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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.

One-to-One Recruiting: The Importance of Personalizing All Aspects of Recruiting


color_colonelThe most powerful recruiting advertisement I've seen in the last two years didn’t originate from Google and it wasn’t found on a social media site; instead it was a "take your breath away" billboard designed to attract a single person.


Usually billboards are a complete waste of money, but this one dared to go where no one has gone before. We’ve all seen the famous 1916 James Montgomery Flagg portrait of Uncle Sam with the caption "I want you for the U.S. Army," but imagine if instead of a generic message you passed a billboard or poster bearing your name, your image, and a message specific to you, i.e. Nicole Pollock "we want you!" There is zero chance you wouldn’t pull over immediately just to stare, but chances are you would have already learned about it through calls and text messages from your family and friends. Such a startling communication would even cause people who didn’t know you to take notice and to wonder about both you and what kind of organization would be so bold to attempt this type of recruiting.


The roadside billboard was only the beginning of a broad reaching "one-to-one recruiting" campaign launched by Wilkes University to land a single student. In addition to the billboard, it added personalized messages to pizza boxes at the local pizza shop, signs on top of local gas pumps, pre-screening ads in local movie theaters, directory signs in the local mall and even localized ads on MTV, VH1, and Comedy Central. The campaign turned everyone in the community that interacted with Nicole Pollock, the student of interest, into a stakeholder/influencer of her decision, which was ultimately "yes."


The marketing firm, 160over90, hired by the university, clearly understood the value of the seldom used but powerful one-to-one approach. While not appropriate for every vacancy, the cost of a one-to-one campaign pales in comparison to the value of getting a top performer into a key role. Even if you are not ready to engage in an effort as bold as Wilkes University, there are components of one-to-one recruiting that can bolster any effort.


Narrowing Recruiting Scope Broadcasting to One-to-One


Defining the scope of recruiting processes and activities is perhaps one of the most overlooked elements of planning in the typical recruiting function. Instead of developing programs and practices that target a specific range of actions or individuals, most recruiting leaders engage in broadcasting, i.e. using a one-size-fits all approach. One-size-fits-all clothing generally isn't that attractive, and neither are overly generic recruiting processes and communications. Scope, like clothing comes in many sizes, including:



  • Broadcasting (targeting a large multi-demographic audience)

  • Narrowcasting (targeting a smaller more defined audience)

  • Microcasting (targeting a specific population within a narrowcast audience)

  • One-to-one, aka 1:1 (targeting a specific individual)


Personalization is the Wave of the Future


The practice of 1:1 or personalized marketing is a well-established concept in customer relationship management circles, and is becoming more of a mainstream practice thanks to many emerging technologies. Last fall, the Castrol Oil Company practiced an extreme version of personalized marketing by placing cameras along a main road in London to capture the license plates of passing vehicles. The license numbers were then cross-referenced with vehicle registration records, enabling Castrol Oil to display targeted ads on a digital billboard suggesting which type of oil the drivers should use as they drove past the billboard!


In addition to 1:1 marketing, personalization is invading the product and service deliver arms of organizations as well. Mass customized manufacturing enables firms like BMW to personalize literally every car they produce so that no two are the same.


Rarely do HR functions support mass personalization, but there are exceptions. Cafeteria style benefits programs allow employees to personalize their benefits portfolio. Career planning tools in use by firms like Deloitte allow employees to customize their careers (Deloitte's program is referred to as the Mass Career Customization Program.) Executive recruiting efforts often target "most wanted" individuals i.e. individuals the organization has remotely assessed and determined that they would like to recruit them in the near future. One-to-one recruiting isn't unheard of, just rare. Google has employed it several times, most notably with its famous "math puzzle" billboard, and the practice was common at FirstMerit Bank while under Michael Homula's recruiting leadership.


The Many Benefits of One-to-One Recruiting


When I present during corporate recruiter trainings or HR offsites, I frequently mention one-to-one recruiting examples just to see how progressive the organization is with regards to its thinking about the value of top talent. Undoubtedly, most audience participants rarely ponder the value of the talent, they seek and universally assume it’s just too expensive for them to consider. Those open to actually delivering strategic recruiting versus just talking about it, often change their viewpoint once they learn more about the approach and its many benefits, some of which include:



  • One-to-one marketing builds the employer brand--one-to-one recruiting efforts provide the organization with an opportunity to establish a much more realistic brand perception among a highly targeted and highly desired population, often in a way that gets talked about by others. (Contrary to popular belief, not all employees/candidates experience the organization the exact same way, so brand perception is not universal across the organizations despite generic corporate messages that say "we are...") Using one-to-one creates high visible individuals who can become ambassadors of your brand in the community.

  • One-to-one targets act as magnets--one-to-one efforts almost always target industry icons. While you will certainly spend a little more money to capture these individuals, doing so will not only send a message that "something is up," it will save you money in the long run as magnet hires often bring with them or attract from other organizations a significant volume of quality hires.

  • One-to-one efforts can boost morale--if your organization has recruited team players who like to win, one-to-one efforts send a clear message that your organization will do whatever it takes to recruit the very best for existing employees to work alongside fellow top performers and industry game-changers. A win for the team is a win for all, and morale will likely skyrocket.

  • One-to-one efforts increase visibility--bold recruiting efforts are almost always noticed in ways that dramatically increase the publicity the organization receives, raising the profile of the recruiting function both inside and outside the organization.

  • One-to-one efforts will also likely net boomerangs--even if you don’t actually "catch" your primary target the first time around, the power of the one-on-one campaign guarantees that they will consider your firm again later in their career, without much additional effort on your part.

  • One-to-one efforts produce amazing results--rarely are recruiting efforts 100% successful, but one-to-one efforts almost always produce positive results.


Tools and Approaches to Consider


Even if there’s no chance that you’re going to try a full-fledged one-to-one recruiting campaign, there are many tools and approaches that have proven to be extremely beneficial when included as a component of broader efforts. These approaches include:



  • Identifying how to reach them--get at least a rough idea of the best way to reach your target candidates. Start by asking your own top performers in similar jobs, "how could we find you again?" Use the information your employees provide as an indication of the best ways to identify and communicate with your targeted candidates.

  • Identify their job acceptance criteria--there’s no more important step in any sales process than asking each of your top targets what decision criteria they will use when deciding to accept or reject an offer. With that information in hand, you can at least modify the recruiting and offer processes to ensure that you have provided each candidate with enough evidence to prove to their satisfaction that you best meet their criteria.

  • Ask them to apply--most recruiting processes assume that merely being made aware of a job opening will be enough to trigger everyone to apply. This is a huge mistake because there are a significant number of currently employed individuals who, for whatever reason, won’t apply to a new job unless they are personally invited.

  • CEO calls--if you’re not already using them, you should be aware that a personalized call from a CEO who knows the candidate’s background is the most effective recruiting tool there is. If you can get your CEO to agree to a limited number of calls per month, you can use them to convince individuals to apply or to sell them on your final offer.

  • Personalize the job--top candidates generally accept because the work itself and the opportunities are unique and exciting. As a result, if you expect to have a reasonable chance at landing top candidates, you will need to realize from the beginning that at least part of the job will need to be customized to their unique needs and interests.

  • Identify who they would like to meet--most recruiting schedules are set based 100% on which individuals within the company have decided that they want to interview the individual. Unfortunately, that ignores the fact that the candidate themselves might want to meet certain individuals (by title) before they would be comfortable in accepting the job. Allowing top candidates to meet a few people of their choice makes the hiring process appear more personalized to them.

  • Personalize onboarding--if you tailor the onboarding to their unique needs, not only will they feel accepted by their team faster, they will also reach their minimum productivity levels in a much shorter time and be more apt to share positive stories about the organization with former colleagues.


Final Thoughts


Every freshman studying journalism, communications, PR, sales, and marketing learns in their first semester that if you want "your message" to be read and accepted, you need to make it personally relevant to the target audience. It’s a basic lesson that we often forget in the world of broadly targeted recruitment advertising, candidate messaging, and employer branding. Mass personalization is essential if you are courting top candidates, but I would argue that it’s quickly becoming essential for all quality candidates. No one wants to feel that they are entering a corporate monolith where they will become lost. Recruiting leaders need to examine every program and process to determine how each can appear more personalized to candidates. They should also allocate more time to benchmarking marketing functions, which are light years ahead of most recruiting functions in the area of effective personalization.


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