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How To Do Market Intelligence In Recruitment

Coffee With Jody - Episode #40

Transcript:
How to do Market Intelligence in Recruitment

I think you would agree that most business leaders say they’re somewhat at a loss for how to get started in recruitment today. What if I told you that there’s a lot you can do in market intelligence on recruitment that can greatly improve your chances of success. In this video I will share with you the three things that I share with my business owners when they’re starting their recruitment process that help to improve their outcomes.

Hi everybody! This is Jody Ann Johnson of ActionCOACH – Team Sage, where we work with small business owners and their teams to help them make more money, keep more of the money they make, be more profitable and free up their time. If you’re new here and you’re looking for best practices on how to grow your business please subscribe to the channel and be sure you click the bell so you don’t miss anything!

I’m going to illustrate this concept through a business owner we’ll call Kathy – a busy, successful business owner who’s expanding and needs to add people to her team to support that growth. So what does Kathy do? She does what most business owners do. She writes an ad, posts it online and hopes to attract maybe 2 or 3 great candidates so she can choose. Then what happens? Well, what happens most typically with her and other business owners is that her inbox gets flooded with hundreds of unqualified candidates that she or someone on her team has to sift through to try and find one or two people qualified enough to come in for an interview.

Then she invites them in for an interview. And if they show up at all she finds that it was a big waste of time, gets discouraged and thinks, “there’s just no good talent out there.” Gallup says that 85 percent of employees are disengaged and actively disengaged in the workplace. Of the 15 to 20 percent that are actively disengaged, they may or may not be on the job boards. But most people are not on the job boards. She considers hiring a recruiter and paying those expensive fees because she doesn’t know what else to do. I don’t know about you but most of the business owners that I work with haven’t actually budgeted for a recruiter’s fee that typically is somewhere between 15 and 30 percent. And that 15 to 30 percent for the recruiter comes straight out of the profits. So it’s really a last resort. Now, what you can do is a whole lot of market research and intelligence before you go to that recruiter. You may end up having to go to the recruiter because there are certain positions that are just really hard to fill right now. But before you do, let me share with you the three things that I talk with my business owners about putting in place before they have to take that route.

First of all, we use a portal to manage all of the applications that come in. The one that I use is Hiring Steps. They have a portal that, when they send out the job ad to the different directories and online repositories such as LinkedIn or Indeed, all of those applications come back to their portal. They have keywords and an algorithm that allow them to scan those applications for relevant matches. They have an audio where I can record questions, introduce myself to the applicants and then get their responses and listen to them before I ever meet them or invite them for an interview. This greatly reduces the flood in the inbox. It greatly reduces the number of applications I have to sift through because I’m only looking at my top matches and I can get a sense of who they are by the way they answer the questions, the tone of their voice and the kinds of things that they say before I ever go to the next stage of inviting them for an interview.

Number two: I make sure that they clearly define the skills that are needed, the job responsibilities and duties and what the attributes are of the kind of person who’s going to be successful in that role. Before they ever go to a place like Hiring Steps or place an ad, we get crystal clear on the kind of person they need in that position, how they’re going to be evaluated, what they’re going to be doing and we make sure they’re crystal clear on the job description because it’s all been laid out. We also do research on compensation and benefits and what’s appropriate for that type of role in our marketplace.

Lastly, we leverage your time by setting up a group interview. In the group interview, people have gone through a number of selection/deselection processes to actually be invited. If they show up – and sometimes they don’t – then they’ve already gone through a screening that’s going to allow you to get a sense of who they are. Evaluating them side by side also lets you know how they are under pressure. Are they great with other people? Do they pay attention when others are talking? Do they answer the questions that you’ve asked? This goes a really long way toward you knowing the kind of people they are as well as knowing their skill sets.

At the end of the day, if you’re still having trouble getting talent you may end up having to go to a recruiter. Make sure you get one that has a great guarantee. Some companies will have a very short guarantee and they won’t replace people after three months. Others that I’ve worked with actually will have great guarantees where not only will they replace them but even if you transfer that person to another role in your company they’ll give you a reduced rate on replacing them. So there is a wide range and we love working with ones that are really committed to the business owner and will back their guarantees.

Okay, that does it for today. So are you prepared in advance for effective recruitment? If you put in all of these things that we just talked about you will go a long way toward being ready and the more you’re ready the better your outcome will be. If you have questions, comments on this topic or any suggestions for me please leave them below. Thank you very much for watching this video.

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