9th Annual Source of Hire Report

Industry heavy weights Gerry Crispin and Mark Mehler will be releasing their 9th Annual Source of Hire report on Friday US time on the CareerXRoads web site. I was lucky enough to be sent an advanced copy by Gerry.

Once again the reports details where corporations in the US found their employees during 2009, this year they look at 176,420 hires.

While the report is not generally available I will share some of the results with you below. However beforehand please note the the quote from Gerry and Mark that appears at the beginning of the document:

If the reader assumes that the data sliced and diced in this whitepaper is truly representative of where firms find their hires in the US, then you will have missed our point entirely. Indeed, this whitepaper, which we have published now for nearly a decade, is constructed as a lab report to examine the problems and the promise of how well corporations measure one part of the staffing process.

Our intent is to hold up a mirror so firms can look at themselves and their increasingly critical and vulnerable supply chain. Vendors can help, but only if staffing leaders are disciplined enough to do their part and get vendors to focus on needed changes as a priority.

So on with the results.

Internal Hires

51% of all hires were internal movement or promotions. Indicating the continued trend of internal talent management activities around succession planning and development. The report highlights that one of the stated employee value propositions (EVPs) of most organisations is to develop their employees. A result of around 51% of hires through internal placement tends to indicate that these organisation are fulfilling this development promise.

The bad news in Australia is when compared to the 2009 Sources of Talent Report it was found that only 6.29% of hires were through internal promotion. What does this say about how Australian employers fulfill their EVPs?

External Hires

75% of all external hires came from 5 sources:

  1. Referrals
  2. Career Site
  3. Job Boards
  4. Direct Sourcing

Referrals have been consistently the number one source of external hires for the last five years.

When comparing to the Australian report referrals were the number four source of external hires, at only 7.57% of all hires. Once again there is a huge opportunity for Australian organisations to increase their use of employee referral programs instead of continually relying on the “post and pray” approach through job boards. Don’t know how to do referrals, check out our ebook.

Direct Sourcing/Internal Recruiters

One very interesting area of the report is where they try and define what is direct sourcing. As part of the survey they asked the participants what do they consider direct sourcing to be, the options:

  • Mining our internal ATS for candidates who have not applied
  • Mining external candidate databases for leads we can convert into prospects and candidates
  • Researching profiles on social networks such as LinkedIn, Facebook etc
  • Developing Search Engine Marketing campaigns to create prospects from leads
  • Cold Calls/contacting individuals from internal or external research

The results are shown in the table below.

Direct Sourcing

Given internal recruiters are the second largest source of hire in Australia what do you consider direct sourcing?

Further Thoughts

Throughout the report Gerry and Mark write about many of the same challenges Phillip Tusing and I encountered when preparing the Australian report. For example, the devil is in the detail and it is very hard to keep everyone working on the same definition of each source. And even if you place a job in print it will still end up online, so is that a job board or print source. What is a source vs a channel, or a tool vs a process?

At the end of the report that provide some good suggestions on how we can all improve the tracking and usage of source of hire data. These include:

  • Fixing the inherent issues with candidates self reporting source
  • Deciding where the source starts, in the channel or at the destination
  • Look at additional methods to capture source of hire data to supplement self reporting
  • Understand patterns in your source data
  • Implement more discipline in process and practices

I would highly recommend you go and download the report when it is available.

Sources of Talent in Australia

Back in April I had one of my many wild ideas, undertake a sources of hire survey for Australia, I mean how hard can it be?

The idea was triggered by a post from Phillip Tusing from Destination Talent so after chatting over a few days we decided to join forces and get a survey done.

The decision to do something was easier than the process.

We site up a site and grabbed a domain name, http://talentsource.com.au/, it took about 6 weeks to draw up the survey and lock in some sponsors. We ran the survey for about 5 weeks, receiving 409 completed responses. Then we started the report portion, I had thought would be easy but how wrong was I. It has taken about 6 or 7 weeks to get the report done, and I have to say without the tremendous work by Phillip it would have taken a lot longer. In fact I want to publically thank Phillip for his work in pulling the report together.

As mentioned 409 organisations of varying sizes, industry backgrounds and regional locations completed the survey. A total of 92,136 hires were recorded using seventeen identifiable sources of talent for the period July 2008 through to June 2009.

The key findings of the report include:

  1. Source of talent varies across Australia with seventeen identifiable source of talent.
  2. Job boards, in their various iterations, take a leadership role being the predominant source of talent in Australia with 29.64% of hires attributed to them.
  3. Perceptions of the most effective sources of talent by recruiters differ from the reality of where talent is sourced.
  4. Different industries use significantly different sources to find talent within Australia.
  5. The different regions of Australia also seem to source talent differently, for example in the ACT 49.70% of talent is found through internal recruiters.
  6. Referrals as sources are not as developed as expected being only the fourth most successful source at 7.57% of hires.
  7. Print media while having a reputation of an archaic channel still exists as the seventh most successful source of hires.
  8. Employers and agency recruiters differ in how they source talent with agency recruiters relying heavily on job boards.
  9. Social media is in its infancy ranking last as a source talent in Australia, with usage higher in smaller organisations.
  10. Data collection is poor with over 7% of organizations have no reliable method of tracking their source of talent.

We are also indebted to Gerry Crispin for providing a comparison to US figures and Dr Ian Williamson for his insights into retention and alumni programs.

There is a lot more in the report so go download it and have a read, we hope that the report stimulates further discussions within the HR and Recruitment industries.

State of Australian Corporate Career Websites

In late 2008 I spent some time reviewing the career websites of the BRW Top 200 organisations within Australia, based on the work by CareerXRoads in the US. The process included a physical review of each of the BRW Top 200 web sites during September to December 2008.

I sat on the report for a long time pondering what to do with the results. About six weeks ago I decided to release the results publically over on Inspecht for the purposes of discussion and review by others within the industry.

Each site was assessed on a series of attributes designed to assess an organisation’s approach to their careers website. The attributes were based on the CareerXRoads Mystery Job Seeker Reports. A comment on the results several attributes covered during the research required a subjective assessment such as; did the site contain detailed information on remuneration and benefits.

If you are interested you can download the report (oh yes it is free).

ATC Summary

Over the last few days I have published a number of posts summarising the sessions at ATC that I attended. However I wanted to pull together an overall summary of my thoughts from the event. This was my first ATC, mainly as I had now been in the position to attend before due to my previous corporate life which was a pity as I think attending in previous years would have been good. Well no point looking back let’s look forward.

First question was ATC worth the money? Yes. Even in the light of this GFC thing.

So what did I get out of the event to justify my expense?

  • Attending the sessions, while not all were good I took something from most of them. I could not say which was the best session, they were all different.
  • Meeting other Australian commentators such as Phillip Tusing, Jo Knox for the first time.
  • Catching up with Russell Kronenburg from Pacific Brands over lunch on the first learning in detail about some of their social media activities. They are doing awesome stuff!
  • Hallway time with the US speakers, most of whom I had never met in person, such as Master Burnett, Dr John Sullivan, Kevin Wheeler, Gerry Crispin, Charles Handler, and Sue Polo.
  • Having several business, dinner and social engagements organised with Master Burnett, Kevin Wheeler and Gerry Crispin for when I am in San Francisco for the Social Recruiting Summit next month. None of which would have been possible without ATC.
  • Catching up with locals like Riges Younan, Ross Clennett, Phillip Tusing, and the boys from Happener.
  • Meeting Belinda and Danielle from Buchan and chatting about marketing and PR, Daneille joined a number of us for dinner one night.
  • Meeting the Deloitte’s team (James Elliott and Tanyth Lloyd) and many other Australian organisations who are doing exciting things.
  • Chatting with Karen Cariss and Simon Cariss from PageUp People, Simon for the first time.

So as normal with these types of events, the sessions are good but it is the networking that makes it valuable.

If you are in any form of talent management, sourcing or a corporate recruiter and you did not attend shame. For transactional 3rd party recruiters I can see limited value, but if you are a 3rd party recruiter who wants to be ahead of the competition again shame you did not attend.

Another final comment there were several sponsor sessions most were traditional let’s try and sell you on our product. The PageUp session was different. PageUp approached their slot with an attitude of let’s inform the audience about something, virtually unrelated to their product but important to the audience, Twitter. The result was after the session their stand was the busiest of any of the stands over the two days, other than Hudson where we all went for good coffee.

Next Year: Yes.