Candidate Submittal is an alternative recruitment process offered by companies whereby the candidate submittal agency provides 'coaching' for the job seeker with respect to his/her job application. With candidate submittal, the job seeker usually sources their own prospective job opportunity ( eg. on Job Boards, Company Websites, Newspapers etc... ). The job seeker then applies for the job through the candidate submittal agency, which is usually run by ex-recruitment professionals or other industry veterans.
The candidate submittal service will often vett, edit or enhance the job seekers application before passing it on to the employer. The service will then act on behalf of the job seeker in the negotiations and would also may help prepare the job seeker for an interview process or other pre-interview engagement. They would also provide any relevant feedback to the job seeker with regards to his/her application.
Once the job seeker is accepted by the employer, the candidate submittal agency then may then refund a portion of the sign-on fee back to the job seeker . Usually in recognition of the fact that the candidate has completed some of the recruitment process themselves by sourcing their own jobs.
The Market :
With up to 80% of companies generally expecting to encounter difficulties in the recruitment process from year to year. It's obvious that there exists a market for broad recruitment solutions. Companies will generally employ a number of different methods to fill their recruitment needs including employee referral, company websites, recruitment agencies and job boards. Generally, it's found that around 27.1% of recruitment is done through employee referral - making it the largest source of company recruitment , with standard recruitment making up around 5.2% of overall recruitment.
The future of the recruitment industry is generally considered by industry analysts to be in 'Career Networks' , that can provide employee's with the backup necessary to optimize their job searching process - including having access to a 'career coach', utilizing niche recruitment channels, building a profile and receiving positive feedback.
Monday, August 25, 2008
Internal Employee Referral Schemes
Referral recruitment can be owned and managed internally by the recruiting organisation. Many companies are now finding Employee Referral Schemes can successfully complement their existing recruitment methods. Job vacancies are advertised on a company intranet site and existing employees are encouraged to find suitable candidates from their friends and acquaintances and refer them to the recruitment process. If a referral is successful, the reward or bonus is typically paid after the applicant has been working for 3 months or more.
For graduate / entry level positions, employee referral schemes in the UK typically offer c£3000 reward, though this varies by company and industry with many bonuses starting around £500. Experienced hires can earn rewards as high as 10% of the starting salary depending on the industry and the company’s employee referral policy. Employee Referral Bonus is a top Recruiting & Retention Tactics according to Workforce Recruiting magazine, August 12, 2004. Employee referral schemes offer a cost-effective means of attracting applicants and avoiding the need for advertising or [[employment agency] fees. Moreover, new recruits who have been recommended by existing employees often come to the company with more realistic expectations and can provide a better cultural fit.
However, there are a number of potential drawbacks. One of the greatest concerns tends to be that relying too heavily on employee referrals could limit diversity in the workplace, with new staff recruited in the likeness of existing employees. But, provided that there is already a diverse workforce in place this ceases to be such an issue.
According to the Chartered Institute of Personnel and Development's 2004 recruitment and retention survey, which showed more than eight out of 10 employers experienced recruitment difficulties, 38% of UK employers used employee referral schemes as a way of finding staff. This was up 4% on the previous year. Concerns that the policy will undermine efforts to increase diversity (why ask a largely white workforce to help in the recruitment of new staff, when we know even professional recruiters tend to employ people in their own image?) have, so far, been allayed.
As employee referral policies and schemes mature their usage is spreading to cover organisations of all sizes and all industries, not just blue chip. Cost-effective web based solutions are emerging specifically designed to maximise a company’s referral recruitment through their own internal employee referral scheme.
Organisations will develop their own in house process and employee referral policy to track employee referrals. Alternatively they may use a third party recruitment technology company to provide an application tracking system (ATS) that supports employee referral tracking. Early web 2.0 companies such as the CareerMole and Insiders Referral Network, were launched to cater for this demand.
For graduate / entry level positions, employee referral schemes in the UK typically offer c£3000 reward, though this varies by company and industry with many bonuses starting around £500. Experienced hires can earn rewards as high as 10% of the starting salary depending on the industry and the company’s employee referral policy. Employee Referral Bonus is a top Recruiting & Retention Tactics according to Workforce Recruiting magazine, August 12, 2004. Employee referral schemes offer a cost-effective means of attracting applicants and avoiding the need for advertising or [[employment agency] fees. Moreover, new recruits who have been recommended by existing employees often come to the company with more realistic expectations and can provide a better cultural fit.
However, there are a number of potential drawbacks. One of the greatest concerns tends to be that relying too heavily on employee referrals could limit diversity in the workplace, with new staff recruited in the likeness of existing employees. But, provided that there is already a diverse workforce in place this ceases to be such an issue.
According to the Chartered Institute of Personnel and Development's 2004 recruitment and retention survey, which showed more than eight out of 10 employers experienced recruitment difficulties, 38% of UK employers used employee referral schemes as a way of finding staff. This was up 4% on the previous year. Concerns that the policy will undermine efforts to increase diversity (why ask a largely white workforce to help in the recruitment of new staff, when we know even professional recruiters tend to employ people in their own image?) have, so far, been allayed.
As employee referral policies and schemes mature their usage is spreading to cover organisations of all sizes and all industries, not just blue chip. Cost-effective web based solutions are emerging specifically designed to maximise a company’s referral recruitment through their own internal employee referral scheme.
Organisations will develop their own in house process and employee referral policy to track employee referrals. Alternatively they may use a third party recruitment technology company to provide an application tracking system (ATS) that supports employee referral tracking. Early web 2.0 companies such as the CareerMole and Insiders Referral Network, were launched to cater for this demand.
Referral recruitment
Referral recruitment is a process whereby vacancies are promoted and filled by recommendations rather than by traditional methods such as direct classified job advertisements or by employing a headhunter. Proponents of this recruitment method claim that since each candidate comes with a personal recommendation behind them, the applicants are likely to be better suited to the job and the applicant already has a referee.
Many companies offer incentives to the referee, usually a monetary fee. A potential downside of referral recruitment is that these incentives can lead to candidates inventing an online alter ego for themselves to claim the reward or for them to contact a friend and split the reward.
The key advantage of referral recruitment is that it allows recruiters to reach passive candidates, those who are not actively looking for a new job but are sometimes amongst the most prized employees.
Many companies offer incentives to the referee, usually a monetary fee. A potential downside of referral recruitment is that these incentives can lead to candidates inventing an online alter ego for themselves to claim the reward or for them to contact a friend and split the reward.
The key advantage of referral recruitment is that it allows recruiters to reach passive candidates, those who are not actively looking for a new job but are sometimes amongst the most prized employees.
Reduction in Recruitment Expenditure
Employee referral scheme’s empowers existing employees – the people best placed to recruit for their team and company – to screen, select and refer only the best candidates to the recruitment process. This eliminates the often considerable cost of third parties service providers who would have previously conducted the screening and selection process
The costs of operating an employee referral scheme extends to the cash bonus’ paid to employees and internal promotion and administration, the total of which is considerably lower than the expense of recruiting using traditional recruitment consultants, headhunters and online recruitment methods
As candidate quality improves and interview to job offer conversion rates increase the amount of time spent interviewing decreases meaning the company’s Human Resources headcount can be streamlined and be used more efficiently. Marketing and advertising spend decreases as existing employees source potential candidates from the existing personal networks of friends, family, acquaintances and associates.
The opportunity to improve candidate quality, ‘fit’, and retention levels, while at the same time significantly reduce recruitment expenditure has seen the emphasis employers place on increasing the volume of recruits by employer referral increase dramatically. However, there are number of obstacles to achieving the desired increase:
* An employees social network is limited – only a small proportion of the network may be suitable for referral
* Recruiting from an employee’s limited social network may compromise the diversity of the workforce
* Actively referring candidates increases an employee’s workload and may be detrimental to their main responsibilities
* The best and most relevant candidates may not be acquainted with an existing employee of the company and therefore cannot be recruited via the referral scheme
An employee referral scheme is only as good as the volume and quality of candidates applying through the channel.
The costs of operating an employee referral scheme extends to the cash bonus’ paid to employees and internal promotion and administration, the total of which is considerably lower than the expense of recruiting using traditional recruitment consultants, headhunters and online recruitment methods
As candidate quality improves and interview to job offer conversion rates increase the amount of time spent interviewing decreases meaning the company’s Human Resources headcount can be streamlined and be used more efficiently. Marketing and advertising spend decreases as existing employees source potential candidates from the existing personal networks of friends, family, acquaintances and associates.
The opportunity to improve candidate quality, ‘fit’, and retention levels, while at the same time significantly reduce recruitment expenditure has seen the emphasis employers place on increasing the volume of recruits by employer referral increase dramatically. However, there are number of obstacles to achieving the desired increase:
* An employees social network is limited – only a small proportion of the network may be suitable for referral
* Recruiting from an employee’s limited social network may compromise the diversity of the workforce
* Actively referring candidates increases an employee’s workload and may be detrimental to their main responsibilities
* The best and most relevant candidates may not be acquainted with an existing employee of the company and therefore cannot be recruited via the referral scheme
An employee referral scheme is only as good as the volume and quality of candidates applying through the channel.
Employee referral
Employee referral is an internal recruitment method employed by organisations to identify potential candidates from their existing employees social networks. An employee referral scheme encourages a company's existing employees to select and recruit the suitable candidates from their social networks. As a reward, the employer typically pays the referring employee a referral bonus. Recruiting candidates using employee referral is widely acknowledged as being the most cost effective and efficient recruitment method to recruit candidates and as such, employers of all sizes, across all industries are trying to increases the volumes they recruit through this channel.
Proponents of employee referral schemes claim the benefits to be an improved candidate quality, ‘fit’, and retention levels, while at the same time delivering a significant reduction in recruitment expenditure.However, there are a number of potential drawbacks. One of the greatest concerns tends to be that relying too heavily on employee referrals could limit diversity in the workplace, with new staff recruited in the likeness of existing employees. But, provided that there is already a diverse workforce in place this ceases to be such an issue.
According to the Chartered Institute of Personnel and Development's 2004 recruitment and retention survey, which showed more than eight out of 10 employers experienced recruitment difficulties, 38% of UK employers used employee referral schemes as a way of finding staff. This was up 4% on the previous year.
Proponents of employee referral schemes claim the benefits to be an improved candidate quality, ‘fit’, and retention levels, while at the same time delivering a significant reduction in recruitment expenditure.However, there are a number of potential drawbacks. One of the greatest concerns tends to be that relying too heavily on employee referrals could limit diversity in the workplace, with new staff recruited in the likeness of existing employees. But, provided that there is already a diverse workforce in place this ceases to be such an issue.
According to the Chartered Institute of Personnel and Development's 2004 recruitment and retention survey, which showed more than eight out of 10 employers experienced recruitment difficulties, 38% of UK employers used employee referral schemes as a way of finding staff. This was up 4% on the previous year.
Recruitment Process Outsourcing
Recruitment Process Outsourcing (RPO) is a form of business process outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider.
To quote the Recruitment Process Outsourcing Association, "Recruitment Process Outsourcing is when a provider acts as a company's internal recruitment function for a portion or all of its jobs. RPO providers manage the entire recruiting/hiring process from job profiling through the on-boarding of the new hire, including staff, technology, method and reporting. A properly managed RPO will improve a company's time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance."
On the other hand, occasional recruitment support, for example temporary, contingency and executive search services is more analogous to out-tasking, co-sourcing or just sourcing. In this example the service provider is "a" source for certain types of recruitment activity. The biggest distinction between RPO and other types of staffing is Process. In RPO the service provider assumes ownership of the process, while in other types of staffing the service provider is part of a process controlled by the organization buying their services.
To quote the Recruitment Process Outsourcing Association, "Recruitment Process Outsourcing is when a provider acts as a company's internal recruitment function for a portion or all of its jobs. RPO providers manage the entire recruiting/hiring process from job profiling through the on-boarding of the new hire, including staff, technology, method and reporting. A properly managed RPO will improve a company's time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance."
On the other hand, occasional recruitment support, for example temporary, contingency and executive search services is more analogous to out-tasking, co-sourcing or just sourcing. In this example the service provider is "a" source for certain types of recruitment activity. The biggest distinction between RPO and other types of staffing is Process. In RPO the service provider assumes ownership of the process, while in other types of staffing the service provider is part of a process controlled by the organization buying their services.
History Of Recruitment Process Outsourcing
While temporary, contingency and executive search firms have provided staffing services for many decades, the concept of an employer outsourcing the management and ownership of part or all of their recruiting process wasn't first realized on a consistent basis until the 1970s in Silicon Valley's highly competitive high tech labor market. Fast-growing high tech companies were hard-pressed to locate and hire the technical specialists they required, and so had little choice but to pay large fees to highly specialized external recruiters in order to staff their projects. Over time, companies began to examine how they might reduce the growing expenses of recruitment fees while still hiring hard-to-find technical specialists. Toward this end, companies began to examine the various steps in the recruiting process with an eye toward outsourcing only those portions that they had the greatest difficulty with and that added the greatest value to them. Initial RPO programs typically consisted of companies purchasing lists of potential candidates from RPO vendors. This "search/research" function, as it was called, generated names of competitors' employees for a company and served to augment the pool of potential candidates from which that company could hire.
Over time, as business in general embraced the concept of outsourcing more and more, RPO gained favor among Human Resource management: not only did RPO reduce overhead costs from their budgets but it also helped improve the company's competitive advantage in the labor market. As labor markets became more and more competitive, RPO became more of an acceptable option. Furthermore, through the advent in the 1980's and 1990's of human resources outsourcing (HRO) companies that began taking on the processes associated with benefits, taxes, and payroll, companies began recognizing that recruiting--a significant cost of HR--should also be considered for outsourcing. In the early 2000's more companies began considering the outsourcing of recruitment for major portions of their recruiting need.
There have been fundamental changes in the US labor market that serve to reinforce the use of RPO as well. The labor market has become increasingly dynamic: workers today change employers more often than in previous generations. De-regulated labor markets have also created a shift towards contract and part-time labor and shorter work tenures. These trends increase recruitment activity and may encourage the use of RPO.[citation needed] It should also be noted that even in slower economic times or higher unemployment, RPO is still considered by companies to assist in an increasing need to screen through a larger candidate pool.
Over time, as business in general embraced the concept of outsourcing more and more, RPO gained favor among Human Resource management: not only did RPO reduce overhead costs from their budgets but it also helped improve the company's competitive advantage in the labor market. As labor markets became more and more competitive, RPO became more of an acceptable option. Furthermore, through the advent in the 1980's and 1990's of human resources outsourcing (HRO) companies that began taking on the processes associated with benefits, taxes, and payroll, companies began recognizing that recruiting--a significant cost of HR--should also be considered for outsourcing. In the early 2000's more companies began considering the outsourcing of recruitment for major portions of their recruiting need.
There have been fundamental changes in the US labor market that serve to reinforce the use of RPO as well. The labor market has become increasingly dynamic: workers today change employers more often than in previous generations. De-regulated labor markets have also created a shift towards contract and part-time labor and shorter work tenures. These trends increase recruitment activity and may encourage the use of RPO.[citation needed] It should also be noted that even in slower economic times or higher unemployment, RPO is still considered by companies to assist in an increasing need to screen through a larger candidate pool.
Subscribe to:
Posts (Atom)