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The Return of Recruiters - SHRM
The Return of Recruiters
Will staffing professionals be the first or last to be hired as the economy recovers?

Amid accumulating signs that the Great Recession is moderating, companies that believe their core business is improving may begin to restore the employee positions they shed over the last several months.

Has the hiring begun? More to the point, are these companies building up their depleted cadres of staffing professionals in anticipation of employee hiring? Could the hiring of recruiters be, in the terminology of The Conference Board’s monthly national report, a leading economic indicator?

Experts’ opinions vary, but taken together their answers present a vision of workplace recruiting operations after the recession that will be quite different from the staffing models of a few years ago.


Help Wanted?

Angie Salmon, senior vice president of the executive recruiting firm EFL Associates in Leawood, Kan., says some organizations are starting to hire "because they feel more confident about the market and their businesses."

A recent survey by recruitment consulting company DoubleStar of West Chester, Pa., bears this out. Asked late last year whether they planned to increase hiring activity in the first quarter of 2010, 27 percent of respondents—representing organizations in the Mid-Atlantic states—said yes. This represented "a pretty good bump" over the 13 percent who indicated such plans for the fourth quarter of 2009, according to CEO Harry Griendling.

And the Society for Human Resource Management’s latest Leading Indicators of National Employment (LINE) report, released in March, revealed that hiring was up on an annual basis for the fifth straight month. The percentage of companies hiring in manufacturing will reach a level not seen since June 2008, according to the report, and the percentage of companies hiring in the service sector is the highest since July 2007. The LINE report is based on a monthly survey of private-sector HR professionals at more than 500 manufacturing and 500 service-sector companies.

Mitch Beck, president of Crossroads Consulting in Monroe, Conn., has seen hiring pick up but notes that some companies are keeping quiet about it. "What I’m finding is that more companies are starting to hire back but don’t want people to know they’re hiring back, because they don’t want to get inundated" with applications, he says.

Not everyone is optimistic, however, that economic recovery will translate into more jobs. Scott Craighead, general manager, Americas, of Bluesky Executive Search in Fairfield, Conn., says that, in general, "Economic recovery has occurred without hiring increases, as companies have focused on staff cuts to yield profits."

Even if they aren’t cutting staff, companies may not be bringing new hires on board. For example, "Smaller hedge funds that need to hire are standing on the sidelines," says Ev Nucci, owner of Nucci Consulting Group of Gwynedd Valley, Pa., a retained search firm serving the hard-hit asset management industry. "A friend of mine who owns a hedge fund needs four or five people but is holding off" because of concerns about the economy, she explains.

Still, companies with skeleton crews can’t operate that way much longer, says executive search consultant Kevin Palisi of Norwalk, Conn. "You’re going to see more hiring because [companies] can’t squeeze any more blood out of the [surviving] workforce, from a productivity standpoint."


Leading or Lagging Indicator?

"This recession has decimated HR departments and, along with it, recruiting departments," Griendling observes.

Are reinforcements on the way?

Those who think companies plan to increase overall hiring in the near term believe so. For example, Mark Mehler, principal of CareerXroads, a staffing strategy consultancy in Kendall Park, N.J., says certain online companies "are hiring in volume." Those companies—and others wishing to add to employment rolls—must first hire recruiters, he explains, noting that "Recruiting is a bellwether for the economy."

Palisi also believes that organizations "are interested in bringing in recruiters in the near term, the anticipation being they will hire more staff in 2010." He adds that companies "need to hire recruiters six months ahead of the curve."

Others say companies will continue to make do with the resources they have on hand for a while and that an increase in recruiter hiring could actually be a lagging indicator of recovery.

"Usually the first person to get fired and last person to get hired back in a recession is the recruiter," says Dan Finnigan, CEO of Jobvite, a Burlingame, Calif.-based marketer of technology for recruiting via online social networks. "Many companies will actually not hire recruiters right away and be forced to recruit with a smaller recruiting team."

He cites a client—an online retailer—that hired 60 employees in six months during 2009. "They tripled [the workforce] and did it with one recruiter," he says.

Griendling notes that after a recession, companies tend to test the waters by hiring temporary workers as opposed to regular full- or part-time employees. And, in fact, the U.S. Bureau of Labor Statistics reported that 284,000 temporary-help jobs have been added nationwide since September 2009, including 48,000 in February. According to Griendling, it isn’t until later in a recovery, when companies start hiring non-temporary workers, that recruiters are brought on board.

Lisa Rowan, program director, HR, learning and talent strategies, for advisory services provider IDC in Framingham, Mass., expects hiring of temporary workers "to come up further before we see any surge in permanent employment."


Get in Line

Companies looking to grow their workforces may turn to transitional help, such as staffing agencies and freelancers, before hiring recruiters.

As piles of resumes roll into their headquarters, companies find it "easier to inundate an outside recruiter" such as an agency, according to Beck.

Staffing firms and consulting firms confirm the trend. Tracy Cutone, partner and general manager, Human Resources Divisions, of the staffing firm Winter, Wyman Cos. in Waltham, Mass., says demand for contract recruiters from its clients was up more than 85 percent between the third and fourth quarters of 2009.

Griendling adds that his company, DoubleStar, was hired by four new clients in a recent 60-day period, and it has its "largest new business pipeline in the last year and a half."

Freelancers may be in line ahead of staff recruiters, too. "Small to mid-size firms are bringing the search function in-house [by] hiring ex-search consultants to be their in-house recruiter on a contract basis," Nucci says.


A New Model

Another strategy being used as companies try to do more with less: Many are asking hiring managers and employees to take on more staffing responsibilities. Some experts believe this trend could continue for some time, so even after some semblance of a professional recruiting operation is restored, veteran staffing professionals may not recognize it.

"The hiring manager will no longer just be the end of the road for hiring decisions, but also the person identifying talent," Finnigan says.

"Hiring managers, although not experts in recruiting, will be forced to be," Salmon agrees.

Also taking on more recruiting tasks, according to Salmon, are ordinary employees in other departments. "Responsibility for recruiting has been pushed out into the organization," she says.

Finnigan calls it a whole-company approach to recruitment. "Employees will be called upon to make referrals and publicize jobs. Even executives will need to be on the front lines. … Referral hiring is the nirvana of recruiting," but it’s not easy. So, he says, companies are asking employees to tap into their personal online social networks. Instead of posting and advertising job listings, businesses are seeing if they can get their first round of applicants through referrals.

What is lost with this strategy, Salmon notes, "is the expertise in recruiting, particularly the recruiting of passive candidates" by staffing experts who have built their own, focused networks and developed the skills to manipulate them efficiently.

Using professional recruiters is still "the best way to find the right people," Salmon says.


Recruiting Recruiters, Finally

Eventually, organizations will become too lean. "Once it gets to that point, companies are going to realize that their people are working 24/7 and are maxed out on productivity," Craighead says. "When people scream and say, ‘I can’t take it anymore,’ they will have to hire."

He adds, however, that businesses are unlikely to rehire experienced recruiters back to pre-recession levels. "Companies will act cautiously in rehiring them," he says.

Finnigan concludes that companies are going to hire recruiters eventually, but not until after a lot of other things happen. "When you see that spike, you’ll know we’re in a recovery," he says.

In recovery, Finnigan predicts, the recession will leave a sharpened emphasis on the bottom line. "Before companies are going to build up recruiting staffs, they’re going to ask for the [return on investment] in doing so. … Before HR will get approval to hire more recruiters, they will have to answer the question, how much money must we spend?"

______________________________________

Steve Taylor’s most recent article for Staffing Management magazine, “Sometimes More Is More,” appeared in the October-December 2009 issue.
______________________________________

Reprinted with permission from the Society of Human Resource Management (SHRM) for inclusion July 15 - September 15, 2010. Taylor, Steve. "The Return of Recruiters". May 5, 2010. Accessed online at http://www.shrm.org/Publications/StaffingManagementMagazine/EditorialContent/Pages/0410taylor.aspx on July 15, 2010.

Using the One-question Interview to Measure Motivation


Author: Lou Adler | Lou Adler | ERE Articles
Date: C
Views: 3

Picture 3When I started out as a recruiter, some 30 years ago, it was pretty clear that you could make more placements if you were a better interviewer than your hiring manager clients. Not only would all of your candidates be interviewed, but your best ones wouldn't get tossed under the bus by superficial or narrow assessments, or if they possessed less-than-stellar presentation skills. This led to the development of the one-question performance-based interview.


As we started placing more people (typically staff and managerial positions in accounting, engineering, and operations) and tracking their performance, it was clear that a number of traits stood out as the best predictors of on-the-job success. Some of these included technical competency, motivation to do the work, team skills, job-related problem-solving, and trend of past performance over time, among others. (You'll find the complete list of 10 factors and the assessment grid in my book Hire With Your Head.) To get buy-in from hiring managers we later came up with this short formula for hiring success:


Predicted Performance = (technical competency) times (motivation)2 plus team skills


From our experience of over 1,000 placements, it was evident that motivation or drive to do the work was the most important predictor of success. Daniel Pink's current hot-seller Drive reconfirms this and provides much of the science behind it. While a minimum threshold of technical competency and team skills were necessary, without personal motivation to deliver timely and consistent results, the person would never be a top performer.


Another critical point we discovered was that personal motivation was not universally transferrable across all jobs. Motivation depended on the manager, the type of work involved, the resources available, the degree of independence, the compensation, the growth opportunity, and the company culture. This is why I've always had a problem with traditional behavioral interviewing. While behavioral interviewing helps prevent emotional decisions due to its structural nature, it doesn't pinpoint whether the candidate would be a top, average, or below-average performer since it doesn't directly address these critical fit issues. This was especially important for us, since we offered a one-year guarantee as part of our search process.


While hiring managers intellectually adopted the concept, it did require them to do something they didn't particularly like — define the real job requirements up front. This meant clarifying the critical performance objectives, their management style, the specific team issues, and the company environment before starting the search process. Shifting to this performance-profile approach rather than relying on the traditional job description listing skills, duties, and responsibilities, was a critical step it assessing job fit more accurately. For example, rather than requiring an MBA and 4-6 years in technology product marketing, the candidate would be assessed on his or her ability to launch the new series of 10 iPhone apps during the first year.


The one-question performance-based interview was a logical outgrowth of the performance profile. It's actually nothing more than asking the candidate to describe an accomplishment comparable to each of the required performance objectives. Since candidates don't naturally provide all of the required insight, the interviewer needs to peel the onion, probe, and ask numerous follow-up questions getting specific details, facts, dates, and verifiable data. It takes a least 15 minutes per accomplishment to do this, but when done you'll have all of the evidence needed to defend your candidate from superficial interviewers, emotional biases, and gut feelings.


(Here's an ERE article I wrote that describes this fact-finding process in more detail.)


To assess motivation to do the actual work required, not generic motivation or drive, we developed a series of additional fact-finding questions and a 1-5 scale to further refine the assessment. For example, as you were asking the candidate to describe her most significant product launch accomplishment, you'd follow-up with these probes to better understand the person's motivation to do this type of work:



  • Related to this accomplishment, give me a few examples of where you went the extra mile

  • What aspects of this work did you enjoy the most?

  • What did you have to learn to do this work, and how did you do it?

  • Were there any times you had to go 24/7?

  • What did you like least about the work — where you had to struggle to get going?

  • Were there any aspects of the work you didn't like, but you pushed on through anyway?

  • What aspects of the work gave you the most personal satisfaction?


If you've checked-out the other fact-finding questions, you'll discover they're behavioral-like questions, but all tied to the specific accomplishments. This way you have evidence of the behavior as it directly relates to a specific performance objective. This is important when it comes to assessing fit. This point is more clear by examining the 1-5 guidance we use for assessing motivation to do the real work required:


Rank the candidate on the following 1-5 scale for motivation to do the work specified in the performance profile:


Level 1 — Not qualified: Passive. There is no evidence the person wants to do this work. The person has no interest in this type of position. The person would need far too much direction and support to meet minimal needs.


Level 2 — Adequate: Will do the work required if urged or pushed. There is no recent evidence that the person has done this work at peak levels. Not a good fit for this type of work. The person avoids issues, makes excuses, or is reactive. There is no recent evidence that the person is self-motivated to get better at performing this type of work.


Level 3 — Strong: There is significant evidence that the person is internally self-motivated to do this type of work at high levels of quality with normal supervision. The person has a track record of consistent performance doing this type of work. The person has proactively sought out and handled key issues related to the type of work required. There is evidence of significant self-improvement related to this type of work.


Level 4 — Great: Significant evidence indicates that the person consistently takes initiative to do more of this type of work, do it faster, or do it better. Seeks out problems to solve before they become disruptive. Strong evidence of constantly self-improving skills related to enhancing ability to do this type of work.


Level 5 — Superb: Evidence is overwhelming that the person is totally committed to do whatever it takes to get the job done. The person wants to excel and will not quit regardless of the challenges. Demonstrates constant self-development in all areas related to improving job performance.


To increase assessment accuracy we suggest that the evidence of each interviewer is shared during a formal debriefing. Furthermore the only assessments that are accepted are those based on the evidence provided, not feelings or beliefs, so it’s not a vote, but an evidence-based evaluation. When done properly, there is little variation among the rankings of the individual interviewers (plus or minus half a point is reasonable). When the rankings are wider than this, it indicates the process is out of control (this is a six sigma point), requiring further evaluation.


The big idea behind this approach is to eliminate the flawed process of adding up a bunch of yes/no votes based on biased and limited evidence. Instead, each of the 10 factors should be discussed with the interviewing team sharing their evidence. This way the collective evidence of the team is used to make the decision across all job needs, rather than adding up a bunch of yes/no biased votes.


While traditional structured behavioral interviewing might minimize big hiring mistakes, it's somewhat problematic if the person will be a great performer or a good person in the wrong job, since behaviors and competencies aren't universally transferable. The assessment is further compromised when the hiring decision is made by adding up a bunch of yes/no votes.


Since self-motivation or personal drive is the core predictor of on-the-job performance, you might want to try out the one-question interview technique described above to see how it works. Start by asking your hiring managers what the new employee would need to accomplish in order to be considered a top performer. Then during the interview ask the candidate to describe significant accomplishments related to these job needs. Use the fact-finding ideas presented as part of this, looking for evidence that your candidate has recently gone the extra mile doing comparable work. If so, use this evidence to defend your candidate against any naysayers. Don't be surprised if these people get hired and perform as expected.


URL: http://www.mntrn.org/modules/planet/view.article.php/2622
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