About Our Presenter. About NPHRS. Are Your Hiring Practices Working? Identifying and Securing the Talent You Need for Today and Tomorrow

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1 Are Your Hiring Practices Working? Identifying and Securing the Talent You Need for Today and Tomorrow April 24, 2012 Dennis M. Sawyers, SPHR Nonprofit HR Solutions Senior HR Consultant & Talent Management Practice Leader About Our Presenter Dennis M. Sawyers, SPHR -Senior HR Consultant and Talent Management Practice Leader, brings more than 20 years of human resources experience to the Nonprofit HR Solutions (NPHRS). Before joining the firm, he held the position of senior human resources manager at Booz Allen Hamilton, providing leadership on the full scope of human resources functions for the entire infrastructure of the firm. Dennis brings significant strength in the broad range of talent management, including recruitment and retention strategy development, performance management and employee development. 2 About NPHRS Nonprofit HR Solutions (NPHRS) is the nation's only full-service consulting firm dedicated exclusively to meeting the human resources needs of nonprofit organizations. Since 2000, NPHRS has worked exclusively with thenonprofit sector, generating results for organizations supporting advocacy, healthand human services, arts and culture, education, the environment, faith-based missions and more. NPHRS has three divisions that include human resources consulting, staffing services and executive search. NPHRS contributes to the sector through original programs such as the Nonprofit Employment Trends Survey, the Nonprofit Human Resources Conference, and the NPHRS Scholarship Fund. Our team has more than 100 years of combined experience working with nonprofits. Demonstrated expertise makes us uniquely suited to help the sector face challenges long endemic to nonprofit human resources--limited budgets, stretched resources and overworked staff.this experiencealso gives us the knowledge to develop innovative responses to workplace issues such as managing performance, organizational growth and leadership sustainability. 3

2 The Cost of Ineffective Hiring According to the U.S. Department of Labor, the cost of replacing an employee can be as great as 1/3 of the annual salary for the employee s position. Example: Average salary $50,000 x 33.3% = $16,650 (for a poor hiring decision) The Cost of Ineffective Hiring Costs that add up to that $16,650 (for a poor hiring decision): % of your salary/benefits (or recruiter s, hiring manager, etc.) Re-advertising costs or possible placement fees Training costs Employee morale Unemployment costs Hassle for you! Agenda Review Nonprofit Sector Stats Consider the Broad Scope of Work Discuss Current Needs Locate the Talent Who s Likely to Respond? Secure Talent for Today Retain Talent for Tomorrow 6

3 Review Nonprofit Sector Stats 7 Current State of Nonprofit Sector Recent data from Johns Hopkins Nonprofit Employment Bulletin indicates the sector is the 3 rd largest workforce in the US 10.7 million employees in the nonprofit sector More than 10% of the total US workforce Only smaller than retail and manufacturing; larger than construction, finance, trade, transportation and agriculture Within the sector, 57% are employed in health (hospitals, ambulatory care, nursing homes), 15% in education and 13% in social service 8 Current State of Nonprofit Sector (con t) From , the nonprofit sector had average growth of 2.1% annually while the for-profit sector had an average 0.6% shrinkage annually The 2012 NPHRS ETS indicates 43% of nonprofits surveyed realized growth in staff size in 2011 and 43% anticipate staff size growth in

4 Consider the Broad Scope of Work 10 Growth is Timely Because Impact is Crucial In his 2012 State of the Union Address, President Obama assertedthat, this nation is great because we get each other s backs. The nonprofit sector is a prime mover in the nation s mechanisms for people taking care of one other (Rick Cohen, April 2012 Nonprofit Quarterly) The sector is actively engaged in strategies that are integral to the growth and sustainability of our nation: Health Education Associations Science Arts Foundations Social Services Environment Trade Organizations 11 Andrew Wolk wrote, We need to make the most of the nearly $1 trillion of annual government and philanthropy funding going to the millions of nonprofit and government programs that address social issues today. (Stanford Social Innovation Review Winter 2012) Current Needs 12

5 Real Talent Needs Traditional Perspective Administrative Professionals Functional Experts Program Staff Fundraisers Mission-minded workforce What We Need Today Administrative Business Partners Collaborative Subject Matter Experts focusing broader than their expertise Flexible and Adaptable Teams Strategic, Flexible and Creative Resource Developers Mission-Minded / Business Savvy Workforce 13 Profile of the Ideal Candidate Relevant education and experience is given Alignment with organizational values Ability to lead, drive, and/or navigate change Ability to enable teams Collaborative style; openness to diverse perspectives Engagement with a relevant network/learning community 14 Profile of the Ideal Candidate (Con t) Relevant education and experience is given Commitment to creativity and innovation Ability to deliver sustainable results Commitment to effective communications Understanding of financial implications Understanding of the individual role in the broader context Must haves for every position at every career level; even juniorstaff must demonstrate capacity to deliver in these areas 15

6 Locate the Talent 16 The Best Places To Find the Talent You Need TOP 10 MOST FREQUENTLY USED RECRUITMENT RESOURCES OUTLET PERCENT USING SOME OR EVERYTIME Informal networks of colleagues/friends 81% Formal networks of colleagues/nonprofits 80% Newspaper (local online edition) 59% Newspaper (local print edition) 52% Craigslist 52% LinkedIn * 40% Idealist.org 39% Monster.com 38% CareerBuilder.com 33% Facebook.com 30% 17 * Resources reflect that ASAE s CareerHQ.org site is on par with LinkedIn Incorporating Social Media Into Your Recruitment Strategy 18

7 Q&A Break Who s Likely to Respond? 20 Who Is Likely to Respond? Internal Prospects Those looking for career mobility and advancement Those looking for a change of any kind/facing burn-out Those looking for an escape : From what they perceive to be bad management From their own past professional mistakes From work that is no longer interesting or rewarding 21

8 Who Is Likely to Respond? External Prospects Generation Values Expectations Baby Boomers (born ) May be transitioning out Loyalty, financial security, stability, and positive work ethics Respect for their years of experience, impact, and deep knowledge; looking to be leveraged as mentors Generation X (born ) In the height of their career Stability, flexible work arrangements, creative benefits (i.e., child and elder care), respect for work/life balance Market-competitive/ market-leading compensation, benefits, and incentives Generation Y (born ) Individual recognition, meaningful work, advancement, titles Meaningful and productive work, leading-edge, innovative technology, continuing education, opportunity to be heard, workplace flexibility (schedule, attire, and work arrangements), career growth opportunities; not seeking longevity 22 Who Is Likely to Respond? External Prospects With all of these differences to consider, the recruiting effort is a challenging one. Pay and benefits although basic recruiting tools are not the only resources that will attract and retain employees. 23 Securing Talent for Today 24

9 Efficiency and Consistency are Key in Securing Stellar Talent Recruiting Strategy Development and Implementation establish your organization s way Review current internal practices and processes Review current resources Do what s necessary to establish appropriate Rigor and Efficiency (RAE) within your process RAE = Practices and processes that bring needs, resources, accountabilities, and results into full alignment, while ensuring appropriate synchronization with related practices, processes, and functions Assist in the change management process Value each engagement with each candidate Demonstrate the standards that you expect employees to demonstrate when they are hired practice what you preach 25 Common Interviewing Mistakes Talking more than listening Not allowing the candidate to answer questions Failing to gather real examples Relying on gut reaction or likeability What Not To Do Not defining needs and requirements up front Not involving others in the process Not being fully present for candidate during interview Treating candidates inconsistently (more/less time, different questions, attention/interest) Tried and True Strategies Plan The Work & Work The Plan What is the cost of the position being vacant? Is there a viable internal candidate to fill it? Why is the position open? Any issues to fix? What is the purpose of the position? Is it necessary? At what level? With whom does the incumbent interact? Review current job description and revise as necessary Determine knowledge, skills and competencies needed/level of job Identify behaviors necessary for success Create job posting Determine where to advertise Conduct outreach Identify interview team don t go it alone!

10 Screening Resumes Review candidate s materials (resume, cover letter, etc.) Note written communications, form, consistency, grammar, punctuation, etc. (requesting a writing sample is a best practice) Determine if there is any specific information to address Information that appears to match a needed competency Gaps in employment Jobs/experience you are unclear about Perceived job hopping Effective Interview Questions Identify: Competencies does the candidate have the knowledge, technical skills, and capacityto do the job? Behaviors canthe candidate perform in the job, and how will they perform? Motivation- will the candidate perform the job? Should be used consistently for all candidates Interview guides help to ensure consistency and provide opportunity to effectively evaluate candidates Behavioral Based Interviews Recognize that past performance is a good indicator of future performance Focus on job-related factors vs. likeability Allow interviewers make good decisions based on facts Eliminate misunderstanding about a candidate s capabilities Limit the possibility of candidates faking it with vague generalizations Require a minimum of 45 minutes

11 Sample Behavioral-Based Interview Questions Strategic Area Strategic Thinking/Job Knowledge Developing Others/Management Skills Leadership Sample Questions How are you currently keeping up with your profession? Give me an example of how you have contributed to your profession? Give me an example of a time when you delegated projects or activities to an employee based on their developmental needs. Tell me about a specific instance where you provided feedback to an employee whose performance was below par. Provide me an example of a time when you needed to sell a group on a new vision. How did you create the vision? How did you get buy-in from the staff? What were the results? Avoiding Risk in the Interview Process Any information not routinely requested of all candidates, and in particular in the following topics areas: Age Marital Status Pregnancy Race Drug/Alcohol Use Dates of Education Gender Emergency Contacts (can relate to race or national origin) Type of Military Discharge National Origin Number of Children Health Status Citizenship Childcare Criminal Record Religion Residence Sexual Orientation Avoiding Risk in the Interview Process What if a candidate brings up something that falls into a protected area? Interesting but irrelevant Gracefully move conversation back to safe water I would really like to review your job at XYZ organization, and the work you did on the abc project.

12 Retaining Talent for Tomorrow 34 Delivering on Your Value Proposition 35 Attracting Engaging Motivating Developing Rewarding Retaining Employer brand Communications through multiple media Performance management Shadowing Celebrations Policies Value proposition Social gatherings Feedback Orientation, peer coaching Certain benefits Visible dedication to talent Testimonials Exposure to leadership Positive reinforcement Formal coaching Casual days Transparent decision-making What s important to the candidates Informal conversations Flexibility Stretch assignments Flexibility Communications Flexibility Stretch assignments Clear directions / expectations Internal SMEs develop others Positive reinforcement Flexibility Clear paths of progression Performance management Work / life balance Compensation Celebration of successes

13 Q&A Break Contact Info Dennis M. Sawyers, SPHR Nonprofit HR Solutions (202) Thank you!