Harnessing the Power of Referrals In Your Sourcing Strategy - PowerPoint Presentation

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Harnessing the Power of Referrals In Your Sourcing Strategy

Jeff WeidnerGlobal Director Science ExecutiveSlide2

Investors:Slide3
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Jeff WeidnerGlobal Sourcing Science ExecutiveKenexa, an IBM Company18 years in Staffing Industry.Specialties Include: Passive Candidate Sourcing and Screening. Penetrating Passive Candidate Talent Pools. Social Recruiting/Social Networking. Developing innovative ways to source and engage top talent Eating Dark Chocolate.Slide5

http://www.kenexa.com/events/connect2014Slide6

Harnessing the Power of Referrals In Your Sourcing Strategy

Jeff WeidnerGlobal Sourcing Science ExecutiveSlide7

Why Employee Referral Programs?Slide8

97%Post, Search & Pray.

Engage Sourcing.Deploy social media and recruitment marketing.And this works…Most of the time.But for how much longer…Slide9

Plan aheadWhen Post, Search and Pray fails.When none of the tools on your sourcing tool belt seem to work.When all the social media and recruitment marketing just isn’t getting to the hire.You need a plan.Slide10

The PlanThe plan must include Employee Referral ProgramsSlide11

97%Post, Search & Pray.Social Media, Video, Email, Pay Per Click, Youtube

, Facebook, Instagram, Boolean etc etc etcEven when this worksIt’s expensive, time intensive and requires training.Slide12

Oh and did we mention it’s expensive!!!Businesses around the world spend over $3,300 per hire on recruiting and this budget has increased by almost 6% in the last year. Equates to about $72 BILLION/yr Slide13

Lower CPH (Cost Per Hire)Higher Quality CandidatesLower Turnover RateWhy?

http://www.newyorkfed.org/research/staff_reports/sr568.pdfSlide14

Why?Information obtained from Federal Reserve Bank of NY 2013http://www.newyorkfed.org/research/staff_reports/sr568.pdfRelative to job board applicants, referrals are more than twice as likely to be interviewed and conditional on interview about 40% more likely to receive an offerSlide15

Source for any job title, any industry for any company anywhere in the world more successfully.How?

How?Slide16

Source for any job title, any industry for any company anywhere in the world more successfully.How?

How?BY ASKING YOUR EMPLOYEES FOR REFERRALS.Slide17

ERP Software PlatformAutomated DistributionEmail updates & Internal Social PlatformsRecruiters can askApplicants and New Hires

ASKINGSlide18

Recruiters Most ask for referrals.Most get 1 or 2.Very few recruiters get good referrals.

ASKINGSlide19

They ask generic questions which do not generate a specific answer.They ask questions like:Can you refer anyone?Do you know anyone that might match this skill set?

Do you know anyone that might be a good fit for this job?ASKINGSlide20

Don’t ask for a referral!Instead establish that they know people with the skill set you are looking for. Then ask who they know.

Best way to ask for a referralSlide21

Script: Ask for referralsWould you agree that most (job title here) know other (job title here)?You’ve worked other (job title here) in the past and probably have a few as friends that are (

job title here) don’t you?Would you say you know at least 20 or 30 (job title here)?Great, who are the top 7 (job titles here) you know personally?In the weedsSlide22

Script: Call the referrals (Confidential)Hi (Referral Name), My name is and I’m from (Company Name) I was asked to approach you in confidence about a (job title here) position at our company. In fact, you were referred by an internal candidate who asked to remain anonymous at this point. If the right opportunity were presented to you, you would at least be open to hearing about it wouldn’t you?

In the weedsSlide23

By the numbers

Target 30%30% of all hires should come from Employee ReferralsBest Chance of achievingLower CPH (Cost Per Hire)Higher Quality CandidatesLower Turnover RateEstimated that every employee knows at least 7 people that are qualified for open positions at your company. Slide24

By the numbers

Under 30%You will notice most likely notice Lower CPH (Cost Per Hire)But these will have slower realization Higher Quality Candidates Lower Turnover Rate(These are Metrics and Time based) Slide25

Over 30%

You will notice most likely notice Lower CPH (Cost Per Hire) Higher Quality Candidates Lower Turnover RateBy the numbersSlide26

Over 30%

But it may come at a higher cost. As the percentage concentration of employee referrals increase the candidate pool may be diluted in unforeseen ways. Organizational culture may have negative impact.Diversity slates may get skewed towards under or over represented minorities.Open door to nepotism or favoritism in future promotions, raises over peers, other system abuses.By the numbersSlide27

By the numbersSlide28

Best chance of successSet your Goals: 10% is a good starting point, moving to 30% over time.Automate the process

Consistent messaging, consistently promoted, distributed, shared.EVP and ERP are perfect together. Employee Value Proposition and Employee Referral Program should be integratedERP and ATS are a match made in heaven. Have referral candidates apply directly in to the applicant tracking system.Slide29

Make it Social. Tap into the Employees relationships and go from 7 to 1 to 49 to 1.Incentives work but they don’t always need to be Pay to Play. Recognition, a special thank you, Track your metrics.Cost per hire, Time to Fill, Length of Employment, Employee Promotions, # Employee Raises, % increase from Start to Current. Compare to other sources of candidates.

Best chance of successSlide30

http://bitly.com/ibmconnect-2014

http://bitly.com/rolepoint2014

Thank You

http://

bitly.com/ibmconnect-2014

http://bitly.com/rolepoint2014

THANK YOU

Jeff Weidner

@

SourcingScience

http://

bitly.com/ibmconnect-2014

http://bitly.com/rolepoint2014

Kes

Thygesen

@

RolePoint

kes@rolepoint.com