Harnessing the Power of Referrals In Your Sourcing Strategy

1. Harnessing the Power of Referrals In Your Sourcing Strategy Jeff Weidner Global Director Science Executive

2. Investors:

4. Jeff Weidner • Global Sourcing Science Executive • Kenexa, an IBM Company • 18 years in Staffing Industry. • Specialties Include: • Passive Candidate Sourcing and Screening. • Penetrating Passive Candidate Talent Pools. • Social Recruiting/Social Networking. • Developing innovative ways to source and engage top talent • Eating Dark Chocolate.

5. http://www.kenexa.com/events/connect2014

6. Harnessing the Power of Referrals In Your Sourcing Strategy Jeff Weidner Global Sourcing Science Executive

7. Why Employee Referral Programs?

8. 97% Post, Search & Pray. Engage Sourcing. Deploy social media and recruitment marketing. And this works… Most of the time. But for how much longer…

9. Plan ahead • When Post, Search and Pray fails. • When none of the tools on your sourcing tool belt seem to work. • When all the social media and recruitment marketing just isn’t getting to the hire. You need a plan.

10. The Plan The plan must include Employee Referral Programs

11. 97% Post, Search & Pray. Social Media, Video, Email, Pay Per Click, Youtube, Facebook, Instagram, Boolean etcetcetc Even when this works It’s expensive, time intensive and requires training.

12. Oh and did we mention it’s expensive!!! Businesses around the world spend over $3,300 per hire on recruiting and this budget has increased by almost 6% in the last year. Equates to about $72 BILLION/yr

13. Why? • Lower CPH (Cost Per Hire) • Higher Quality Candidates • Lower Turnover Rate http://www.newyorkfed.org/research/staff_reports/sr568.pdf

14. Why? Relative to job board applicants, referrals are more than twice as likely to be interviewed and conditional on interview about 40% more likely to receive an offer Information obtained from Federal Reserve Bank of NY 2013 http://www.newyorkfed.org/research/staff_reports/sr568.pdf

15. How? Source for any job title, any industry for any company anywhere in the world more successfully. How?

16. How? Source for any job title, any industry for any company anywhere in the world more successfully. How? BY ASKING YOUR EMPLOYEES FOR REFERRALS.

17. ASKING • ERP Software Platform • Automated Distribution • Email updates & Internal Social Platforms • Recruiters can ask • Applicants and New Hires

18. ASKING Recruiters Most ask for referrals. Most get 1 or 2. Very few recruiters get good referrals.

19. ASKING They ask generic questions which do not generate a specific answer. They ask questions like: • Can you refer anyone? • Do you know anyone that might match this skill set? • Do you know anyone that might be a good fit for this job?

20. Best way to ask for a referral Don’t ask for a referral! Instead establish that they know people with the skill set you are looking for. Then ask who they know.

21. In the weeds Script: Ask for referrals • Would you agree that most (job title here) know other (job title here)? • You’ve worked other (job title here) in the past and probably have a few as friends that are (job title here) don’t you? • Would you say you know at least 20 or 30 (job title here)? • Great, who are the top 7 (job titles here) you know personally?

22. In the weeds Script: Call the referrals (Confidential) • Hi (Referral Name), My name is and I’m from (Company Name) I was asked to approach you in confidence about a (job title here) position at our company. In fact, you were referred by an internal candidate who asked to remain anonymous at this point. • If the right opportunity were presented to you, you would at least be open to hearing about it wouldn’t you?

23. By the numbers Target 30% • 30% of all hires should come from Employee Referrals • Best Chance of achieving • Lower CPH (Cost Per Hire) • Higher Quality Candidates • Lower Turnover Rate • Estimated that every employee knows at least 7 people that are qualified for open positions at your company.

24. By the numbers Under 30% • You will notice most likely notice • Lower CPH (Cost Per Hire) • But these will have slower realization • Higher Quality Candidates • Lower Turnover Rate • (These are Metrics and Time based)

25. By the numbers Over 30% • You will notice most likely notice • Lower CPH (Cost Per Hire) • Higher Quality Candidates • Lower Turnover Rate

26. By the numbers Over 30% • But it may come at a higher cost. As the percentage concentration of employee referrals increase the candidate pool may be diluted in unforeseen ways. • Organizational culture may have negative impact. • Diversity slates may get skewed towards under or over represented minorities. • Open door to nepotism or favoritism in future promotions, raises over peers, other system abuses.

27. By the numbers

28. Best chance of success • Set your Goals: 10% is a good starting point, moving to 30% over time. • Automate the process Consistent messaging, consistently promoted, distributed, shared. • EVP and ERP are perfect together. Employee Value Proposition and Employee Referral Program should be integrated • ERP and ATS are a match made in heaven. Have referral candidates apply directly in to the applicant tracking system.

29. Best chance of success • Make it Social. Tap into the Employees relationships and go from 7 to 1 to 49 to 1. • Incentives work but they don’t always need to be Pay to Play. Recognition, a special thank you, • Track your metrics. Cost per hire, Time to Fill, Length of Employment, Employee Promotions, # Employee Raises, % increase from Start to Current. Compare to other sources of candidates.

30. Jeff Weidner @SourcingScience KesThygesen @RolePoint kes@rolepoint.com • http://bitly.com/ibmconnect-2014 http://bitly.com/rolepoint2014 • http://bitly.com/ibmconnect-2014 http://bitly.com/rolepoint2014 • http://bitly.com/ibmconnect-2014 http://bitly.com/rolepoint2014 Thank You THANK YOU