STAFFING FIRMS ADOPTING INNOVATION. in a Bid to Stay Relevant. Compunnel
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1 STAFFING FIRMS ADOPTING INNOVATION in a Bid to Stay Relevant Compunnel
2 Introduction Changing Perspective A New Look at Old Problems What Else You May Ask? Economy on the Verge of a Unique Crisis Enough Jobs But Not Enough Talent to Fill Them What Caused this Skills Gap in the First Place? Top Challenges Companies are Facing! Why Future Belongs to the Innovators in Recruitment? 10 Hardest Roles to Fill in 2016 Counting on Innovation to Stay Relevant Think beyond the traditional Crowdsourcing may be the future! An Open Recruitment Marketplace Top of the line Analytics Technology that enables faster hiring Automation that drives efficiency Skills based training program More rewards for the talented few Adapt or Perish The New Norm of the Staffing World About Us
3 Changing Perspective A New Look at Old Problems Even if you are remotely associated with the staffing industry, then I have a question for you Can you think of any topic that s been discussed more than innovation in the last 5 years? Not surprisingly, it has become every staffing agency s USP while pitching their credentials to prospective clients How they have the best time-to-fill metrics, the best screening service, top of the line sourcing channels, and don t forget, how they are such great problem solvers But don t you think the HR managers have already heard these lines before, in fact chances are that they have heard at least 100 different versions of these same lines time and again If you want to be a good seller, you need more, much more 1
4 What Else You May Ask? Well for starters, a little substance would do Before giving companies the solution, for once explain them what the problem is, and how complex it will become in the coming years Give them a peep into recruitment s inconsistent future, and how you are going to help them sail over this turbulence Yes companies know about the obvious rise of contingent workforce, how good candidates are hard to come by, and the increasing reliance on data analytics but do they know why? What gave birth to these trends, how did they come into picture, and most importantly, what is their significance in the future 2
5 Economy on the Verge of a Unique Crisis America is facing its worst labour market since the great depression era More than 15 million people are out of work, close to 10 million are doing part-time jobs, and the unemployment rate is hovering around the dreaded 10% mark 15 million UNEMPLOYED 10 million 10 % WORKING PART-TIME UNEMPLOYMENT RATE Sounds like the economy isn t adding any new jobs, right? Wrong! 4 3
6 Enough Jobs But Not Enough Talent to Fill Them From , the American economy has actually added millions of jobs According to experts America is facing a very unique kind of unemployment crisis One where employers have enough vacancies but just not enough talent to fill them a hard to fathom proposition According to a survey done by Bureau of Labour Statistics every month close to 4 million jobs go unfilled in the US, and by 2020 America is looking at about 25 million vacant jobs, all because of this Skills Gap America added millions of jobs Still every month close to 4 million jobs go unfilled Dreaded shortage of talent By 2020, America is looking at about 25 million vacant jobs 4
7 What Caused this Skills Gap in the First Place? Ironically, a large part of this skills gap problem is shaped by what s happening in the global economy Understanding the nuances of the economy is the best way to know where this problem is heading, and what are going to be its disastrous effects Reason 1 Silver Tsunami in the Fray As majority of the baby boomers (born between 1946 and 1964) near their retirement age, US is looking at a big talent void to fill in the coming years As of 2016, close to 1/3rd of the workforce was nearing retirement, and according to a survey done by BLS, about 115 million people would be above 50 years of age by 2020 The problem is that there just aren t enough qualified young professionals to take their place which is something the government needs to think about, and quick Reason 2 Young People No Longer Interested in Technology According to a survey more than 22% of American youngsters opt for degrees in arts, history, and psychology, while only 5% opt for majors in science and technology Well that pretty much sums up why there is such a dearth of talent, especially for hard to fill roles Reason 3 Getting Talent from Other Countries is Becoming Difficult It s no longer easy to source an Indian candidate for a tech position, especially if he is working in a small company On top of that other countries are also bidding in this war for talent, offering great compensation and flexibility benefits to the potential candidates According to a survey US ranks 7th in the list of countries employees would like to work in The global competition for talent is finally having its effects on the US economy Reason 4 Education System Needs a Revamp According to employers there is a big gap in what they expect from a candidate, and what they are learning at the university While the quality of education is a big concern, the major problem seems to be the lack of practical experience Result college graduates between are doing low paying jobs, accounting for more than 40% of the current unemployment rate 5
8 Top Challenges Companies are Facing! Ever widening gap between supply and demand of skilled workers means that hiring will become much more competitive and ugly in the coming years With more than 65% of companies expecting tough bidding for potential candidates, a talent war is certainly on the cards But what is worse is that there is much more in fray for the organizations then just a talent war Let s have a look at some of the challenges being faced by today s companies when it comes to recruitment Where to find quality candidates both active and passive According to a survey, only 17% of hiring managers are happy with the talent potential of candidates The big question is, if traditional forms of recruitment like job boards and social media are not working, where do you find quality candidates for your organization Rising demand for contingent workforce Many organizations are increasingly looking for temporary or contingent workforce to meet their talent crunch, which means that hiring managers have another big problem on their hand, sourcing temp candidates for hard to fill positions Extra cost associated with high drop off rates From resume submission, evaluation, interview to salary negotiation, the candidate hiring process can sometimes take months And the more time you take to close a candidate, more are the chances of him dropping off mid-way So high drop off rates is turning out to be a big spoiler for organizations 5 6
9 Why Future Belongs to the Innovators in Recruitment? Consider the time your HR spends pondering over resumes and calling candidates, the efficiency your organization loses when your hiring manager takes an interview, and what if after all this hard work you still don t get the candidate you desired Especially for hard to fill roles like healthcare professionals or communication specialists, internal recruitment teams of organizations have happily admitted their defeats Companies just can t afford to mess up when it comes to hiring, and that is where the experts come into the picture By 2017 the number of companies using the services of staffing agencies will double According to Guidant Group, by 2017 the number of companies using the services of staffing agencies will double In light of the massive talent crunch, man hours wasted by organizations in finding the right candidate, and the business loss that concurs due to an open position, staffing seems to be the only viable option Especially for global firms that need to meet stringent talent demand across boundaries, hiring a staffing agency is absolutely essential to stay competitive 7
10 10 Hardest Roles to Fill in 2016 Electrical Engineer Data Scientist General and Operations Manager Information Security Analyst Home Health Aide Medical Services Manager 10 Hardest Roles to Fill Marketing Manager Physical Therapist Software Engineer Registered Nurse 8
11 Staffing Firms: Counting on Innovation to Meet the Ever-Rising Talent Demand While companies are counting on staffing firms to deliver them the right talent at the right time, staffing firms are in turn counting on innovation to source the best and the brightest From devising new sourcing channels, using collective intelligence to implementing data analytics, staffing firms are leaving no stone unturned to drive the best results for their clients Think beyond the traditional Crowdsourcing may be the future! Gone are the days when recruitment was all about picking a low hanging fruit, when every job posting resulted in thousands of qualified resumes Although traditional modes of sourcing like job boards and social media do work, the process can be lengthy and sometimes unrewarding The biggest problem is that the niche skill talent isn t active on job boards anymore, yet somehow he is still getting relevant calls either through his peer network or through a close recruiter So how would a recruiter uncover such a candidate? Well according to experts, crowdsourcing may hold the key to uncovering talented passive candidates The type of candidate that every staffing firm boasts of but very few actually have, the sort of candidate who is going to be the most sought after in the coming years A great example of an application using crowdsourcing in recruitment is iendorseu, an award winning app that rewards members for referring quality candidates Employing the concept of mobile referrals, iendorseu is just perfect for tapping into the network of niche individuals who are not available on any job board Not surprisingly, the application already has more than 50,000 vetted members, and is growing by the minute 9
12 An Open Recruitment Marketplace Still hiring recruiters on commission basis or using centuries old recruiting applications, how about your own recruitment marketplace for a change? Yes, we are talking about your own dedicated network of recruiters that work only for you Good staffing agencies understand the importance of having a dedicated marketplace, a strong network of recruiters that transcends all geographical boundaries A great example of such a marketplace is JobHuk which has more than 5,000 recruiters which work day and night to meet your talent needs Since all the recruiters are screened and segmented according to their speciality and time-to-fill ratio, quality of candidates is never an issue here Top of the line Analytics Crunching tons of data to reveal insights about candidates to determine their suitability for a role is what Big Data is all about In fact you can predict how successful a candidate would be in a particular role, or what the chances of him leaving the job are Already the top staffing firms are using this technology to avoid bad hires This is one recruiting trend that is here to stay! Technology that enables faster hiring It can take days, sometimes months for organizations to hire the right candidate for a niche role From sourcing, reviewing, analysing to hiring, it s a long process In such a competitive market, the more time you take to close a candidate, more are the chances of losing him to your competitor After all, good candidates often have more than one offer at a time That is why all the good staffing firms use state-of-the-art tools that keep everyone on the same page They follow established processes that ensure smooth transitioning of the hiring cycle 10
13 Automation that drives efficiency There is no doubt that automation is the need of the hour Paper-based recruiting not only wastes time but also precious resources If you are looking to drive efficiency then choose a tool that handles everything from applicant tracking, resume screening, interview scheduling to requirement sharing These tools not only make the candidate on-boarding process easier but also enable a faster hiring cycle A win-win for both recruiters and candidates Skills based training program Some of the best staffing firms have their own skills based training programs that not only iron out the inconsistencies but also make candidates technologically adept These programs are designed keeping employer requirement in mind and are really helpful in bridging the talent gap More rewards for the talented few The best are often spoiled for choices, so how do you close the deal The answer lies in benefits and flexibility Being rigid in negotiation often leads to the candidates slipping away Offer them perks, benefits, and yes give them the flexibility to work from home, remember small things make all the difference 11
14 Adapt or Perish The New Norm of the Staffing World Considering the fact that an average company spends $4000 to fill an open position, and takes close to 50 days to close a candidate, recruitment is no longer a small game, especially if you get it wrong In fact good hiring is what actually separates a mediocre organization from a successful one So from where I see it, staffing firms actually have a great responsibility on their hands The task of getting this nation s economy back on track by ensuring smooth flow of talent Remember every empty desk at an office is hurting our economy bad, every open position is a reminder to constantly reinvent the traditional, and to look beyond the realms of the ordinary No wonder staffing firms have to constantly evolve in a bid to stay relevant, not only for their clients but also for the economy Pre-Contemplation Change Contemplation CYCLE OF CHANGE Action Preparation 12
15 About Us Compunnel Inc has been a leader in contingent and permanent workforce solutions for over 22 years now Presently we are ranked as one of the biggest and fastest growing staffing firms in the US with huge presence in Europe and Asia as well With more than 1800 employees, 125 happy clients and local support in 24 locations, Compunnel has become the first choice of more than 50 Fortune 500 organizations How Are We Different? We believe that staffing firms need to look beyond just filling vacancies, and focus more on providing long term solutions We are one of the few firms which are trying to spearhead a change in the recruitment space through our cutting edge sourcing avenues Whether it s developing our own crowdsourcing platform, deploying a massive recruitment marketplace, or building recruitment bots intelligent enough to handle volume hiring, we know how to think out of the box, and most importantly, Deliver If you wish to know more about us or have any suggestions then feel free to get in touch at solutions@compunnelcom 13
Sincerely, Aaron Becker, President
On Demand HR Consulting for Business With over 15 years of HCM consulting experience, we help our clients align the correct technology, service, and solutions from A-Z. The human capital management industry
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