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.

Follow up on the sources of talent report

It has been an interesting week or so since Phillip and I released the sources of talent report for Australia. We have had both positive and negative feedback, which is to be expected.

Some of the commentary available online:

I would like to review some of the concerns raised over the accuracy of the data, the process we used and the outcomes.

One concern was how do you define the original source of talent. A very good queston. If an candidate sees an add on job board, then contacts an agency directly is this an agency hire or a job board?

Another concern raised was were we double counting hires? Were agencies providing information on the same candidates that employers were? Our survey did not cover this, but it is a great question, although solving this is not easy either.

Carey Eaton from Seek wold like to see us separating the tools, and resources, from the processes used by organisations.

There were also questions around should all of the organisations who participated been allowed to participate. My understanding is some people would like us to only looking at large employers, like the US report. Unfortunately in the Australian marketplace there are a huge number of employers in the sub 250 employee bracket.

To be honest I agree with most these concerns. However the fact is, we can now have conversations about these issues and work as an industry to resolve them. Generating this conversation was one of the underlying goals of the survey.

Phillip and I will be starting plans for the 2010 report while we are at RecruitTech this week in Canberra so if you have some thoughts leave a comment or drop us an email.

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.

RecruitTECH September 2009

On September 18 in Canberra I will be speaking at RecruitTECH with a host of other people. What is RecruitTECH?

The RecruitTECH conference will provide delegates with an insight into the future of recruitment and how technology will increasingly impact upon the sourcing of employees in coming years.

Themes to be covered during the conference include:  the use of social media (eg. Twitter, Facebook, LinkedIn), user-generated content, the distributed workforce, the evolution of recruitment advertising, the use of employer-branded career sites, and the trend towards Software as a Service (SaaS).

My contribution will be about social media in the workplace, other speakers include:

  • Laurel Papworth
  • Stephen Collins
  • Ross Clennett
  • Brett Iredale
  • Geoff Jennings
  • Kelly Magowan
  • Thomas Shaw
  • Kate Sykes
  • Phillip Tusing
  • Riges Younan
  • Clayton Wehner

Registration is only $299 with a maximum of 75 people, so book early to make sure you are not disappointed.

Do you know the Australian Sources of Talent?

Over the last couple of months I have been working with Phillip Tusing from Destination Talent to look at the most successful channels for finding talent in Australia. Our initial thought was how hard could it be to pull a survey together and send it to a few people. We were a little mistaken, but finally the survey is ready.

I am very happy to announce the launch of Australia’s first Source of Talent Survey!

If you’d like to contribute to this, as well as receive a free advance copy of the report, click here to begin our short online survey (it takes less than eight minutes to complete). You’ll also go into a draw to win a Nintendo Wii or one of five book vouchers.

While there are international results on sources of hire by Gerry Crispin we are very interested to see the results from Australian organisations. For example, do Australian organisations collect this information, if so what systems do they use, and are they experimenting with social media as a source of talent.

This is a joint project between myself (Inspecht) and Phillip Tusing from Destination Talent, with support from our sponsorship partners: JobAdder, JobGenie, PageUp People and PeoplePulse.

To find about the survey and the report visit our microsite http://talentsource.com.au for more information.

Sponsors


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.

Chandler Macleod Group says employment opportunities still exist

During February 2009 the Chandler Macleod Group (CMG) conducted a survey of 5,250 candidates in the Australian workforce and found some interesting but not surprising results. I have summarised some of the highlights from the press release below, or you can read it in full online.

  • 30% of all candidates have been affected directly or indirectly by job loss due to redundancy
  • 76% of employees who remained in organisations that had cut staff planned to seek other employment opportunities
  • Job vacancies still exist, mainly in the government, not-for-profit, health and utilities sectors
  • 50% of employers are introducing “innovative” ways to retain talent, ie 3 or 4 day work weeks
  • Applications for the jobs that remain have doubled in the last three months

For the job opportunities that remain candidates need to stand out from the crowd to quote Peter Gleeson CMG’s Executive General Manager of Professional & Executive Recruitment:

“Qualities that employers are looking for today in candidates are: resilience; strong leadership; ability to seek ways to remain competitive from a business development standpoint; and the ability to be more productive with limited resources,”

Earlier in the press release David Reynolds, Chandler Macleod Consulting’s Executive General Manager said:

“I believe that job losses will continue to rise steeply before the financial year end in June 2009 as organisations will need to show they have the strategies and structures in place to face the challenges of the financial year ahead.”

In summary while there might be job opportunities out there, and employers are looking for people who can help them survive times are going to get worse before they get better.

But don’t despair as Phillip Tusing from Destination Talent says unemployment is a bit of a strange thing:

For instance, Cabramatta struggles with an unemployment rate of 15.6%, while Wollstonecraft is 2.9%. To residents (employers and job seekers) of both suburbs, the national unemployment average doesn’t mean much.

Australian Job Board Report 2009 released

I have been very slack in the last few weeks and I have not posted about several very exciting and interesting activities, I will work to fix this over the next few days.

Firstly the Australian Job Board Report for 2009 has been released by Phillip Tusing from Destination Talent. The report lists 236 job boards in operation in Australia, while not all it is a very good representation. Phillip also covers the Australian recruitment technology landscape, with more than 40 national and international recruitment technology providers. There is also a few words of advice from me on page 26.

If you are involved in recruitment in Australia I highly recommend you take a look at the report.