Recruitment - Outsource or In-House

Of all the business functions you could outsource, for many companies recruiting functions are not always at the top of the list but there are sound reasons to consider outsourcing in the same way as outsourcing other functions such as marketing. Here are a few questions to consider in helping to decide which approach is best for your company:-

1. Which approach will provide the best outcome in terms of quality of candidates?
Most companies agree that people and the skills they bring are a firm's most valuable asset yet many companies compromise on the quality of the candidates they attract by not providing sufficient resources in time, effort or expenditure to the recruitment process, resulting in poor outcomes for the company and/or candidates and higher staff turnover which can be a hidden but very significant expense.

 

2. What resources are required internally to be an effective self-recruiter?
Having an HR Manager or HR department does not necessarily mean a company has the resources to be an effective recruiter of skilled people. These days an HR Manager's primary functions are often to build a positive work culture, deal with conflict, ensure compliance, induct new employees, manage the workplace training program as well as often also doing payroll. These are all internally focussed activities and they are vitally important to the business. Recruitment is an externally focussed activity, requiring a depth of industry knowledge, identifying where the talent is and who is seeking a change.

A number of companies have recognised that the traditional HR Department model of recruiting no longer works in the modern world for this reason, and have subsequently developed a new section or department employing a team of Talent Finders whose job it is to acquaint themselves with the talent in the market and hiring according to the companies requirements. This can be an effective model but whether it is a fit for a particular company depends on the size of the company, the number of vacancies it expects to fill annually and how broad a skill set they will be required to employ. The reality is that to have an effective team of Talent Finders can be an expensive proposition for even large companies. The outsourcing option is an effective means of accessing talent finding skills only when required, and remains a variable cost, whereas an in-house team becomes a constant overhead cost to the business. It is interesting to note that even many of the larger multinational companies use outsourcing because of the realisation that their in-house teams cannot compete with specialists who are constantly operating in and therefore increasing their knowledge of the market.

3. How has recent technology changed the process of sourcing talent?
The advance of technology has improved speed and easy access to information, elements highly prized in a competitive environment.

The rise of online jobs boards, social media and the like have significantly changed the recruitment industry. Some believed that the easy access to information would result in a trend of more companies to conduct their own hiring. There appears to be no evidence that this is occurring and it is probably because increased access to information has significantly complicating the hiring process rather than simplified it. What recruitment consultants do that technology cannot is to match the information they have of the talent market with the specific requirements of the company they are recruiting for. A good recruitment consultant will actively gain an understanding of his/her client's company, its culture and hiring needs and evaluate candidates, make judgements and offer opinions as to a candidate's match with the organisation and its needs.

Is it worthwhile to advertise over Christmas/New Year?

Two years ago, I wrote an article for this newsletter, concerning seasonality in recruiting from the point of view of both candidates, i.e. the times of the year when candidates were looking to change jobs, and employers, i.e. when employers were most looking to hire.

The conclusion I drew was: "it depends". That is "it depends" on the industry, in particular if there is seasonality in the business and when bonuses are paid. For example you don't go looking for winemakers in vintage because most winemakers are up to their gumboots in grapes and have little else on their minds other than fermenting grapes. Similarly the best time to recruit an accountant is not around the new financial year. A bonus for a salesperson often falls due in July, so June is not a popular month to move.

On a similar vein and as it is nearing Christmas, I thought I would tackle the question of "does the festive season affect recruiting?". This thought is prompted because some of our clients have raised the question "Is it worthwhile to advertise vacancies over the Christmas/New Year period?".

A decade or more ago, I would have said yes, the "festive season" does affect recruiting, because job vacancy advertising, before the formation of internet job boards, shrank to practically nil over the Christmas and New Year period. Some 15 years ago, practically the only advertising medium was newspapers and candidates were conditioned by long precedent that there were very few positions advertised until the 3rd or 4th week of January. In addition most candidates on holidays in those days didn't have access to a printer and so had to wait until they were back at work to submit an application.

All this has changed since the advent of internet job boards and more recently, Smartphone's and tablet computers. For example, I read last weekend that the average person on holidays expected to spend three hours per week on their Smartphone/tablet/laptop, checking emails and work matters. Work has invaded the annual leave period, especially for anyone who has a portable device.

Candidates are nowadays checking job boards and receiving job emails from job boards, getting job notifications by Twitter and from Facebook friends, seven days a week, 52 weeks a year. Because most ads are up on job boards for 28 days (versus the one day of newspapers), candidates can now check at their leisure for job opportunities all through their holidays. In addition, a resume can easily be sent by email or uploaded from your Smartphone or wherever in the "Cloud" you keep it.

One of the key factors here is that people who are often passive candidates (i.e. those not actively looking for a new role) can become active searchers over the vacation period. Whilst on holiday they have the time to search for new roles and more importantly they have the time to think about change. Thus some of the best candidates can come onto the market and so it is important to be there, ready to tell them about a marvelous new role.

Of course people don't just take holidays over the Christmas and New Year break, but a sizeable portion do take at least a week to two weeks over this period and to miss out on this opportunity just because of an outmoded impression that the whole nation turns off would be unfortunate.

From an employer's / recruitment point of view, the sensible thing to do is to plan to advertise across the "festive season". After all the relatively modest cost of internet advertising and the potential benefit is such that you can't afford to miss the opportunity.

Recognise Behavioural Questions and Be Prepared for Them.

A common interview technique is the use of behavioural interviewing. The basis for this type of interviewing is that past behaviour is an accurate indicator of future behaviour and behaviour is closely linked to performance.

The behavioural questions asked will relate to the selection criteria for the role you are being interviewed for, so if you have an understanding of the selection criteria then you will be able to prepare for some behavioural questions.

Recognising a behavioural question.
Behavioural questions are different from hypothetical questions, which focus on what you would do in a certain situation.

The often start with, "Tell me about a specific situation when… ". or, "Give me an example of when you had to……".

The interviewer will be looking for four elements to be present in your answer. These elements can be most easily remembered as the STAR format:-

Situation – Identifying a specific situation which you were faced with (preferably but not necessarily in the work environment)

Task – Outline the task which you were required to achieve

Action – Describe the action you took

Result – Explain the outcome from your actions

The key to providing a good answer to a behavioural question is to come up with a credible example with a positive outcome resulting from your actions or at least it being a valuable learning experience. If the example doesn't result in a "happy ending" then you should choose another example.

To practise answering behavioural questions, make a list of the selection criteria for the job and reflect on examples of your past achievements which demonstrate your capability in each criteria.

Examples of Behavioural Questions


Describe a time when you were under pressure of meeting multiple deadlines.

What did you do to get organised and achieve what was required of you? (Selection criteria – time management)

Give me an example of a time when you saw the opportunity to make a work process better or more efficient.

What did you do and what was the outcome? (Selection criteria – demonstrating initiative).

Tell me about a time when you were let down in a group or team.

What did you do and what was the outcome? (Selection criteria – teamwork).

What is Best Practice in Employee Turnover Rates?

Many companies have concerns about the availability of skilled labour to meet their projected demands. While hiring new and qualified employees is critical to meeting future demands, retaining existing employees and their skills is equally critical.

One way to track how effective a company is at retaining current employees is to look at its employee turnover ratio and compare individual performances to industry benchmarks.

Employee turnover is generally calculated as the number of employees who were terminated, quit or retired during a given period (typically quarterly or annually) divided by the average number of employees, multiplied by 100. Such calculations generally exclude probationary, part-time and temporary workers.

Rate of employee turnover can be influenced by a number of factors:-

• Type of Industry – What are considered normal turnover varies between industries

• State of the Economy – employees will be less inclined to voluntarily change employment under difficult economic conditions.

• Company Factors – size of company, level of engagement with employees, strategic factors.

Reported employee turnover rates most commonly range anywhere from 2% to 30% per annum. It is not surprising that most benchmarking reports suggests that having a lower-than-average employee turnover ratio is better than having a higher-than-average ratio.

From a profitability standpoint, research suggests that it’s important to be better than average in turnover ratio but it is also worth stressing that achieving best-in-class performance should not be a company’s sole objective. Other important strategic initiatives in a company can have a positive or a negative impact on turnover ratio. The real message is that balance is extremely important. You want to retain your key people and strong performers but you also want to have new people entering the organisation who can bring new skills, provide a fresh perspective and ideas for improvement.

One of the major concerns associated with having a higher than average staff turnover rate is the cost to the organisation in two areas:-

• The high direct cost of hiring new talent. This can be exacerbated by the shortage of skilled personnel which is currently common in many industry sectAgPeople rs.

• The loss in organisational efficiency associated with the constant loss of skilled and experienced people.

It is generally accepted that staff turnover is an important KPI to be measured and benchmarked in and between companies. Six percent turnover is often cited as a healthy balance between retention of existing skills. Concern may be warranted if turnover is found to be 15% or higher. Under such circumstances analysis of quality of leadership and employee satisfaction and engagement may well be justified to determine the root cause and to enable the development of tactics to reduce it to a level in line with existing company strategy.

Retaining Retiring Employee Knowledge though Phased Retirement

By AgCareers.com

Within the next 20 years the international work force will lose an alarming number of workers. According to the Australian Bureau of Statistics, within NSW alone 37 percent of the labour force is over 45 years old. This mass migration of employees out of the workforce is going to leave considerable gaps in experience and knowledge. Employers and organisations need to begin setting up policies and procedures to ensure that the gap of knowledge left by retiring employees is as small as possible.

Phased Retirement is one process which has been developed to allow the transfer of knowledge to flow between retiring employees and the continuing workforce. While traditionally an employee would work full time in the position they hold until the day of their official retirement, phased retirement allows an employee to gradually ease out of the workforce making the transition easier and more effective for both them and their organisation.

There are several forms of phased retirement. One approach involves reorganising the retiring employee’s responsibilities so that rather than focusing on the completion of day to day tasks, they are focused on training and mentoring other staff members.

Often a phased retirement plan also involves reducing the number of hours the employee works. This allows the employee to adjust gradually to their new life balance. The Government of Western Australia Department of Consumer and Employment Protection suggests that "successful implementation of phased retirement also requires that employers foster a culture that enables mature workers to reduce hours or withdraw from former duties with dignity and respect." A phased retirement plan will only help an organisation retain the knowledge of the retiring employee if the ongoing employees can value the importance of the retiree’s experience and knowledge.

Creating a structured plan for phased retirement will help achieve the best results. Determine the time frame of each section of the retirement plan. At what point will specific tasks be reassigned? On what date will the employee’s hours be reduced, and by how much? On what day will the employee completely retire? Does the employer want to keep the retiring employee on a retainer for consultation purposes after retirement?

After 40 to 50 years in the workforce, the idea of retirement can be very daunting. The idea of replacing someone with 40 to 50 years of experience can also be very daunting. Phased retirement has many benefits for both the employee and the employer. The retiring employee has an opportunity to begin experiencing retirement whilst still feeling like they are making a worthwhile contribution. The employer has an additional period of time in which they can extract expertise from the outgoing employee. It’s a good idea to implement phased retirement in any organisation.

Tapped on the shoulder by a recruiter? Not sure what to say or do?

5 easy tips on what to say next time a recruiter taps you on the shoulder.

Some people react negatively when tapped on the shoulder by a recruiter, for various reasons: unfamiliarity, you're busy, you're not interested in another job, you don't like recruiters and so on.

Others see it as an opportunity to verify their market value or market positioning or an opportunity to further their career. And between these extremes there is a whole group of intermediate reactions.

Thinking about it at the most fundamental level, being tapped on the shoulder means that a recruiter has been researching people in your industry and come across your name, most usually as a result of a recommendation by one of your industry peers. This is a good thing as it marks you out as a probable superior performer–and it means that you are recognised.

Tip 1 –Take the call with an open mind and take down the recruiter's details for future reference. You might not be interested today, but who knows what anyone's future employment prospects can be. You may want to contact that recruiter sometime in the future.

Tip 2 –Before you answer any questions, try and get as much information about the recruiter as you can, so that you can verify their credentials. You want to make sure that the person you are talking to is legitimate and an industry specialist.

Tip 3 –Once you are comfortable with the recruiter find out as much as possible about the role before you answer any questions yourself. Don't be afraid to ask questions, a good recruiter will not be troubled by your questions, besides it confirms your interest.

Tip 4 – If you consider the described role is suitable / interesting, let the recruiter ask questions, answering them as openly and honestly as you can. Just as there is no place for exaggeration in a written resume, there is no sense in not being honest and straightforward with a recruiter.  An honest initial discussion with your recruiter can develop into a long term career management relationship.

Tip 5 – Finish your conversation with relevant questions, such as timing of future appointments. If you are interested in the role, make sure that you indicate this to the recruiter. Studied indifference for example will most likely put the recruiter off.

Like most things in life, an opportunity is only any good if you seize it. So the next time a recruiter comes knocking, seize it as an opportunity to learn and, perhaps, progress your career.

International Recruitment

One of the most interesting trends to occur in the recruitment industry over the last few years has been the steady rise in overseas or international recruitment. i.e. where a customer based overseas is looking to source talent to work in overseas locations. This trend has accelerated in the last twelve months and is particularly evident amongst emergent Asian based companies. The leading countries for this market include: China, Vietnam, Singapore, Malaysia and Thailand.

 

Companies from these countries are seeking talent with skills and experience for which there is an evident shortage in these overseas markets. This trend is different to the old ex-pat market which was strongly evident until the late 90's. This particular trend subsided because of the Asian Economic Crisis and has not re-emerged to the same extent. In those days it was most often the Asian outposts of American and European multinationals that drove this now quiet ex-pat market. This is not to say that ex-pats no longer exist, they do, but are increasingly being replaced by personnel on local packages. This trend has being helped along, by the increasing salary and benefits packages available in these markets and thus local packages are more attractive.

The market is now driven by cash rich locally based businesses that often have purchased the best in class technology for their operations and are looking to source skilled personnel to manage/operate the plant/operation. They are looking particularly for people with good English skills as English is often the only common language between equipment/technology supplier and customer.

We have recently placed both senior technical and managerial personnel from Australia and New Zealand into operations based in Turkey, Malaysia, Singapore, Vietnam and China. In each case there was a strong need for technically and managerial adept candidates that were not available in their home market and so had to be sourced from Australia or New Zealand. Industries ranged across the board from Agriculture, Wine, Food, Packaging and the Life Sciences.

If you are looking for an opportunity overseas or looking to fill an opportunity overseas, please feel free to give us a call on 1300 887 460.