TALENT ACQUISITION AND MANAGEMENT STRATEGIES for Hourly Workers

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1 TALENT ACQUISITION AND MANAGEMENT STRATEGIES for Hourly Workers An icims Guide to Attracting and Retaining the Best Hourly Talent 2016 icims, Inc. All rights reserved.

2 TABLE OF Contents Q&A: THE CURRENT HOURLY HIRING LANDSCAPE KEY CHALLENGES IN HIRING HOURLY WORKERS COMPONENTS OF A SUCCESSFUL HOURLY HIRING STRATEGY TALENT MANAGEMENT BEST PRACTICES FOR HOURLY WORKERS HOW icims CAN HELP 2016 icims, Inc. All rights reserved. 2

3 Q&A - THE CURRENT HOURLY HIRING Landscape How many hourly workers are there in the United States? There are roughly 77.2 million workers age 16 and older paid hourly rates, representing 58.7% of all wage and salary workers. Source: U.S. Bureau of Labor Statistics What are the main age groups for hourly workers? 17% of hourly workers are under 25 years old; 43% are years old; 35% are years old; 5% are 65+ years old. How far do hourly workers commute to their jobs, on average? More than 80% work within a five-mile radius of their homes. Source: Edison Research/Red e App Source: Workforce Institute 2016 icims, Inc. All rights reserved. 3

4 Q&A - THE CURRENT HOURLY HIRING Landscape On average, how many hours per week to hourly employees prefer to work? 74% of hourly workers prefer to work 30 or fewer hours per week. Source: LinkedIn What is the turnover rate for hourly workers? Employee turnover for hourly workers historically runs from % per year in most industries. Source: Workforce Institute 2016 icims, Inc. All rights reserved. 4

5 KEY CHALLENGES IN HIRING HOURLY Workers 70% of employers find it difficult to hire for hourly positions The key challenges employers face in hiring hourly workers include: Lack of Candidates 66% of employers need more applicants than they receive. Applicant Quality 60% of employers are unsatisfied with applicant quality. High Turnover Rate The average cost per employee is estimated at one-third of their annual salary/hourly rate. Source: SHRM, U.S. Department of Labor 2016 icims, Inc. All rights reserved. 5

6 COMPONENTS OF A Successful HOURLY HIRING STRATEGY 2016 icims, Inc. All rights reserved. 6

7 COMPONENTS OF A Successful HOURLY HIRING STRATEGY Create a Magnetic Company Culture Creating a magnetic company culture is the first step in attracting the right employees. By developing a company with well-respected and desirable values that people admire, you will increase your number of applicants and improve your chances of finding top hourly candidates. Incorporate the following steps into your process for creating a magnetic company culture: Establish the company mission. Determine the behaviors, motivations, and personality traits required to successfully execute the mission. Publicize top employees contributions to the business. Highlight recent company accomplishments and awards in media outlets to drive visibility and employment interest. Approximately 76% of respondents thought culture was important in their job search. Source: icims Hire Expectations Institute 2016 icims, Inc. All rights reserved. 7

8 COMPONENTS OF A Successful HOURLY HIRING STRATEGY Take a Marketing Approach With 46% of employers reporting difficulties in finding candidates in high-demand talent pools, organizations need to prepare for future hiring needs and avoid talent shortages by thinking like marketers. 1 organizations need to prepare for future hiring needs and avoid talent shortages by thinking like marketers. Use the following recruitment marketing tactics in your strategy to increase your number of hourly applicants: Employ blasts, text alerts, and company newsletters to get the word out on your open hourly positions. Develop a social media recruiting strategy targeting users on popular sites including Facebook, Twitter, and LinkedIn. Use Search Engine Optimization to improve online search engine listings on sites including Google, Yahoo, and Bing. Leverage recruitment marketing automation tools to increase productivity and reduce human error. ¹ Source: LinkedIn 86% of HR professionals agree that recruitment is becoming more like marketing. - icims Hire Expectations Institute 2016 icims, Inc. All rights reserved. 8

9 COMPONENTS OF A Successful HOURLY HIRING STRATEGY Develop Talent Pools Creating a strong pipeline of passive candidates to source from when the time is right is crucial for any business that hires hourly employees on a recurring basis. By providing regular updates on company news and information, you will also cultivate more engaged new hires who are already familiar with your company. Ways to develop talent pools of passive candidates include: Establish branded social connect pages on sites such as Facebook or LinkedIn, allowing best-fit passive candidates to connect with your brand and receive company news and updates. Develop a company career portal where users can submit their information to be considered for future opportunities. Incorporate newsletter lists where passive candidates can receive updates on company news and hourly employment opportunities. According to U.S. companies, 52% believe that building a candidate pipeline or talent pool is the top talent acquisition priority. - icims Hire Expectations Institute 2016 icims, Inc. All rights reserved. 9

10 COMPONENTS OF A Successful HOURLY HIRING STRATEGY Encourage Employee Referrals Current employees are a company s best hiring tool. Develop an employee referral program where employees can submit top candidates they already know for your hourly positions. Referred employees fit in better, stay with the company longer, and perform better than other sources of hire. Incorporate employee referral portals to provide a direct way for current employees to submit qualified candidates. Offer incentive programs to increase employee referral participation and success. Educate your existing employees on the benefits of employee referral programs. Use your employees social networks to expand job posting reach. 70% of referred employees have not changed positions since being hired, demonstrating that employers can expect to not have to backfill these roles at the same rate as others. - icims Hire Expectations Institute 2016 icims, Inc. All rights reserved. 10

11 COMPONENTS OF A Successful HOURLY HIRING STRATEGY Target Candidates Locally As more than 80 percent of hourly workers are employed within a five-mile radius of their homes¹, and working close to home being the third most important factor among hourly job seekers¹, be sure to target local candidates close to your business to increase your hourly hiring success and find best-fit candidates. Advertise your open positions in local media outlets and community websites. Participate in local job fairs in your community and host open house events where local candidates can learn more about your business and employment opportunities. Sponsor local events to increase visibility, including outreach initiatives and community days, to engage face-toface with passive hourly candidates and promote your employment brand. ¹Source: Workforce Institute 2016 icims, Inc. All rights reserved. 11

12 COMPONENTS OF A Successful HOURLY HIRING STRATEGY Make Sure It s Mobile Mobile devices such as tablets and smartphones have quickly become the preferred tools-of-choice for job seekers in the new employment landscape. Be sure to incorporate the following mobile tips into your hourly hiring strategy to make it easy for candidates to learn about and apply for your openings, and to ensure a positive candidate experience and employment brand. Offer mobile-optimized company websites and career portals to provide a consistent user experience regardless of device. Allow candidates to easily upload their resume from a Google+ or Dropbox account, or apply with their social media profiles, straight from their tablet or smartphone. Incorporate text messaging-based software platforms into your talent acquisition tools to quickly and easily communicate with candidates regarding job alerts, interview status, and company news. Each day, more job seekers are applying for jobs using mobile devices. Desktop usage has decreased by 7.5%, and mobile and tablet usage has increased by 60%. -icims Hire Expectations Institute 2016 icims, Inc. All rights reserved. 12

13 COMPONENTS OF A Successful HOURLY HIRING STRATEGY Screen Candidates Appropriately Candidate screening is one of the most important steps of any hourly hiring strategy. Due to the traditionally high turnover rate of the hourly workforce, as much as 70 to 120 percent by some estimates¹, companies must thoroughly investigate candidates backgrounds, behaviors, experience, and work history to ensure smarter hiring decisions and mitigate risk and unnecessary business expense. Conduct a thorough background check on candidates to help uncover potential issues that may affect workplace performance and company safety. For positions involving financial transactions, a personal credit check should also be a standard component of the candidate screening process. Request professional references from past employers and colleagues to determine reliability, level of experience and company fit. Leverage behavioral and cognitive assessments to determine candidate attitudes, overall skills, and required capacities that are needed to successfully perform required job functions. Develop customized screening questions specific to your company and the position. These questions can be used to quickly identify top talent and save time during the selection process. Require video cover letters to ascertain a candidate s soft skills, including communication skills and creativity. Video cover letters also allow recruiters and hiring managers to review more candidates in less time, helping to improve time-to-fill metrics. ¹Source: LinkedIn 2016 icims, Inc. All rights reserved. 13

14 COMPONENTS OF A Successful HOURLY HIRING STRATEGY Set Them Up For Success Having a well-developed onboarding program is one of the most vital steps to prepare hourly employees for success in their new role. After they have accepted a job offer, properly integrating new hires into the company will ensure they learn company ethics and policies, organizational norms, and key values needed for successful performance. New employees who attended a well-structured onboarding orientation program were 69 percent more likely to remain at a company for up to three years.¹ So be sure to integrate these top onboarding tips into your hourly hiring strategy: Begin the onboarding process before day one and allow new hires to complete company paperwork such as I-9s and emergency contact forms before their start date. Reinforce your company culture to ensure the new employee has a strong sense of the values that are required for successful execution of job duties. Keep it participatory and offer interactive elements to promote understanding and retention of key information. Put a personal spin on the onboarding process, and incorporate individual elements specific to the employee. By adding these unique elements into the process, employees will be more engaged and perform better versus a standard onboarding format. ¹Source: SHRM 2016 icims, Inc. All rights reserved. 14

15 TALENT MANAGEMENT Best Practices FOR HOURLY WORKERS 2016 icims, Inc. All rights reserved. 15

16 TALENT MANAGEMENT Best Practices FOR HOURLY WORKERS Establish a Mentoring Program A mentoring program is a standard component of any successful business. For hourly employees who may not be as developed in their skills, having an experienced mentor to guide them along the way can produce many tangible business results for both the employee and the company. Some of the benefits of establishing a mentoring program for hourly employees include: Increased new hire engagement and productivity Greater job satisfaction for both the mentee and mentor Strengthening of company culture through positive interaction Opportunity for professional development for existing employees Decreased employee turnover rates Source: ERE Media, Houston Chronicle, Penn Foster 71% of Fortune 500 companies have a mentoring program. Source: Lydell Bridgeford 2016 icims, Inc. All rights reserved. 16

17 TALENT MANAGEMENT Best Practices FOR HOURLY WORKERS Provide Ongoing Training and Development Resources Providing ongoing training and development resources ensures your hourly employees stay sharp and up-to-date on key industry trends and business processes required to successfully perform job duties. Offering these opportunities also provides a direct pathway to career advancement and leadership opportunities, and promotes increased employee engagement, ultimately leading to improved job satisfaction and decreased turnover rates. Ways to offer training and development resources include: Utilize interactive online learning and development platforms. Provide onsite educational opportunities, including lectures and technology presentations. Offer annual budget for attendance of developmental seminars and conferences. Establish company-wide tuition reimbursement programs for continuing education. 89% of employees said it was important that employers support their learning and development. Source: Entrepreneur 2016 icims, Inc. All rights reserved. 17

18 TALENT MANAGEMENT Best Practices FOR HOURLY WORKERS Offer Flexible Scheduling Due to the nature of hourly work, offering flexible scheduling is a key talent management strategy designed to reduce work/ life balance issues hourly workers face due to rigid or erratic schedules. With one-third of hourly employees having elder care responsibilities¹, and two-thirds of low income families headed by single parents¹, allowing for adjustments and variations in hourly scheduling can go a long way in keeping employees engaged and reduce unnecessary turnover. ¹Source: Human Resource Executive 30% of hourly workers took time off work due to family care responsibilities during a single week. Source: Human Resource Executive 2016 icims, Inc. All rights reserved. 18

19 TALENT MANAGEMENT Best Practices FOR HOURLY WORKERS Learn What Matters Most With $11 billion lost annually due to employee turnover¹, learning what is important to your existing employees is a fundamental step in helping to stop the revolving door typically associated with hourly employment. By opening up the lines of communication and giving employees the opportunity to have their voice heard, you can gain valuable insight for improving business processes and increasing employee engagement and morale. Ways to learn more about what matters to your employees include: Conduct annual stay interviews to gain insight on issues important to your hourly employees. Develop company-wide surveys to evaluate the success of existing programs. Establish a Work/Life Balance Task Force to address current workplace issues and create new policies. ¹Source: Bloomberg BNA Declining employee loyalty is thought to harm organizations by causing low morale (84%), high turnover (80%), disengagement (80%), growing distrust (76%), and lack of team spirit (73%). American Management Association 2016 icims, Inc. All rights reserved. 19

20 TALENT MANAGEMENT Best Practices FOR HOURLY WORKERS Launch a Company Communications Platform One of the core components of any successful business is good communication with its employees. By having a well-developed internal company communications platform that offers a central location for important news and information, organizations can ensure their hourly employees are well-informed and prepared to execute their roles effectively. Information that can be included in a company communications platform can include: Updated company policies and procedures News regarding recent hires and internal employee promotions Employee spotlight content highlighting personal or professional accomplishments Internal sales contests and staff promotions Company calendar and important dates Companies that communicate most effectively are more than 50% likely to report turnover levels below the industry average. - Towers Watson 2016 icims, Inc. All rights reserved. 20

21 HOW icims CAN HELP Benefit From The Industry s Premier Talent Acquisition Solution And The Largest Partner Ecosystem In The Market icims offers a dedicated suite of best-in-class talent acquisition tools to attract, screen, and hire the best hourly employees, as well as the largest partner ecosystem in the market for your complete talent management activities. Video Interviewing I9 & E-verify Background Screening Assessments Compensation Learning & Performance Payroll & Benefits Consulting Tax Credits EEO Consulting Reference Checking Career Site SEO Job Board Posting Job Advertising Recruitment Advertising To learn more about how icims and its partner ecosystem can improve your hourly hiring strategy and talent management capabilities, contact partnermarketing@icims.com today! 2016 icims, Inc. All rights reserved. 21

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