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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.

Beyond Talent Pools: Building Dynamic Communities


Author: Kevin Wheeler | Kevin Wheeler | ERE Articles
Date: C
Views: 0

Building a social network is only the first step to getting the best candidates. A social network helps you gather potential candidates together and it provides a way to deliver and receive information. But typical social networks tend to be weak at getting candidates excited and engaged about working for you. Part of this is because we have not yet embraced the idea of creating communities rather than talent pools.


We know that one of the ways to improve engagement is to personalize communications and provide potential candidates with the kind and depth of information about the organization and position that they desire. Acquiring the best candidate means you have to sell the organization to her by understanding what she needs and wants. You do this over time by learning about her needs, concerns, and interests. As you learn, you or the community provide relevant information and answer questions.


While we all may agree this sounds ideal, we also know that it is not an easy thing to do using traditional tools and technology. Because we have limitations of time and scope, we can only ever treat a handful of candidates in a personal way. Even with technology, most candidates receive boilerplate and generalized information that is rarely exciting or very informative.


So along comes social networking. Over the past half decade, the popularity of Facebook, LinkedIn and other networks has soared. Almost all large organizations have some sort of presence on one or both of these networks and perhaps on others as well. Many organizations have large talent pools with hundreds or even thousands of candidates, yet we are still challenged to screen them, learn about who they are, and communicate in a personal way. Getting people to join was only the first step to creating a dynamic and useful community that can quickly provide you with the quality candidates you need.


Community vs. Talent Pool


The most important concepts to grasp is the difference between a talent pool and a community. We toss the word community around, but most of us do not have a very clear definition of what makes it different from a database.


A talent pool typically is a group of people with selected data about them attached. It is the equivalent of a filing cabinet and only contains static and most likely out-of-date information about the potential candidate. They are hard to search and the data we have about a candidate rarely give us much insight into what a person is really like. And most talent pools do not allow the candidate to engage with the recruiter or others in the pool.


A community is entirely different. First of all it is two-way: both you and the candidate exchange information and both of you give and get. But a community also has several other distinguishing features:


Collaboration and Sharing


People in a community share information and often work together to solve problems or come up with new ideas. They are organic and alive with conversation and sharing of opinions and thoughts. True recruiting communities would include your employees as well as potential candidates talking about the organization, what it does, how it does it, and who does it. This give-and-take process is the best way to personalize the company and provide candidate with information about what is is like to work there. It saves you the need to tailor responses or have lots of facts at your fingertips; the employees and perhaps even other candidates will provide what you need.


Feeling Included


Being part of something is also a key ingredient in a community. By being with others of similar interests and through sharing ideas, people come to feel part of the team. Good communities make recruiting much easier because candidates already feel like they know people and relate to them. When candidates actually get hired and start work, they have people to talk with that they already have met on line and have shared with.


Similar Values


No one is forced to join or stay in a community. Unlike a database, I can remove myself from the community and move on. Therefore, people who stay in a community and engage in conversation are most likely to have the same values as the people in the organization. This means that cultural compatibility is much higher and it become easy to spot those who aren't really comfortable in the culture your organization has.


Openness


People are looking for authenticity from organizations, and it is within communities that so much can be explained and made available. Employees may bring up issues and discuss how they were resolved, while candidates may also contribute their ideas. Member of communities are much more likely to share their feelings and express their true opinions about issues. Potential employees feel that the organization is open and honest in its communication.


Engagement


And finally, those in an active community are truly engaged and interested. Here is a statement from Richard Long, Deloitte New Zealand's manager of talent acquisition, about its recently developed Facebook community aimed at university students and graduates:


"Our strategy is to create dialogue and conversation with students and engage with them — all the while further developing the page with their feedback in mind — quite an organic process. All through our page we have given students the opportunity to tell us what they want to see and hear. The content of our page is provided by our own Deloitte graduates and summer interns, and the fans themselves. My team really only administrates and develops the site to allow more conversation to happen between the fans and Deloitte grads and interns they are interested in hearing from. The result is we have built a community of students engaged with the Deloitte NZ brand, who are talking to us and have a sense of our culture and how we can support their career aspirations."


This nicely sums up my major points and gives solid evidence that taking your social network to the next dimension — that of turning it into a true community of engaged and energetic people you can tap into whenever you have an opening — is the right way to go.


In a future article I will talk about how to start moving from a talent pool to a community and I will talk about the concerns many of us have over privacy and confidential information. We have a ways to go, but creating communities is the beginning of a new era in recruiting.


URL: http://www.mntrn.org/modules/planet/view.article.php/3680
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