Recruiting programs create an immense amount of information. Deciding what recruiting metrics to measure and analyze is daunting. If your organization is just beginning to look at recruiting performance or, if you’re trying to improve your existing recruiting analytics program, it’s best to start with the issues that affect performance the most – the basics.
I suggest starting with the fundamentals, the metrics that will help you immediately improve the service you provide your stakeholders. Take the “crawl before you walk” approach if you’re just getting started. And, if you’re already tracking data but not necessarily getting the most out of this information, perhaps it’s time to get back to the basics. Focus on using the information to improve the business function of recruiting.
Over the last few years, the recruitment outsourcing industry has experienced significant growth, which stems from an ever-expanding market demand for scalable, flexible and cost effective recruiting solutions. Today, new clients not only expect RPOs to fill jobs but to help them build better process along the way. With recruitment outsourcers facing more complex assignments and more competition than ever, RPO’s must select and leverage technology that’s specifically designed to address their most common business challenges. This technology must facilitate the attraction of new customers, allow them to manage existing accounts better and must help them increase their overall customer retention rates.
Managing an RPO isn’t easy. On the hook to monitor the activity of multiple recruiters, thousands of jobs, hundreds of hiring managers and hundreds of thousands of candidates, RPO’s operate in a complex environment facing huge challenges both internally and externally. Using applications like spreadsheets and email or worse, selecting just any recruiting software will severely limit an RPO’s performance, scalability and ability to retain customers. To ensure that your RPO is successful and continues to attract new customers while keeping your existing customers happy, you must leverage technology that is designed specifically for recruitment outsourcing.
Until very recently, finding a technology platform that’s specifically designed for outsourcing engagements has been difficult if not impossible. There are still few applications available today that are specifically designed for RPO’s. But there is good news. As the recruitment outsourcing market continues to become more sophisticated, demand for specialized RPO platforms is increasing, and a handful of vendors are responding with modern technology to address the challenges faced by RPO’s.
A little advice to start
So, what should you be looking for? Here is a list of things that you need to consider and questions to ask when evaluating software for recruitment outsourcing.
My first piece of advice is to really focus on your “must have” features, the knockouts. Focus on what you really need right now, because as you expand and optimize your RPO business, your “nice to have’s” are going to change. For example, 5 years from now you almost certainly are not going to need fax integration (I hope you don’t need it right now)-this type of feature shouldn’t be a deal killer in your buying decision. It is always better to learn to walk before you try to run. And, remember, choosing any kind of business software is all about managing trade-offs.
My second piece of advice is that you take the time to see your “must have” features in action. This starts with a demo, but you should also move at least some of your recruiters on to this platform. Take full advantage of the free trial (most vendors should offer this, it’s 2010). Don’t use fake data and don’t just test the system for an hour here and there. Use it to manage a customer, or 2, or 10. If it fails at managing a small portion of your business, it will certainly fail at managing a large one. Remember, this will be the lynch pin of your business, your platform; don’t just take the salesperson’s word for it.
What Questions do you ask of your RPO software vendor?
Does this RPO software enhance our brand?
Selling an outsourced recruiting solutions is a hard. You’re truly selling the invisible. Before software, the buyers of recruitment outsourcing solutions had little more to go on than a sales pitch, an SLA and some promises. Today, with the right RPO software you can gain an incredible advantage during the sales process: proving that your solution is more complete, more modern and more efficient than competing solutions. Your software should enhance, not detract, from this message. Choose software that your stakeholder is going to be proud to roll out to their team, something that will make them look good. Make presenting your technology solution the buyer’s first win.
If I were an RPO customer, would I use this software?
No software platform is magic. Some users will love it. Some users won’t. But, choosing RPO software that increases your chances of getting more users will result in higher margins, and reduced customer turnover.
Obviously, every hour you spend training and every week you spend implementing RPO software is money from your bottom line. The harder your recruitment outsourcing software is to use, the less likely your clients will be to use it, and the more work you’ll have to do manually. Simply put, the easier your recruiting technology is to use, the less work your recruiters have to do, and the better your margins will be.
There are other benefits as well. The more users you get, the better off you’ll be as you’ll capture critical information that you’ll use to diagnose and solve problems. Solving minor problems before they become major headaches keeps customers happy. Pick the right technology and it will become the hardest working part of your solution. When you customer periodically evaluates other solutions, they’ll realize that you provide not only a valuable service but, a valuable technology.
Will this allow us to be more valuable than just the last resume we sent?
Unless you choose technology that allows you to show all of your work, your client will continue to judge you on one thing - the last resume your team sent. How else are customers going to feel any ownership of the service you’re providing them? Without the right technology, all the work that your team is doing, except for the last resume sent is invisible to them. If your customer just wanted resumes, they would have hired a contingent agency or signed up with another job board. When companies hire an RPO, they want hires and they want problems fixed. They want visibility and they demand accountability. Provide technology that you can build around, a platform that will enable all those best practices that you talked about in the sales meeting. Choose technology that will tackle the tactical and create the opportunity for your firm to be strategic.
Will your technology vendor continue to be innovative?
Ok, you’ve narrowed down your options, done the demos, set up some users and wrestled pricing information from the vendors. Now, you need to ask what the vendor has in store in the coming 6-12 months. What’s on their roadmap? Are they adding features just to add features, small things to win a customer here and there? Or, are they designing critical enhancements that will help you overcome your biggest challenges? Select a vendor that is constantly innovating and looking for ways to make your team more efficient. Select a vendor that has been on your side of the table, a firm that has employees that have actually worked in an RPO or at least a recruiting environment. They’ll provide the most innovative platforms, ones that work the way you work.
Finally, you’d probably expect that RPO software, the technology that’s going to power your business is going to cost a pretty penny and is going to be a major headache to implement. Not the case, it’s 2010. Thanks to new delivery methods and even newer business models, there’s technology available that you can set up in a matter of days and will be affordable and will scale as your business scales. So, get educated, ask the tough questions, kick some tires, do the demos and choose modern recruiting software that will accelerate the growth of your recruitment outsourcing practice and make your clients happy.
Think back to your last staffing meeting or the last time that you were asked for recruiting status. Where did you get the information? Spreadsheets? Better yet, how long did it take you to compile all the information? If you just sighed, you’re not alone.
Do you loathe those Fridays when you have to “update” your ATS or staffing spreadsheets? We did. So we built recruiting software that works the way recruiting works. Now capturing all of your recruiting information is simple. And, because Newton is easy for everyone to use, even your hiring managers will add data to the system allowing you to collaborate and store critical information.
Newton is designed to be like air traffic control for your entire recruiting program. See all the information that’s important to you at a glance, right from your home page. Now you’ll drill into detailed analytics anytime from your analytics dashboard to access real-time information like: candidate pipelines, conversion rates, average time it takes to move candidates from stage-to-stage, best sources of applicants, missed opportunities and more.
Give your hiring managers and executives logins. It’s free! Get ready to show all of your hard work, to point out bottlenecks and to make better decisions about your recruiting resources. With Newton you’ll be the envy of your company, running the most informative meetings with the best information at your fingertips.
In this installment of The Proactive Employer, Stephanie R. Thomas, Ph.D., Director of the Equal Employment Advisory and Litigation Support Division (EEA/LS) of Minimax Consulting, outlines ten tips for examining the question of whether your employees are ‘fairly’ compensated. While these tips cannot replace a comprehensive self-audit of compensation, they provide a launching point for collecting the information required for the audit, and open the dialogue of compensation equity.
Minimax Consulting is a full service consulting firm providing quantitative services across a wide variety of industries. The Equal Employment Advisory and Litigation Support Division of Minimax Consulting brings more than ten years of experience in expert statistical analysis of employment decisions and employment litigation risk management. Headed by Stephanie R. Thomas, Ph.D., the EEA/LS Division provides consulting services, dispute resolution support, and expert testimony to small businesses, Fortune 500 companies, major law firms, and local, state, and federal governments and agencies. The EEA/LS Division specializes in labor and employment issues in both advisory and litigation contexts.
Since May 2006, the Office of Federal Contract Compliance Programs (OFCCP) has been enforcing a landmark ruling that sets explicit regulations on the collection, storage and reporting of Equal Employment Opportunity (EEO) data for internet applicants. It also defines internet applicants, identifies electronic data collection methods, creates basic qualification standards and establishes recordkeeping requirements for compliance.
While OFCCP regulations are specifically for companies with federal contracts, it is the responsibility of every employer to eliminate discrimination in their hiring process. It is not enough to just consult an attorney (which clearly should be step 1). In today’s world, where applicants can easily apply to hundreds of openings with a few mouse clicks and each job attracts hundreds of candidates, using a spreadsheet to track all of this information is possible (maybe) but ensuring its accuracy or drawing any insight out of this information is impossible. Regardless, manually tracking this information has gotten increasingly more cumbersome and maintaining the integrity of this data has been riddled with human error (transcribing information from one form to another) as the volume of recruiting data continues to increase.
To help ensure that your company remains compliant with these types of government regulations, your organization should be storing, tracking, and analyzing hiring information with a solution that can handle large amounts of data while minimizing the need to copy information from one form to another. As such, this solution must have these 4 critical capabilities: ask every potential employee to identify their EEO info, capture the reasons why your employees have chosen NOT to hire someone (every time), continuously analyze this information in real-time and be able to create reports that you can use for compliance reporting.
But there is good news. Tracking the information that can help your company stay in compliance, perhaps even reduce hiring discrimination, has really never been easier….as long as you choose the right recruiting software vendor. Be careful, shop around and ask the right questions because not every vendor understands these regulations (and most have incomplete applications that will cause you to have gaps in your program).
What questions do you ask of your ATS vendor?
So, what should you be looking for? Here is a list of things that you need to consider. My first piece of advice is when choosing applicant tracking software make sure you not only ask the right questions; also take the time to see the feature in action, live, so you really know how everything works. This is important stuff; don’t just take the salesperson’s word for it.
Request EEO information for every job from your careers page. Just about any applicant tracking system will include a feature that requests voluntary EEO information from applicants during the online application process. If it doesn’t, don’t buy it. A good looking, fully-branded careers site, that displays your EEO disclaimer and asks for voluntary EEO/AA information should be easy to set up and simple to manage without support from IT.
Automatically capture “reasons for non-selection” for every applicant. Here’s where the rubber really meets the road. OFCCP regulations require employers to capture a reason for non-selection for every candidate they receive. When evaluating recruiting software, you MUST determine how it will capture reasons for non-selection. This information is critical and most legacy applicant tracking systems have no way of capturing this data. Those that do, often require you and your team to take time consuming extra steps and force you to enter loads of data manually. Choose a system that enables everyone in your company to easily, accurately and automatically capture pre-selected reasons for non-selection without creating extra steps in your recruiting process.
Ask minimum qualification question for every job. Asking minimum qualifications is best accomplished during the online application process. When applicants do not meet a job’s minimum qualifications the government does not require you to track them as an applicant. Choose recruiting software that allows you to automate this process, and you’ll save time by ensuring that you are processing only the applicants that are qualified for your jobs. A smart recruiting system will store each applicant’s minimum qualification answers with their record and will allow you to remove candidates of this type from your applicant flow logs automatically.
Create applicant flow logs automatically for any job. Every federal contractor must generate applicant flow logs that record all the information required by the OFCCP regulations for conducting an adverse impact analysis. If an applicant tracking system is already tracking all the relevant information that comprises a flow log (data received, name, position, job group, race and sex, veterans status, reason for non-selection, date of hire), generating a report should be simple. Ideally choose recruiting technology that’ll allow you to export applicant flow logs into the same form that you’ll send to the OFCCP.
Create Hire/Offer Logs instantly. The purpose of this report is to record each hire or job offer made by your company during the reporting period being analyzed as part of your affirmative action plan. Again, you’ll want to select software that automatically tracks all the required information to fulfill the OFCCP’s requirements (date of hire, date of offer, job title, job group, gender, ethnicity, race, veterans’ status). Creating a report should take one or two clicks, and should allow you to export the report to Excel.
Audit your EEO statistics anytime from an online dashboard. Now, it’s up to you to monitor and regularly audit your EEO/AA data. Proactive assessment and management can prevent costly litigation. Purchasing software that allows to view EEO data online and to generate custom reports is essential and is a good way to take preventative steps against risks. Make sure that you have access to all of your EEO/AA data, so you can ensure that your company is indeed an equal opportunity employer.
Finally, you’d probably expect that recruiting software that will capture, track and report EEO/OFCCP data automatically would be expensive and difficult to implement. But, thanks to new delivery methods and even newer business models, there’s technology available that you can set up in a matter of days and will only cost a few hundred dollars per month. Compared to the cost of a discrimination lawsuit, this is a no-brainer. So, get educated, know what you need to track, kick some tires, do the demos and choose modern recruiting software that can turn your OFCCP headache into nothing more than just another thing you’ve got under control.
Six months ago, one of our software engineers at Newton asked, “Why are you guys so obsessed with this EEO/ OFCCP compliance stuff? Is it that important?”
The answer was straightforward. We’d done some homework. The EEOC received more than 95,400 charges of job bias in the private sector in 2008, up 15.2 percent from 2007 and 26 percent from 2006. Given the number of layoffs, the amount of Federal stimulus pumped into the economy, the increasing diversity of the workplace and the EEOC’s new litigious administration, this is a issue facing employers of all sizes.
Last week, the 2009 EEOC report was published. They announced that 93,277 workplace discrimination charges were filed with the agency in 2009. That’s an average of nearly 256 claims filed every day. The 2009 data shows that private sector charges alleging discrimination based on disability, religion and/or national origin hit record highs while age-based charges reached the second highest level ever. You can read the entire report here: http://www.eeoc.gov/eeoc/newsroom/release/1-6-10.cfm
Statistics don’t generally lie, the trends are clear. And, with the appointment of Jacqueline Berrien as head of the EEOC, employers should expect a U.S. Equal Employment Opportunity Commission that is much more focused on enforcement and litigation. Some experts are even concerned that her administration may push the commission further in an anti-employer direction. None of this bodes well for companies that are still ignoring EEO/ OFCCP compliance issues.
Automated rejection letters aren’t a new thing. But, having used these features ourselves over the years, we felt it was time to reinvent them.
Introducing Newton Thank You Letters, they’ve been a long time coming. Now you can quickly and easily send automatic, stage specific thank you letters to any candidate that has ever applied to or interviewed for any job at your company without additional administrative work. And, best of all, the feature is smart so you’ll know if applicants are assigned to other jobs or have received previous thank you messages.
We designed this feature to be flexible, to save you time and to help you continually improve your recruiting program. So far, our beta users are really excited about Thank You Letters. And,the feedback from applicants has been overwhelmingly positive too. People love to know where they stand.
Our product team spent a lot of time working on the experience (both employer and applicant), the interface, the workflow, and the efficiency of this feature. Many variations and hundreds of little tweaks later, we’re pretty sure we nailed it. We hope you’ll agree.
Here are some Thank You Letter “highlights”.
Newton comes standard with pre-built, customizable, thank you letter templates for every stage of the recruiting process. There is a set of corporate templates and a set for each user to personalize.
Choose the email aliases from which to send Thank You Letters, corporate or personal email addresses.
Decide which members of your team are permitted to send thank you letters.
Preview and customize individual thank you letters easily before sending. Choose your desired email alias too.
Newton will alert you if an applicant is a duplicate, interviewing for another role at your company and if they’ve received previous thank you messages.
Pending Thank You Letters are stored so you can send them later and even send them in bulk. This gives HR / recruiting departments better control of the messaging.
I managed to secure an invitation to TEDxSF, an independent version of TED, at the Academy of Sciences in Golden Gate Park. I’ve never been to the Big TED conference but I’ve been a fan of the videos on the website for years. Calling TEDxSF a conference is not doing it justice. The event was more like a series mini-performances featuring musicians, entrepreneurs, scientists and change-makers.
All in all, independent TED events, TEDx, are less exclusive than Big TED. You apply for an invitation and you’re asked to write about how you’ve changed the world or at least how you’ve been an innovator. I wrote about being a recruiter for 10 years and realizing the need for better recruiting software, throwing caution to the wind and starting a technology company amidst the worst recession in recent memory. Maybe the TEDx committee felt sorry for me.
While the format of the performances was paradoxically similar, a thought provoking monologue aided by some slides and self-deprecating humor, the topics varied dramatically. I enjoyed every presentation and I loved the music and comedy too. Even the crowd was interesting, not the room full of geeks I’d anticipated, more chic, less geek.
Here are some highlights.
- Zoë Keating, a talented, avant cellist, informed the audience that computers crash but cellos don’t after her laptop crashed mid-performance. For the record, it was a Mac.
-Gavin Newsome, San Francisco’s Mayor, was given 3 minutes to address the crowd. Ever the opportunist, he delivered an inspirational, self-promoting rant ending with, “San Francisco has always been a city of dreamers and doers”. At least he got that right.
-Taking advantage of the venue, Ryan Watt, the Director of Morrison Planetarium and Science Visualization at the Academy of Sciences, reminded us that we may not be alone.
-The best story of the afternoon was told by Jill Vallet, the founder of Playworks, a non-profit that brings physical activities to low-income urban schools.
-Proclaiming that Silicon Valley has been as influential as the industrial revolution, photographer, Doug Menuez, shared images of the Valley’s most brilliant innovators, some in their weakest moments.
“Please contact support.” Makes you cringe, doesn’t it? At Newton we encourage people to contact support—by email or phone. No, I’m not kidding.
We call it “Support Driven Design”. I’ll explain this concept in just a bit, but first I’d like to give you some background on how we came to believe that free technical support results in better recruiting software: it makes it easier to use, faster to deploy, and paradoxically, makes supporting your customers cost less (which in our case means we can sell our hiring software for less money).
In the beginning providing free technical support, like we do at Newton, appeared to be purely a business decision: giving away support makes the buying decision easier for people. We also didn’t have the time to build a big FAQ on our site, so we were pretty much required to do this personally anyway. On top of this, we also don’t like paying for support, or reading online help, and felt that we shouldn’t make our clients do something we don’t like to do. Today we think it was a good business decision, and an even better product one.
Of course we were warned. The “old-school” software folks, whose advice we openly take and whose success we jealously admire, told us that providing free technical support was a bad idea. “You’re going to have to charge for it sooner or later because it will eat your margins,” “support is a profit center,” they’d say. We’ve always had a problem with authority…
Design the Question Out of the System
One of the first things we tell any customer at Newton is, “If you don’t understand something, no matter how small, it’s our fault, not yours. Let us know.” We ENCOURAGE technical support emails and phone calls. Again yes, I am being serious.
As a result, and contrary to what you might think, we are hardly ever asked to provide support. The net result of Support Driven Design has been that today we get less than 1 support question per year per customer, or about .01 questions for each user per year, a group of business users can be trained in 5 minutes, and a recruiter in a mind-numbing 30.
In the beginning, and still today, our product managers, i.e. the people responsible for designing Newton’s applicant tracking software, did all the walkthroughs, customer training, and provided all support. Without knowing it, we had started a “Support Driven” design shop. When we’d get a question from someone, we didn’t add it to the user manual, we’d think about how we could redesign Newton in such a way so that we didn’t have to answer the question again.
I think this has been more than a modest breakthrough for us. Instead of teaching people how to conform to our recruiting software, instead of an online hiring FAQ, we take each question and “design the question out of the system”.
For example, early on we had this bad “More Info” button that people overlooked. Since all support email came through my desk, as it does today, I answered the same question three times in one week, “Where do I find this <something>?” One of our customers actually apologized for asking me a “silly question”! Have we come this far? Do software users really think that it’s their fault for not understanding something? Clearly, it didn’t look like a button, and clearly it was our fault. That week spelled the end of that button. Support questions: 0. Easier to use: 1.
The Tail Wags the Dog
Since we’ve never charged for support we’ve learned to appreciate that if we design a confusing feature we’re going to pay for it later. Since we don’t force people to an FAQ page, we know immediately when something isn’t working. The tail of support wags the dog of design: if you can’t charge for it, you better make it work right out of the box.
As a result, we often design a feature and say to ourselves, “we can’t do this, it will create support tickets.” This approach is not for everyone (especially for companies that get paid for making confusing software). It puts tremendous strain on our design process, and is the single greatest reason why it takes us 4 times longer to design (i.e. mockup, whiteboard, wireframe, etc.) a new feature than it does for our development team to build it.
The output of this also means that we can provide free training. We don’t like losing money any more than anyone else and if it took us 4 hours to train our customers, or 40 emails to answer their questions, we’d never be profitable. Free support: design the question out of the system + design rigor = easy training.
Maybe paid support is why one of the more common questions asked in an RFP is if we have an online FAQ. Think about that. Buyers are actually asking if you have a way NOT to help them. Our answer is simple, “just call us.” You might counter with, “well, I would like to just figure it out myself, without contacting support.” Tail wags the dog: you need an FAQ because the software is confusing, it is confusing because instead of designing your question out of the software, it was built into a support guide.
I think it is worth noting that people aren’t accustomed to this business model. People actually apologize for “bothering me”. One of the things we try hard for at Newton is to change this behavior, to “re-train” people (in 5 minutes or less, 30 minutes for recruiters <wink>) into believing that we aren’t doing them a favor for answering their questions, they’re doing us a favor by asking one. I think it speaks to just how far software has moved away from the user, and how far it has yet to go towards providing real productivity.
So the net result is that free support has led to less support. Like I mentioned before, we get about 1 support email per year, per client. I can’t imagine that Newton will ever have a technical support department that’s not run by our design team. Unfortunately, it’s gotten rather lonely over here in the support department. Can someone please contact support? Have I mentioned it’s free?
Six months ago, one of our software engineers at 
“Please contact support.” Makes you cringe, doesn’t it? At Newton we encourage people to contact support—by email or phone. No, I’m not kidding.