SmartRecruiters mission is to transform recruiting. They partner with companies who fundamentally understand that the platform they use to identify, attract, and close great talent is as important to their success as what they use to identify, attract, and close great customers.
Just because there’s no one fix for GDPR compliance, that doesn’t mean there aren’t solid ways to keep from pulling a Zuckerberg-level cock-up.
This week, in London; it was a speech to disappoint anyone hoping to snag a secret recipe to comply with the fast-approaching General Data Protection Regulations, or GDPR – the European Union’s play to shield its citizens’ online information from precisely the kind of parasitic commercial pilfering brought to light by the ongoing Facebook/Cambridge Analytica scandal.
Unleash Conference, Main Stage; it was a frightening but opportune confluence, as Ardi Kolah, director of the GDPR global transition program at Henley Business School, explained to a large section of 500 Talent Acquisition professionals, that with breached-data threatening one of the most powerful players on the web, causing its once-bulletproof stocks to plummet, most organizations won’t be adequately protected when the new laws kick in on May 25th.
To understand this new legislation, “consider the bill’s genesis as a way to regulate the digital marketplace, a codification of best practices, as opposed to protection against malevolent hackers,” says Kolah, “and GDPR will make a lot more sense.”
That said, it’s hard not to conflate fears around what GDPR could do to your business with what Facebook’s going through in the wake of the revelation that consulting firm Cambridge Analytica amassed data from up to 50 million profiles that were used, via Facebook, to sway votes in favor of the 2016 Trump campaign. These actions contravene not only Facebook’s own rules, which forbid third parties from using any user data for commercial means, but had GDPR already been implemented – given that it’s not only applied to EU citizens in Europe, but anywhere they exist in cyberspace – this kind of data scraping, from that many profiles, would more than likely have fallen under its legal purview, and possibly cost Facebook four percent of its annual profits.
Facebook founder Mark Zuckerberg has denied that the net-quaking profile harvest was any kind of theft at all, and this issue isn’t going to go away soon. But to bring the issue into a more earthbound context, if, say, a medium-sized company has followed Kolah’s advice and retained legal counsel to ensure compliance, what would happen should they experience an involuntary breach?
Kolah maintained that each situation will be unique, but laid out the basics for what an action plan could look like:
Identify risk in areas of your business or service at high risk of data breach.
Mitigate the risk by tightening up porous areas which can be carefully monitored.
Record your efforts to mitigate risk, to increase transparency, and protect your company should a data breach occur.
The biggest takeaway is that training is your first line of defense. Anyone in your company handling data that relates to information of EU citizens protected by GDPR should be schooled in handling this sensitive information appropriately.
“If your company experiences a data breach,” warns Kohla, “you can be sure HR will be paid a visit, and the first thing these government agents will ask for is your training records.”
But, he noted, good faith efforts like training will certainly move the needle in your favor if you find yourself on the wrong side of GDPR:
“I don’t think the EU will be chasing anyone down the street with random punishments. They are much more concerned about people who will deliberately put millions of people’s data at risk without blinking an eye in the name of profit.”
Right now, in every business leader’s head; while no one knows 100 percent how they or their business communities may be affected, for the time being, it’s most important that your business is seen as being trustworthy with sensitive personal information, the kind of trust that Facebook, a harbor for billions of online profiles and saleable personal data, is bleeding, profusely, right now.
Where technology and recruiting intersect, industry expert Lisa Hu sees room to rejig the status quo.
Taking to the stage with her iPhone and a bottle of Heinz ketchup, Lisa Hu greeted a slightly bewildered audience last Tuesday, when the senior vice-president of Blippar launched her company’s new mobile app by aiming her phone camera at her favorite condiment.
The squishy receptacle of red goo sprang to life: colorful animations, playful sound effects, pop-up recipe suggestions, all flitting in sequence across her roving screen. Her point being, that even the most unassuming – to say nothing of sickly delicious – everyday objects can trigger Augmented Reality interactions.
For the uninitiated, Augmented Reality (AR to the initiated) is a composite view of the real world and computer-generated visuals, sounds, or other information, brought to life on your device screen. That whole Pokémon Go thing you so loved/despised until you forgot about it? Same thing.
First developed by the US Air Force in the early 90s, AR was designed to improve human performance in direct and remotely operated tasks. Now, companies like Anheuser-Busch and Fidelity Investments are experimenting with AR for consumer marketing and brand messaging. Given the relatively easy integration onto your smart device – a feat inconceivable in 90s consumer terms – there’s been a resurgent interest in AR.
But is this trend-heavy fascination just another marketing ploy? Through applications like Blippar, consumers can pull interactive, custom digital content straight to their phones through the camera lens. While scanning objects in the grocery store aisles for hidden digital content seems like nothing more than marketing fodder, AR has proven to be hugely effective at engaging users. And by Lisa’s accounts, these interactions are genuine and insightful.
Sure, AR is ideal for targeting consumers in today’s digital age, but with much of the technology still unexplored, we may soon see AR play a role in areas as specific as talent acquisition and candidate experience. As it stands, AR has only just tapped into the commercial market, but Lisa, who spent the last five years working in the AR industry, sees great potential in recruiting alongside other promising tech like Artificial Intelligence.
From the candidate’s perspective, AR can connect them to businesses aligned with their career trajectories. “Companies can digitize brochures, advertisements; it can be anything,” says Lisa. “It’s a new way to learn about a company, and there’s value in that.”
For employers, AR offers the opportunity to engage with candidates, while also collecting valuable analytics about those with whom the tech interacts.
“We can track the journey of a candidate throughout different stages, from the interview process to hiring,” she explains. “You can create ongoing experiences throughout that journey for a candidate turned employee, and it can be dynamic.”
These experiences can be as simple as employee testimonials hidden in company literature, or, citing a recent example from Fidelity Investments, a ‘family tree’ composed of various company teams or departments, outlining their roles and functions to the overall business.
The biggest challenge facing Augmented Reality in the future? Misinformation.
“In the whole AR space there is a lot of noise,” says Lisa, breathing a sigh of slight disappointment. “You have all these different and great ideas being turned into products, but the problem is, there’s a bit too much conflicting information that might confuse people about what AR is.”
Lisa champions the notion that companies looking to implement AR must define their goal and purpose before implementation. Is your company targeting specific customers as part of a digital marketing strategy? Does AR allow your business to execute interactive campaigns with significant ‘wow’ factors? The answers to these questions will ultimately determine whether or not Augmented Reality can help your business.
Embracing AR as a means to achieve successful hires can be well worth the effort and financial investment. However, new technology does not guarantee business success without a clear sense of company brand and values. Even with new innovation, HR remains a ‘people’ business.
Companies that invest in AR without defining their business goals will not succeed, as technology only enhances existing strategies and structures; it does not create new ones.
“Technology can be one part of that,” she argues, “but what is it that’s going to make candidates feel a difference as to why they want to work at that company — Tech or no tech?”
Unplugged from their first day at Hiring Success 18, our VIP list repaired to SF’s hippest rooftop social club, where the Bay’s elite gather to relax, imbibe, and sip in the views.
As the spring day’s last rays of light flickered over the hills surrounding San Francisco Bay, SmartRecruiters ushered Hiring Success 18’s top analysts, influencers, and CEOs to an invite-only rooftop bar to network, mingle, and tempt the wills of the conference hangover fates.
Reluctant to embrace the term ‘exclusive’, this is a club that would rather be known as a curated community, where a spectrum of backgrounds and generations are represented, in the spirit of true west coast meritocracy, of course.
“A private club can be the city’s replacement for the village pub,” says Michael Birch, who founded the Battery in 2012 with his wife, Xochi. “It’s a place where you do, over time, get to know everyone and have a sense of emotional belonging… It’s not about being snooty.”
The power couple have founded several tech startups, including the social app Bebo, which, when it was sold in 2008 to AOL, was bigger than Facebook in the UK, Ireland, and New Zealand. Now, from the bustle of the Bay Area’s core, Michael and Xochi are working to create the best IRL social network they can. With a level of disposable income only the Cooks or Zuckerbergs of the city could scoff at, The Birches wanted to bring together SF’s compartmentalized social scenes, and get back to the “pub family” they formed in their London days attending Imperial College and London University respectively – but commensurately upscaled to work in the Business District.
The Battery avoids the hoity-toity one would expect from buttoned-down social clubs in New York or London, with quirky touches like a library filled with books with custom covers emblazoned with the names of the members who recommended them, that makes even a skeptical outsider feel at ease about showing up for a fancy work event.
This sleek bar perched amongst some of the most coveted real estate in the world, was made homey by the palpable comradery of the assembled guests. The CEO of Upwork, Stephane Kasriel set the tone for the evening with a heartfelt toast welcoming everyone to Hiring Success.
Catch your breath after the explosion of innovation that was Hiring Success 18 to relive some of the key moments from three days of TA inspiration… with more to come!
One thousand TA leaders from across the globe joined us in San Francisco for the third annual Hiring18 conference with learnings and questions to launch us into another year of hiring success.
We look back on a few special moments where the intersection of passion and innovation was truly palpable with some bonus touches of just plain fun.
Top TA analysts kicked off Hire18 with a meeting of the minds…
… and received advanced insight into new SmartRecruiters features.
Hire18 VIPs recharged after analyst day at San Francisco’s hippest social club The Battery with food, drinks, and views…
…and a heartfelt toast from Stephane Kasriel, the CEO of Upwork – pictured below with our CEO and founder Jerome Ternynck.
Our CEO and founder Jerome Ternynck roused the audience with a passionate unpacking of the concept of ‘Hiring Success’.
AI Recruiting Assistant:
SmartRecruiters launched their AI Recruiting assistant. The only completely native AI on the market allows businesses to leverage the power of artificial intelligence to streamline recruiting processes, remove bias, and usher millions of candidates into their perfect job fit.
Predicting Quality of Hire:
Lou Adler, head of The Adler Group revealed his method for predicting the quality of hire including the one interview question that predicts ‘Quality of Hire’.
President of RecruitingDaily, William Tincup managed to convince the audience to implement this traditionally personal platform into their recruiting practice while simultaneously shocking the attendees with ‘stranger than fiction’ examples of how terribly wrong it can go.
Attendees learned the challenges of deaf and hearing impaired workers and experienced the latest technology that not only makes work accessible but makes everyone’s work-flow better.
Serial founder and CEO Nick Macario spoke alongside self-proclaimed futurist Kevin Wheeler about the potential for blockchain to radically shape the future of HR. The goal: break candidate data out of closed platforms, create a decentralized and connected network, and return information control to individuals.
Hire18 took to the high seas for a dance party on the decks of the Hornblower…
… And of course a brief pitstop at the Smarty photobooth.
Stand out applicant:
We heard from applicants whose application processes were unique and tenacious.
Digital Marketing candidate, Nina Mufleh made her case to Airbnb by publishing a website that went viral: nina4airbnb.com
Shelley Winner was sent to prison for selling drugs. When she discovered she was pregnant, she turned her life around. She shares her candidate journey that lead from incarceration to Microsoft.
Robert Coombs ran a box in sports stadiums, and when he applied to corporate jobs, he got no interest. So he built a bot that applied to 3000 companies, which effectively flipped the recruiting process!
Adidas the story behind the Brand:
No one in the room was unfamiliar with the brand, but the company’s mechanics were new to most. And in many ways, the sports giant’s recruiting function is already operating in the future.
Recruiting Startup of the Year:
Honeypot swept the gold for Recruiting Startup of The Year with their developer focused job platform that delivers qualified candidates to employers and relevant offers to job seekers.
Four teams coded well into the night the day one of #hire18 to deliver thoughtful customizations on the SmartRecruiters API. Visa took home the prize of $5k for an internal mobility add-on that made it easier to find candidates from within an organization.
No one in the room was unfamiliar with the brand, but the company’s mechanics were new to most. And in many ways, the sports giant’s recruiting function is already operating in the future.
When it comes to hiring, Adidas is all about the future. Their HR Head is even has Futures in his job title. And wrangling 60,000 employees at one of the most recognizable brands on Earth takes some forward thinking. For Steve Fogarty, processing tomorrow’s best employees isn’t so much about fitting a person into a job title, but getting a new hire out of their comfort zone, oftentimes even out of their daily physical environment, to see where their untethered imagination might take them.
“We have 170 locations globally, and move people over the world,” said Fogarty, addressing the overflowed ballroom at the Hyatt Regency in San Francisco’s business district. “There’s never a meeting at Adidas where you’re not speaking with people from five countries.”
“Careers Without Borders” was a mid-morning pun lobbed at the crowd. Though with projects like the multicultural style incubator that is the Brooklyn Creator Farm, for once, a garlicky pun proved an apt grammar tool. Clicking through a set of slides slicker than his gelled hair, Fogarty held court like an enlightened Don Draper ad-guru, extolling Adidas’ forward thinking as well as how much the company gives back – enough to give a corporate responsibility manager a pay raise by sheer association.
What’s clear is that Adidas, and Fogarty himself, are in the business of storytelling, which for a company as successful as this German-founded multinational, is more akin to mythmaking. (Maybe that’s why Fogarty inserted the word “archetype” into so many of his sentences.) Let’s face it, when you’re on a conference stage talking to a bunch of HR Techines about giving more creative design control to Kanye West and Pharrell Williams, it’s not about those three-striped pre-war soccer cleats anymore. And this evolution, as evinced by the glossy photos that pivoted to video a few times, is essential to the company’s work culture.
“In the 50s,” said Fogarty, “people talked about jobs. In the 90s it was ‘careers’, and today we talk about purpose. This is front and center with our employer brand strategy.”
And as an increasing number of firms tilt towards that way of seeing – purpose with a capital P being inextricable with things like equality and diversity – the bigger players like Adidas can be even more creative in how these ideas are mainstreamed into corporate culture.
“For us,” explained Fogarty, “diversity goes beyond being just an initiative. We know it’s our sec ret sauce for creativity, and to be relevant and fast, you can’t have a few guys sitting in a room in Germany making decisions. We need to look like our consumers” – he does – “and make decisions that are relevant to them.”
Chances are, a summary of Adidas’ campaigns that have gone beyond core footwear products is not necessary here – there’s YouTube for that – but for all the lip-service companies pay to social awareness, the foundation eponymously named after company founder Adi Dassler, among other sports-led initiatives around the world, collects plastic waste from the ocean and molds them into shiny new sports shoes. “Actually,” notes Fogarty, “I should have worn them today.”
Hard to tell if that was an honest slip or an anecdotal flourish, but what Fogarty understands is that it’s all about the story, which makes sense, speaking not only to a gaggle of recruiters, but to our species, dubbed by author Jonathan Gottschall as “the storytelling animal”. Stories are what only we humans do (probably. At least with tongue-to-palate enunciation). And “storytelling,” explains Fogarty, “is not just the story, but how it’s framed, and even in setting up our employer brand, the story is always told in the context of the future.”
Everyone knows Adidas the sports brand as it presents itself from the outside, but given Fogarty’s insights to the internal mechanics of Adidas — the corporate ship with a Borgesian number of cogs — the main takeaway here is that far from being a binary, antiquated slog, there is plenty of room for creativity in this hiring racket. Adidas’ ad projection of innovation seems to align fairly well with actual functionality. That’s something to shoot for. And given the technological advances we’ve all been talking about for the last year or more, making hiring more fair and unbiased, hiring more creatively is the way things are going, fast, so better get on board. If you don’t, if nothing else, you might miss out on a really good story.
After months of prep, sweat and anticipation, the big day is finally here, and the big boss was front and center to lay out what we can expect during these seam-bursting couple of conference days in San Francisco Bay.
To kick off SmartRecruiters’ annual Hiring Success conference, CEO Jerome Ternynck took the stage promptly at 9am. Lights flitting, lasers beaming, his ear-held slim-fit mic broadcast greetings to the attendees packed into the Hyatt Regency ballroom.
“We have 1000 people here,” his voice reverberated throughout the hall, “representing over 400 organizations from all over the world.”
And that kind of representation, these days, in this industry, if it’s not the new normal it may at least be the new local. Far from being SmartRecruiters-only, the speakers set to address the latest in HR Tech represent firms from as far off as Europe and Asia Pacific, and as nearby but underexposed as, yes, Utah. As HR Tech becomes more sophisticated by the day, so does the community become truly global, as evidenced by the diverse crowds at conferences like this one.
“All you recruiters, TA leaders, Innovators, system owners, optimizers;” Ternynck listed, “all of you who’ve dedicated your career to helping companies find talent, to help people find jobs: this is your Hiring Success.”
The opening keynote, given a stone’s throw from SmartRecruiters’ San Francisco headquarters, ushered in not only a roster of essential industry insiders from Adidas, IKEA, Visa and Bosch, but breakout sessions for the latest breed of innovators, a hackathon for the wiliest app-geeks – competing head-to-head for a full 24 hours – and to support the next generation of innovators, the Recruiting Startup of the Year competition, winner to be announced at tomorrow’s closing session.
SmartRecruiters also launches its own new features today, including SmartStart, which allows small businesses to access to a free version of the platform, on-demand analytics so customers can get the figures they need whenever they want them. Then there’s SmartJobs, which will target job ads to assure the right job posts are going to the right websites; SmartCRM, a fully integrated to which allows you to source and nurture passive talent; and, most importantly, the industry’s first AI-powered Recruiting Assistant, which is poised to change the way companies hire forever, by screening candidates automatically, while reducing human bias and encouraging diversity. This is a fully native AI solution, a first for the industry, which by saving an estimated 30 percent of recruiters’ time, will make recruiting more human again.
All this boils down to the premise that brought everyone together, from thousands of miles apart, for these two days: that hiring is the frontline of business success, and the more companies understand that, the better things will be for everyone.
“Who you hire defines your company more than any other activity,” stresses Ternynck. “It defines your outcomes as well as your culture. It defines your success as well as your failures. Who you hire defines you as a leader.”
So here’s to two days of hiring leadership, and if you were not able to join us here in San Francisco, stay tuned for updates, follow us on Twitter and Facebook, and check back with the Hiring Success Journal for lots of #Hire18 insights coming soon.
Technophobic no longer, recruiters are embracing the potential of AI to positively impact their workflow.
Fairly or not, the recruiting industry is often branded as tech-averse. However, recent survey findings concerning the future of technology in HR are helping shed this negative stereotype, ushering in an era where TA becomes the poster child for early adoption.
According to Korn Ferry’s latest survey, 63 percent of TA professionals report AI having changed the way their organizations recruit. Not only that, but 87 percent say they’re excited about increasing their AI interaction in the future.
While these integrations are exciting sometimes it’s difficult to get past buzzwords to decipher the real concepts behind them.To gain a better understanding of the possibilities of tech when it comes to recruiting, we did the unpacking for you. Here are four main types of AI and automation technologies and how they’re being implemented in recruiting.
Artificial intelligence is the ability of a machine or computer program to simulate human capacities such as learning, problem-solving, planning, and perception.
AI for recruiting is the application of artificial intelligence in recruitment designed to automate or streamline some part of the workflow, especially repetitive, high-volume tasks.
Let’s get specific.
In recruiting, there are three subdomains of AI techniques being applied:
Machine learning is a type of algorithm that has the ability to teach itself by analyzing data and automatically improving its solutions through experience. Machine learning is being used to automate sourcing and resume screening as well as analyze candidate fit during digitized interviews.
An example of an innovative organization using AI for their screening is Indigo, a leading retailer that receives more than 2200 applications every week. Using AI to automate manual resume screening, Indigo has been able to reduce their cost per hire by 71 percent, triple their qualified candidates, and improve recruiter efficiency by 3.7x.
Natural language processing is the ability of a computer program to understand spoken or written human language. One major way natural language processing is being used in recruitment is through chatbots that provide answers to FAQs and feedback to candidates in real time.
Sentiment analysis is the ability of a computer program to determine the subjective opinion, emotional state, or intended emotional effect of spoken or written word. Sentiment analysis is being used to improve job descriptions by suggesting alternative adjectives, for example.
A chatbot is defined as ‘a computer program designed to stimulate conversation with human users.’
Randstad found that 82 percent of job seekers believe the ideal recruiting interaction is a mix between innovative technology and personal, human connection. According to Allegis, with 66 percent of candidates comfortable interacting with a chatbot, the market seems ready for mainstream adoption.
In recruiting, chatbots are being used to ask candidates qualifying questions, answer FAQs, and even schedule an interview with a human recruiter. A major advantage of using a chatbot in recruiting is its ability to answer thousands of candidates’ questions simultaneously in real time. Information collected by the chatbot is then fed into an ATS or sent directly to a human recruiter for follow up.
Robotic Process Automation
Hand in hand with AI is automation, or more specifically, robotic process automation (RPA).
The Institute of Robotic Process Automation defines robotic process automation as the application of technology that allows employees to use computer software or a machine to capture and interpret existing applications for processing transactions, analyzing data, triggering automatic responses, and communicating with other systems.
RPA is being applied in recruiting in two main ways:
Candidate outreach such as automated emails or texts to maintain speedy and consistent contact. This outreach can be scheduled as a DRIP campaign for passive candidates, for example.
Interview scheduling is being automated by software that offer time slots when a recruiter is free that candidates can then select without a back-and-forth email, text, or telephone exchange.
While blockchain is still in the beta stages, it’s gaining more and more attention this year.
A blockchain is a system of record keeping using an open, distributed digital ledger that records transactions between two parties. Each transaction in the ledger is verified and then recorded permanently across a peer-to-peer network of users. One advantage of blockchain technology is its speed of use — everyone has access to the most up-to-date information regardless of how many people are using it.
For recruiting, the main application of blockchain technology so far is candidate background checks; for example, on their educational or work history. For blockchain technology to work as a tamper-proof record of candidate history, it’s crucial that a credible and reliable source verifies the data in each block. For educational institutions, this is pretty straightforward, but it becomes more ambiguous when it comes to work history.
Even with all this technology making the recruiting process smarter, it remains to be seen how these elements will ultimately affect the business of managing human capital.
Ji-A Min is the Head Data Scientist atIdeal, AI recruiting software that automates time-consuming tasks such as sourcing, screening, and messaging. She has a Master’s in Industrial-Organizational Psychology and her interests include data-based recruitment, HR tech, and diversity. Find out more about Ideal in the SmartRecruiters marketplace here.
Because gaming at work’s not wasting your time if the game makes you a better recruiter, right?
Meet Jan Tegze, a recruiting veteran from the Czech Republic, author, blogger, and, what he’s most known as around the SmartRecruiters’ office, creator of all the productive distraction a recruiter could hope for, via his website, www.sourcing.games.
Great to meet you, Jan. Thanks for speaking to us. For those who don’t know, can you tell us a bit about yourself?
I grew up at studied in Brno, Czech Republic, and I still live there. I’ve worked in recruitment for 14 years, am an HR Tech blogger, and the author of the book, Full Stack Recruiter: The Modern Recruiter’s Guide.
Was your first interest recruiting or tech?
Definitely tech! I’ve never considered recruitment to be my dream job, I was hoping to be an astronaut, because part of me is a geek and I was more interested in computers than recruiting. But IT recruitment turned out to be the right choice.
What about recruiting tech has been the biggest challenge for you?
Response rate when sending out emails. People are overloaded with information and because of that, our attention span (the amount of concentrated time a person can spend on a task without becoming distracted) is decreasing. We stop reading carefully and any longer text bores us– we want an immediate response to our questions. Getting a higher response rate is my everyday challenge. It is not only about the right subject line, it is about the combination of various things. Having the right timing, a catchy subject line, the right words in the message and other things. But you need to influence your potential candidates before you are going to reach them to get a better response and get a result, and this is best done through your personal brand, company brand etc.
What made you want to create these industry-based games?
I like solving problems and I was trying to solve two small problems I was facing– how to test people after they attend sourcing training and how to test whether the sourcer is good or bad in their job. There wasn’t a solution available for me to use, so I created this game and that led to other tools for sourcers.
How did it start?
I created the first game as an MVP (minimum viable product) and shared it with the world. During the first month, more than 1000 people played it. However, starting something is easy, the hard part is always to continue.
How did you gather all the examples?
I created most of these games when I was looking for some fun way (or excuse) to procrastinate when I was working on my first book (Full Stack Recruiter), and when I was learning and testing some new method. And few of these games were created by other amazing sourcers that decided to share their levels with the community through my site.
How long did it take to get them to this stage?
Sourcing.Games has been running for a year and three months. The current design is the fifth version of the design and the fourth version of the system, but I’m still working on them and have some interesting plans for them.
What has been the feedback so far?
I’ve only had negative feedback from one anonymous person. Other than that – people love them. Companies are using some of these games, along with their recruiting agencies, for their selection process during their interviews or internal training.
What do you hope people get out of them?
Well, that is a great question. I will be great if people will open their minds and break their current habits as far as how they solve these games. Some of them are stuck on levels, just because they are not able to think differently. So, don’t give up, there is always a way!
What are your plans to monetize them?
I get this question quite often, so you can always go to my site and click on the button “Support Us”. But life is not only about money, it’s about impact. That was my main goal when I was creating these games and that’s why I share them with the sourcing community. Of course, custom tailored games for the agency or company are not free.
By 2027, approximately 75 percent of today’s S&P 500 companies will disappear. With modern companies operating at an unprecedented speed in a rapidly evolving market, many businesses fail to implement the strategies necessary for corporate endurance.
To thrive in today’s competitive marketplace, companies must out-think, out-maneuver, and out-hire their peers. Thanks to the advent of Hiring Success, companies can now quantify the cost, speed and quality of hiring and use that information as a metric for business success.
It starts with the fundamental idea that Hiring Success is business success — the focus of SmartRecruiters’ new ebook, releasing today.
The relationship between the right talent and business success is relatively simple in concept but, until now, was previously unmeasurable. Even at the executive level, the topic of “Labor Shortage” has been in the top five of the Conference Board’s CEO Challenge list for the last seven years.
Industry leaders know that companies need more than a few great recruiters or some terrific lucky hires, and Hiring Success now provides the tools for a systematic and repeatable operation designed to benefit businesses and their employees. After all, a company is the sum of the success — or lack thereof — of its entire staff.
SmartRecruiters believes you are who you hire, and that Hiring Success should be a central tenet of all businesses hoping to stand the test of time.
What is Hiring Success?
Hiring Success is defined as the ability to attract, select and hire the best talent for any role, on demand and on budget.
You can judge the Hiring Success of your company by examining three key elements:
This refers to the combined costs of all recruiting activity, although not the time spent by interviewers and hiring managers as they engage in the process.
Whereas Hiring Budget is traditionally seen as a cost, companies who strive for hiring success will see it as an investment, similar to a marketing budget. Hiring Budget is expressed as a percentage of the total salary of new employees, or New Hire Payroll (NHP).
I.e. Hiring Budget = Total Recruiting Costs / New Hire Payroll
This refers to the speed of the recruitment process, and is shown as a percentage of the jobs filled on time. For example, a percentage of 50% suggests you only hire half of your new employees on time — a statistic that should be improved.
This is also a central element, as great employees can only benefit your company if they are hired on time — an obvious, but often overlooked point. It is, however, not as important as the quality of the hires made. A poor candidate, even if they are hired on time, is unlikely to lead your company to hiring success.
Net Hiring Score
Perhaps the most important element of hiring success concerns whether or not you’re actually hiring great employees. Net Hiring Score (NHS) measures the relative output and productivity of each new hire. It is devised in much the same way as the more familiar Net Promoter Score, with the obvious difference that a candidate, not a customer, is the subject of NHS. Ranging from -100 to 100, the score is derived from questions asked to both hiring managers and new employees concerning the latter’s fit in the role.
Once all these three metrics have been ascertained, they can be combined into a simple Hiring Scorecard representing the health and impact of the hiring function:
It’s important to note that a Hiring Scorecard is not completely dependent on NHS alone. Even if you have a high NHS, a low hiring velocity suggests there still room for improvement within your hiring process.
Sample Hiring Scorecard
Ultimately, all this information is used to produce a Return on Hiring figure.
Return on Hiring
Using the NHS, organizations can now easily calculate and understand the net impact of hiring quality on their organization.
This can be done with a simple equation, as follows:
Calculate two numbers: Net Hiring Score (as a %) and New Hire Payroll (NHP) – which is the total annualized payroll of the new hires for any given period
If NHS is non-negative: Net Return on Hiring = 2*NHP x NHS (as a %)
If NHS is negative: Net Return on Hiring = NHP * NHS (as a %)
Organizations should then compare the net return they are receiving in relation to the amount spent to recruit – i.e. Hiring Budget. A conservative estimate suggests poor employees create a burden equal to their monthly salary, while great employees create a surplus equal to double their monthly salary.
With this metric, you can scrutinize your company’s recruitment process and discover whether it is conducive to Hiring Success.
HOW TO CREATE HIRING SUCCESS IN ANY ORGANIZATION
So, now we can measure Hiring Success. How do we help create it? The intricacies of Hiring Success for your company will depend largely on who you want to hire, and on what scale. However, there are some universal elements:
A Professional and Engaging Candidate Experience
With demand for qualified candidates outstripping supply in certain key professions, it is more important than ever to attract and keep the best candidates out there. Clear, quick communication, ease of application and a well-defined brand, can all help improve the candidate experience.
Extremely Collaborative and Engaged Hiring Managers
Through close collaboration, recruiters and hiring managers can share the burden of dealing with multiple applications, and come to better conclusions regarding candidates. Collaboration can also bring expert knowledge and experience from non-HR employees into the process.
A Team of Highly Productive Recruiters
The most effective Talent Acquisition teams operate more like a sales and marketing function than standard HR departments, with clear processes, good communication, a grasp of data and integrated workflows that will greatly contribute to Hiring Success.
MODERN RECRUITING AND HOW LEGACY SYSTEMS COULD BE HOLDING YOU BACK
It should now be clear that Hiring Success is also critically dependent on a system which supports its key elements.
Unfortunately, most legacy ATS platforms cannot undertake the tasks required. Many are still based off the older notions of simply tracking a candidate through the process. They pay little heed to the concepts developed above. You need a system that doesn’t only work with an outdated paradigm.
So when looking for a new ATS platform, have these four questions in mind:
Will this solution help find and engage top talent with an amazing candidate experience across all channels?
Will hiring managers and teams openly embrace and use this solution every day?
Will recruiters have the pipeline, insights, process, and control they need for their productivity to skyrocket?
Will this solution easily integrate with my existing / future HRIS and with the dozens of point solutions my recruiters use?
SMARTRECRUITERS: THE HIRING SUCCESS COMPANY
SmartRecruiters’ mission is clear: connect people to jobs at scale.
We do this by providing a Talent Acquisition platform that is custom calibrated to achieving Hiring Success. Corporations can rest assured that with SmartRecruiters they have the partner they need to attract, select, and hire the right talent, on-demand and on-budget.
The core components of the SmartRecruiters offering are:
An Integrated Talent Acquisition Suite
An all-in-one platform that provides the tools you need to find and hire the best talent out there, whether they are actively looking for work, or not.
Our Built-in MarketPlace
All the services a recruiter needs, from job boards to background check vendors, are all pre-integrated into the platform.
An Enterprise Cloud Platform
The SmartRecruiters Talent Acquisition Platform has a modern, flexible, and smart global enterprise-grade technology stack with the capacity for seamless integrations and ease of use on mobile.
Consumer Class User Experience
SmartRecruiters’ platform was developed with ease of user experience as a guiding principle. Its user interface is clean, intuitive and requires no special training to use.
OUR HIRING SUCCESS METHODOLOGY
SmartRecruiters is also dedicated to the long-term support of its customers and has created a system of personalized Hiring Success Audits, Roadmaps and Metric reports to further improve your company’s recruitment process.
Recruitment is currently going through a revolution with low supply, high demand, and power shifting from employers to potential employees. This increased competition in the hiring marketplace means you can no longer rely on older concepts of recruitment and the software designed to support them.
To get ahead of your competitors and stay at the top of your game, you need to start thinking about Hiring Success today.
With technology that aggregates information from social and professional sites across the web, this Silicon Valley startup is ready to throw its hat in the ring with the top players in the race for AI recruiting supremacy.
Entelo scours the internet to automatically generate profiles of potential hiring prospects, then gets to work matching candidates to customers. Sounds simple enough, but as we found out from data scientist Gaurav Kataria, there’s a little more to it than that.
Hi Gaurav, before people start clamoring to meet you at Hire18, tell us a little about your background.
I spent the better part of the last decade at Google, leading the Data Science group in the Cloud division. In November 2017, I made the move to Entelo, a company uniquely positioned to modernize recruiting, where I lead Product and Data Science. Outside of work, I am a guest lecturer at Stanford University where I have been sharing my “Lessons from the Field” on how entrepreneurs and executives can build machine learning capability within their own organizations.
So what is Entelo, in your own words?
Entelo is the world’s leading AI-driven recruiting automation platform. It helps companies find, qualify and acquire top talent. Our technology aggregates information from more than 50 social and professional sites across the web to consolidate candidates’ social footprints. We provide employers with more than 500 million unique candidate profiles from which they can source top talent. By automating the process of locating, evaluating and contacting quality candidates, Entelo eliminates tedious manual workflows and frees up recruiters to be more strategic and personalized in their individual interactions with prospective hires.
What made you decide to not only attend but support Hire18?
We are looking forward to hearing from industry leaders on what they see as some of the biggest opportunities and potential pitfalls in the world of talent acquisition.
What is the biggest takeaway you hope to leave with?
My presentation is centered around the notion that recruiting is ripe for the benefits of automation. I hope attendees walk away with a better understanding of how AI can help them make their own jobs more valuable, by automating the tedious tasks that can be more efficiently completed by computers.
Some workers fear that technology will replace them. What would you say to recruiters who are reluctant to incorporate AI into their strategy?
I’d explain that AI isn’t out to take your job, but elevate it. It’s well documented that humans and machines are best when they team up, and my presentation will reference studies like the one reported by MIT Tech Review, in which researchers compared the ability of expert doctors and AI software to diagnose cancer. They found that doctors perform significantly better than existing software, but doctors together with software performed even better than their counterparts.
The HR industry has gotten a bad reputation for being slow to adopt new technology. Do you think AI is too forward-thinking for them?
HR professionals have made incredible strides in the past few decades. This is an industry that changes constantly, and when we look at the path from Help Wanted signs to newspaper ads to job boards to social recruiting, recruiters and HR leaders must constantly adapt. In fact, forward-thinking HR professionals are already investing in AI software to help them outperform the competition. As the Entelo 2018 Recruiting Trends Report finds, 62% of companies plan to adapt AI-powered recruiting software in 2018, and of those, 86% plan to spend on intelligent sourcing software. As this sort of thing becomes more mainstream, we’re sure to see even more recruiters becoming proficient in AI hiring tools.
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