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Design, Act, Achieve: Performance Driven Recruiting

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By Jay Barnett, Founder and CTO
With Tom Brennan, Senior Writer

 

Not long ago Decision Toolbox CEO Kim Shepherd shared ideas for the performance driven workforce (PDW), a model that helps close the gap between C-level strategy and performance where the rubber meets the road. PDW, she wrote, is the TQM of the 21st Century — it’s a better process fit for service organizations (TQM came out of manufacturing) and a better culture fit for the entrepreneurial mindset of 2015.

I want to apply PDW specifically to recruiting. Like PDW, performance driven recruiting (PDR) should focus less on outcomes and more on process — how do we produce desired outcomes with consistency? The answer is performance, which has to be measured, managed, and motivated.

Measuring is relatively easy. Plenty of companies track a slew of key recruitment performance indicators. Like we do at Decision Toolbox (DT), if you run an internal or external recruitment operation you probably track things like:

  • Cost per hire
  • Days to source, screen and present the candidate who is hired
  • Days to fill a position
  • Offers per hire
  • Interviews per offer and per hire
  • Candidates presented per interview, per offer and per hire
  • Time to present the first, second and third candidate
  • Sourcing, screening and coordination hours invested per search
  • Ad dollars invested per search
  • Activity gaps (for example, if too much time passes with no new candidate presented)
  • Responsiveness of the hiring manager following activities such as receiving a résumé or holding an interview
  • Hiring manager satisfaction
  • Candidate satisfaction
  • And more

But measuring KPIs is just the first step. What’s important in PDR is how you use the data you collect to manage performance.

At DT our entire organization is virtual, so we develop tools and technology to help employees manage themselves. For example, to help Recruiters optimize their own performance, we developed the Recruiter Quality Self Service (RQSS) system. RQSS monitors each Recruiter’s active searches and gives the Recruiter various types of nudges if a KPI is off track. If course corrections are not implemented promptly, RQSS sends an alert to our Quality department, which steps in and helps troubleshoot the issue. We designed and built RQSS in-house, as part of Recruiting Machine, or proprietary ATS/CRM/ERP system. However similar functions are available on the market, typically under the category of enterprise performance management solutions.

You also can use metrics to motivate performance. For example, we created a system that suggests the best Recruiter(s) to assign to each new project based on 17 attributes of each Recruiter’s relevant past performance. Since Recruiter compensation is tied to projects, there is tangible incentive to optimize performance on multiple levels.

Here’s a topic for your next management meeting. Make a list of every metric or KPI that you measure, and ask your team to consider, for every one: have we thoroughly examined what action steps that piece of information could instigate to drive the desired results? That is, are we using this information to its full advantage, or are we leaving performance improvements on the table?

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Believe it or not, we don’t have giant heads. See More Client Quotes

  • " I had a great experience working with (DT Recruiter) & Decision Toolbox. "
  • " (DT Recruiter) is the best! "
  • " I have been SO impressed with you and your firm. Count me as a promoter and will spread the word within my network of CIO's and CTO's. I cannot imagine a better or more efficient method of hiring. "
  • " (DT Recruiter) is great! It's eminently clear that she's invested in the best possible outcome for both clients and candidates -- she was always available for updates, candid thoughts and juggles to the schedule. She made a fairly onerous task manageable and (dare I say this out loud?) fun! You have a treasure on your staff and I look forward to working with her again! "
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