2011 Aerotek Perfect Fit FINAL

8/3/2019 2011 Aerotek Perfect Fit FINAL

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Acquiring Top Talent Through On-Demand Pipelines

iiiCopyright 2011 Human Capital Institute. All rights reserved. iii

Executive Summary ......................................................................................1

Definition of Key Terms ................................................................................2

Introduction..................................................................................................3

Talent Quality Satisfaction ...........................................................................4

Talent Quality Segments ..............................................................................4

The Talent Selection Process .......................................................................5

Sourcing and Culture ...........................................................................................................6

The Talent Search .................................................................................................................6

Understanding Successful Selection ....................................................................................7

Key Survey Findings .....................................................................................7

Sourcing and Culture ...........................................................................................................7

Sourcing and Culture: Permanent Hires ..........................................................................8

Sourcing and Culture: Contract Talent ............................................................................9

The Talent Search ...............................................................................................................11

The Talent Search: Permanent Hires..............................................................................11

The Talent Search: Contract Talent ................................................................................12

Understanding Successful Selection ..................................................................................13

Understanding Successful Selection: Permanent Hires .................................................14

Understanding Successful Selection: Contract Talent....................................................15

HPH versus HCT ........................................................................................17Quality of Hire/CT Measure Effectiveness ........................................................................17

Contract Talent Evaluation Rigor ....................................................................................18

Communicating Needs to Staffing Partner ...............................................19

Conclusions ................................................................................................20

About This Research ..................................................................................22

Appendix A: About the Research Partners ...............................................22Appendix B: Contract Talent Use Profile ...................................................23

Appendix B: Respondent Demographics ..................................................25

Appendix C: Works Cited ..........................................................................27


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1Copyright 2011 Human Capital Institute. All rights reserved.

Despite contract talent (CT) comprising between 5-25% of an organizations workforce,1 few

approach CT search and selection with the same rigor as permanent talent. As CT fills increasingly

important roles and functions, it is imperative that employers hold CT up to standards comparable

to that of their permanent employees.

Aerotek, a leader in the recruiting and staffing industry, and the Human Capital Institute (HCI)

examined how pre- and post-hire assessments, rigor in candidate selection, and quality of post-

hire evaluations differ between permanent staff and contract talent.

The research identified several differentiating aspects of great talent quality organizations:

standard operating procedures that go beyond a basic checklist of pre-assessment activities,allocating the time and resources to fully define positions including the skills, experience and

education required, and considering the culture of the department, and the fit of the potential

employee.

A majority of employers demonstrate more rigor in selecting and measuring quality of permanent

talent than CT. A much smaller minority have equally stringent selection, and these organizations

realize the benefit of establishing pre- and post-hire procedures.

Key findings from this research include:

The differentiating aspects of organizations most satisfied with quality of talent are those that

devote the time and resources for each of the following phases of the Talent Selection Process:

Sourcing and Culture

Corporate and departmental culture is considered more frequently among those very

satisfied with CT. Culture and fit are just as important for CT and when properly executed,

ensures success for both the CT worker and the organization. Properly defining the

candidate fit is a key practice for those very satisfied with their talent quality.

1 What Influences Contract Talent Usage?, June 2011, Human Capital Institute


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2011 HCI Research

2 Copyright 2011 Human Capital Institute. All rights reserved.

The Talent Search

For both permanent hires and CT, those organizations that conduct pre-hire assessment are

much more likely to be satisfied with their talent selection.

Nearly half of the organizations not satisfied with their contract talent quality were unsure of

the types of pre-assessments their organization or staffing partner used to evaluate contract

talent. This represents a disconnect regarding the contingent talent used by an organization

and the firms tendency to actively monitor the CT evaluation and selection process.

Understanding Successful Selection

Those companies reporting higher talent quality use an informed approach to managing

the selection process. These organizations quantify and understand manager and hire

satisfaction, and revise their approach to sourcing based on this response. These measures

of validating job fit are a missing component for many moderate and low quality talent

organizations.

Contract Talent

HCI defines contract talent (CT) as full- and part-time workers and independent contractors who

are not part of an organizations regular, traditional workforce, including: freelancers, temporary

help, interim executives and consultants.

Talent Quality SegmentsThe results of the research were analyzed by those who stated their department or line managers

were very satisfied with the quality of their permanent hires and CT staff, versus those

somewhat satisfied or not satisfied. Segments referenced in this research include:

Permanent Hire Quality of Hire

High Quality Permanent Hire Firms (HPH)

Department/line managers are very satisfied with new employee quality of hire.

Moderate Quality Permanent Hire Firms (MPH)

Department/line managers are somewhat satisfied.

Low Quality Permanent Hire Firms (LPH)Department/line managers are neither satisfied nor dissatisfied, somewhat dissatisfied

or very dissatisfied.


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Quality in Talent Selection: Finding the Perfect Fit


Contact Talent Quality

High Quality Contract Talent Firms (HCT)

Department/line managers very satisfied concerning the contract talent quality.

Moderate Quality Contract Talent Firms (MCT)

Department/line managers are somewhat satisfied.

Low Quality Contract Talent Firms (LCT)

Department/line managers are neither satisfied nor dissatisfied, somewhat dissatisfied

or very dissatisfied.

The Checklist Approach

This candidate selection approach, used by many organizations, is marked by an over-reliance on

traditional hiring steps such as unstructured interviews, background investigations, and reference

checks.

The goal of this research was to profile how organizations satisfied with their CT quality differ

in their talent acquisition practices. The hypothesis prior to conducting this research was that

permanent hire selection would be more standardized and rigorous compared to CT selection and

assessments.

While the research confirmed there were differences between the rigor applied to permanent

hires versus CT, it also discovered the shortcomings many organizations had in regard to their

permanent hiring processes. Well-established talent acquisition best practices are not being

performed consistently and talent quality is suffering as a result.

As the market for key talent gets more competitive, employers need to significantly improve their

talent culture and tactics if they hope to effectively compete for the best and brightest.

Additionally, this research examines the use and impact certain processes have on selection and

hiring for both permanent hires and CT to identify practices that should be adopted to ultimately

improve selection.


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2011 HCI Research


The research suggests both permanent hire and contract talent quality is in

need of considerable improvement. There is only moderate satisfaction with

talent quality, as less than one in three respondents stated their department or

line managers were very satisfied with the quality of hire for new employees.

An even lower percentage (22%) indicated their managers were very satisfied

with the contract talent quality.

Why is talent quality assessment so low? This is a clear indication that many firms

need to evaluate the process by which they identify talent and new techniques

should be considered. It is likely that the changing economy and increasedcompetition for talent will further affect the accessibility of quality talent.

Without changes to the selection process, satisfaction is unlikely to improve.

How satisfied are yourdepartment or line managers?

Talent Quality Satisfaction

New Employee Contract Talent

Very Satisfied 31% 22%

Somewhat Satisfied 56% 61%

Neither Satisfied nor Dissatisfied 9% 14%

Somewhat Dissatisfied 4% 3%

Very Dissatisfied 0% 0%

The costs, both tangible and intangible, to the organization can be significant

when the wrong talent is selected for a position. Poor selection processes

and bad hires can adversely affect any organization through: Dissatisfied

employees, leading to both low individual and work group productivity; Higher

turnover, including termination of low-performing employees; Increased cost

and effort in attracting, selecting and training replacement hires; Delayedproductivity; Lost productivity, along with stress and anxiety, among existing

employees; and Decreased customer satisfaction and market share.2

The analysis for this research identified six distinct groups characterized

by their satisfaction with permanent hire and contract talent quality. The

2 Bonney, Thomas and Kehoe,Kathryn Recruiting and RetainingTalent May 2, 2011, Mergers &Acquisitions Report


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tactics used by these companies provide clear direction regarding quality

talent selection protocols. Those organizations that report a higher degree

of satisfaction with their hire and CT quality simultaneously report a more

comprehensive, rigorous process for talent selection.

Segments referenced in this research include:

Permanent Hire Contract Talent

HPH: High Quality Permanent Hire

Firms

Department/line managers very

satisfied with the quality of hire

for new employees.

HCT: High Quality Contract Talent

Firms

Department/line managers very

satisfied with the contract talent

quality they work with.

MPH: Moderate Quality Permanent

Hire Firms

Department/line managers

somewhat satisfied.

MCT: Moderate Quality Contract

Talent Firms


somewhat satisfied.

LPH: Low Quality Permanent Hire

Firms


neither satisfied nor dissatisfied,

somewhat dissatisfied or very

dissatisfied.

LCT: Low Quality Contract Talent

Firms


neither satisfied nor dissatisfied,

somewhat dissatisfied or very

dissatisfied.

The use of defined, measured processes with various checkpoints is correlated

with a firms ability to source quality talent from both a permanent hire and CT

perspective. Research has identified the critical role that comprehensive job

definitions, focused assessment activities and post-hire measurement have on

this function. Analysis of the Best-in-Class reveals that the degree to which

an organization succeeds with a talent acquisition strategy depends largely

on how well job role needs are defined, applicants are matched against those

definitions, and performance is measured once a candidate comes on board.

This is especially important to retain workers once found and to be able to hire

from a position of growth rather than from a position of replacement. Essential

ingredients of a successful talent acquisition strategy that produce top results

include the proper mix of process, organizational knowledge, technology, and

performance measurement.33 Talent Acquisitions Strategies,

Employer Branding and Quality ofHire Take Center Stage July, 2008Aberdeen Group


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HCI Research


The research results point to a clear connection between classification (very

satisfied with their permanent hire and contract talent quality) and the steps

organizations conduct before hiring permanent employees and/or contract

talent. These organizations have a much stronger reliance on holistic job

definition. Along with defining the skills, experience and education required,

high quality talent firms also consider the interpersonal and intrapersonal fit

of the candidates personality and work habits with the corporate culture.

Firms not satisfied with their permanent hire and contract talent quality tend

to rely solely on defining the position they are hiring for in regard to skills,

experience and education required. This basic approach is rife with potential

problems as an individual may possess the proper skills and experience to

conduct the job they are hired for; however their personality and approach tothe job may be counter to the company culture and could be quite damaging

to morale, productivity and departmental retention rates in the long run.

Bernie Linnartz, a senior partner at Empowerment Experts, cited the

importance of culture and fit when hiring. Skills that meet the needs of the

job are a necessity. This is a relatively easy area to assess. Attitude can make

all the difference in the world. It has to do with personality to some extent yet

more so to professionalism and style of interacting with others. Alignment

relates to an overall fit with the actual work and culture of the organization. It is

about believing and owning the purpose, vision and mission of the underlying

business strategy. A candidate may well have the right skills and attitude (as

well as) have alignment with the business but just may not be interested in

doing the job and being a part of the company.4

Those most satisfied with their CT quality recognize the positive affect

properly defining the culture of the department to ensure CT fit. While this

adds another step, the benefits to the organization are significant concerning

CT quality and team dynamics. These benefits include higher organizational

satisfaction with talent, higher performance, increased tenure and decreased

risk and cost.5

The Talent Search

A majority of the respondent firms indicated they primarily use background

investigations, reference checks and interviews as pre-hire assessments for

permanent hires. Considering their comprehensive approach to defining

the position, it was somewhat surprising that the firms did not have a higher

frequency of using other assessments including skills assessments, peer

reviews, scenario-based testing or cognitive- ability testing.

4 Bernie Linnartz What To Look ForWhen Hiring; Management CornerMay 26, 2011, Taos News

5 Contract Talent: Are ContractorsIncluded in Strategic TalentManagement Initiatives? November2010, Human Capital Institute

High Quality Talent

Firms: Fully define position

prior to hiring including

skills, experience and

education required.

Consider the

departmental culture to

ensure proper fit.

Target hiring sources

and agencies based on

positional needs.

Low Quality Talent

Firms: Rely solely on defining

skills, experience and

education required for

position prior to hiring.


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Contract talent pre-assessment usage varies significantly. Nearly 80% of

the high-quality CT organizations use pre-hire assessments, conducted

by themselves or their staffing partners. Conversely nearly 50% of the low

quality talent firms were unsure regarding the types of pre-assessments their

organization or staffing partner use to evaluate their contract talent. This

signifies a disconnect regarding quality of CT used by the organization and

their tendency to actively monitor it. It is somewhat incongruous that there is

dissatisfaction with an outcome (CT quality) and yet there is not a clear idea

regarding how the process is monitored.


Many of the organizations that are very satisfied with permanent hire quality

use opinion mechanisms such as manager satisfaction and job performanceevaluations to measure quality of permanent hire. A higher percentage of

these companies also track retention rates and evaluate hiring channels and

sources. Those firms reporting low levels of satisfaction with this population

also report significantly lower use of these techniques.

Overall, a majority of firms indicated they do not have a formal system in place

for measuring either permanent hire or CT quality.

Brenda Galligan, Vice President and Recruiting Manager at Wells Fargo,

noted that her organization uses surveys and performance evaluations as a

way of ensuring quality of hire. We have a manager survey that goes out 30to 60 days after a person is hired. [Satisfaction] is on a scale of 1 to 5 and our

company average is above 4; so I would say managers are very satisfied. We

[also] measure quality of talent by mapping it back to performance in the first

90 days. We also track productivity for a majority of the positions.

The frequency of conducting CT post-assignment metrics is considerably

higher among high quality contract talent organizations (HCT). The primary

tools used by HCT firms are providing feedback to their staffing partner, and

measuring both manager and CT satisfaction. These feedback-based methods

help guide talent selection process improvements at higher talent quality firms.


Better CT staffing is the result of well planned, focused talent searches,

conducted with clear strategy in place and purpose in mind. Our survey

results demonstrate a higher percentage of HCT organizations have

High Quality CT Firms: Provide feedback to

staffing partner.

Measure manager

satisfaction with new CT.

Measure CT satisfaction

with position.

Low Quality CT Firms: Majority do not have a

system or use multiple

measures for post-hire

quality.


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2011 HCI Research


centralized sourcing and hiring. Conversely, nearly two-thirds of low quality

contract talent (LCT) organizations are failing to act as one cohesive entity

when staffing their CT.

These centralized systems and standardized practices assist in more than

just practical concerns related to leveraging CT acquisition and compliance

issues. They provide the necessary environment for organizations to perfect

their CT staffing process. CT staffing practices rooted in a single, unified

planning result in the acquisition of higher quality talent than those who

source CT individually by sector.

This should not come as a new revelation to CT users. A 2009 HCI survey

observed, [I]n many, if not most organizations, contract talent is acquired in

a decentralized fashion, with few controls and little uniformity; if so, this is a

situation that can easily lead to wasted resources and lower quality of hire.6

Sourcing and Culture: Permanent Hires

Devoting time and resources to properly define requirements for open

positions, considering the culture of the department to ensure proper fit for

the position, and targeting sources based on need, all correlate highly with

those organizations most satisfied with their quality of talent.

The best employers dont just hang a help wanted sign out front and sort

through every candidate as they walk through the door. They meticulously

establish whom it is that their organization needs, and where that person will

most likely be found.

Many organizations seem to better understand the value of pre-hire planning

when it comes to their permanent hires. Nearly all HPH and MPH firms are

6 The State of Contract TalentManagement and the Role of HRJanuary, 2009, Human CapitalInstitute

0% 20% 40% 60% 80%

72%

52%

32%

HCT Organizations

MCT Organizations

LCT Organizations

Figure 1 How much doyou agree or disagree that

the method for sourcingand hiring contract talent is

centralized and standardizedacross the enterprise/

organization?

% Who Responded Stronglyor Somewhat Agree


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fastidious about developing their ideal candidate profile, defining positions and

accounting for cultural considerations. There is a considerable gap between LPH

firms and their more successful counterparts in regard to these activities.

Most Common Pre-Hire Measures

HPH MPH LPHGap

HPH:LPH

Positions being hired for are fully

defined including skills, experience and

education required

97% 93% 74% +23

The culture of the department is

considered to ensure new employee will

be a good fit

95% 88% 49% +46

Nearly all the HPH firms use additional methods for defining positions

beyond the common pre-search preparations. Search targeting, evaluation

standardization and identifying factors associated with new-hire success

are practices almost as commonplace as position definition and cultural

considerations within HPH firms. MPH firms are not quite as dedicated to

these additional pre-search steps.

LPH firms continue their trend of not adequately preparing to find new hires,

with a tremendous gap present for these additional planning considerations.

Additional Pre-Hire Measures

HPH MPH LPHGap

HPH:LPH

Candidate hiring sources are targeted

based on positional skill needs94% 84% 61% +33

All candidates are consistently evaluated

using the same standards, i.e. structural

behavior-based interviews

93% 80% 55% +38

Factors that are predictors of success for

the position have been identified and are

used to identify candidate qualities

86% 73% 47% +39

Sourcing and Culture: Contract Talent

In comparison to permanent hire preparations, contract talent search

preparations arent as developed across all quality segments.


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2011 HCI Research


This may indicate a larger problem of employers not viewing CT as staff,

per se, but rather as outsiders. This type of thinking can lead to eventual

dissatisfaction of CT quality, as firms sit back and just accept the quality of

their CT as an exogenous factor, and do not take initiative to develop and

improve it.

HCT MCT LCTGap

HCT:LCT

Positions being hired for are fully

defined including skills, experience and

education required

96% 80% 75% +21

The culture of the department is

considered to ensure contract talent willbe a good fit

88% 63% 47% +41

Specialized Contract talent agencies or

vendors are targeted based on positional

needs, i.e. technical staffing firms

84% 76% 69% +15

Factors that are predictors of success for

the position have been identified and are

used to identify contract talent qualities

77% 62% 34% +43

A majority (88%) of the High Quality CT firms consider culture to ensure propercandidate fit. Less than two-thirds (63%) of the Moderate Quality CT firms and

less than half (47%) of the Low Quality CT firms consider this vital attribute. Those

who fail to find outstanding CT perhaps do not see value in conceptualizing CT

as a true part of their company, so much so that making efforts to ensure the CT

individuals fit into the larger corporate culture is not considered.

New staff that can ease seamlessly into the established team will require

less time to become fully functional in their new position, and will be more

engaged in the company and its work. Employers awareness that an individual

is more than just the sum total of their knowledge, skills and abilities ultimately

translates to real results in organizations satisfaction with their talent.

Before starting a search for new hires, employers should develop an idea

of who precisely they are looking for, and how will that person fit into their

organization. Successful hirers spend time developing a clear picture of their

ideal hire before they even post one job notification. They see empty spaces

inside their workforce, examine and analyze those gaps, and seek out the very

specific talent that it will take to fill them.


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Organizations all too often waste time and money evaluating resumes

and applications for poorly defined positions. This waste is affecting the

quality of their end result. Hirers spend valuable time and lose productivity,

and significantly increase their likelihood of mismatching individuals and

positions when there is no mechanism in place to help focus their search

and filter their applicants.

Filling positions without taking the time to understand the job requirements

can result in hiring workers who are under-skilled and unable to succeed,

says Dave Poling, Director of Recruiting for Aerotek. By investing time

into defining the responsibilities and skills associated with each position

and developing a strategic hiring process, organizations will enhance their

overall workforce.

The Talent Search

If organizations are to search for candidates with such a detailed and in-depth

profile in mind, the typical checklist assessments will only be somewhat

useful in the talent search. Top employers need sophisticated assessments that

go beyond the basics and get to the true value that the candidate has to offer.

As recently reported, Research has shown that cognitive aptitude tests, for

example, are much more accurate predictors of job performance than are other

widely used employee selection techniques. For example, a comprehensive

review of peer-reviewed studies of the predictive validity of various selection

techniques concluded that aptitude tests are twice as predictive as job

interviews, three times as predictive as experiences and four times as predictive

as education level.7

The Talent Search: Permanent Hires

Nearly every organization surveyed indicated they use references and

conducted interviews for their permanent hires. These two procedures appear

to constitute the base components of any potential hire assessment.

A higher percentage of HPH firms report using one or two methods in addition

tothe checklist assessments, such as skills testing and peer reviews.

7 Pre-Employment Testing: AnOverview May 10, 2011, CriteriaCorporation

Approach used by many

organizations featuring an

over-reliance on traditional

assessments such as

background investigations,

reference checks and non-

structured interviews to

assess candidates.


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2011 HCI Research


A large percentage of LPH firms do not use even the basic assessment

methods.

HPH MPH LPH GapHPH:LPH

Background/reference checks 90% 90% 83% +7

Structural behavior-based interviews 86% 76% 65% +21

Skills assessment testing to measure

aptitude regarding hard skills required

for position

46% 38% 30% +16

Peer review opportunities are provided

to candidates to be able to interact withthose performing job and ability to get

feedback

46% 35% 25% +21

Scenario based testing 31% 26% 11% +20

Cognitive abilities testing to measure

problem solving skills25% 21% 14% +11

The Talent Search: Contract Talent

HCT firms hold their CT to as high an assessment standard as possible.

These organizations demonstrate a level of interest in their CT similar to whatthey show for their permanent hires. 79% of HCT firms ensure that there

are measures in place to evaluate CT, whether it is done by them or by their

staffing partner. More than a quarter of the HCT firms have two checkpoints,

one assessment performed by the partner, and another performed by the

organization itself.

Nearly half of the survey respondents who were dissatisfied with their contract

talent (LCT firms) were not even sure about the types of pre-assessments their

organization or staffing partner use to evaluate CT.

Which of the following pre-hire assessment methods

does your organization use toevaluate talent?


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HCT MCT LCTGap

HCT:LCT

Our contract talent vendors and

agencies conduct pre-assessments

to ensure qualified contract talent is

assigned to our organization

30% 29% 23% +7

My organization utilizes their own pre-

assignment assessments to evaluate

contract talent

22% 18% 10% +12

Both 27% 22% 18% +9

NET USE PRE-ASSESSMENTS 79% 69% 51% +29Not sure 21% 31% 49% +28

If an organization is disinterested in their CT assessment to the point they were

not even sure who, if anyone, was performing these evaluations, its no wonder

that they ultimately receive unsatisfactory talent.

In addition, waning satisfaction with CT quality may lead some organizations

to stray away from using CT all together. Firms that confuse their own ability

to develop a quality contract workforce with poor overall CT quality may

eventually shy away from making use of this highly effective staffing option.

As a previous HCI survey found, our 2010 data also suggest that

organizational satisfaction with CT has made it more challenging for businesses

to determine where and how to add talent. Forty-seven percent of the 2010

survey respondents say the most frequent challenge they face in regard to CT

is Deciding when to hire (traditional or full-time) talent versus contract talent.

This challenge uncovered in the 2010 data signals a new need for talent

management practitioners to have more robust tools, processes, and systems

in place. More effective business processes would help talent managers better

assess and evaluate roles and tasks.8


Organizations should constantly evaluate the effectiveness of their hiring

process. Without a measure of the quality of talent produced, there is no way

for the employer to know how effective their methods actually are. 8 Contract Talent - An Imperative forTalent Management in the NewNormal, August, 2010, HumanCapital Institute

Does your organization orstaffing partner use anytype of pre-assessments

to evaluate contract talentprior to working with yourorganization or does youragency or vendor conductthese assessments?


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2011 HCI Research


Even employers who are content with their procedures and the talent it

brings them should not discount the affects of exogenous forces such as an

organizational shift in focus or business goals, or fluctuations in the talent market.

These events may precipitate a change in the ideal hire profile, the definition of

positions or the appropriate procedures to find and assess candidates. Because

organizations, talent pools and markets are in perpetual flux, the nuts and bolts

of a hiring process must be monitored and frequently adjusted.

Top performing firms measure the quality of hire for their permanent hires and

CT and use this data as feedback to drive how the selection process.

Companies do not hold their recruiting function accountable for documenting

the return on investment from the resources used in the staffing process. The

absence of reporting and evidence documenting the link between candidate

evaluation and outcomes such as product or service delivery implies a lack of

interest by management or a lack of capability.9

While a higher percentage of HPH and HCT firms indicated they have

a formal system to measure quality of hire, it is not a majority of these

organizations. This may indicate an emerging trend; the organizations that

find the best talent have implemented ways to measure it, even in the face of

formula or data obstacles.

9 Quality of Hire: Moving fromEfficiency to EffectivenessFebruary, 2004, Shaker ConsultingGroup and the Society for HumanResource Management

7%

7%

7%

77%

72%

61%

16%

21%

32%

0% 20% 40% 60% 80%

Unsure

No

Yes

HPH

MPH

LPH

Contingent workers are

often seen as commodities,

to an even greater

extent than permanent

employees. What does

human capital say about

this view of contingent

employees? This

longstanding paradox,

needing your contingent

workforce to be motivated

and engaged a part of

the team, but also needing

to keep them at a distance

is a real challenge in

talent management.9

Figure 2 Does yourOrganization have a

Permanent Hire FormalQOH System?


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Understanding Successful Selection: Permanent Hires

If quality of hire is such meaningful HR data, why arent more practitioners

tracking it? Even those who recognize that value of monitoring quality of hire

may not always feel confident in doing so, simply because of the ambiguousnature of the metric. It is not an objective, straight forward unit of measure,

and uncertainty as to how it should be quantified may cause HR leaders to

simply not conduct any assessment at all.

There are, fortunately, exemplars to follow. We measure new hire quality on

a monthly and quarterly basis on a scale of one to ten and average across all

departments, said Don Evans, Head of Talent Acquisition at Syngenta. Right

now, our company average is about 8.5. Three months after someone is hired,

we send out a new hire survey. The survey consists of ten questions about

performance, observations as related to the expectations of the position and

time put into work. This is then related to midyear and annual reviews.

30%

24%

19%

62%

60%

53%

8%

16%

28%

0% 20% 40% 60% 80%

Unsure

No

Yes

HPH

MPH

LPH

Figure 3 Does yourOrganization have a Contract

Talent Formal QOCT System?


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2011 HCI Research


Those organizations very satisfied with their permanent hire quality have a

clear approach to measuring talent quality. Quality measures that HPH firms

find effective are often an aggregation of common talent measures, including

tracking retention rates, conducting job performance evaluations, measuring

manager satisfaction and evaluating hiring sources.

HPH MPH LPH Gap

HPH:LPH

Track retention rates 80% 62% 54% +26

Measure manager satisfaction with new

hires75% 53% 41% +34

Evaluate hiring channels/sources 74% 48% 38% +36

Conduct job performance evaluations3-6 months after hire date

73% 61% 52% +21

Measure new hire satisfaction with

position and/or company62% 44% 30% +32

Evaluate time required for new hire to

become proficient in position57% 39% 30% +27

Compare pre-hire assessment with post-

hire performance review37% 22% 12% +25

It is somewhat surprising that many of these monitoring activities are not being

conducted by all organizations. The survey results demonstrated that thosenot very satisfied with their talent quality are particularly lax at conducting

measurements to track their human capital assets.

Understanding Successful Selection: Contract Talent

Measures used by HCT firms that are lacking in MCT and LCT firms includes

measuring manager satisfaction with new hires, and conversely, the contract

talent satisfaction with the position. This measure of validating job fit is a

missing component for many organizations that use CT.


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HCT MCT LCTGap

HCT:LCT

Provide feedback to staffing partner 71% 54% 38% +33

Measure manager satisfaction with new

hires69% 47% 30% +39

Measure contract employee satisfaction

with position58% 26% 12% +36

Evaluate time required for contract talent

to become proficient in position47% 35% 14% +33

Track conversion rate of contract talent to

permanent hire 41% 40% 29% +12

Compare pre-assignment position

requirements with post-assignment review39% 23% 10% +29

Require staffing partner to conduct job

performance evaluations 3-6 months after

hire date

37% 25% 15% +12

Quality of Hire/CT Measure Effectiveness

HCT firms are notably deficient in conducting post-assignment measures in

comparison to HPH firms. HCT firms tend to use manager satisfaction and

feedback to their staffing partner as the primary means for measuring quality of

CT in their firms.

HPH HCTGap

HPH:HCT

Measure manager satisfaction 75% 69% +14

Conduct evaluations 3-6 months after hire date 73% 37% +36

Measure employee satisfaction 62% 58% +4

Evaluate time required proficiency 57% 47% +10

Compare pre-hire assessment with post-hire or

assignment performance review37% 39% +2

Contract Talent

How effective are thefollowing in measuring the

quality of contract talent inyour firm?

% Who Responded Stronglyor Somewhat Agree


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2011 HCI Research


Contract Talent Evaluation Rigor

A key component of the HCT firm is the higher presence of evaluation rigor.

More than half of the HCT firms indicated their evaluation of Contract Talent

quality was just as rigorous as their permanent hire quality of hire evaluations.Only 15% of the LCT firms approached their CT evaluations with the same rigor

as permanent hire evaluations.

When asked why their organizations evaluation of contract talent quality was

not as rigorous as their organizations permanent hire quality evaluations,

lack of resources was mentioned most frequently by LCT firms. These firms

perceive a lack of value in approaching CT quality with the same rigor and yet

they readily acknowledged the lower quality associated with their CT. It would

seem they need to adjust their own approach to realize higher quality talent.

Perhaps elevated awareness regarding the negative affects associated with

lower quality talent needs to be developed before these firms will adjust their

CT acquisition practices.

HCT MCT LCTGap

HCT:LCT

We dont have the resources 36% 39% 53% -17

Contract Talent staffing partner

conducts evaluation40% 36% 32% +8

Concerned about co-employment risks 24% 34% 14% +10

Other 20% 20% 27% -7

Figure 4: Is yourorganizations evaluationof contract talent qualityjust as rigorous as your

organizations permanenthire quality of hire

evaluations?

85%

15%

30%

70%

47%

53%

0% 20% 40% 60% 80% 100%

LCT

MCT

HCT

Yes

No


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Using a staffing partner to complete evaluations has resource and cost

advantages and allows for active monitoring to ensure evaluations are being

conducted according to the organizations quality expectations. Firms have

much to gain from taking a more proactive role in CT quality control and they

may find there are benefits for conducting these evaluations in-house along

with relying solely on partners.

Organizations whose CT staffing is provided principally by a staffing partner must

provide their partner with regular feedback. Firms have to communicate what is

needed to ensure satisfactory talent is provided. If the CT staffer is unaware of

their personnel deficiencies, they will not make any improvement efforts.

The best staffing firms will anticipate this need and solicit this feedback. AtAerotek, we complete a formal interview process, perform on-boarding for

each candidate, and establish an assessment process that can mirror the

organizations performance review structure for permanent employees, said

Ayman Hamid, Director of Business Operations at Aerotek. We understand

the expectations of each position and the culture of the company for whom we

are hiring. This due diligence up front ultimately helps improve the quality of

hire and reduces attrition down the road.

The survey results present strong evidence that HCT firms maintain an open

dialog with their CT providers, and are perpetually gauging their source of

and relationship with CT, through frequent reviews of the provider and theircontract.

Frequency of renewingcontract talent with staffingpartner

44%

29%

28%

21%

15%7%

20%

26%

14%

15%

30%

51%

0% 20% 40% 60% 80%

Not sure

Annually

More than

once a year

Less often

than once

a year

HCTMCTLCT


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HCI Research


Todays businesses are faced with slow growth, fluctuating demand and

heightened competition for key talent. Contract talent affords organizations

the key benefit of being able to access talent in a flexible manner to better

operate in these uncertain times.

While CT use is predicated on a need for flexibility and fixed term use,

the temporary aspect associated with CT should not lead to discounting

the talent selection process. Those organizations that approach their CT

selection with a rigor equal to their approach to permanent hiring understand

increase quality and reduced cost benefits of proper talent identification

and management. These firms have a distinct competitive advantage over

those companies who do not understand the value of developing and using a

formal contract talent system.

Key practices that should be incorporated into any organization seeking to

improve their contract talent quality should include:

Clearly articulate and apply equal rigor in the identification of the

CT position. Developing and communicating more holistic position

definitions will enable staffing partners to better meet the skills and

culture requirements associated with the position.

57%

40%

33%

18%

7%

6%

7%

20%

24%

18%34%

36%

0% 20% 40% 60% 80%

Not sure

13 years

Every year

More than 3 years

HCT

MCTLCT


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Be cognizant that the most experienced candidate in regard to skills and

background alone may not be the best selection for the firm as culture fit

has to also be a primary consideration.

Identify the most effective hiring sources and agencies based on the

needs of the position.

Develop a collaborative post-assignment assessment approach with their

staffing partner to ensure CT follow-up evaluations are a standardized

process performed on a regular basis. Manager and individual CT

satisfaction have to be key components of this evaluation process.

Clear and timely reporting also has to be a core component to enable

monitoring of this key aspect of the talent selection process.

The CT selection process has to be flexible and quickly adaptable

to reflect changing external factors such as the economy and skillshortages. The process also has to be revised based on post-

assignment assessment metrics.

Contract talent is a key asset for any organization and the talent quality

inherent within this segment of the workforce should not be overlooked.




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Percent of Contract Talent in Organization

% of CurrentWorkforce

% of WorkforceIn One Year

0% * 10% 9%

1%-5% 41% 40%

6%-15% 28% 27%

16%-25% 10% 11%

26%-50% 4% 5%

51%-75% 2% 2%

76%-100% 1% 1%

Dont know 4% 6%

* 8% of the 495 respondents did not have any current or projected Contract Talent.

Annual Contract Talent Spend

Less than $500,000 42%

$500,000-$1 million 14%

$1-$5 million 13%

$5-$20 million 3%

More than $20 million 4%

Not sure 24%

Who is Responsible for Managing Contract Talent

A combination of HR, Functional Managers, Procurement 33%

HR 29%

Department/Functional Manager 27%

Procurement 4%

Owner/President 2%

Project Manager 1%

Other 3%

Dont Know 2%


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HCI Research


Hire Own Contract Talent or Have Staffing Partner

Have a partner 50%

Hire our own 47%

Not sure 3%

Who Manages and Procures Contract Talent?

Self-managed by our organization 76%

Managed by a Third-Party (MSP) 16%

Dont know 7%

Who Manages Contract Talent Program Tools and Systems?

Self-managed tools developed by our organization 67%

Third-party Vendor Management System (VMS) 17%

Dont know 16%

Use Independent Contractor Engagement Specialist?

Yes

No 78%

Dont know 15%


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10%

10%

9%

8%

5%4%4%4%

3%

2%

1%

20%

Technology

Government

Healthcare

Professional Services

Non-profit/Charity

Financial Services

Retail

Insurance

Industrial Goods & Services

Banking

Pharma/Life Sciences

Media

Food & Beverage

Aerospace & Defense

Utilities

Oil and Gas

Construction & Materials

Personal & Household Goods

Automobiles & Parts

Real Estate

Chemicals

Industrial Metals & Mining

Forestry & Paper

Other

25%

21%

13%

13%

9%

5%3%

3%3%

2%

3%

Manager

Team Member

Middle ManagerVice President

Senior Director

C-Level (CEO, CHRO, CIO, etc.)

Executive

Senior Vice President

President

Other

15%

24%

10%5%

6%

17%

5%

2% 2%Less than $10 million

$10-100 million

$100-500 million

$500-750 million

$750 mill-1 billion

$1-10 billion

$10-50 billion

$50-100 billion

>$100 billion

Industry

Level

Revenue


30/32

HCI Research


87%

5%4%

2%

1%

1%

North America

Asia/Pacific

Europe

Africa

Central/South America

Middle East

90%

3%

1%

1%

5%

Human Resources

Operations

IT

Strategy

Other

48%

16%

5%

11%

21%

Less than 1,000

1,000-3,000

3,001-5,000

5,001-10,000

10,000+

Region

Function

Number of Employees


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What Influences Contract Talent Usage?, June 2011, Human Capital Institute

Bonney, Thomas and Kehoe, Kathryn Recruiting and Retaining Talent May 2, 2011, Mergers & Acquisitions

Report

Talent Acquisitions Strategies, Employer Branding and Quality of Hire Take Center Stage July, 2008 Aberdeen

Group

Bernie Linnartz What To Look For When Hiring; Management Corner May 26, 2011, Taos News

Contract Talent: Are Contractors Included in Strategic Talent Management Initiatives? November 2010, Human

Capital Institute

The State of Contract Talent Management and the Role of HR January 2009, Human Capital Institute

Pre-Employment Testing: An Overview May 10, 2011, Criteria Corporation

Contract Talent An Imperative for Talent Management in the New Normal, August, 2010, Human Capital

Institute

Quality of Hire: Moving from Efficiency to Effectiveness February, 2004, Shaker Consulting Group and the

Society for Human Resource Management


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2011 Aerotek Perfect Fit FINAL

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