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developing and engaging the best and brightest people for their businesses. Candidate www. contract professionals and talent management services worldwide. About Hudson Hudson is a leading provider of permanent recruitment.000 professionals serving clients and candidates in around 20 countries. Talent Tightrope — Further information on Auspoll Research can be found at Managing the Workplace through the Downturn. The company employs more than 2. recruiting. market and how current recruitment practices are impacting on Titles in the series include: Positioning for Growth: Building a hiring outcomes. The series investigates talent and qualitative and quantitative research study into the employment recruitment issues with a critical impact on business performance.au.com.auspoll. Hudson helps clients achieve greater organisational performance by assessing. © Hudson 2011 . Dynamic Workforce in the New Economic Era. and Seven Key Drivers of Mature-aged Workers.The Hudson 20:20 Series auspoll research The Hudson 20:20 Series is Hudson Australia/New Zealand’s Hudson commissioned Auspoll Research to conduct a wide-ranging flagship research publication. From single placements to total recruitment process outsourcing. Buying Behaviour.

what are employers up against? the pursuit of talent 18 the quest for quality 20 the right recruitment model: getting the balance right 26 3. 4: create a future talent pool 44 no. the employment and recruitment market: complex and challenging australia and new zealand: economies moving forward 10 optimism is on the up 11 growth is on the cards 12 organisations are getting fit for growth 12 baby boomers are preparing to exit the workforce 12 employees are becoming more elusive 12 candidates are becoming choosier 13 employers are more cautious too 13 breaking the cycle of insanity 14 the new grail for recruitment 15 2. 2: create an authentic employer brand 36 no. motivation and cultural fit 45 no. 6: develop a flexible and efficient recruitment model 48 4. 1: take a talent-centric approach 30 no.contents Foreword 4 executive summary 5 Introduction 7 1. research methodology 53 . 3: utilise best practice attraction strategies 39 no. battle strategies no. future forecast and conclusions future forecast 52 conclusions 52 5. 5: assess attitude.

means wage we don’t value it. Your target market is Mark Steyn organisation they are considering probably not those who are currently CEO. perspective — senior people these days how well they team. Senior people are very aware of the work environment. not only from a monetary you bring on board. From an achieve great performance. how well they fit. The recruitment landscape has In New Zealand the overall economy clients find great people to help them changed significantly over the last is still somewhat deflated. A year ago the balance economic perspective they’re not at with the Hudson 20:20 Series is to of power sat with employers but as the same point in the cycle as Australia share some of the latest thinking the labour market has tightened we’ve but we do still see strong demand in to help them do that. will be have jobs and are not necessarily financially rewarding and is going to be actively looking. particularly in the areas of resources locally need to understand the greatest skills shortages. 4 Our business objective is to help our . They you have to pay for those in the are very selective. that in terms of walking away from will differentiate organisations from something they know well and an their competitors. Our aim 12 months. combined with the is that we either don’t believe it or pressure on certain skills. in terms of differentiated and attractive. infrastructure and technology. pressures are back with a vengeance. why aren’t we doing something become an incredibly expensive place different? And the only answer to that to live and that. making sure an current market. how well aligned get tied in with stock and options — but their motivational drivers are. both from a lifestyle have to offer something that is really perspective and culturally. To interest them you a good fit for them. unreliable outcomes. Other things of the global economy and really weigh can be replicated — such as process up what they’re going to have to give and technology — but it’s the people up to move. Hudson Australia/New Zealand joining is a place that will give them the unemployed but those who already opportunities they’re looking for. People are an organisation’s biggest For more senior roles it is still difficult asset: with the people comes the to extract candidates from an existing culture which determines the success employer. The cost of the value of career development a bad hire is very expensive.foreword Those in the earlier stages of their Recruiting the right people has careers when the GFC struck learned never been more critical. Current opportunities and readjusted their approaches to recruitment can deliver expectations around remuneration. environment where they’ve spent years building their personal brand. Strong candidates now attract multiple Organisations looking for skills and job offers. If we know That has changed. seen a shift towards employees. the work environment. Australia has that.

talent is back on top of the agenda. || Organisations report that 44% of hires are ‘not good. This means placing greatest emphasis on measuring a candidate’s capability and attributes (‘can do’) and motivational fit and career fit (‘want to’). || In this tight talent market. || As organisations develop their growth strategies. Hiring the best talent must improve intentions are strengthening. || Central to this approach is the development of a strong Employee Value Proposition (EVP). processes.executive summary || Confidence is returning to the || Organisations aiming to attract Australian economy.’ Such hires come at a high cost to business. measure but are low indicators of high performance. the rigour of their selection || The New Zealand economy is in recovery mode. Cultivating a talent pool is essential to such a strategy. || Innovative digital sourcing strategies are now in play and help organisations find and engage with passive job seekers. the balance of power has swung to candidates. to and experience (‘know how’). retain and engage the best people must adopt a more talent-centric approach. || Organisations should develop long-term sourcing strategies to meet their needs for talent. ensure they have the most flexible These are relatively simple to and efficient option in place. || Recruitment processes tend Many organisations are reviewing to focus predominantly on the balance between recruitment a candidate’s technical skills insourcing and outsourcing. || Recruitment functions must adapt to survive this talent-poor market. These are the most accurate indicators of high performance. Organisations are becoming more optimistic in their outlook. Good quality candidates are increasingly hard to find. . || The web and social media have an increasingly important role in recruitment. particularly for identification and research of potential candidates. Organisations wanting to attract. translating into modest hiring intentions.

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By optimum hires.000 employers participated role of technology. achieve high performance. It current market dynamics to achieve they are looking for in a new job and takes a close look at the tightening the best. This year’s failing organisations — and how they research comprised qualitative in-depth We hope you will find the findings of can be improved. further light on how the recruitment Central to this year’s Hudson 20:20 process can be improved to benefit Series is the question of how and why The white paper contains new research current recruitment procedures are findings from Hudson.300 employees Strategies for the Talent War is the Zealand employers can balance contributed to a survey about what latest white paper from Hudson. — and wish you victory in the talent war. 7 . be more productive. This research highlighted the implications for employers as talent their organisations — in short. we mean employees who will be engaged in their roles. what employers are looking for and approaches to candidate sourcing and selection. staff shortages. and deliver more value. market. Such employees are the strongest ambassadors for an employer brand. organisations can win the battle of employers and employees. The research demonstrates how current hiring practices are impacting on organisations’ quality of hires — and highlights opportunities for improvement. Employee Value Propositions and the Close to 1. in a survey covering the employment The white paper also looks at the importance of creating talent pools and how employers can do more to achieve a greater proportion of optimum hires. attract more high-calibre employees like themselves. both parties. resourcing levels. and stay with the company for longer.introduction Next Generation Recruitment: Battle It explores how Australian and New More than 1. long-term and most their experiences of the recruitment recruitment market and assesses the effective recruitment solutions for process. and shed for talent. how disconnect between the perceptions shortages bite. It also discusses the interviews and discussions with key the Hudson 20:20 Series interesting key elements of an effective attraction Hudson clients and candidates. strategy including the significance of This was followed by online surveys.

THE EMPLOYMENT AND RECRUITMENT MARKET: COMPLEX AND CHALLENGING .

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All these elements translate into positive. steady at 4. figures for May 2011. . figures for March quarter. nurtures. albeit modest. economic outlook and therefore expected to bounce back by the end business confidence. and attracts as migrants. hiring intentions. reported negative GDP for the March quarter. the aftershocks are still continuing.6% 2 and the economy has been growth of around 3% for the next given a short-term boost with financial year. Although the economy. While customer-facing industries are struggling. 2 Statistics New Zealand. The sector is a powerful magnet. overall. As we go to press. Unemployment is fairly rebuilding projects in Christchurch. Unemployment economists are typically forecasting is at 6. buffeted by the brunt of floods and cyclones.THE EMPLOYMENT AND RECRUITMENT MARKET: COMPLEX AND CHALLENGING Australia and New Zealand: economies moving forward New Zealand has gone through Australia emerged from the GFC economy was returning to growth at relatively unscathed in comparison with other developed economies. The resources boom is Nevertheless. Export commodity prices are strong The resources sector is helping drive and the retail sector is performing well.9%1. optimism is slowly expected to help deliver growth and returning to the market. The prospect of the Rugby World Cup in September and October is bringing back some of the feel-good factor. the Christchurch earthquake hit. of the year. Australia’s future depends to a large extent on the talent it trains. it is a global recession. attracting every ounce of available sector-specific talent and drawing in talent from other sectors. the economy is accelerating. Then just as the the end of 2010. inflating salaries and reducing the size of the talent pool for other industries as a consequence. a two-speed economy. 10 a domestic recession followed by 1 Australian Bureau of Statistics. The impact has shaken GDP.

Sentiments are similar in New Zealand. How would you describe the overall outlook of your organisation in today’s post-downturn market? THE OVERALL OUTLOOK All respondents 30 Australia 34 New Zealand 18 51 16 50 56 12 14 23 12 12 The overall outlook is upbeat and opportunistic The overall outlook is one of cautious optimism The overall outlook is one of uncertainty The overall outlook is bleak Don’t know/can’t say 11 . professional services and financial services are also confident and poised for growth. while non-profit.Optimism is on the up Nearly 85% of Australian employers believe their overall outlook is either ‘upbeat and opportunistic’ or ‘cautiously optimistic. of the employers that survived the GFC. 74% of New Zealand organisations say their future outlook is either ‘upbeat and opportunistic’ or ‘cautiously optimistic’. construction/property/engineering. many find themselves leaner. In spite of the multiple blows of global recession. IT. domestic recession and the Christchurch earthquake. private healthcare and utilities sectors are predictably buoyant. stronger and hungrier than they were several years ago.’ Outlook varies according to industry: the resources. Overall.

THE EMPLOYMENT AND RECRUITMENT MARKET: COMPLEX AND CHALLENGING Growth is on the cards In both countries. Having the right team fat and muscle during the months of in place is vital for expansion. somewhat ambivalent: headcount and overheads down can Those lean companies that have shed stall no longer. Gallup . Baby boomers are preparing to exit the workforce The workforce is ageing and the first of the baby boomers are starting to retire. Those strategies for the months and years to for new blood. Global research company. || Employees are voting with their feet — more about quality of candidate six in 10 employees are actively or than speed of hire. more than half (53%) of organisations say they are very or somewhat under-resourced. The world’s topperforming organisations understand that employee engagement is a force that drives performance outcomes. March 2011. employees are that have delayed hiring to keep come. In the best organisations engagement is more than a human resources initiative — it is a strategic foundation for the way they do business. recession will want to ensure they The need has never been more acute: while skills shortages are here to stay. flexible and enduring team — to stand them in good stead for the future. workforce planning is a priority. Senior management is the hardest category to find: 65% of organisations say it is ‘very difficult’ or ‘quite difficult’ to find staff at this level. Where will employers find the employees to fill their shoes? 40 Somewhat under-resourced About right in terms of resources Somewhat over-resourced Very over-resourced Don’t know/can’t say Very under-resourced 3 are actively disengaged in their — Hudson research shows around in working practices as the boomers 12 New Zealand3 are not engaged or such a team is an investment strategy spike — and consequent loss of skills 48 || 81% of employees in Australia and The State of the Global Workforce. Building current roles. the potential for future performance rather than ticking off experience on the resume. We could be facing a retirement and knowledge — or at least a change ease their way into retirement by working fewer hours or days or on a contract basis. Gallup Consulting. about looking at passively seeking new jobs. most organisations Organisations are getting fit for growth Employees are becoming more elusive have now moved out of survival mode As organisations develop their growth While employers are getting hungry and are gearing up for growth. Where and how will organisations find the talent they need for future growth? How do you currently find yourself resourced as an organisation in terms of staff? ORGANISATION’S CURRENT RESOURCING LEVEL 6 15 build muscle — a strong.

Do you think good quality candidates are becoming choosier in the roles they are willing to accept? ARE GOOD QUALITY CANDIDATES BECOMING CHOOSIER IN THE ROLES THEY ARE WILLING TO ACCEPT? Line managers 85 HR professionals 92 Total 87 15 8 13 Yes. work life balance and organisational culture come in to play. Employers may be losing employees almost as fast as they are hiring them. Remuneration remains a good thing for their organisation. important. Strong are likely to be more committed and candidates are likely to attract multiple better suited to their roles. but in many sectors has believing that choosier employees stayed relatively static.|| 81% of employees plan to leave their employer within the next two years. offers with similar levels of pay. Staff shortages are beginning to bite 28 39 45 Actively seeking a new job — in the process of applying for jobs Passively seeking a new job — thinking about changing jobs Plan to stay in current job — how can organisations attract and retain the best employees? Candidates are becoming choosier Employers are more cautious too The pendulum has swung in their Employers recognise that employees favour and good quality candidates are getting choosier — 87% agree are becoming choosier about potential this is the case — and 70% say it is employers. Which of the following best describes your current job seeking status? Most believe they will find an equivalent role easily. good quality candidates are not becoming choosier 13 . so other factors such as opportunities for career development. good quality candidates are becoming choosier in the roles they are willing to accept No. JOB SEEKING BEHAVIOUR — LIKELIHOOD TO STAY OR LEAVE All respondents 31 Working full time 26 On a contract 32 31 Australian workers 32 29 New Zealand workers 27 29 40 || 92% of employers ‘strongly agree’ or ‘agree’ that staff shortages are increasing the pressure on existing 29 45 37 staff in their organisation.

Hudson 20:20 Series. reduce productivity and ultimately affect profitability. Albert Einstein suggested the definition of insanity is to do the same So why are companies continuing with recruitment strategies that are serving them so poorly? Is it lack of knowledge. 4 Positioning for Growth: Building a Dynamic Workforce in a New Economic Era. Not only does it compromise the rest of the team and affect the engagement of those employees. But motivational and cultural fit (the ‘want to’) are the Employers: Comparatively. Impact on teamwork/ engagement 51 Here lies the opportunity to break the Loss of productivity 34 cycle and use expert methodologies to Impact on staff morale 33 achieve optimum hires.THE EMPLOYMENT AND RECRUITMENT MARKET: COMPLEX AND CHALLENGING Better fitting employees are good news for organisations. . Hudson 20:20 Series. August 2010.) CONSEQUENCES OF A BAD HIRE greatest indicators of an employee’s performance — and yet only a miniscule proportion (6%) of hiring managers usually assess this area (see page 20). but is likely to increase levels of absenteeism. With up to 44% of hires currently described as ‘not good. Breaking the cycle of insanity Just as employees are learning to be more selective in their choice of employer. Assessing skills and experience (the ‘know how’) will remain important for many roles. tools or resources? Is it lack of belief that things can change? Or is it that they don’t know how to go about it? In truth. and personal qualities (the ‘can do’) is necessary too. August 2010. Hiring the wrong person for the job can have serious consequences. AVERAGE AND BAD HIRES 56 13 31 A good hire An average hire A bad hire 14 Source: Positioning for Growth: Building a Dynamic Workforce in a New Economic Era. August 2010. Opportunity cost to your organisation 21 Impact on customer service 18 The cost to your organisation of back-filling the role 17 Decreased business earnings/revenue 9 Source: Positioning for Growth: Building a Dynamic Workforce in a New Economic Era. employers themselves are realising that the ‘tried and trusted’ recruitment techniques they’ve relied on for decades frequently deliver poor results. traditional recruitment strategies have their place. Employers: Based on your past experiences.’ there is a great deal 4 at stake. what is your level of concern with the following possible consequences of a bad hire? (Respondents chose two. approximately what proportion of hires in your organisation would be considered good. Hudson 20:20 Series. average or bad? PROPORTIONS OF GOOD. impact on customer service. thing over and over again and expect Understanding a candidate’s ability different results.

The new grail
for recruitment
Motivational and cultural fit will become
the new grail in recruitment. Scientific
data shows using formal procedures
to measure motivation and cultural fit
results in more hires with an overall
excellent level of performance 5.

The potential rewards of such a
process are great. Recruiting
employees who are best suited to their
role and to the environment in which
they work can deliver exponential value
to organisations: the more engaged the
employee, the greater their contribution
to the business. Superior employees
deliver superior outcomes, which are

Cultural fit is the alchemic ingredient

reflected in the company’s stock price

which delivers high performance. Yet

and market value 6.

few companies assess it formally — gut
feel is a frequent measure — possibly
because it seems intangible and
therefore more difficult to measure
than experience and skills.
Refining the recruitment process

How can Australian and New Zealand
employers balance these dynamics and
achieve the best, long-term and most
cost-effective recruitment solutions for
their organisations? In short, how can
they win the battle for talent?

means giving greater weight to those
qualities, attributes and competencies
that are the greatest predictors of
success. For most companies such an
approach requires a fundamental shift
in thinking about the hiring process.

5 Robertson & Smith, ‘Personnel Selection’, Journal of Occupation and Organisational Psychology, 2001, 74, 441–472;
and Schmidt & Hunter, ‘The Validity and Utility of Selection Methods in Personnel Psychology’, Psychological Bulletin, 1998, 124(2), 262–274.
6
‘Employee engagement at double-digit growth companies’, Hewitt Research Brief, Hewitt Associates, 2004;
and ‘Understanding what drives employee engagement’, The 2003 Towers Perrin Talent Report, Towers Perrin HR Services, 2003.

15

WHAT ARE
EMPLOYERS
UP AGAINST?

International sourcing is now commonplace. We are under equal pressure to control the cost of the recruiting process and to improve the quality of the candidates we source and select. 18 However. Finding good quality candidates for roles is hard and getting harder. under equal pressure to control the and ensure the bulk of their recruitment cost of the recruiting process and to resource goes towards attracting the improve the quality of the candidates most desirable employees? they source and select. expats and migrants 27 have certainly brought knowledge and skills with them into our marketplace. the solution to PRESSURES TO IMPROVE QUALITY AND REDUCE COST IN THE RECRUITING PROCESS the lack of quality candidates might have seemed to be to cast the net wider. find a high quality candidate.WHAT ARE EMPLOYERS UP AGAINST? The pursuit of talent The implication is clear: in an increasingly tight employment market. Added These are. Only around half of all organisations say they ‘always’ or ‘mostly’ have enough applicants for roles to ensure they organisations need to do more to attract those high-calibre candidates who deliver the greatest long-term return on investment because they are more productive and stay longer. How can employers reach (55%) of respondents said they are these hard-to-find passive job seekers. satisfied with their employer quality and reduce costs in the and only passively (at best) looking for recruiting process: more than half a new role. Organisations are often faced with a need to control the costs of the recruiting process and to improve the quality of the candidates they source and select. Overseas or over here? Once upon a time. of course. Which of the following best characterises the focus of your organisation’s recruiting process? . 18 local talent. international sourcing is beyond the scope and means of some 55 organisations and many of them are looking to develop a sustainable sourcing strategy that focuses on attracting — and retaining — the best We are under more pressure to control the costs of the recruiting process. We are under more pressure to improve the quality of candidates we source and select. the very people to the pressure of finding sufficient who are most likely to be already candidates is the need to improve employed.

connect with them via social media. problems can arise — for both employer and employee — if a normally rigorous recruitment process is compromised because of the source of the lead. was unimaginable a decade ago. 19 . The They are not an end in themselves but web is the best way to find and engage wielded with skill and insight can bring with those hard-to-reach passive job unprecedented scope and breadth to seekers. Getting on their radar in this way takes time and investment of specialist resources. The trend for companies to offer increasingly generous incentives for employees to introduce their own contacts makes it more likely employees will want to take within specialised markets and know advantage of this. but employers should be wary of those who rely on technology more than technique. it’s possible to find and the recruitment process. Technological people is now possible on a scale that tools are just that: no more. applied intelligence and networking tracking and communicating with with people in person. Identifying. The best recruiters (in-house or agency) still operate a recruitment firm. Such programs are popular with employers It’s not a quick-fix recruitment solution (over a third say they have used more but a long-term strategy that creates word-of-mouth to find suitable a deeper talent pool of prospective candidates than before). recruitment has been huge. be a useful source of prospective new employees.The wonder of the web: bringing people closer A strategic and well-managed digital The impact of technology on combined with specialist knowledge. the best candidates — and their career While employee referral programs can paths — well. with the company — and that it will Clear command of the web may be a cost less than advertising or using core competency for the 21st century recruiter. Doing it badly can be a huge drain on resources and is probably worse than not doing it at all. employee referral programs bring people on the periphery of a network closer. industry bodies and professional networks. no less. presence is most powerful when Company referral programs: risk or reward Social media allows us to network with people we don’t yet know. who believe candidates for clients — and makes that employees are most likely to those candidates more interested in introduce good people who will fit in the client from the outset.

1998. performance. 8 Robertson & Smith. That is. we mean someone methods used by most companies may reveal some of the reasons why hiring is such a hit and miss affair. By high on the least effective indicator. The problem here is that scoring Skills and knowledge are the easiest highly in the know how category and quickest factors to measure. Practices and the thinking behind them haven’t who doesn’t just do the job well — we mean someone who outperforms the expectations of the role. ‘Personnel Selection’. only a third of techniques Attributes measure the can do category and just 20 Capability WANT TO High indicator of performance Career fit Motivation 7 Positioning for Growth: Building a Dynamic Workforce in a New Economic Era. Hudson research shows the most commonly used recruitment techniques are reference checking. they put the focus It’s important to take all these factors is the greatest indicator. 441–472. can do into account when hiring. resume screening and background interviews. In addition to the negative impact on the rest of the team and consequent reduction in engagement and productivity.WHAT ARE EMPLOYERS UP AGAINST? The quest for quality Poor hiring decisions are costing organisations dearly: nearly half Employers: Which procedures/tools does your organisation currently use during the hiring process? TOOLS/PROCEDURES CURRENTLY BEING USED BY EMPLOYERS BY % KNOW HOW (44%) of all hires are ‘not good’ 7 according to Australian and New Zealand companies and the cost is CAN DO significant. Low indicator of performance changed much for decades. person into a role and the cost of which typically receives the lowest the recruitment process as additional and want to. Hudson 20:20 Series. Technical skills CURRENT FOCUS A closer look at the recruitment . 2001. there is also the missed opportunity of making a good WANT TO Technical testing Skill testing Resume screening Background interviewing Reference checking 62 Behavioural interviewing Assessment centres Job trial Personality testing Intelligence testing Business simulation Role plays 32 Cultural fit measures 6 hire and the potential benefits it could have brought. August 2010. 262–274 EFFECTIVENESS CAN DO practices focus on the first know how 6% measure the want to category. emphasis in the hiring process. 74. metrics. 124(2). and Schmidt & Hunter. Psychological Bulletin. so of technical skill and experience the problem is compounded when is not an accurate indicator of high employers add speed of getting a performance8 . ‘The Validity and Utility of Selection Methods in Personnel Psychology’. All of HUDSON PERFORMANCE DRIVER MODEL™ CATEGORIES MEASURES KNOW HOW these techniques measure know how rather than can do or want to: as much Experience as 62% of employers’ current hiring category. There are three factors that predict a person’s ability to do the job: know how. Journal of Occupation and Organisational Psychology. The want to category.

the more productive and profitable they are likely to be). Employers report that motivation. An employee that ‘fits’ his or her employer is more likely to be happy and engaged in their work. amount of time they are likely to be Employee Survey Respondent Employers looking to consistently recruit high performers must review their hiring processes. 21 . I don’t want a job I can already do 100%. leading to greater productivity retained by an organisation (and the longer they stay. Australian Federation of Employers & Industries follows that a far greater proportion of the hiring process should focus on these attributes. it In our experience over 90% of employee problems can be traced back to what was said (or not said) and what was done (or not done) during the hiring process. Where is the challenge in that? I want a job that I can grow in. the right cultural fit (45%) and having enough appropriate experience (47%) are all seen as moderately important while specific industry experience is seen as less important (28%) (see page 22). motivation and cultural fit with an organisation pays greater dividends in the longer term. Turnover is going to be high if you always choose the perfect candidate. a highly engaged and Selecting the best motivated workforce will attract more If selecting candidates based on employees of the same ilk and help attitude. key to identifying the highest potential employees for an organisation. motivation and cultural fit is create a virtuous employment cycle. Assessing potential employees’ attitude. The right functional skills (cited by 49%).Creating a virtuous employment cycle and profitability and increasing the It seems employers want to hire someone who is already doing that exact job. attitude and the right behaviours and capabilities are the most important attributes they are looking for when hiring new employees. Additionally. Soon they will be bored.

employers always play safe.WHAT ARE EMPLOYERS UP AGAINST? Which of the following do you think organisations are looking for most when they assess candidates during the recruitment process? ATTRIBUTES THAT EMPLOYERS ARE LOOKING FOR IN HIRING CANDIDATES The right behaviours or capabilities 21 The right motivation and attitude 19 The right functional skills 18 The right cultural fit for our organisation 15 Enough appropriate experience 12 20 Experience in our specific industry 12 7 The right traits or personal style 17 18 19 21 3 4 The right behaviours or capabilities 11 12 The right motivation and attitude 11 13 The right functional skills 13 The right cultural fit for our organisation 14 Enough appropriate experience 24 Experience in our specific industry 23 The right traits or personal style 4 16 15 15 15 ATTRIBUTES THAT EMPLOYEES BELIEVE EMPLOYERS ARE LOOKING FOR 15 9 9 % who think this is the most important attribute % who think this is the second most important attribute % who think this is the third most important attribute The idea of transferable skills and the ability to learn about a specific market seems to have gone out the window. Employee Survey Respondent 22 17 16 15 16 12 13 16 22 18 7 13 10 % who think this is the most important attribute % who think this is the second most important attribute % who think this is the third most important attribute Employees have a different It seems employees consider perspective. They believe employers are even when they have the right looking for ‘enough appropriate motivation. experience’ (62% say this is one of the three most important attributes employers look for) and finding candidates with ‘experience of a specific industry’ (54% cite this as one of the three most important attributes). . I find recruiters will give every encouragement but when it comes down to the line. seeing a discrepancy employers to be more conservative between what employers say they are than they admit — and unwilling to looking for and what they value in consider less experienced candidates practice. attitudes and capabilities.

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WHAT ARE EMPLOYERS UP AGAINST? Which of these same attributes do you think is the hardest to determine when selecting candidates? ATTRIBUTES THAT EMPLOYERS THINK ARE HARDEST TO DETERMINE The right motivation and attitude 30 The right behaviours or capabilities 22 24 The right cultural fit for our organisation 21 17 The right traits or personal style 17 The right functional skills 7 Experience in our specific industry 222 The right amount of experience (no of yrs) 12 3 17 28 21 6 22 20 26 10 % who think this is the hardest attribute to determine % who think this is the second hardest attribute to determine % who think this is the third hardest attribute to determine Hudson research shows determining Determining whether candidates will whether a candidate will have the right have the right behaviours or capabilities motivation and attitude is the most is not considered to be much easier difficult attribute for employers to (68% rated this in the top three for measure during the selection process difficulty). or personal style (rated in the top three by 64%) were considered moderately hard. Cultural fit (rated among the (75% of employers say this is one of the top three by 58%) and the right traits three hardest attributes to determine). 24 . it was considered relatively easy to assess whether candidates have the right amount of experience/experience in a specific industry (only 6% rated these in their top three hardest attributes to determine) or the right functional skills (23% cited this among their top three). In contrast.

Sensis The ‘too-hard’ box More haste. SkillsDMC The survey results demonstrate that the most important qualities can also be the hardest to find. Retention & Systems. time and a bespoke selection process. Measuring these less tangible candidate attributes requires commitment. the best possible hires. 25 . Yet hiring Difficulty in assessing attitude and motivation may in part be caused by the belief that candidates misrepresent themselves in the interview process and that measuring motivation and attitude. Group Manager HR. less speed One of the reasons organisations Ironically. Sheryn Grant. We prefer to train and coach in skill gaps and maximize the motivational and cultural aspects of our candidate pool. it is often organisations with rely on measuring the skills and the greatest need to attract superior experience of a potential employee talent who say they do not have the may be that these attributes seem time to invest in ensuring they make easier to measure. Sourcing. simply be too hard. just because you can do something doesn’t mean you want to and without the motivation and desire to work within a specific cultural environment you will not be the best you can be and will ultimately become disengaged. may without due attention to a candidate’s motivation and attitude simply makes it more likely that the outcome will be a poor hire and that the organisation will be looking to recruit again sooner rather than later. Making a poor choice means you will have to go through the hiring process a second or even third time. Beverley Saidel. If your recruitment decision is primarily based on technical skill levels you are putting your ultimate success rate at risk. the less visible qualities.I don’t understand why a business in these times would not place importance on motivational and cultural fit. Although psychological assessment tools such as psychometric testing can provide a measure of a person’s ability and aptitude for tasks they are still far from a standard part of the hiring process and are generally reserved for senior level hires. Communications Manager.

remain so today. In addition. hiring manager DIY caused many recruitment consultants New Zealand a variety of different models were relatively commonplace to allocate their time and best recruitment models have evolved as and. There is no ‘perfect’ model. the focus on recruitment took the hiring manager away from their other core responsibilities. These include the hiring manager DIY model. preferred supplier model. The result was often poor quality hiring and. the employers seek to win the war for talent. The preferred supplier model The problems with the DIY model encouraged HR and procurement to join forces and formalise their relationships with recruitment agencies. candidate care and selection and assessment practices. centralised model and hybrid model. each organisation must choose the model most appropriate for that point in its evolution.WHAT ARE EMPLOYERS UP AGAINST? The right recruitment model: getting the balance right Overview of recruitment models: their evolution. over time. and 2) the level of centralisation or decentralisation. 26 freed up the hiring manager’s time. in some areas. utilisation of recruitment consulting firms. In addition. these models resulted in with inconsistent hiring practices. The result was a series of preferred supplier agreements (PSA) between an organisation and its suppliers to standardise service levels. Moreover. candidates elsewhere. these agreements often resulted in . The hiring manager often supplemented their efforts with ad hoc use of recruitment agencies which failed to create agency loyalty or leverage the client’s buying power. While superficially flexible and cost model did not resolve issues associated effective. increased staff turnover. challenges and benefits While this model saved money and The DIY model low fees and arduous processes that Over the past 10 years in Australia and In the early 2000s. adding to the indirect costs of this model. fees and commercial terms. a lot of inconsistency in brand representation. we often see a blending of models for maximum results. All differ in two essential ways: 1) the degree of insourcing or outsourcing.

flexibility and of the competition. There is no place scalability of the recruitment model for complacency and while investing in became key and this is where RPO talent acquisition remains critical for models deliver very effectively. Likewise. Organisations sought to supplement A key theme was the desire to create the work of these teams with specialist a centre of recruitment excellence. a blending of both started to emerge. in some recruitment practices. in the longer term. a cost focused reflect this new reality. The role of specialised and harder to fill. change again. dearly in terms of delivering poor quality hires and a higher churn rate. The model while avoiding the challenges. Organisations need needed to increase headcount quickly. new models and thereby save money. highly specialised and senior roles. service and speed of hire. most organisations’ growth strategies. tools and a drawback. recruitment agencies under a PSA either by establishing an internal model. the big difference now function or by outsourcing the function was that the roles given to recruitment There is growing recognition that cost to specialist Recruitment Process agencies to source were much more cannot be the key driver in this talent Outsourcing (RPO) experts. organisation and an RPO provider. However. once business technologies to choose from to help demand returned and companies win the talent war. and often equation as organisations understand these teams was to strengthen the the PSA fees were not changed to that. standardised approaches in the hybrid model where to achieve many of the commercial and streamlined processes to improve the team is jointly staffed by the benefits of the preferred supplier quality. to continually review their performance insourced models were not always able and benchmark themselves against to scale up quickly enough to meet this others to ensure they are a step ahead demand. the No place for complacency high fixed costs of many insourced In today’s market there is a variety recruitment models were seen to be of recruitment models. while instances. 27 . During the GFC. strategy can impact organisations The hybrid model Today we are seeing the models use of recruitment agencies for these solutions is also becoming far more selective and focused on the hardest to fill.The centralised model organisation’s employment brand As a consequence. we are seeing As HR and procurement saw the and diversify sourcing channels clients move from insourced to advantages of innovative overseas to increase direct hiring levels outsourced models and. These models tried implementing centralised. In this context. it is important to recognise where to invest in order to achieve the greatest value and return on investment.

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it’s business but who are not especially time to treat quality candidates as the hard to find. there was a lot of to be the most challenging to source. priority: the best candidates will always have multiple options. So we must re-evaluate our approach to sourcing. Managing second priority for investment them appropriately is a strategic of resources. even though the so-called should go to attracting and retaining abundant supply did not necessarily this business-critical talent. deliver a greater proportion of high-quality candidates.battle strategies no. delivering business strategy and likely During the GFC. . communicating and engaging with the people who have the greatest potential to add enduring value to the organisations for whom they work. many centric approach is identifying and companies are not in a position to prioritising the different talent needs import expatriates or migrant workers. 30 The first step in adopting a talent- 3) Core: people who may be relatively easy to find but may have a high turnover. talk about the liquidity of the talent The greatest allocation of resources market. of your organisation as follows: They are under pressure to find 1) Strategic: people essential for high-quality people close to home. This is the lowest priority — cost-efficiency is key in this category. This category is the scarce resource they are. 1: take a TALENTcentric approach Prioritising talent Quality talent is in short supply. 2) Critical: people who are important for the day-to-day running of the As talent shortages start to bite.

attention to their motivators. Comparing the of your talent pool. recruitment. more flexibility) 7 7 Finding a job with more seniority and responsibility than I currently have 5 Finding a job in an organisation with values that I believe in 4 7 8 Finding a job with better educational and training opportunities than I currently have 4 7 8 13 14 12 10 10 9 % who said this was the most important aspect % who said this was the second most important aspect % who said this was the third most important aspect 31 . It is not required simply to assess candidates when you’ve found them. It is critical in determining how you market to them in the current climate.g. Employees say two sets of results yields crucial planning how to attract those potential the most important thing they will look insights for employers seeking to employees who are most important to for in their next job will be finding a improve their Employee Value you.Understanding what makes candidates tick Our research shows that candidates Employees were also asked which of take immediate and longer-term these same aspects are the hardest Having identified the distinct segments benefits into account when to find in a new job. attitudes (54% ranked this is as one of the and behaviours — just as you would to three most important factors). Doing this means paying close role that they are more interested in Proposition to attract talent. Which of the following aspects will be most important to you in looking for your next job? THE IMPORTANCE OF VARIOUS ASPECTS IN LOOKING FOR A NEW JOB Finding a role that I am more interested in 23 Finding a job with better career opportunities than I currently have 18 Finding a job with more pay than I currently have 17 Finding a job in an organisation with a work culture that will make me happy 14 17 14 13 12 13 14 Finding a job with strong leaders and a boss I respect 7 11 Finding a job with better working conditions than I currently have (e. attitude and finding a job in an organisation that behavior is a non-negotiable element of will make them happy (42%). was followed by finding a job with Having a model that defines and better career opportunities (43%). you can then start considering a new role. This any other target audience or customer. finding a job with more pay (43%) and measures motivation.

more flexibility) 13 11 Finding a job with more pay than I currently have 14 12 14 11 12 8 11 Finding a job in an organisation with values that I believe in 9 Finding a job with better career opportunities than I currently have 8 11 Finding a job with more seniority and responsibility than I currently have 8 9 Finding a job with better educational and training opportunities than I currently have 4 10 10 8 13 11 8 % who said this was the hardest aspect to find % who said this was the second hardest aspect to find % who said this was the third hardest aspect to find 32 As I am looking more at a longterm career as opposed to a role. more interested in (45% ranked this Finding a job with better working as one of the three hardest aspects conditions (for example. opportunity for employers to Finding a job with strong leaders. . Given this is also the most flexibility) was nominated as the important aspect it needs to be fourth hardest aspect to find (36%) a core component of an Employee and accordingly presents another Value Proposition. then it is important that I’m in line with the culture of the company and vice versa.g. and differentiate themselves. is perceived to be the second hardest attribute to find (41%). Employee Survey Respondent a boss that employees respect. There is therefore an opportunity for employers to use this to differentiate themselves.battle strategies A good job is hard to find aspect to find (37%) and given its Results showed employees find it weighting should also be central to most difficult to find a role they are an employer’s value proposition. greater to find). Finding a work culture that makes employees happy is the third hardest Which of the following do you think is the hardest to find when looking for a new job? THE HARDEST THINGS FOR CANDIDATES TO FIND IN LOOKING FOR A NEW ROLE 16 13 Finding a role that I am more interested in 16 Finding a job with strong leaders and a boss I respect 15 Finding a job in an organisation with a work culture that will make me happy 13 13 Finding a job with better working conditions that I currently have (e.

Employee Survey Respondent 33 . To get the most out of myself in the role. There was a 6% increase in the proportion that would consider leaving because of relations with colleagues and managers. There was no change in the proportion that would leave for financial reasons. there was a 7% increase in the proportion of employees who cited boredom or looking for new experiences compared with 2010. I need to be in the right team that I respect and enjoy working in. Finding a company with a work culture that is right for me is definitely the most important thing.When employees were asked about triggers that would cause them to consider looking for a new job.

In contrast. 44 better relationships at work and an improved work environment. The importance of culture and The organisation’s culture or values are incompatible with how I want to work values alignment was a mid-ranking 42 34 28 trigger for all employees leaving a job Senior Management (35% cited this) but it was more Middle Management important to employees in high-level Non-managerial professional/Specialist management (44%) and middle Admin/Support staff management roles (42%). or would be a trigger. the research also showed an ongoing correlation between communications performance in the selection process and the engagement of employees. Attracting culturally aligned candidates is therefore vital for senior roles where The importance of communication candidates are most difficult to find. only 23% of those who said the organisation did a poor or very poor job of communicating the expectations of the role and what was needed to be successful in it agreed they felt engaged and motivated. and what was needed to be successful in it. These findings represent an opportunity for employers to do a much better job in promoting these aspects in communications to potential candidates. also agreed they feel motivated and engaged at work. Importantly. Around seven in 10 employees (71%) who said their organisation did a good or excellent job in communicating expectations of their role. to them considering leaving their job.battle strategies Broadening horizons These changes characterise The proportion of respondents who noted that an organisation with an incompatible culture or values is a trigger. a workforce with expectations THE IMPORTANCE OF CULTURE ACCORDING TO JOB LEVEL broadening beyond financial considerations to self-fulfilment. 34 .

23 16 28 13 49 Agree I feel motivated and engaged at work Neither agree nor disagree Disagree that I feel engaged and motivated at work Employees who met the team they A poor work culture is the biggest would work with during the interview concern for candidates when process were more likely to agree they accepting a new job. More than half were engaged and motivated. 1: recognise that talent-centricity helps attract.Battle strategy No. engage and retain the best candidates. or disagree that the following statements describe your current situation at work? THE EFFECT OF COMMUNICATING ROLE EXPECTATIONS AND SUCCESS CRITERIA DURING THE INTERVIEW PROCESS ON WHETHER PEOPLE FEEL ENGAGED AND MOTIVATED AT WORK My organisation did a good or excellent job in communicating the expectations of my role and what was needed to be successful in it. Which of the following aspects are you most concerned about in accepting a new job? KEY CONCERNS IN ACCEPTING A NEW JOB That the work culture and environment will be poor 18 That the job will not be secure for as long as I expect 19 That the level of remuneration will not meet my expectations 16 16 That I won’t get on with my boss and colleagues 16 18 That the working conditions will not meet my expectations 11 That I will have to work harder/ longer hours than I expect 9 That I won’t have the skills or abilities to do the job well 11 19 18 12 13 13 14 19 16 14 12 7 9 % who said this is the most concerning aspect % who said this was the second most concerning aspect % who said this was the third most concerning aspect 35 . of respondents (55%) were most concerned that the work culture and environment would be poor. How would you rate the performance of your organisation in communicating the following to you when you were recruited by them? How much do you agree. 71 My organisation did a poor or very poor job in communicating the expectations of my role and what was needed to be successful in it.

Building a positive employer brand doesn’t happen overnight. we wouldn’t be as competitive as we are now in the candidate market. Head of Talent Planning & Strategy. and organisations We aren’t doing this at all must offer more than attractive salaries and benefits to secure the best talent. Telecom NZ That ‘something more’ is a uniquely powerful employer brand that will attract prospective employees and make them want to work for you more than any other employer who is looking for their skill set. Antony Hall.battle strategies NO. Investing in the branding of our organisation with the specific objective of attracting better quality candidates INVESTMENT IN BRANDING TO ATTRACT HIGH QUALITY CANDIDATES 17 25 distinguish themselves from their We are putting a lot of effort into this competitors. partnerships and systems. Without the investment we have made in our value proposition for existing and potential employees and our investment in our recruitment capability. organisations must find a way to The amount of effort being invested in an organisation’s branding to attract better quality candidates. nor is it possible to whip one up to suit hiring needs. for the way you conduct business. in good times and in bad. The strongest candidates We are putting a fair amount of effort into this are likely to find themselves with We are putting a little effort into this We are not putting much effort into this at all multiple offers. good employment branding and talent acquisition practices decrease the level of difficulty ten-fold. It means being known for your company values. 2: create an authentic employer brand As competition intensifies for talent. Quality talent is always hard to find. However. for the way you treat and speak to employees. 36 30 13 15 . Developing a strong employer brand is a long-term process and results in being known for more than the goods or services you offer customers. Research shows that only around one in five organisations (17%) currently put a lot of effort into branding — but those that do reap dividends: organisations who put a lot or a fair amount of effort into branding are 37% more likely to ‘always’ or ‘mostly’ have enough candidates apply for roles compared to organisations who don’t.

giving them a reason to ‘buy’ one employer brand rather than another. INVESTMENT IN BRANDING RELATED TO SOURCING ENOUGH CANDIDATES We are putting a lot of effort into this 63 We are putting a fair amount of effort into this 56 We are putting a little effort into this 51 We are not putting much effort into this at all or not doing it at all 46 20 16 28 30 31 16 20 23 We always or mostly have enough candidates apply to ensure we find a high quality person About half the time we have enough candidates apply to ensure we find a high quality person We rarely or sometimes have enough candidates apply to ensure we find a high quality person Creating a positive employer brand means managing the business with authenticity. HR Manager. An EVP that’s clearly defined and broadly understood by your hiring managers and candidates is vital to attract people of great quality and. Employees are looking for tangible values that align with their own belief systems. Communicating the employer brand effectively is critical of course. It’s about attracting people who truly believe in and relate to the goals of the business and therefore choose to contribute discretionary effort to ensure its success. These qualities must be evident in all the organisation’s transactions with every stakeholder. most importantly. sanofi 37 . but we are not talking about hollow claims and promises.The relationship between the amount of effort organisations are putting on sourcing-related branding and the ease with which they are able to find high quality people to fill roles. integrity and transparency on a daily basis. Ryan Atkins. great fit.

should promote them whenever and wherever appropriate. Authenticity and transparency are paramount. of promoting the benefits of their this dynamic do so at their peril. must maximise the value of their ambassadors for an organisation’s LinkedIn was also a source. Hudson research shows that organisation was considered the most || Incorporate a strong Employee Value Proposition (EVP) in every facet of the recruitment strategy. Twitter 1 of work are also very important to employees. Speaking employees long after they have left the with people who had worked for the company. recruit and live by it. || Communicate salary packages clearly alongside other less tangible benefits such as flexible working practices that may be valued highly by employees. Language. 22% of employer brand ensuring they: employer brand. organisation are significantly more A high proportion of candidates likely to: evaluate numerous sources of || have enough candidates applying tone and content all contribute to employer voice. Organisations ignoring prospective employees. speaking with people who have worked useful source of information. Organisations In their last job search. Acting to attract The best brand ambassadors (59%). || Promote career development information about organisations for for roles opportunities within their which they are considering working.battle strategies Battle strategy No. || Speak with an appropriate corporate for an organisation is considered the ‘voice’ — the way in which they ‘talk’ Hudson research also shows that most useful source of information by to and engage with current and organisations doing a better job candidates. || Ensure communications always Which of the following sources of information did you use to research a potential organisation or role during your last job search? reflect the culture of the employer SOURCES OF INFORMATION EMPLOYEES USED IN THEIR LAST JOB SEARCH organisation. Their experience and candidates used the site to research advice will be sought by potential new prospective employers. accurate projection (and therefore reception) of the cultural vibe is most likely to attract candidates who will be happy and flourish with the company. through contacts in the industry As the talent pool dwindles employers Employees are the most powerful (56%) and via word-of-mouth (55%). Hours and conditions Recruitment company/agent 80 Organisation’s website 80 Google 59 Personal contacts within the industry 56 Word-of-mouth 55 Industry specific websites 46 Current employees of the organisation 40 News websites 38 LinkedIn 22 Other 6 Facebook 5 communicated clearly and any Other social networking sites 3 areas of flexibility highlighted. organisation. most employees committed to development and evaluated the organisation through its growth programs for employees website (80%). and should be % who said they used this source during their last job search 38 . via a Google search || find it easier to source employees || have low staff turnover. communicate. 2: distil a meaningful and appropriate EVP — and work.

a wide variety of roles. Job search sites allow people to quickly research.no. How often do you use the following methods when you are looking for a new role? METHODS EMPLOYEES USE IN LOOKING FOR NEW ROLES Job boards (inc. MyCareer. Seek. presented on a level playing field. The common links here are ease. in their own time. CareerOne and others) 57 Recruitment company/agent 30 Contacts within the industry 12 25 Word-of-mouth 12 26 32 44 Industry specific job search websites 7 18 Newspaper advertisements 7 17 Contact organisations that I would like to work for directly 7 12 LinkedIn 5 Referral program for existing employees 14 15 22 20 Facebook 11 5 12 6 2 15 13 27 34 20 48 20 49 23 21 34 24 18 16 53 81 12 14 12 8 14 36 25 2 6 Twitter 34 26 8 3 8 18 25 Industry-specific magazine advertisements Other 8 10 73 88 I always use this I often use this I sometimes use this I rarely use this I never use this 39 . range and independence. 3: utilise best practice attraction strategies Hudson research shows job search sites and recruitment firms are the most popular methods employees use to look for new positions.

tailoring information to First stop — the web The impact of technology on recruitment has been enormous: today the web is the first stop for any the size of the mobile internet screen intelligence. opportunity to speak with current employees who can answer questions either in person or online. might be available to him or her. Staff should be webinars and live online discussion ready at these peak times to answer forums can all be used to engage questions about the role. organisation’s culture. Podcasts. success rates) and that any message must suit its medium. strategically and Translating EVP into attraction strategies the process by accessing a range tactically. In just a few moments. are seeing significant shifts in job and provide cultural insights from seeker behaviour as a result of more employees speaking freely. and ensuring it is One of the first things prospective easy to take action when needed. making it a critical curious about what other opportunities part of an attraction strategy.battle strategies When job seekers turn to recruitment Knowing this may change the way agents they are looking to streamline you market roles. Employers should also bear in mind response rates. supplement this with the to and from work. So a good careers section is essential for every corporate website. presented in compelling. it is important for organisations to optimise these online and offline channels. of innovation and to generate superior quality content. It forces consideration of the There is great opportunity for of options through a single source. 40 . authentic with engaging content in areas of chunks that will create interest in an professional interest. passive job seekers and gather market If these are the ways job seekers behave. Let them see the CEO can access job boards 24/7 and we and divisional managers in action. candidates do is research companies on the web and they do this before employee who is feeling even mildly they apply for a role. job seeker’s online journey. at the very least. for example by reviewing the performance of online ads (hit rates. he or she can be browsing opportunities near and far. Information should be by providing passive job seekers be like to work at a particular company. Provide video content where possible to make Smart phones mean the workforce it engaging. They also value experience of a potential employer’s in an authentic and meaningful way independent insights into what it might website. Wherever people searching for jobs on the way possible. considering the candidate segments This means considering optimising a most likely to be working through website to make it mobile user-friendly. rather than expecting a reader to scroll A compelling corporate website down a lengthy page. recruitment firms. For example. from the organisations to promote their reducing the time they need to put moment they click on an ad to their Employee Value Proposition online into their job search. The fluidity and constantly evolving nature of this space means it is essential to keep abreast.

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members. They will almost certainly recruitment are either directly as a become the main channel for attracting potential employer (for example. LinkedIn and calibre employees who are more likely Twitter. Build momentum from there with other marketing strategies. job seekers — those desirable. || Using existing networks (such as Consider employing dedicated digital current employees. Social media company Facebook page) or through must be part of an organisation’s some common interest shared by the attraction strategy. that is. such as increasing the not actively looking for work. connections. web is both an art and a science. high for example. Start an online Social media is about people and community or join an existing group. around and preparing for the future. While current costly but you will learn more and statistics suggest they are not the main have significantly more potential way people look for or find jobs. applications and roles filled from the group. their specific discipline). their friends and experts as part of the recruitment job applicants) to build membership. we and freedom in how you engage know it is increasingly the means by with prospective candidates. The which they interact and consume two main ways this is done in information. || Measuring your success in numbers of referrals. Finding number of ‘likes’ on Facebook or quality passive job seekers through the number of followers on Twitter. and keeping goals simple to be satisfied in their current roles and and focused.battle strategies Social Media and online communities || Choosing the best way to engage with this market. One of the greatest challenges in || Selecting the appropriate channels recruitment is finding the best passive when building your own community. important role categories with an active online demographic. building capability target audience (for example. function and use these experts to Keep it focused on your target develop skills within the organisation. Facebook. segment (don’t encourage everyone Core functions include: and anyone to join) so that your || Identifying key job seeker markets messaging will be relevant to the to target. 42 . making them a perfect Starting your own community is more recruitment tool. via a talent to an organisation.

There is a should achieve. agencies and recruiters to work more dedicated digital experts are going to closely together. and recognise there are skills and Individual resumes contain much knowledge required to make this work information to help profile and segment for your business. and real opportunity for digital specialist as part of the journey of getting there. digital campaigns. the market. However. Using market intelligence to attract candidates Organisations are sitting on goldmines when it comes to it is important to look past the hype marketing to job seekers. 43 .Battle strategy No. Until that point. Every interview is an Eventually recruiters will all be social opportunity to spend an hour getting media experts — knowing their audiences. the media they prefer. 3: incorporate best practice attraction methodologies into your recruitment strategy. engaging. to know and understand a member of the target audience — which is what the content that will be relevant and recruitment consultants do every day. using this information be an essential part of the to take some of the guesswork out of recruitment equation. their place in a particular Organisations should use their community and the appropriate recruitment databases and start frequency and type of interaction they collating this intelligence. Building social media skills Social media is very accessible and stories abound of instant fame and success (along with failure).

effectively identify. individuals including professional. Those that have invested their time and other resources into developing a bespoke talent pool know it is an ongoing process. For organisations. in-house and agency recruiters will Search engines and social media are be specialists who invest time with the talent hunter’s friend here but the those individuals and operate in niche task is much more sophisticated than areas throughout their own careers. no. remuneration and career goals. it’s essential to allocate the greatest share of resource to attracting the highest The starting point for every talent pool calibre candidates who will add most is market intelligence. Like any other such On and off line. 4: Create a future talent pool The inconvenient truth is that there is no quick way of creating a pool of talent for an organisation. when talent is king. Recruitment is now more than ever a Networking marketing function. the recruitment budget. It is a these. networking remains function. trying as many are to do more work specialist and industry groups together with fewer people or simply to achieve with high profile. might be appropriate employees of the future. 4: create a niche talent pool of individuals at various stages in their careers who. Before you can value to the organisation. conversation with them. communicate and engage with passive job seekers you Rewarding relationships must have a clear idea of who they In practice.battle strategies Battle strategy No. and talent with the potential to bring the employers and their recruiting partners greatest value to organisations must be should network with key bodies and the highest priority. the scarcest medium to longer-term strategy. it must segment its target the most effective method of audience or consumers. this means the best are and where you might find them. high performing and greater return on investment from highly engaged employees. requiring constant nurturing and cultivation. In times like establishing a talent pool. be able to offer strategic career advice and alert them to appropriate opportunities throughout their careers. simply identifying a group of individuals They will keep up to date with their and trying to strike up an online candidates’ professional progress. it is the best and most strategic source of talent for organisations and can deliver huge competitive advantages. Social media enhances but is no substitute for this kind of relationship. 44 . If done well. based on their skill set and expertise.

can do 75% of employers) and background and want to. internet communications. Telecom NZ focusing on the attributes that are the greatest indicators of performance and therefore deliver the greatest return on investment. Head of Talent Planning & Strategy. resume strategies incorporate a framework screening (‘always’ or ‘often’ used by structured around know how. In an age of social networks. technology and global communities. given a disproportionate amount of Reference checking (‘always’ or ‘often’ focus. many employers selection process. the most effective recruitment used by 95% of employers). by 75% of employers) are the most common techniques used in the Antony Hall. some of the old recruitment practices are no longer relevant. Moving forward means The recruitment industry hasn’t moved with times as fast as it could have. Which of the following techniques does your organisation use during the hiring process? TECHNIQUES USED IN THE SELECTION PROCESS Reference checking 82 Resume screening 54 Background interview (past work experience) 47 Behavioural interviewing 43 Cultural fit measures 13 Personality testing 10 13 21 28 16 15 8 17 Intelligence testing 8 11 Practical skills testing 6 17 4 7 Assessment centres 3 7 Business simulation 2 7 Role play 2 8 15 25 41 17 20 21 22 21 23 17 21 44 46 26 42 25 43 We always use this We often use this We sometimes use this 13 37 19 27 6 32 38 19 6 27 20 24 5 7 20 23 6 14 22 Technical testing Job trial 12 4 1 We rarely use this We never use this 45 . they are past experience and technical skills. continue to make hiring decisions While traditional recruitment based almost solely on assessment of techniques have their place.no. motivation and cultural fit interviews (‘always’ or ‘often’ used As we’ve seen. 5: assess attitude.

motivational role they are trying to fill to enable 52 7 55 12 Excellent Good Poor Very poor 2 3 Fair . Barriers to doing so someone with just the technical skills typically include perceived difficulty to do the job. were there any formal quantitative or qualitative procedures. Many organisations have been slow for a particular team or business to embrace this thinking and put it means much more than finding into practice. motivational and measure these attributes. in the HR and business communities: of hiring success: 91% of hires were regarded as ‘excellent’ or ‘good’ when formal procedures were used to measure motivation or cultural fit. A candidate who has of implementing formal procedures to the right attitudinal. Even though it has long been known || overall excellent level of performance intuitively that attitudinal.battle strategies For years. motivational || excellent cultural fit and cultural fit have a major impact on || excellent functional skills and abilities the outcome. difficulties in evaluating engaged and will therefore stay longer results and caution about costs. Formal procedures were used to measure motivation or cultural fit || will suit the company culture || will stay This knowledge is now widely accepted and cultural fit is the biggest indicator them to select a candidate who: || is the right fit for the role to develop formal assessment criteria Assessing attitudinal. we know that finding the right person and be a more productive employee. used as part of their recruiting process? How would you rate the quality of these hires on each of the following attributes? THE EFFECT THAT USING FORMAL PROCEDURES TO MEASURE MOTIVATION OR CULTURAL FIT HAS ON THE OVERALL PERFORMANCE OF HIRES 46 39 Formal procedures were not used to measure motivation or cultural fit 30 || will perform in their role. as well as cultural fit is much more likely to be time pressures. organisations have struggled Using these procedures results in It is critical therefore that employers to identify the factors that determine significantly more hires with: have a very clear understanding of the whether a hire will be good or bad. specifically designed to measure these candidates’ motivation or cultural fit. and tools for this. even the most forward thinking organisations have struggled || excellent motivation and attitude. Thinking again about these recent hires.

and then to recruitment. only 30% of hires ended up being excellent performers. There was also a 37% decrease in the proportion of fair or poor hires in the cases when formal procedures were used (9% of these hires were fair or poor) compared to the cases when formal procedures were not used (15% of these hires were fair or poor). Invest to excel Similar results show that the use of So how can employers know whether formal procedures also resulted in hires implementing such procedures is who were significantly more likely to be worth the investment of time. 47 . Dividends will include the indicate whether formal procedures benefits of hiring a greater proportion were used during the selection process of high-performers and minimising the for each hire. This represents a significant 27% increase in the proportion of excellent performers resulting from the use of formal procedures. and budget? functional skills and motivation. motivation and cultural fit wherever possible: to deliver high-performing employees who stay with your business and add value for years to come. when formal procedures were not used. effort superior in regards to their cultural fit. To examine whether these procedures The marked improvement in quality actually make a difference we asked of hire when formal assessment employers to rate the performance of procedures are used suggests it is the three most recent hires they were worth investing in this aspect of personally involved with. 5: assess candidates’ attitude. Results show that 39% of hires ended up being excellent performers in the cases when formal procedures were used. risk of bad hires.Battle strategy No. However.

The choice can be overwhelming. talent lies at the heart of an internally and externally? organisation’s strategic advantage. Why are people leaving? How so where do you start? many employees do we lose to Start by asking some fundamental questions: 1.battle strategies No. Pain point — What. invest or keep costs insourcing or outsourcing? What steady? Would we prefer to vary have been our past experiences our costs or fix them? and learnings? 3. critical and core? How well should I distribute my hiring resources to optimise my results in each segment? 48 5. and they need to do this better than their competitors. Business strategy — How are we performing as a business? Are we in start-up mode. Roles — How many roles do we expect to recruit each year? Is this volume regular or sporadic? Are our roles largely homogenous or made up of many one-off skill sets? 4. In today’s market there is a B) Quality — How is the quality of our talent viewed internally and externally? How long do our staff take to reach productivity? C) Retention — What are our rates variety of recruitment models and tools of staff retention and how do they to choose from to help win the war for compare to industry averages? talent. growing locally or internationally. Segmentation — Which of the roles in my organisation are strategic. Culture — Do we have a culture of save money. E) Speed — How long does it take us to hire new talent? What most often causes delays? . They understand they need to invest in talent acquisition and develop a differentiated strategy that is well executed. 6: develop a flexible and efficient recruitment model would create the most value for my organisation? A) Employment brand — How are Most companies today realise that we viewed as an employer. if addressed. reducing headcount or changing our business mix? competitors and why? How can we change our recruitment practices to stop people leaving? D) Cost — What is our average cost per hire (total spend divided by total number of hires per annum)? How does this cost break down by our talent segments? Are we trying to 2.

or maybe business strategy and pain point. complete data. maybe your cost per hire of specialist recruitment agencies is low but you are losing talent to makes sense. supplemented by a specialist recruitment panel. very regular basis and have a culture of We will continue to partner with specialist recruiters to complement us by selling the story of the journey we are on. F) Service — What is the experience Alternatively. For cashed Once you have answered these up new business ventures. then pinpoint the key issues. If these same types of companies are open to outsourcing. and suppliers? you are growing quickly and and committing to an ongoing cycle recruitment can’t keep pace with of continuous improvement. Those organisations that take necessary steps to put in place the optimal recruitment model for them and commit to a continuous cycle of review and improvement will ensure they stay at the forefront in the war for talent. restrictions on cash flow. maturity. Recruitment Manager. then an internal recruitment function might work. Most organisations have a recruitment ‘pain point’ and this is what you need to uncover. using a questions. 6: review your recruitment function and commit to developing the most flexible and efficient model to serve the needs of your business. everything as it is often hard to find For organisations open to outsourcing. New Zealand Post Group insourcing. but you homogenous and specialist roles on a believe you are paying too much. candidates. What you need is but recruiting either sporadically directional information that will help or frequently but with much role you answer these questions and differentiation and specialisation. geography or talent segment so it is helpful to segment your analysis in a way that matters for your business. maybe your recruitment a matter of putting in place the like for all stakeholders — including process is too long and you are losing right model for your size. recruitment functions must evolve to meet the needs of a talentpoor market. G) Compliance — What is our compliance to our recruitment model? What is the reason for non-compliance? What is our compliance to policy? H) Reporting — What management reporting is available and is this effective? How is it used to inform decisions? demand. maybe the Review the range of options ‘do it yourself’ (DIY) model might be available. Process Outsourcing (RPO) specialist You don’t need perfect answers for is more common. Or maybe your quality and For other companies who recruit retention of talent is good. HR good candidates as a result.Battle strategy No. you can begin to review the recruitment agency or Recruitment range of recruitment options available. then maybe an outsourced RPO model makes more sense. maybe alignment with a small number For example. It is 49 . growing rapidly and wanting to variabilise their cost base. competitors. For small start-up businesses with In summary. hiring managers. This might be different by business unit. right for a period of time. therefore assisting us to strengthen our EVP and identify candidates with specific skill sets. There is no right or wrong answer and no ideal model. Tina Morgan.

future forecast and conclusions .

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market. The model should be an authentic and compelling EVP flexible enough to manage volume. to a model that will deliver high performing. the question remains: how can attitude and cultural fit. || Building EVPs that not only attract candidates today but also appeal to and candidate data. to help select they win the battle for talent? the best and most appropriate Hudson believes there are three critical employees for their organisations. || Greater use of technology in the recruitment process: not to || Implementing more reliable and save time. areas to be addressed in answering this question: || Whether insourced. outsourced or a Attraction combination of the two. || Focusing on quality of hire and cultural fit rather than cost per hire. This includes creating the business. 52 Model . outsourcing organisation every time. where appropriate and working with To this end. best-fitting talent for their || Developing a tailored and flexible recruitment operation. but to garner more science-based recruitment methods sophisticated market intelligence that take the risk out of recruiting. digital presence.future forecast There is no prospect of the tight labour term (eventually quality candidates market easing: the only solution for will seek out these employers employers is to make sure they hire for themselves). forward-thinking specialist recruiters to source recruitment strategies will include: candidates for business-critical and hard-to-fill roles. conclusions As Australian and New Zealand Selection employers battle the challenges and || Employers should adopt a scientific constraints of the current recruitment approach that measures motivation. || Employing experts to develop a proactive talent pipelining function passive job seekers in the longer for the organisation. and establishing an appropriate and specialist enough for niche skills. organisations || Development of sophisticated and must ensure they have a strategic effective attraction strategies to and flexible recruitment function able ensure a pool of quality candidates to meet the human capital needs of for roles.

or are involved in hiring process. ·· ·· Respondents either working in HR. contract or full-time role.7%.2. All percentages in this report are rounded to whole numbers and consequently graphs may not always total exactly to 100%.3.research methodology RESEARCH METHODOLOGY Summary EMPLOYER SURVEY ·· 20-minute online survey of Hudson’s employer clients from Australia and New Zealand. part-time. ·· Margin of error associated with sample size of 999 =+/. 53 . Respondents were sourced from a range of industries and professions. ·· Respondents currently working in either a casual. Margin of error associated with sample size of 1. COMBINED DATA REPORT Includes results of both surveys EMPLOYEE SURVEY ·· 20-minute online survey of Hudson’s employee candidates from Australia and New Zealand. ·· ·· Respondents were sourced from a range of industries and professions.321=+/.1%.

321 (employees). in sample Male 51 509 59 777 Female 49 490 41 544 Under 30 years 9 91 22 291 30–39 years 35 346 34 444 40–49 years 37 365 28 365 50–59 years 17 173 14 182 60 years and over 2 24 3 39 Total sample = 999 (employers) and 1. in sample % of sample No. and may not equal 100%. 54 . Please note that percentages have been rounded. in sample Advertising/Marketing/Media 1 12 4 56 Construction/Property/Engineering 6 62 5 71 Education 5 45 4 52 Financial Services/Insurance 15 151 12 160 FMCG 2 22 1 16 Government 18 178 14 187 Healthcare (Private) 3 31 2 31 Healthcare (Government) 2 24 2 22 Information Technology 6 57 14 190 Manufacturing 6 55 4 53 Non-Profit 3 34 2 29 Professional Services 5 50 7 91 Resources/Mining 5 54 5 65 Retail 3 27 3 36 Telecommunications 3 34 5 60 Tourism/Hospitality 2 16 2 29 Transport 3 29 2 29 Utilities 4 40 3 41 Wholesale/Distribution 2 24 2 31 Other 5 54 5 72 Total sample = 999 (employers) and 1. and may not equal 100%. Please note that percentages have been rounded.research methodology sample characteristics employers employees % of sample No.321 (employees). in sample % of sample No. industry employers employees % of sample No.

321 (employees). 55 . in sample Full time 52 685 Part time 2 22 Contract 41 536 Casual 6 78 25 or less 13 176 26–100 11 142 101–200 8 108 More than 200 68 895 3 months or less 28 371 4 to 6 months 23 309 7 to 12 months 25 331 13 to 18 months 5 70 19 to 24 months 3 38 2 to 3 years 5 69 3 to 4 years 4 55 4 to 5 years 2 26 More than 5 years 4 52 Total sample = 999 (employers) and 1. and may not equal 100%. and may not equal 100%.321 (employees). but my main role is not as an HR or hiring professional 68 684 I am not involved in the hiring process or workforce planning at all 0 0 25 or less 4 43 26–100 13 128 101–200 9 93 More than 200 74 735 Total sample = 999 (employers) and 1.current work situation — employers Involvement in hiring processes Number of full time employees sample sub-segment % of sample No. Please note that percentages have been rounded. Please note that percentages have been rounded. in sample I am involved in the hiring process as an HR manager or part of the HR team 32 315 I am involved in the hiring process. current work situation — employees Currently employed Number of full time employees Time in current role sample sub-segment % of sample No.

56 . in sample Accounting and Finance 17 170 15 204 Human Resources 29 291 5 72 ICT 15 145 24 323 Financial Services 5 45 3 45 Legal 2 18 3 35 Technical and Engineering 5 51 11 143 Office Support 6 56 10 133 Public Sector 4 42 2 31 Sales. in sample % of sample No.321 (employees). in sample Australia 74 742 75 986 New Zealand 26 257 25 335 Australian Capital Territory 5 35 7 68 New South Wales 31 231 30 297 Northern Territory 0 0 0 2 Queensland 14 106 16 157 South Australia 13 93 12 121 Tasmania 0 0 0 2 Victoria 28 210 25 249 Western Australia 9 67 9 90 Auckland 42 108 40 134 Christchurch 14 37 14 46 Wellington 44 112 42 141 Other 0 0 4 14 Total sample = 999 (employers) and 1. and may not equal 100%. personal profession employers employees % of sample No. in sample % of sample No. Please note that percentages have been rounded. Please note that percentages have been rounded. and may not equal 100%.research methodology location employers employees % of sample No. Marketing and Communications 9 92 13 177 Other 9 89 12 158 Senior Management 9 123 Middle Management 22 296 47 617 Admin/Support staff 19 247 None of these 3 38 Non-managerial Professional/Specialist Not applicable Total sample = 999 (employers) and 1.321 (employees).

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