Leading the Industry with a tradition of continued recognized excellence.

Hiring and Recruiting Workshop: Best Practices for 2011 and Beyond

September 22, 2011

Michael GruberChief Client Officer

The RightThing Overview

Ranked top RPO provider by the Everest Research Institute in 2011 in terms of overall scale, scope and technology capability; as well as being recognized for holding the largest market share of global RPO deals, large market segment success and exempt employee hiring

Deliver a variety of RPO models to over 80 clients filling 140,000+ external positions annually

Global reach with 800+ employees in Findlay, OH; Philadelphia, PA; Lebanon, NH; Buenos Aires, Argentina and a strategic global partnership with Alexander Mann Solutions

Developed award winning SourcePoint® Automated Sourcing Technology & AIRS Training with over 300 technology clients and 200,000+ trained globally

Seasoned leadership team with award winning executives

Best-in-class workplace: Recognized by SHRM & Great Place to Work Institute as one of the “Best Small & Medium Places to Work”

2

The RightThing Clients

3

Agenda

The evolution of the recruiting environment

The state of recruiting today

An overview of recruiting models

Cutting-edge recruiting strategies

Agenda

4

Leading the Industry with a tradition of continued recognized excellence.

The Recruiting Environment

-A Glimpse Inside-

May ‘10

Past 12 Months Unemployment

6

Aug ‘11

*Source: U.S. Dept. of Labor Bureau of Labor Statistics – Updated September 2011

The unemployment rate was little changed with approximately 14 million unemployed holding the rate steady at 9.1% in July and August 2011. The number of employees who are part-time for economic reasons rose from 8.4 million to 8.8 million in August. Job gains occurred in health care with growth of 30,000 in August and 306,000 in the last12 months. Mining continued trending up with over 6,000 added in August, as did professional and business services, though only slightly. The information industry, however, saw a steep decline by 48,000.

9.1%

Unemployment Rates Beginning to DeclineFor 2010, the overall unemployment ended at 9.6% with 14.8 million unemployed. To date in 2011, we have not seen numbers above 9.2% with an overall average of 9.0% and a drop to 14 million unemployed.

*Source: U.S. Dept. of Labor Bureau of Labor Statistics – Updated September 2011 7

9.0% to date

Job Postings Per CapitaFor the 50 most populous metropolitan areas in the United States. The bigger the dot, the more job postings per capita.

Seattle*108

San Jose*187

* = Jobs per 1000 People

Washington, DC*147

Denver*92

Cleveland*102

Austin*90

Miami*29

Boston*84

*Source: http://www.indeed.com/jobtrends.jsp – Updated August 2011

Charlotte*105

8

San Francisco

*105

Baltimore *104

Phoenix*79

St. Paul*74

Jobless Rate on the Decline Overall

*Source: http://en.wikipedia.org/wiki/List_of_U.S._states_by_unemployment_rate - Updated September 2011

Nevada12.9

North Dakota3.3

*Lowest Rate

*Highest Rate

9

Top 20 Hiring Cities for 2011

Source: http://www.careerbliss.com/press-releases/careerbliss-data-shows-bigger-cities-isnt-always-better-for- hiring-in-2011 – Updated September 2011 10

Top 20 Hiring Cities Annual Open Jobs Listed* New York 779,778

Washington 695,566Chicago 608,375

Los Angeles 528,870Philadelphia 457,918

Boston 424,726Atlanta 335,493

Charlotte 303,725Dallas 293,691

San Francisco 283,080Seattle 270,747

Pittsburgh 243,136Baltimore 236,672Denver 227,272

San Jose, Calif. 222,647Phoenix 186,657

Hartford, Conn. 174,705Miami 169,160

Houston 167,555San Diego 149,513

Current Job Market Competition

Source: http://www.indeed.com/jobtrends/unemployment – Updated August 2011

Unemployed per Job Posting

Here's the number of unemployed per job posting

for the 10 most populous metropolitan areas in the

U.S. currently

11

HRO Revenue Growth: 2011 Anticipation

Outsourcing Service Average Growth*

HR Outsourcing Overall 33%

The following shows the average change in HR outsourcing revenues experienced by organizations throughout 2011.

*Source: Nelson Hall Report– Updated January 2011

2011 Anticipated Relative HRO Outsourcing Revenue Growth by Service Type*

Outsourcing Service Change

HR outsourcing overall 4.4

RPO 4.2

Payroll 4.3

Learning services 3.9

Benefits administration 4.0

Multi-process HRO 3.9

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Economy Becomes a Yo-Yo

*Updated September 2011 13

September 12 , 2011 September 12 , 2011

September 12 , 2011

September 12 , 2011

Summary of Current Recruiting Conditions

Competition still tough for knowledge workers

Volume of lower skilled employees is still very high

Certain industries still not hiring

Starting to see some release of new openings

New recruiting technologies are evolving:

Mobile Recruiting

Web 2.0 (SEO, Social Networking, Blogs/User Groups)

Talent Communities (Resume Databases)

Provider Technology

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Leading the Industry with a tradition of continued recognized excellence.

What Is Happening?

State of Recruiting Today

The Impact of External Conditions on Staffing

16*Source: Staffing.org 2011 Corporate Recruiting Reports: Trends

Candidate Availability

Source: Staffing.org Benchmark Report 2010 17

Employer Sourcing during Recession

18Source: Staffing.org 2011 Corporate Recruiting Reports: Sourcing and Marketing

Recession Sourcing: Change in Usage by Company Size

19Source: Staffing.org 2011 Corporate Recruiting Reports: Sourcing and Marketing

External Recruiters

Mass Media Advertising

Staffing Services

Career Fairs

Large Job Boards

College Recruiting (on-site)

Co-op Education Programs

Temp to Perm Programs

Military

Search Engine Marketing

Bus. Prof. or Assn. Media

Niche or Regional Job Boards

Corporate Career Site

Direct Sourcing

Employee Referrals

-50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60%

Source Popularity versus Source Effectiveness

Source Popularity Rank Source EffectivenessEmployee referrals 1 Employee referralsLarge job boards 2 Large job boardsNiche job boards 3 Niche job boards

Trade media 4 Temporary to permanentCareer fairs 5 Recruiters

Staffing services 6 Trade mediaCollege recruiting 7 Staffing services

Temporary to permanent 8 College recruitingRecruiters 9 Career fairs

Mass media 10 Co-op educationCo-op education 11 Mass media

Military 12 Military

20Source: Staffing.org 2011 Corporate Recruiting Reports: Sourcing and Marketing

Online Recruiting

*Source: Pew Research Center, Internet & American Life Project, 2010 21

*

Online Recruiting

22*Source: Staffing.org 2011 Corporate Recruiting Reports- Candidate Attitudes and Behaviors

*

Persuasive Channels: Corporate Websites

23

*Source: Staffing.org Benchmark Report 2010 23

*

Candidate Usage Issues: Corporate Websites

24

*Source: Staffing.org 2011 Benchmark Report- Candidate Attitudes and Behaviors 24

*

Where to Start the Job Search

25

Source: Staffing.org Benchmark Report 2010 25

Top Internet Job Sites – Where do Job Seekers Go

craigslist

Direct Employers

Source: http://www.quintcareers.com/top_10_sites.html - Updated September 2011 26

Industry Specific Job Boards

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Interest in Utilizing Social Media Sites

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Source: Staffing.org Benchmark Report 2010

Since 38% of Jobs.com survey base has located job opportunities suggests these sources are worth investigating

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September 2011 Top 10 Social Networking SitesOnline social networking is a key factor in researching top talent

Source: http://www.ebizmba.com/articles/social-networking-websites– Updated September 2011 29

How Jobs are Found on Social Networks

Source: Staffing.org Benchmark Report 2010

Clicked on a banner or link – 7%

Contacted by an employer – 26%

Contacted by an Employment Agency – 22%

Contacted by a Friend – 15%

Contacted by an RPO provider / Recruiter – 29%

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Facebook Job Trends

*Source: http://www.indeed.com/jobtrends.jsp – Updated September 2011 31

Leading the Industry with a tradition of continued recognized excellence.

What Is Happening?

Recruiting Models to Consider

Recruiting Pressures

Internal Recruiting Dept. Pressures

Reduced Recruiting Staff

Increased Candidate Volume

Latest Recruiting Techniques

Corporate / Business Pressures

Reduce Cost Per Hire

Increased Strategic Demand

Achieve Diversity Targets

External Market Pressures

Increased Competition for Top Talent

Changing Sourcing Landscape

Lack of Qualified Candidates

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Employer Recruiting Priorities for 2010

Most Important, 2010 Less Important, 2010*

Candidate quality Cost

Retention Management metrics

Recruiter Workload Time

Candidate Sourcing

Candidate Availability

Changes from 2009*:CostManagement MetricsRetentionCandidate Availability

*Source: Staffing.org Benchmark Report 2010 34

What is RPO

“Recruitment process Outsourcing (RPO) means that an organization outsources at least two elements of the recruiting process. These elements can include but are not limited to: sourcing and job advertising, screening, testing, assessments, interviewing and selection, background verification, drug testing, offer extension, on-boarding and orientation.”

Value of RPOTurnover in first 12 months reduced from 28% to 6%

17% Increase in Retention Rate at 30

days

Quality of hire has reduced attrition by 29% at 45 day mark

Turnover in first 12 months reduced from 28% to 6%

Increased diverse candidate flow by 19% over previous year

Diversity fills at 67%, far exceeded target goal of 25%

Researched diversity availability in markets and improved ethnicity from 25% to 33%

Analyze under utilization by job and create Unique diversity sourcing plan

Had 12 days to fill positions, hired 9 M&Cs with average cycle time of 9.5 days. 2 new hires had turnaround time of 5 days

Peoria startup, 4 for 4 interviews/offers (100% delivery)

Phone interview to hire ratio 5.5 to 1 and requisition open to offer accept date is 33 days for sales expansion hiring project

Quality of Hire

HM Experience

Diversity

Time to Fill (offer) for retail positions is 15 days for hourly and 17 days for salary.

Vacancy Approval & Requisition

Consultation

Vacancy Approval & Requisition

Consultation

Attraction and

Sourcing

Attraction and

SourcingPre-

Screening Pre-

ScreeningSelection & Assessment Selection & Assessment

Offer Development

Offer Development

Offer Management

& Pre- Employment Screening

Offer Management

& Pre- Employment Screening

On- Boarding

On- Boarding

Recruiting Models Overview

All hiring functions

conducted by internal

resources

A combination of insourced

and outsourced solutions

All hiring functions

conducted by external RPO

provider

INSOURCE CO-SOURCE OUTSOURCE

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Recruiting Models - Defined

Hybrid/Blended

Point SolutionPoint SolutionOverflow RPO

End-to-EndEnd-to-End

OUTSOURCECO-SOURCEINSOURCE

CentralizedCentralized

De-CentralizedDe-Centralized

Hybrid/BlendedHybrid/Blended

Shared ServicesShared Services

Point SolutionPoint Solution

End-to-EndEnd-to-EndCentralizedCentralized

De-CentralizedDe-Centralized

On-siteOn-site

Shared ServicesShared Services

38

Model Advantages•Total Control of Process/Resources•Little Change Management•Culture/Jobs Well Understood from Field/BU’s

Model Risks•Overhead & Field Expense•Field Focused on Non-Business Priorities•Limited Recruiting Experience in Field•Agency Utilization Typically High•Non-Compliance•Loss of Control of Process

Insourced Solution

Definition: Recruiters are physically placed in the business units/field and are a liaison to central recruiting function

Hybrid/BlendedHybrid/Blended

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Selection and Assessment

Offer Development

Offer Management

and Pre- Employment Screening

Onboarding

Vacancy Approval & Requisition

Consultation

Attraction andSourcing

Pre-screening and Slate

Preparation

Hybrid – Company performs all recruiting functions in-house

Insource

Client Recruiters

Co-source 1: Front-End Sourcing

The Provider performs sourcing; Client conducts remaining activities in-house

Model AdvantagesExpertise in recruitingReduced cycle timeEfficiency of standardized processTechnology enabled solutionHigh-touch candidate experience

Model RisksDual processed – (outsourced/insourced) Transfer of knowledge to outsourced providerPotential lack of partnership with RecruitersReliant on external firm for delivery of quality candidates

Selection and Assessment

Offer Development

Offer Management

and Pre- Employment Screening

Onboarding

Provider Front End

Dual Recruiting Model

Vacancy Approval & Requisition

Consultation

Attraction andSourcing

Pre-screening and Slate

Preparation

40

Client Recruiters

Provider Administrative Support

Co-source 2: Back-End Administrative

Client Performs Sourcing and Selection; Provider owns administrative functions

Model AdvantagesClient maintains expertise in recruitingScalability with administrative tasksEfficiency and accuracy of standardized back-end processHigh-touch candidate experience

Model RisksDual processed – (outsourced/insourced) Transfer of administrative knowledge to outsourced provider

Vacancy Approval & Requisition

Consultation

Attraction &Sourcing

Pre-screening & Slate

Preparation

Selection & Assessment

Interview Scheduling

Offer Management

& Development

Pre- Employment &

Onboarding

41

Dual Recruiting Model

Overflow RPO

Co-source 3: Centralized + Overflow RPO

CO-SOURCE

Model Advantages•Control of Process/Resources•Minimal Change Management•Scalability if Hiring Spikes•Recruiters Specializing in Various Needs are Used to Source Candidates•Efficiency of Standardized Process

Model Risks•Centralized Team Having Appropriate Expertise•Potential Lack of Best Class Processes and Recruiting Techniques•Some Change Management Challenges

CentralizedCentralized

42

Client Performs Sourcing and Selection; Provider owns administrative functions

Vacancy Approval & Requisition

Consultation

Attraction &Sourcing

Pre-screening & Slate

Preparation

Selection & Assessment

Interview Scheduling

Offer Management

& Development

Pre- Employment &

Onboarding

Provider Owned

Outsource Solution: End-to-End

The Provider Performs All Recruiting Activities

Model AdvantagesExpertise in recruiting & process administrationLow cost solutionScalabilityPerformance accountabilityTechnology-enabled solutionHigh-touch candidate experience

Model RisksChange management challengesTransfer of knowledge to The RightThing

Vacancy Approval & Requisition

Consultation

Attraction andSourcing Pre-screening Selection &

AssessmentOffer

Development

Offer Mgt/ Employment Screening

Onboarding

Fully Outsourced Model

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Performance ManagementData shows that most organizations outsource tactical elements of the recruitment process to free up HR personnel to be more strategic and focus on core organizational competencies

*Source: Global RPO Report, 2010, HROA & Kelly OCG

Company wide

Business unit

Contingent

Temporary

Administrative

Professional

Graduates

0% 5% 10% 15% 20% 30%25%

Areas of hiring process outsourced*

Prepare for the Next “Up”

45

Recruit-Mine- Source COE

Sourcing Strategist

Automated Sourcing

Job Postings

RMS Level 1

RMS Level 2

RMS Level 3

Center of Excellence

Admin Support

Phone Interviewers

Call Center

Scheduling

Pre- employment screening

Offer Processing

Resource Baseline

Peak Season/ High Volume

Low Volume

Requisition Volume

Control acquisition cost

Ability to immediately respond to hiring needs both increases and decreases

Our staffing model gives us the unique ability to add/remove almost instantly to meet hiring needs

Sample Scalable Resources

The ability to adjust increases efficiency

reducing per hire cost

Incremental resources are deployed to handle peak

volume

Onboarding

Recruitment Process

Recruit-Mine-Source Level 1Big Board, Niche Sites, Client ATS

Recruit-Mine-Source Level 2Intermediate sourcing strategy, deep web sourcing, social networking and blog searching

Recruit-Mine-Source Level 3Advanced sourcing strategy for hard-to-fill, high level requisitions

Automated Overnight SearchProprietary RecruitPoint technology sources new candidates on set intervals

Candidate IntakeCandidate applies online, collect profile, complete prescreen questions based on job criteria

Testing/AssessmentSchedule, Administer, Evaluate online assessment as appropriate

Behavioral Phone InterviewSchedule, administer, evaluate

Schedule Qualified Candidate for Final Interview with HM

Compile Offer PacketOffer letter, welcome kit, employee forms, etc.

Coordinate Background ChecksUtilize preferred vendor to conduct checks

Candidate OnBoardingInitiate relocation, orientation, notify hiring manager of start date

Requisition Close-OutClose out requisition in system and complete compliance checklist.

Create Job RequisitionHiring Manager creates job requisition

Requisition Planning DiscussionHM & RTi Recruiter Discuss Plans to Fill

Recommend Sourcing StrategyCreate proactive sourcing strategy

REQ Prep Recruiting Expertise

Pre-Offer Administration

Post-Offer Administration

A Brief Technology Interlude

Technology is a key driver of all aspects of recruiting.

Technology platform

Recruitment CRM

Recruiting event management

Process management (interview scheduling)

Hierarchical reporting• Individual recruiter level reporting• Regional/Business unit level reporting• Corporate level reporting

Measure and manage key data points for optimization• Source effectiveness• Sub cycle analysis

A Brief Technology Interlude

Technology is a key driver of all aspects of HR.

Technology Platforms;

Applicant Tracking Systems (ATS)

Talent Acquisition Systems (TAS)

Talent Management

Systems(TMS)

HR Management Systems (HRM)

•Applicant / Resume Management

•Candidate Career Portals

•Candidate Relationship Mgmt

•Job Distribution Mgmt

•Pre-Screening & Assessment

•Program Management (ERP, College)

•Volume Recruiting (Events)

•Onboarding

•Performance Mgmt

•Succession Planning

•Learning Management

•Competency Management

•Compensation

•Benefits

•Payroll

•Employee Management

Source: Staffing.org Benchmark Report 2010 48

Leading the Industry with a tradition of continued recognized excellence.

What Is Happening?A Glimpse into Cutting-Edge Recruiting

The Impact of Social Media on Recruiting

Impact on the recruitment profession has been more significant than the introduction of online job boards and resume databases.

Harness Social Media to grow employment brand, strengthen relationships with current and future employees, and create interest in products, service, offerings, etc.

Numerous Social Media sites, applications, aggregators, and time saving tools make it tremendously easy to leverage these resources to improve our recruitment tactics.

50

Future TrendsThe RightThing Solutions Design Team and The RightThing Mobile Web Platform combine creativity and technology to:1.Build mobile career sites2.Enable mobile employment marketing3.Host mobile intranet pages for Hiring Manager communications to mobile.

Text Communications platform enables:1.Mobile applications and employment preference information 2.Employee engagement and post hire candidate data collection3.Pulse checks on EVP4.Integration to ATS systems5.Location based campaigns6.Client to build opt in mobile database of candidates interested in opportunities

51

Future Trends-Web 2.0

Targeted Job FeedsTargeted Job Feeds

craigslist

Direct SourcingDirect SourcingCandidatesEmployees

RightThing

MobileRightThing

Mobile

Social NetworksSocial NetworksPay‐Per‐Click

(SEM)

Pay‐Per‐Click

(SEM)

Jobs2webPlatformJobs2webPlatform Associations Associations 

Talent Community 

Landing Pages (SEO)

Talent Community 

Landing Pages (SEO)Job Boards – Niche 

and General 

Job Boards – Niche 

and General 

52

Real-Time and Social Media Search Engines

Time Management Tools

Ping.fm

Post to all of your social media from one location

NutShellMail

Manage social and professional network updates in emails delivered periodically throughout the day.

iGoogle

Customize your Google homepage• RSS & News Feeds• Custom Search Engines• Stay Organized

59

iGoogle

Customize your Google homepage

Add your calendar, RSS Feeds, Custom Search Engines, Google Docs, Social Media, and more

Ability to login from any computer makes it a virtual recruiting desktop

61

NutShellMail

Supports Facebook, LinkedIn, Twitter and MySpace as well as email forwards.

Save time by not having to login to multiple accounts

Control frequency and content of updates received via email.

63

Mobile Recruiting

Text messaging and Internet usage is overtaking all other uses of mobile phones

More contacting options for recruiters and candidates alike

Can be used to advertise and source

Cost can be minimal

Mobile advertising

Mobile phone recruiting applications

66

Mobile Phone Recruiting Applications

“Apps” that can be downloaded to a recruiters phone

Mobile Interview, The HireSyndicate, LinkedIn, Plaxo, BeamMe, etc.

Most work with the iPhone, Droid, and Blackberry models

67

Passive Candidate Sourcing in 2011

Resume searches have become “about me” and “my profile” searches, as user generated content reigns supreme.

Org charts, attendee lists, membership directories, etc. can be easily located and provide a tremendous wealth of candidate information

People search engines such as Pipl.com and ZabaSearch can help pinpoint contact information

Social Media sites can be leveraged to extract top-notch passive candidates

68

filetype:pdf ("org chart" OR "organizational chart" ) (manager OR director OR vp OR vice) "human resources" site:com

site:linkedin.com "compensation analyst" ccp "greater los angeles area" -dir

Leading the Industry with a tradition of continued recognized excellence.

Michael Gruber, COOPhone: 419-420-1830 x 4240Michael.gruber@rightthinginc.com

The RightThing3401 Technology DriveFindlay, OH 45840www.rightthinginc.com

Thank You!

Leading the Industry with a tradition of continued recognized excellence.

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83Resource Overview

Michael GruberChief Client Officer

Clients looking to win the war for talent and marshal a qualified workforce can benefit greatly from the expertise of Michael Gruber. In addition to his 10 years of experience in recruitment process outsourcing, Michael was an HR Leader for the largest personnel branch of the U.S. Army in Europe.

As Chief Client Officer for The RightThing, Michael designs and manages operational strategy. To further advance the company, Michael pursues a variety of business strategies and works continuously to enhance the company’s portfolio of service offerings, develop relationships with strategic partners and reviews competitive analysis trends and educates the marketplace about the advantages of RPO.

Michael has been a key member of The RightThing since inception in 2003 and has served in a variety of roles including Director of Onsite Programs, Strategic Account Manager and Chief Operating Officer before being promoted to his current position.

Prior to 2003, Michael worked for two RPO companies that were predecessors to The RightThing – Selective Staffing, Inc. and Aon Consulting. Since 1997, Michael has collaborated with a wide range of industry giants to reduce their hiring cycle times and lower costs for both exempt and non-exempt employees. Clients that have had short- and long-term needs fulfilled by Michael include Abbott Labs, DaimlerChrysler, General Electric, Kellogg, Merck, Owens Corning, Prudential, Siemens, U.S. Steel and Wal-Mart.

While serving in the U.S. Army Europe from 1991 to 1997, Michael was responsible for a variety of areas including recruitment of local nationals, training and development, reassignments, discharges and retirements.

Michael holds a Master’s degree in Human Resources from the University of Oklahoma and a Bachelor of Arts degree in Psychology from the University of Maryland.