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.

ATC: James Elliott National Recruitment Director Deloitte

James Elliott took the stage after lunch to give us a run down on Deloitte’s (Update: to clarify this is only the Australian operation and does not reflect the US operations.) recruitment function, specifically their Sourcing function. James indicated he was a little concerned about presenting, mainly because of the real time feedback that would be on Twitter. Some of my notes from the presentation are below:

  • Globally 160,000 people with $27 billion in revenue!
  • They got into sourcing because while operational excellence had meant recruiter efficiencies were up 50%, vacancies where still going up, something had to change
  • In 2007 while 3rd party agencies as a source were low their costs were still very high
  • The Deloitte definition of sourcing is:
    1. Identifying and mapping passive talent for current and future roles
    2. Approaching passive talent
    3. Maintaining talent pipelines through a systemised CRM cycle
  • As part of the move to sourcing they had two key learnings:
    1. Wholesale changes to recruitment processes were needed as sourced candidates need to be treated differently
    2. They had to focus on planning & forecasting which was much harder than first through. Lots of change management, and recruiting team structure to make the transformation possible
  • In general Australian resume databases are extremely poor in quality
  • While they use Taleo as an ATS, it is not a CRM (they use SalesForce) which they needed to:
    • Map competitions
    • Track contacts
    • Segment contacts
    • Manage ongoing CRM through tasks, reminders and emarketing
  • Deloitte’s sends out 4,500 e Newsletter a quarter to people in the CRM
  • The sourcers at Deloitte’s get their prospects from:
    • People who withdraw from the rtecruitment process
    • People who did not get a job they applied for
    • Graduates
    • Phone lists
    • Conference & professional associations
    • Name generation workshops
    • New hire competitor intelligence
    • Web search
    • And dumpster diving
  • Social Recruiting is starting to be used to:
    • Enhance brand & position as an innovative professional services firm
    • Engage external talent by offering an authentic insight into working
    • Leverage employees networks
    • Search for talent directly
  • Deloitte YouTube channel has had 25,000 views
  • They use Twitter to connect applicants to other Deloitte Twitter users in similar areas
  • Built a custom Facebook application called Join Me @ Deloitte to facilitate referrals. The application had 90% of employees install, good number of hires have come through but less than 3 figures even with that James felt the ROI was very good as it was cheap to build
  • As a source 3rd party recruiters provide the worse quality of hire whereas referrals are the best
  •  

10 Recruiting trends for 2009

As the world economies seems to be collapsing around us what will be the best practices in recruiting for 2009? Will video resumes be the killer app? Will niche job boards take over from the big boards? Will social media be the killer app?

Nope, none of these alone will get you the best candidates. Sorry.

If the economies do completely collapse there are a couple of outcomes; unemployment will rise as companies go under and people in secure jobs will be less likely to want to move. At the same time companies will need to do more with less and work hard to keep good talent.

So where should you focus?

  1. Quality of hire. Some people looking for jobs will be B grade, from layoffs, while some will be A grade. Given companies will be operating on thin margins you cannot afford to recruit the wrong person, ever! 
  2. Time to hire. While there will be more candidates to choose from, as with quality the time to hire will still be critical. 
  3. ROI, ROI, ROI. Every single recruiting activity must provide a positive return on investment. You can no long afford to just engage agencies to find candidates, it must be justified and most likely a last resort.
  4. Use your talent pool. Following on from the previous point companies that leverage the data in their talent management systems will reduce the time to hire and cost to hire. 
  5. Look for innovative and cost effective advertising. Post 10 job ads on the biggest job board for $1,000 might seem easy but is it the best use of the $1,000? Maybe providing micro-sponsorship to an industry event will get you in front of better candidates.
  6. Branding. Everyone is talking about it, but it is true. If people want to come ane work for your organisation you are half way there to hiring them. The best people want to work for the best organisations, no matter what the economy is doing.
  7. Referrals. Time and time again referrals provide the highest quality hire at the lowest cost.
  8. Social media. While it will not save you, social media will help. Look at social media to help improve your brand, and engage with top talent.
  9. Social networking. As with social media it will not save you but it will help you find candidates and improve your brand. Not to mention the ROI is very high.
  10. Learn to use search engines to find candidates.

You might look at the list and think, so what’s new? Well not a lot. It is just how you apply the processes which differs.

 


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