Developing the Employee Recruiting and Retaining Process

Group 12 Alexander Huynh Chul Cho Japneet Kohli Jea Hyul Lee Judy Tan

Spectrum Financial Group

Founded in 1901 Provides individuals and businesses with financial products and services Registered Representatives of MassMutual Investors Services, Inc., one of the leading mutual life insurance companies in the world

Spectrum Has Trouble Recruiting and Retaining Salespeople

350 300

Number of People

250 200 150 100 50

2011 2012

1st Interviews

Career Contracts

Salespeople Salespeople Left Stayed

We Recommend a Three-Part Plan for Improving the Recruitment and Retention of Sales Employees at Spectrum
1.

Employer branding

2.

ERP (Employee Referral Program)

Enhance Advertisements

3.

Employer Branding

What is Employer Branding?

Builds a unique employer identity, differentiating itself from the

competitors Specific to employment, characterizing the firms identity as an

employer

Directed at both internal and external audiences Projects employers image and brand to existing and prospective staff as a desirable place to work (Backhaus and Tikoo, 2004)

Employer Branding is a ThreeStep Process

1. 2. 3.

Develop the value proposition

Market the value proposition

Market the internet employer

brand
(Backhaus and Tikoo, 2004)

Employee Referral Program (ERP)

What is ERP?

Employees recommend qualified friends, relatives or colleagues for job openings. If the lead is hired, then the recommender is rewarded.
(Gaumond, 2006)

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Referrals take the Least Time to Fill Vacancies

Number of Days taken to Fill a Vacancy
50

40
30 20 10 0 Referrals Job Boards Career Sites Days

(Sullivan, 2012)

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Retention Rates from Referrals are Highest in the Industry

Percentage of Employees Retained
50 45 40 35 30 25 20 15 10 5 0 Referrals Career Sites Job Boards

Year 1
Year 2

(Sullivan, 2012) (The Recruiters Lounge, 2012)

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ERP will Benefit Spectrum in Many Ways

Higher

candidate quality with lower cost 1. 82% of employers rated ERP above all other sources for generating the best return on investment. (Brown and Cober, 2006) 2. 88% of employers rated ERP above all other sources for generating quality of new hires. (Brown and Cober, 2006) Low termination rates Faster time to initial productivity (Sullivan, 2012)

13

Spectrum can Implement ERP in 3 Steps

Plan the ERP

Allocate funds & decide rewards

Set protocols
(Gaumond, 2006)

Advertisements

Enhance

14

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Spectrum should Market Externally

1.

Enter career fairs and career expos

2.

Improve PR

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Sources
1.

2.

3.

4. 5. 6.

Backhaus, Kristin & Tikoo, Surinder. "Conceptualizing and researching employer branding", Emerald 9, (2004) http://www.emeraldinsight.com/case_studies.htm/journals.htm?artic leid=1509267&show=html&WT.mc_id=alsoread Brown, Doug & Cober, Rich. 2006 DirectEmployers Association Recruiting Trends Survey, 2006. http://www.jobcentral.com/desurvey. Gaumond, Jacques. How To Implement An Employee Referral Program, 2006. http://www.go2hr.ca/articles/how-implementemployee-referral-program Sullivan, John. 10 Compelling Numbers That Reveal the Power of Employee Referrals, Ere.net, (2012) Sullivan, John. Employee Referral Program Killers, ere.net. (2008) http://www.ere.net/2008/05/05/employee-referral-program-killers/ The Recruiters Lounge. Implementing An Employee Referral Program In Your Organization (2012) http://www.therecruiterslounge.com/2013/02/12/implementing-anemployee-referral-program-in-your-organization-infographic/