing the infrastructure for a new model. But we should not overlook the monumental task that this transition from reactive to proactive recruiting represents in reality. Nor should we underestimate the time it will take to get there.

Dave’s earlier post Do recruiters really need CRM? makes for an equally interesting, related read. If people want the kind of recruiting metrics he references in his ERE article — basically, conversion rates, not the usual metrics-data produced by applicant tracking systems (ATS) — the answer to that question is, “Yes, indeed, recruiters do need CRM.” Perhaps we should also ask, “But when and how?”



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  • Comment by Martin Snyder, March 17, 2007 at 9:46 am

    Amitai,

    Candidate identified
    Unknown level of interest/have not contacted
    Connection established
    Not interested
    Contacted
    Willing to listen to opportunities
    Willing to refer others
    Interested in opportunities
    Passed on to hiring team
    In the hiring cycle for a specific opportunity
    Hired
    Rejected (would hire in future)
    Rejected (do not hire)
    Declined

    What you have there is the pipeline metrics for just about every progressive third party recruiting firm out there.

    What corporations need is recruiting software, with whcih applicants can be tracked. Applicant tracking software: not so useful for recruiting.

    Even if they have the right software, they need the right mindset- some do, many dont. That’s where Dave may be ahead of his time.

    Since many large corps are also federal contractors, and the absurd OFCCP rule is about as anti-recruiting as can be, 2006-2007 have been dead years as firms have come to grips with it.



  • Comment by Dave Lefkow, March 21, 2007 at 1:42 pm

    There are now dozens of organizations that are shifting their recruiting models from reactive to proactive and are looking at more proactive metrics than they have in the past. These org’s range from old school (healthcare and aerospace) to current school (software) to new school (web 2.0). I believe that any org that wants to use talent acquisition as a competitive weapon should consider this approach.

    That said, I completely agree with you when you say that most org’s view recruiting as an expense and not an investment, which lends itself more to overhead metrics. This is changing, albeit slowly.

    I do take some issue with your argument that this discussion is not relevant for the vast majority of US staffing departments - while they may not have a proactive recruiting model today, one of their talent competitors might (and could be having a field day pulling top talent from their organization in the process). So from that perspective, understanding what leading companies are measuring and striving towards, some of which may be directly affecting them, is incredibly relevant.



  • Comment by Amitai Givertz, March 21, 2007 at 6:34 pm

    – Martin, can you please explain what you mean by:

    What corporations need is recruiting software, with which applicants can be tracked. Applicant tracking software: not so useful for recruiting.

    Are you saying that a CRM system is a better solution because that approach automates recruiting as a continuum, an ATS automating what amounts to a series of event driven transactions?

    Or are you saying ATS-generated metrics - source of hire, time to fill and so on - are not so good for recruiting because they are quantitative measures dealing with outputs versus what Dave suggests is a better way to measure the qualitative things that generates more meaningful data?

    I’m confused. What do you mean?

    – Dave, thanks for your reply and comment.

    To your last point that competitive pressures compel US staffing departments to get and apply a better metrics model implies that those departments are still going to be in a reactive mode, responding to the progressive moves of the staffing leaders, playing catch-up.

    At what point do we accept the reality that very few organizations can conceive of new applications for metrics and analytics that in themselves result in competitive advantage? At what point do the front-runners stop looking back to see if the laggards are catching up?

    Even though the new metrics you describe lend themselves to enabling process improvements it is still easier to apply them to measure performance and blame the rest on “talent shortages,” or “req. loads” or “recruiter training” or “hiring managers,” — if you know what I mean :-).

    Metrics rarely change mindsets or behaviors over night. More often they are used to reaffirm institutionalized beliefs about what recruiting is and what systems do slowing the process of developing competitive advantage rather than accelerating its acquisition as you imply would happen in your argument.

    I’m sorry, Dave. From where I sit I don’t see what you describe happening on a scale that would benefit the majority of staffing organizations who, despite the best of intentions, are too busy treading water to be changing bathing costumes. That doesn’t make it right. It just makes it what is.



  • Comment by Martin Snyder, March 21, 2007 at 8:39 pm

    Hi Amitai,

    The blog post below (a bit out of date now, but still on topic) is a table of some of the differences:

    http://tinyurl.com/3xa788

    Typically the underlying data model of a CRM system will be more flexible than ATS, notably in tracking and modeling outside organizations, and the metrics that Dave defined are everyday measures within recruitment applications. CRM also supports outbound phone work- still the essence of the search business, while call center features are very rare in ATS. Just the nomenclature says it all; recruiting is only partially concerned with ‘applicants’.



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