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.

10 things to do in 2010

While we are still in the first few weeks of the new year I through it would be good to look at come of the things you should focus on during 2010 to.

In no particular order here is my list of 10 things to do in 2010:

  1. Have an HR/Talent Management/Recruiting application blueprint
  2. The IT environment in many organisations is complex and needs constant management, even in the smallest of organisations. To help with managing the complexity ensure you have a strategy/roadmap/blueprint to follow.

  3. Learn about Search Engine Optimization (SEO)
  4. It seems finally organisations are starting to take note of the value that can be achieved from a decent career’s web site. While content and design are critical understanding a bit about SEO can help your jobs appear in the elusive number 1 spot of search results. Even if you do not have a career’s web site having your personal brand appear in search results can be a great thing.

  5. Implement a workforce planning program, with a foundation around competencies
  6. The recent CedarCrestone HR Technology survey found that organisations who were using workforce planning and competency management tools had significantly higher sales growth than those that did not. While they say they are not suggesting causality but over the last few years there has been stronger linkage between sales growth and these areas.

  7. Think beyond Facebook and Twitter when looking at social media
  8. With so much talk about Facebook and Twitter I feel people have forgotten that social media is more than just these two sites. Remember social media is about user generated content, including blogs, images, video, audio, ratings, reviews etc.

  9. Focus on high quality hires, never settle for less
  10. This should always be the best line of your hiring decisions. Period.

  11. Ensure your HR/Recruiting function is metrics driven
  12. Related to workforce planning is being metrics driven and I am not talking just about lists of headcount either. Gaining a deep understanding of your business and it’s drivers is critical to success. Do you know the best performing source of talent? What about the performance of your succession plans? But do not create an environment where you have an over reliance on benchmark based data as this basically turns the measures in to commodities by assuming what works for one organisation will work for yours.

  13. Don’t be afraid to experiment
  14. This one is for the Australian’s out there, experiment and fail!! As a population we tend to be afraid of failure. Do not be afraid. Organisations that experiment and fail regularly then to succeed.

  15. Learn about Web Squared
  16. You might be asking web what? Web Squared is the next evolution of the whole Web 2.0 idea. Web Squared builds on the idea that everything and everyone in the world cast “information shadows” or data. This data when leveraged provides extraordinary opportunities to organisations.

  17. Begin to think how you can bring real time into your operations
  18. The first part of web squared that you can bring into your organisation today is leveraging real time data. Look at real time data as key signals that form part of your business processes.

  19. Never ever forget about change management
  20. One of the biggest reasons for projects, of any sort, to fail is a lack of acceptance in the final outcomes being sort by the project. This can be alleviated through an effective change management program.