Our Recruiting Stock Price Measuring Our Recruiting

Organization Using a Single Metric

Key Challenges   Industry-wide Issues

—  What pieces of the recruiting process should be measured?

—  How should you evaluate individual recruiter performance?

—  How do you stack-rank recruiters who don’t do the exact same job?

—  How do you relate the various recruiting metrics to one another?

—  How do you tie measurements to rewards, recognition and reviews?

  Fifth Third-Specific Issues —  Each Recruiting Region measures performance differently, if at all.

—  Each Recruiting Region independently operated (decentralized).

—  Existing measures are not based upon the needs of our customers.

—  Not currently possible to understand the end-to-end recruiting process.

—  Recruiter performance measure are:   infrequent   not consistent

Fifth Third Bank Recruiting Overview

  Size and footprint of the Bank

  Size and make-up of the Recruiting Organization

  Anticipated Hiring Needs for 2009

Approach

Objective: Become a Process Management focused organization meeting all customer needs.

Process Management is…   A framework that will allow the organization to have

transparency and ownership of its end-to-end processes.

  An alignment of strategy, tactics and operations to meet customer needs.

  A predictive approach to manage and control process inputs ensuring that process outputs are within customer specifications.

Establishing Voice of Customer

Establish Baseline needs

Finalize Needs & Determine

Importance

Complete needs Prioritization &

Establish specs

Identify Customers

Direct Customers • Hiring Managers • Candidates

Indirect Customers • Bancorp • Legal, Compliance

and Regulatory bodies

• Baseline the customer needs through individual and small group discussions

• Surveys to each customer type across the Bank

• Determine needs

• Establish importance of each need to the customer

• Determine priority of each need in relation to the others

• Determine expected performance for each need (e.g. specification limits)

Only measure items…   that are important to the customers

  that will result in decisions and actions

Note: Customer needs gathered from 18 individual customer meetings and then finalized and prioritized through 1,920 surveys.

Voice of Customer Results Customer Need Quality Cost Delivery Satisfaction with Recruiting Process X Satisfaction with Recruiter X Satisfaction with Hiring Manager X 90-day Retention Rate X X Diverse candidate pools X X Recruiter Efficiency Measures X X Number of Hires X X Cycle Time (time to hire) X Total Recruiting Budget X Cost per Hire X

Measurement Weight / Importance Quality 10 Delivery 8

Cost 5

Utilizing VOC Results

A Successful Measurement Plan MUST HAVE…   all measures that are important to the customer (aka: key process

drivers)   customer-defined specification limits   all measures weighted in relation to one another   a single view of the overall performance of the process   the ability to drill down and do additional analysis in order to

determine root cause of issues   a pre-defined Response Plan to dictate thresholds and actions

An unwavering focus is necessary to build, implement and utilize a Recruiting Measurement Plan.

Fifth Third Bank Recruiting “Stock Price”

  Recruiting Performance trending up

  Exceeded customer needs for 13 consecutive months

Reason: Hiring volume is down relative to plan

Performance: Bank-wide

Drilling down through the data is necessary to understand our performance

Bank-wide Breakdown Quality 3.46 % over Customer Needs

Delivery 1.06 % over Customer Needs

Cost -1.24 % under Customer Needs

Cost Breakdown Recruiting Budget 1.8 % under budget

Cost per Hire 32 % over Customer Needs

Reason: Recruiter is not responsive in the eyes of our Hiring Managers

Performance: Recruiter Level Bob – Overall Quality 9.5 % under Customer Needs

Delivery 2.2 % over Customer Needs

Bob - Quality External New Hire Sat. 3.2 % over Customer Needs

Internal New Hire Sat. 1.3 % over Customer Needs

Hiring Manager Sat. 27.5 % under Customer Needs

90-day retention rate 5.2 % over Customer Needs

Bob – Hiring Manager Satisfaction

36.2 % under Customer Needs Responsiveness

6.8 % over Customer Needs Quality candidates

11.0 % over Customer Needs Knows the local market

8.4 % over Customer Needs Problem solving ability

Performance: Recruiter Level

  All recruiters Bank-wide will be measured consistently

  Key process drivers measured for each recruiter – as dictated by customer needs

  Measures are incorporated into annual Performance Management Plans for each recruiter

  Provides a “rolled-up” view of overall recruiter performance as well as drill-down capabilities

  Includes a Rewards and Recognition plan

Change Management   Key Obstacles for Implementation

—  Culture Shift —  Customer focus / client engagement —  Employee Engagement —  Possible “loss of control” perception from HR Business Partners

  Buy-in required from key groups —  Recruiting Leadership Team —  HR Leadership —  HR Business Partners —  Line of Business Leadership —  Recruiters

“About the only folks you’ll find who don’t like being measured are poor performers.”

- Managing Sideways, Price Pritchett

Change Management

  Required elements —  WIIFMs

—  Solid understanding of the measurements   Customer-focused   Specification limits   Logistics (data sources, frequency, etc.)

—  Direct connection to Performance Reviews / Compensation

—  How will the measurements be utilized

Change management began six months prior to implementation and extended six

months after implementation

Utilizing Our Measurements

Key Benefits: Better, faster, cheaper through…   Easier identification of process / policy changes

  Better able to coach and develop recruiting talent

  Increased knowledge of “total costs” and “cost vs. volume”

  Knowledge of how all measures relate to one another (no more silo-metrics)

  Execution of our response plan

  Monthly analysis on trends, key opportunities, etc.

  Discussions with every customer grading us as “below expectations”

  Revised monthly “stack-ranking” of all recruiters (and a direct tie-in to recruiter performance reviews)

Questions

Appendix

Measurement (Segmentation)

All measures are weighted in relation to each other

Overall Bancorp

Performance

Individual Region

Performance

Measurement (Segmentation)

Within each Region, Individual metrics are group

in terms of Quality, Cost, or

Delivery

Drill-down capabilities exist within each Region.

Measurement (Segmentation)

Each Quality, Cost, or Delivery metric is

comprised of key process

drivers

Drilling down to individual measures allow for easy identification of “opportunities for improvement.”

Measurement (Segmentation)

Even beyond the drill-down capabilities, additional data is available for analysis (e.g. segment by

individual recruiter, job grade, etc.)

Individual drivers can be

further segmented

LOB 4.30% Quality 88 10 43% 1.49%

External New Hire 2.21% 1.0 Ext New Hire overall Satisfaction w/ Recruiting Process (Q1) 4.50 4.58 4.50 0.00% 10 11% 0.00%

1.1 Given opportunity to meet w/ potential supervisor (Q27) 5.00 4.86 4.50 11.11% 1.2 Given opportunity to meet w/ potential co-workers (Q27_2) 4.75 4.43 4.50 5.56% 1.3 Given clear understanding of dress code and other bank policies (Q27_3) 4.00 4.29 4.50 -11.11% 1.4 Given overview of roles & responsibilities (Q27_4) 4.75 4.71 4.50 5.56% 1.5 Given overview of department, LOB, and its role within 5/3 (Q27_6) 4.50 4.43 4.50 0.00% 1.6 Given overview and timeline of the interview and hiring process (Q27_7) 4.50 4.57 4.50 0.00% 1.7 Given clear instructions of all logistical items (directions, appointment times, travel arrangements, etc.) (Q27_8) 4.75 4.71 4.50 5.56% 1.8 Given specific list of tasks to be performed (Q27_5) 4.50 4.57 4.50 0.00% 1.9 Smooth transition from being a candidate to being an employee (Q27_9) 4.75 4.71 4.50 5.56% 1.10 Given a tour of office and work environ. during recruiting process (Q27_10) 4.50 4.29 4.50 0.00% 1.11 Satisfaction w/ drug screening and background check process (Q27_11) 4.25 4.14 4.50 -5.56%

All graphs are demonstrative and do not represent anyone or any area of Fifth Third Bank. Fifth Third Bank, Member FDIC. Equal Opportunity Employer.