Latest Trends in Recruitment and Selection Andre O’Callaghan July 2011

1. Latest Trends in Recruitment and Selection Andre O’Callaghan July 2011

2. Trends in SA Between 2004-2009: • Less than 10% of school leavers wrote HG maths - of these only 50-60% passed • 7% of all schools provide 90% of all engineering graduates • 1/3 of all school leavers pursuing technical / natural sciences are PDI’s (well into 21st century majority of accountants, engineers and scientists will not be African)

3. Trends in SA Unemployment – 1997 to 2009

4. Trends in SA Employment by sector – 1998 & 2008

5. Introduction Recruiting gets a whole lot easier when you have a reputation for being a great place to work. Joanna Meiseles • Recruitment – the elusive art of securing the perfect ‘fit’ between company and individuals. Is it possible?

6. Introduction

7. Does this sound familiar? • Why should we appoint you? • What are your key strengths and weaknesses? • What do you have what we need?

8. Inherent factors to recruitment • Attraction Ability • Brand and image management • Talent retention • Value-add • Cost

9. Trends to watch in 2011 • Older workforce • Alternatives to Facebook

10. Trends in recruitment • E-recruitment • Social Networking • Temporary staff • Recruitment Outsourcing (RPO) • SA Labour Market • Risk Management

11. Trends in E-recruitment • Findings of a SA survey with 144 students (average age of 18 years), and 60% female and 40% male: • Digital platforms are the choice for communication (Facebook and BBM) • Email continues to lose its effectiveness as a communication vehicle with this generation. • Google is losing search market share to Facebook (50% of Gen Y chooses to use Facebook as a search engine over Google)

12. Trends in E-recruitment • MXit is used less than one hour a day • Facebook gets used up to five hours per day • The Gen Y prefer • The internet over magazines • Their cell phone over the internet and • Tertiary education over their cell phone.

13. Trends in E-recruitment • 87% uses a HRIS • 51% use technology in recruitment • 75% use e-recruitment • 94% of the global 500 use corporate websites and online applications

14. E-recruitment in SA • Social Networks – Urban African Youth (1992 & 2000)

15. E-recruitment in SA • Social Networks – Urban African Youth (1992 & 2000) • Implications • SA African Youth – increasingly disassociated from social organisations • According to Stats SA (2005) only 10% of the age group 15-30 use networks to find a job

16. E-recruitment in SA • The Internet is growing - 7 in 10 job seekers use it to search for jobs (Career Junction leads this space, followed by Careers24) • Social media platforms were measured for the first time this year and results indicated that 17% of respondents have used it to look for a job • 80% of job applicants say they don’t mind applying for jobs online, while two thirds prefer responding to job ads by means of email – a significant increase from 50% in 2009

17. Nearly three quarters of respondents (3100) have loaded their CV’s onto a database with the hope of being contacted for an interview, of which more than half have been approached by prospective employers. 1.6 million job seekers on Career Junction (Feb 2011) Recruitment pages in newspapers are still the most popular resource (82%) - The Sunday Times Careers supplement continuing to dominate (The Skills Portal, June 2011) E-recruitment in SA

18. Online job seekers and on-line advertisers - SA Career Junction – 27 Feb 2011

19. E-recruitment drivers • Reducing costs • Automated processes – thus increase hiring speed (turnaround time) • Widen the selection pool – Greater geographical reach • Brand-building (enhanced corporate image)

20. Standardisation – comparison of CV’s Streamline administration Speaks to younger generations Better co-ordination E-recruitment drivers

21. E-recruitment advantages • Access to vacancies 24/7 • Reaches a global audience • Cost effective way to build a talent bank • Can handle high volumes • Provide more tailored information to the post and organisation • Ease of use for candidates • Applications are instantaneous. 

22. E-recruitment disadvantages • Limit the applicant audience • Cause applications overload or inappropriate applications • Limit the attraction of certain groups • Can be seen as discriminatory • Is impersonal • Can ‘Turn-off’ candidates • Limited information and not user-friendly

23. Recruitment for the different generations

24. Recruitment for the different generations

25. Social networking – X & Y generation • Facebook • 500 million users (1 in every 13 people on the planet) • 250 million people interact with Facebook from outside the official website on a monthly basis, across 2 million websites • 200 million users connect via their cell phones to Facebook • The 35+ demographic is growing rapidly, now with over 30% of the entire Facebook user base. • The core 18-24 year old segment is now growing the fastest at 74% year on year

26. Social networking – X & Y generation • LinkedIn • 102 million registered members • 68% are over 35 • Over 150 industries represented

27. Resource process outsourcing • RPO – or Recruitment Process Outsourcing: • The outsourcing of part, or all of its recruitment activities to a service provider

28. Benefits RPO reduces recruitment costs - companies can save on agency fees, advertising fees, employee referral fees, travel expenses, etc. RPO can help the HR team to focus on their core activities. RPO is both time-saving and effective because the full scope of recruiting tasks is taken care of by an external dedicated agency Resource process outsourcing

29. South African labour market Risk Management (facts – Feb 2011) • 6-20% = criminal records • 18% = some financial record • 18% = False Grade 12 qualifications • 26% = False academic qualifications • 16% = unverified driver's licences

30. Pre-employment screening • Other tools • Financial background checks • ID verification • Driver's licence verification

31. Factors impacting recruitment • External • Labour market conditions • Government policy and legislation • Trade unions • Scarcity of skills and the brain drain

32. Factors impacting recruitment • Internal • Business/Corporate Strategy • Organisational recruitment policy • Recruitment criteria • Costs • Sources

33. 3 possible scenarios Labour demand exceeds supply Labour supply exceeds demand Labour demand equals supply

34. SA supply & demand (CJI) 2011

35. Recruitment versus selection • Recruitment • The process of searching for the candidates and stimulate them to apply • The purpose is to create a talent pool of candidates • Recruitment is a positive process

36. Recruitment versus selection Selection • This is about screening and to find the most suitable persons for vacant posts • The purpose is to choose the right candidate • Selection is a negative process

37. Process to identify job scope and competencies Job analysis and role profiling determine the following: • Job content • Standards/outputs • Minimum requirements • Competencies required

38. Changes Internal and external Job Analysis Job Profiling Job Description Job Job Grading Initiate Recruitment

39. Job analysis process example Skills Analytical English verbal and written communication Problem-solving Negotiation Behaviours / Attributes Decisiveness Handling stress Persistence Flexibility Knowledge GAAP Labour Law Budgeting process Accounting principles and tax regime

40. Advertising the job – AIDA principle • A= Attention • I = Interest • D= Desire • A= Action

41. The recruitment process MANPOWER PROVISIONING - A “Good Practice” Model Manpower Provisioning Needs Job Approvals RECRUITMENT Retention Identification Analysis & Budgeting • Annually • Job Analysis • • Requisition Per position • Reviewed Monthly • Job Spec • • Source of supply (Internal/External) Approval • • • Advertise Man Specifications Job Grading • Pre-Selection and Shortlisting • Selection and Decision • Job Offer • Appointment

42. The recruitment process • Identify vacancy • Prepare job description and person specification • Advertising the vacancy • Managing the response • Short-listing • Arrange interviews • Conducting interview and decision-making

43. Pre-selection • Telephone screening • Paper screening • Short listing

44. Questioning technique KPA Outputs/Objectives Standards/Measures Activities Behaviour-based interviewing Behaviour-based questions Competencies

45. Behaviour-based questions Use the following approach: • Position your question in a specific situation or task • Ask the applicant what actions he or she took (what was done and how?) • What results were achieved (effect of action) S R T A

46. Useful questions • Rapport-building questions • Open-ended questions • Non-Question questions • Use ‘soft’ words

47. SMME Recruitment challenges • Absence of a professional HR resource • SMME’s are used as a stepping stone • The manager/owner fulfils a more diverse role that their corporate counterparts • Recruitment is often informal, unstructured and reactive • SMME’s need to compete for skills in a competitive environment

48. Internal vs. external recruitment

49. Assessments in recruitment SA Legislation (Section 8 of the EE Act) • Any psychometric assessments must be valid, reliable and fair towards all employees and people • Assessments must be validated for all cultures, situations and groups in SA • Most tests are controlled by the Health Professions Council of SA (HPCSA) • All test administrators must be registered as a psycho-technician, psychometrist or psychologist.

50. Assessments in recruitment Typical assessment tools: • Cognitive Assessments • Aptitude Assessments • Personality Tests • Interest Questionnaires