Taking your business HIRE 866.788.4464 The RightThing Staffing Metrics – The Foundation to Build...

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The RightThingStaffing Metrics – The Foundation to Build and

Support your Recruitment Strategies

2 Taking your business HIRE

Agenda

Target What Is Important

• Organizational Goals

• Affect of the Labor Market

Real Examples - Case studies

Types Of Reporting


Target What Is Important


What Gets Measured Gets Done

Focus on the Desired Result/ Less May Be More

Understand Your Audience or Build Understanding

Understand Your Market

• Industry

• Labor

Understand Your Data Collection Ability

Stay the Course


Organizational Goals

Strategic Company Goal Gain Market Share by

Improving Time to Market for New Services

Staffing Organization Goals Improve Quality of Hires Reduce Time to Fill

Staffing Operational Goals Target High Performers Target Candidates with

Motivation Demonstrated in Track Record

Target 40- 45 Days Time to Fill

Metrics to Set Quality of Hire Measure

resulting in a Reduction of Time Needed for New Hires to become Effective

Time to Fill


Sample Staffing Metrics

Efficiency & Process

Effectiveness Based

Time-to-Fill Cost per Hire Turnover Process Metrics

Quality Based

Performance Motivation Contribution through the Years Compatibility


Quality Staffing Metrics

QUALITY STAFFING METRICSQUALITY FOCUS ON: TOOLS USED: EXAMPLES OF:

Performance Defined “pre-hire” requirements/assessments

Job description, discussion with Hiring Manager on need and expectations, specific opening information

Performance review against requirements Specific 60 – 90 day new hire reviews anchored with the Pre-hire requirements

Hiring Manager Survey Focus on if expectations were met

Productivity Measurements/ Job Family Revenue Generation (Sales), Calls per Rep/(Cust. Serv.), Invoices Processed (Accounting)

Motivation Subjective Measurement Is the individual at work on time?

Request to take on more responsibility

(to better validate any subjective rating create a “pre-hire” list of specific criteria that describe motivation)

Contribution through the Years

Performance Evaluations Standard Performance Evaluation documents and Career Progression documents

Retention Years Number of years in position, with company along with positive performance evaluations

Awards and Recognition Sales Awards, Patents, Customer Service Recognition, Internal Team Awards

Compatibility Work-Group/Customer Compatibility Peer & team evaluations, customer comments or complaints

Organizational Compatibility Attitudinal surveys, Employee satisfaction surveys


Efficiency & Effectiveness Staffing Metrics

EFFICIENCY & EFFECTIVENESS STAFFING METRICSFOCUS ON: TOOLS USED: EXAMPLES OF:

Time-to-Fill Agreed Metric Compatible to Organization (what does ASAP mean)

Contracted date agreed upon between recruiter and Hiring Manager is preferred to encourage by in and equal accountability to the staffing timeline

Actual Time to Fill Specific timeframe from time recruiting started to date new hire starts employment

Cost per Hire Defined, Agreed upon factors associated with recruiting and filling a position

Need to take into consideration the differences by geography, industry, function and job level.

Turnover Reason for leaving surveys Voluntary vs. Involuntary (Involuntary may be the better indicator - and may be a 1st step measurement)

Process Metrics Recruiting Efficiency Ratio Ratio of sum of staffing costs to the total entering compensation for external positions filled

Source Effectiveness Couple with quality measures for best result

Staffing Sub-process Cycle Time Identify process opportunities


Staffing Performance Improvement Priorities

1. Validate New Hire Quality: 58.0%

2. New Hires Start According to Plan: 22.8%

3. Improve Hiring Manager Satisfaction: 13.9%

4. Improve Cost and Efficiency: 5.3%

2004 Recruiting Metrics and Performance Benchmark Report

Staffing.org

According to the Recruiting Metrics Survey most organizations would prioritize their staffing performance improvement priorities as follows:


The most important corporate resource over the next 20 years will be talent: smart, sophisticated business people who are technologically literate, globally astute, and operationally agile. And even as the demand for talent goes up, the supply of it will be going down.

Excerpt from The War for Talent, (c) McKinsey & Company, Inc

The Labor Market: The Workforce Challenge


Total positions to be filled:52 million

Number of jobs

to be vacated:32 million

Number of jobs to be

created:20 million

Source: Bureau of Labor Statistics

What the Future Holds in the U.S.

Total positions to

be filled:

52 million

Total potential

employees available:

29 million

Projected employee gap: 23 million


Total Population: 158 million 274 million 348 million

1950 1998 2050*

12%

29%

59%

8%

34%

21%

25%

Males Females Males Females Males Females

54%58%

65+

0 – 20

20 – 65

Population Profiles (U.S.)

65+

0 – 20

20 – 65

65+

0 – 20

20 – 65

And the Population Pyramid Reshapes


White Males

Women and Minorities

New Entrants in U.S. Labor Force

70%

30%

2008 Projections


What is Your Reality?

How do you see these factors affecting your organization today?

What has changed in the last year, 3 years?

Are there current business objectives aligned to these external factors? If so, what metrics need to be put in place to measure progress?


Metrics and the Talent Mindset

It is important to understand the effects the future “workforce challenge” are having or will have on your organization.

The success in meeting the objectives set to reduce the challenge will need to be measured appropriately.


Case Studies


Case Study One

Organization X Challenge: Industry Talent Pool is Not Diverse in Profile or Ethnicity Objective: Improve Diversity while maintaining/improving Quality

Information Needed: • Number of Openings/Area of Opening (operations, sales)• Skill Sets – What are the successful skill sets/ Don’t know? – FIND OUT

Prove Performance Link (validate) Redefine Profile and Job Descriptions

• What is your Talent Pool? Other Industries, Are they more Diverse? Create New Sourcing Plan

• Re-define Staffing Model Skills Measurement/ Education of Participants

• Define Metrics


Case Study One Possible Metrics

What metrics would you recommend?

• Diversity of Hire Profile Ethnicity Race

• Source of Hire by Diversity Category

• Quality of Hire


Case Study Two

Organization Y Challenge: Heavy Growth Industry Requiring Doubling of Staff Objective: Fully Engage Current Workforce

Quickly Identify Top Talent with Minimal Learning Curve Information Needed:

• Number of Projected Openings/Area of Opening (operations, sales)• Number of New Positions or Skills Needed In organization• Skill Sets – What are the successful skill sets/ Don’t know? – FIND OUT

Complete Job Analysis/ Role definition Define Profile and Job Descriptions Understand Expectations of the Hiring Manager and Organization

• What is your Talent Pool? Other Industries, Are they more Diverse? Create New Sourcing Plan

• Re-define Staffing Model Skills Measurement/ Education of Participants

• Define Metrics


Case Study TwoPossible Metrics

What metrics would you recommend?

• Compatibility Measurements Work Group/ Peer Attitudinal Surveys

• Contribution Measurements

• Performance Review 30 – 60 day expectations Hiring Manager Survey

• Time to Fill


Sample Reports


Metrics & Reporting

Sample List of Typical Reports

Pipeline Report Source of Hire Report EEO Summary Report Job Fair Summary Report Breach Report Interview-to-Hire Report Cost per Hire Report Rejected Offer Report Hire Breakdown Report Candidate Source Report Adherence to Process Report Diversity by Source Report Job Status Report Time to Fill Report Vacancy Report Activity Tracking Report Detailed Applicant Flow by EEO Job Group Applicant Adverse Impact Report

Exceptional record for meeting or exceeding quality performance benchmarks with our clients

Our people, processes, & technology allow for tremendous results

Showcased Results

• Reduced reliance on outside recruiters from 50% to 5%

• Reduced cycle time from 65 days to 28 days

• Cut interview ratio by 40%• Lowered cost per hire by 25% within

the 1st year • Reduced agency usage from 20%

down to less than 1%


Frontline Scorecard – Region 1

YTD YTD Month Month YTD Month # On-Site # Deemed % Deemed

BU Forecast Actual Forecast Actual Index Index Interviews Hirable Hirable

Business Unit A 20 16 10 4 80% 40% 340 187 55%

Business Unit B 125 64 41 24 51% 59% 85 51 60%

Business Unit C 60 19 30 10 32% 33% 151 91 60%

Business Unit D 60 31 30 15 52% 50% 176 95 54%

Business Unit E 76 31 24 9 41% 38% 208 79 38%

Total 341 161 135 62 47% 46% 960 503 52%

Month YTD Current YTD # Failed Advanced Background Drug

BU Open Reqs Open Reqs Open Pos Open Pos Contingencies Ergo % Check % Test %

Business Unit A 2 10 8 33 25 52% 36% 16%

Business Unit B 8 28 27 118 1 100% 0% 0%

Business Unit C 3 20 9 45 13 46% 31% 8%

Business Unit D 4 7 20 54 11 36% 36% 9%Business Unit E 6 11 24 48 7 43% 43% 0%

Total 23 76 88 298

# Total % Total # Total % Total % Minority % Minority % Female % Female

Applications Applications Hires Hires BU Applications Hires Applications Hires

Employee Referral 470 17% 19 31% 57% 0% 7% 0%

PepsiCo Website 455 17% 11 18% 78% 24% 9% 0%

Other Source 615 23% 9 15% 66% 20% 13% 0%

PBGcareers.com 451 17% 8 13% 62% 20% 9% 0%PBG Site Walk-In 123 5% 4 6% 68% 22% 15% 0%

Job Board Posting 146 5% 3 5%

Job Fair 50 2% 3 5%

Newspaper Advertisement 222 8% 3 5%

I have worked for PBG or Pepsico before 22 1% 2 3%

Army PaYs 2 0% 0 0%

Total 2556 95% 62 100%

TOTAL APPLICANTS 2686

BU

Req Open Date to Phone

Verification Conducted

Phone Verification

Conducted to App Builder Completed

App Builder Completed to

Interview Scheduled

Interview Scheduled to

Interview Results

Received

Offer Attempted to

Offer Delivered

Contingencies Cleared to Start Date

Average Time to Fill

YTD Average

Business Unit A 20 2 3 1 4 5 13 47

Business Unit B 6 1 2 7 3 14 6 39

Business Unit C 9 1 9 6 4 13 3 45

Business Unit D 14 0 2 5 1 9 9 40

Business Unit E 11 0 2 4 2 10 10 40

42

0.40

0.33

1.14

Average Time (Days) for Candidate to Self-Initiate CARCO upon verbal offer

acceptance

0.50

1.71

0.33

Source Type

Offer Accepted to

Contingencies Cleared*

Business Unit E

Business Unit A

Business Unit B

Business Unit C

Business Unit D

*Includes candidate step to self-initiate CARCO

Sub-Cycle Task Owner

RTI

Client

Candidate

Shared RTI & ClientShared Client & Candidate


Sample Source Detail Report

1,297

752

63223

13

663

1396

137

0200400600800

1,0001,2001,4001,600

Mo

ns

ter

NA

RM

S

Co

lle

ge

All

Re

tail

Monster Board

Snag-A-Job

NARMS

MonsterTrak

College Recruiter

AJB

All Retail Jobs

Wkplace Diversity

53

115 6 6

20

5

0

10

20

30

40

50

60

Mo

ns

ter

Bo

ard

NA

RM

S

AJ

B

Wk

pla

ce

Div

ers

ity

Monster Board

Snag-A-Job

NARMS

MonsterTrak

AJB

All Retail Jobs

Wkplace Diversity

Applicant Pool

Hire Pool


Summary Requisition Data

Total Number of Hires

39

52

6864

9

29 32

4638

6

0

10

20

30

40

50

60

70

80

January February March April May

Total Reqs

Reqs Over 90 Days

Total Open Requisitions

233218

187203

223

0

50

100

150

200

250

January February March April May

January

February

March

April

May

Over 90 Day Closed Reqs (3-28-4-30)

1

5

4

7

3

3

1

6

4

3

0 1 2 3 4 5 6 7 8

Claudia

Greg

Sharon

Phil

Jennifer

Cycle Time -New Reqs Since 1/1/2007

50

54

53

65

39

61

60

55

59

53

0 10 20 30 40 50 60 70

Claudia

Greg

Sharon

Phil

Jennifer


Daily Recruiting Update

Program Daily Recruit Update - LA/ Chicago/ NY

WEEK 1 Week 2 Week 3 Week 4

Thur

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Fri

Sat Sun Mon

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ov

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an

RightThingChicagocandidates 3 0 0 0 0 2 6 5 8 16 5 1 6 0 21-Oct 35 0 2 5 1 2 2 2 0 4 1 5 2 0 2 0 4 5 3 0 0 0 0 0 0 2 0 0 1 0 0 3 2 0 0 0 0 0 0 7 0 0interviews scheduled 2 1 0 0 0 1 4 5 0 17 1 0 4 8 0 Goal to Date 10 0 1 1 0 1 3 0 0 3 1 5 0 1 2 0 0 2 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0pending interview set up 1 0 0 0 0 1 2 1 5 2 4 1 2 0 71% 0 1 4 1 1 2 0 0 1 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0rejected candidates 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 1 0 0 0 2 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0hires 0 2 0 0 0 0 0 0 4 2 3 0 4 3 2 3 1 0 0 1 0 0 0 0 0 0 0 2 0 4 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 7floaters hired (not assigned 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Fall out -2 -2 -1 -1 -1 -1 -2 -2

New Yorkcandidates 6 2 0 0 0 0 8 6 8 17 4 5 13 0 21-Oct 59 0 3 6 8 7 7 4 5 6 3 2 5 2 3 0 4 4 4 0 0 0 0 0 0 2 0 0 0 0 0interviews scheduled 4 2 0 0 0 0 4 4 5 6 3 0 4 0 Goal to Date 16 0 0 1 4 1 2 0 0 5 3 4 5 2 0 0 0 0 3 1 1 0 0 0 0 0 0 0 0 2 0 15 0 0 0 0 0 0 0pending interview set up 1 1 0 0 0 0 4 4 2 3 1 0 2 0 73% 0 0 3 5 0 2 0 0 1 7 5 1 0 0 0 0 4 2 3 0 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0rejected candidate 1 0 0 0 0 1 0 0 0 0 1 0 0 10 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0hires 0 3 0 0 0 1 0 1 4 0 4 0 2 9 2 9 6 0 0 0 1 1 3 0 0 0 0 0 3 4 3 0 0 4 0 0 0 3 0 0 0 0 1 0 1 0 0 1 2 3 0 0 0 0 2 1 2 0floaters hired (not assigned 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0Fall out -2 -2 -6 -3 1

RightThing Totalcandidates 9 2 0 0 0 2 14 11 16 33 9 6 19 0 0 0 0 0 0 5 11 9 9 9 6 5 10 4 7 7 2 5 0 8 9 7 0 0 0 0 0 0 4 0 0 1 0 0 3 2 0 0 0 0 0 0 7 0 0interviews scheduled 6 3 0 0 0 1 8 9 5 23 4 0 8 0 0 8 0 0 0 1 2 4 2 5 0 0 8 4 9 5 3 2 0 0 2 6 1 1 0 0 0 0 0 0 0 0 2 0 15 0 0 0 0 0 0 0 0 0 0pending interviews 2 1 0 0 0 1 6 5 7 5 5 1 4 0 0 0 0 0 0 1 7 6 1 4 0 0 2 7 5 1 0 0 0 0 7 2 3 0 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0rejected candidate 1 0 0 0 0 1 0 0 0 0 1 0 0 0 0 10 0 0 0 1 0 0 1 2 1 0 1 0 0 1 0 0 0 2 0 0 2 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0hires 0 5 0 0 0 1 0 1 8 2 7 0 6 12 4 12 7 0 0 1 1 1 3 0 0 0 0 2 3 8 3 0 0 4 1 0 1 3 0 0 0 0 1 0 1 0 0 1 3 3 0 0 0 0 2 1 2 0 7floaters hired (not assigned 0 0 0 0 0 0 0 0 1 1 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0Fall out -4 0 0 0 0 0 0 -4 0 0 0 0 0 0 -7 0 0 0 0 0 0 -4 0 0 -1 0 -1 0 -1 0 0 -2 0 0 -1 0 0 0 0

bdsLos Angeles/ bds Totalcandidates 21 17 15 4 0 12 10 5 6 5 1 0 6 7 4 1 0 0 21-Oct 57 0 0 0 3 2 1 0 0 9 1 0 0 1 2 0 1 0 0 0 0 0 0 1 1 2 4 1 1 0 0 0 0 0 0 0 0 5 4 7interviews scheduled 10 5 10 1 0 12 9 7 4 3 0 0 5 4 3 3 0 0 Goal to Date 0 0 1 1 1 5 2 0 0 3 0 0 0 1 0 0 1 0 0 0 0 0 0 1 1 2 4 0 0 0 0 0 0 0 0 0 0 3 0 4 3pending interview set up 8 10 22 4 0 19 12 4 7 4 4 0 3 1 0 0 0 0 Percentage Completion100% 0 1 0 3 2 0 1 0 1 1 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 10 6 4rejected candidate 0 3 0 0 0 1 1 0 1 4 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0hires 3 3 6 8 0 1 0 10 7 1 3 0 0 5 3 5 3 0 0 0 0 0 5 1 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 1 0 0 0 0 3 1 0 0 0 0 0 0 3 0 0 2floaters hired (not assigned 1 1 1 1 0 0 0 0 0 0 0 0 0 -2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Fall out -7 0 -1 -3 1


Time To Fill Report

Time to Fill Comparison

59%35%29%

58%48%

62%60%35%

24%

35%36%

28%31%

23%29%

26%

18%30%36%

14%22%15%11%

39%

0%

20%

40%

60%

80%

100%

CLE MAH MAR OBR OHV PIT WPA WRR

<22 days 22-35 days >35 days


Traffic Light Report

Div 1 Div 2 Div 3 Color Total Color % Div 1 Div 2 Div 3 Color Total Color % Div 1 Div 2 Div 3 Color Total Color %Blue 8 17 4 29 4.4% Blue 25 16 9 50 7.5% Blue 9 10 17 36 5.5%Red 28 30 18 76 12.1% Red 31 29 16 76 12.4% Red 25 34 16 75 12.1%Yellow 58 82 81 221 35.2% Yellow 47 79 82 208 33.9% Yellow 49 75 64 188 30.4%Green 81 167 82 330 52.6% Green 91 160 78 329 53.7% Green 109 157 90 356 57.5%

Total 175 296 185 656 627w/o blue Total 194 284 185 663 613

w/o blue Total 192 276 187 655 619

w/o blue

Div 1 Color % Div 1 Color % Div 1 Color %Blue 8 4.6% Blue 25 12.9% Blue 9 4.7%Red 28 16.8% Red 31 18.3% Red 25 13.7%Yellow 58 34.7% Yellow 47 27.8% Yellow 49 26.8%Green 81 48.5% Green 91 53.8% Green 109 59.6%Total 175 167 w/o blue Total 194 169 w/o blue Total 192 183 w/o blueHires to date 108

OffersPending 14

Hires to date 117

OffersPending 21

Hires to date 126

OffersPending 21

Div 2 Color % Div 2 Color % Div 2 Color %Blue 17 5.7% Blue 16 5.6% Blue 10 3.6%Red 30 10.8% Red 29 10.8% Red 34 12.8%Yellow 82 29.4% Yellow 79 29.5% Yellow 75 28.2%Green 167 59.9% Green 160 59.7% Green 157 59.0%Total 296 279 w/o blue Total 284 268 w/o blue Total 276 266 w/o blueHires to Date 255

OffersPending 34

Hires to Date 269

OffersPending 29

Hires to Date 296

OffersPending 28

Div 3 Color % Div 3 Color % Div 3 Color %Blue 4 2.2% Blue 9 4.9% Blue 17 9.1%Red 18 9.9% Red 16 9.1% Red 16 9.4%Yellow 81 44.8% Yellow 82 46.6% Yellow 64 37.6%Green 82 45.3% Green 78 44.3% Green 90 52.9%Total 185 181 w/o blue Total 185 176 w/o blue Total 187 170 w/o blueHires to Date 210

OffersPending 9

Hires to Date 219

OffersPending 10

Hires to Date 230

OffersPending 12

Closed (Hires) 574

OffersPendingThis Week 57

Closed (Hires) 606


Closed (Hires) 653


2 Weeks PriorAll Operating Companies

To Date Summary Week 033107

Percentage of open reqs filled:7.2%

Percentage of open reqs with offers pending:

9.3%

Current WeekAll Operating Companies




8.7%

1 Week PriorAll Operating Companies




9.0%


Getting Started

Determine your organization objectives Identify key metrics that are currently measured or

measurable and begin to collect the data Don’t measure too much

• Use a phased in approach • Ensure the measures have meaning to the

stakeholders Determine the purpose and use of the metrics

• Process Improvement• Staffing Team Effectiveness

Determine your measurement capability and the capability of your technology


Sample Metrics to Start

METRICS SUMMARY/ INITIAL SCORECARD

Metric How to Measure

New Hire QualityAverage Hiring Manager rating - 90 - 180 days subsequent to

employment

Actual/ Contracted Time to Start Average Actual Time to Start/Average Contracted Time to Start

Customer SatisfactionAverage Hiring Manager Rating (Post-hire based on pre-hire

standards)

Recruiting Efficiency Ratio TOTAL COSTS/TCR

Internal recruiting expenses + External recruiting expenses + Signing

Bonus + Travel, relocation and visa expenses = TOTAL COSTS

TCR = Total annual base compensation of all external hires

2004 Staffing Metrics and Performance Benchmark Report Staffing.org


Question & Answer

The RightThing, Inc.

3401 Technology Drive

Findlay, OH 45840

www.rightthinginc.com

1.866.788.4464

Lisa BreslerPh: 419.420.1830, Ext. [email protected]

Karen BruckerPh: 419.420.1830, Ext. [email protected]

Taking your business HIRE 866.788.4464 The RightThing Staffing Metrics – The Foundation to Build...

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