How to Use Company Culture to Attract Passive Candidates

With Jim Stroud, Senior Director at Randstad Sourceright

HOW TO USE COMPANY CULTURE TO ATTRACT PASSIVE CANDIDATES

WHAT YOU’LL LEARN:

Understand why company culture is rising in importance for tech recruiting.

Learn how to identify the elements of your culture to promote.

Gain ideas on how to communicate culture through social recruiting.

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The world’s talent at your fingertips

RECRUITING AIN’T EASY.RECRUITERS BE LIKE…


And let them have the right amount of experience and be willing to accept the salary we offer and...

Are you hearing me recruiting gods?

POST AND PRAY METHOD*

*THIS METHOD IS GATHERING STEAM

THESE DAYS.


WHYIS THAT?


2 REASONS WHY THERE’S A LOT MORE POSTING AND PRAYING THESE DAYS.


TALENT SHORTAGE


When asked to assess the skills of today’s workforce, two-thirds of respondents somewhat or strongly agree that a skills shortage exists, and slightly over one-half say the skills deficit has negatively impacted their businesses.YES!

HEALTHCARE MANUFACTURING & LOGISTICS

OFFICE & ADMINISTRATIVE

SKILLS SHORTAGE PERCEIVED ACROSS MAJOR INDUSTRIES

Randstad Workplace Trends Survey

INDUSTRY SPOTLIGHT

50%

61%

PHARMA

50%

ALL EMPLOYERS

FINANCE & ACCOUNTING

59%

HUMAN RESOURCES

56%61%

ENGINEERING

69%

IT

69%72%

IS THERE A SKILLS SHORTAGE?


GLOBAL HEAT MAPTHE GAP BETWEEN THE GROWTH IN DEMAND AND THE GROWTH IN SUPPLY OF TALENT, 2011–2021.

-0.9

-0.8

-0.5

-0.1

0.0

-0.8

-0.5-0.4

-0.4-0.6

-0.10.5

0.6

1.1

-1.1

-1.2

-1.5

-1.4-0.9

-0.2

-0.4

0.2-0.2

-0.6

0.40.2

1.5

2.10.7

0.7-0.4

0.90.1

0.8

0.8

-0.1

1.0

1.0-1.0

Oxford Economics

TREND DEFICIT

TREND SURPLUS

BROAD BALANCE

Numbers show trend growth as annual percentages


THE TALENT MISMATCH— BETWEEN WHERE TALENT IS MOST NEEDED AND WHERE IT WILL BE MOST AVAILABLE—IS NOT LIKELY TO EVAPORATE SOON.

YIKES!The world’s talent at your fingertips

YIKES!(AGAIN)

GLOBAL TALENT RISK

The Northern hemisphere faces talent shortages in a wide range of occupational clusters largely because populations are aging rapidly and educational standards are insufficient.

The United States will need to add more than 25 million workers to its talent base by 2030 to sustain economic growth.

Western Europe will need to add more than 45 million workers.

In Germany, 70% of employers are hard-pressed to find the right people.

+25M

70%+45M

FOR EXAMPLE World Economic Forum


THE SKILLS DEFICIT IS EXACERBATED BY THE FACT THAT BABY BOOMERS WILL BE RETIRING AND YOUNG PEOPLE ARE NOT PURSUING THE PROFESSIONAL SKILLS THE WORLD WILL NEED.

SKILLS THAT WILL BE IN HIGH DEMAND, BUT SEVERE SHORTAGES ARE ANTICIPATED

DOCTORS SCIENTISTS TECHNICIANS HEALTH CARE

IT COMPUTER SCIENTISTS GLOBAL MANAGERS SKILLED TRADES

World Economic Forum


RETENTION ISSUES


May2014


COMPANIES CONCERNED WITH RETENTION

A GROWING CONCERNPE

RCEN

TAGE

OF

RESP

ONDE

NTS

70

2009 2010 2011 2012 2013

60

50

40

30

20

10

0


IN 2018, 49 MILLION MORE EMPLOYEES WILL BE HEADING OUT THE DOOR COMPARED TO 2012 – A TOTAL OF 192 MILLION EMPLOYEES WORLDWIDE.

EMPLOYEE TURNOVER TO HIT NEW HEIGHTS

ITS NOT JUST THE USA!

2010

24.023.523.022.522.021.521.020.520.0

900

850800750700650600550500

GLOBAL TURNOVER AND NUMBER OF EMPLOYEES Source: Hay Group Cebr analysis

2011 2012 2013 2014 2015 2016 2017 2018

Percentage of employee turnover rate (left axis)

Forecast

Total employees in millions (right axis)

The global employee turnover rate will see its sharpest increase in 2014. Emerging economies like Asia and Latin America will spike sooner while more mature markets will peak between 2014 and 2018.


ARE YOU FEELING THE PAIN OF THIS STAFFING STORM?

SURVEY SAYS...

YES


SO WHAT CAN COMPANIES DO ABOUT IT?


IN A WORD, THE ANSWER IS...



“Company culture is the personality of a company and defines what a company, from an employee perspective, is like to work for…” — Allison Doyle


A LOT OF THINGS ARE ASSOCIATED WITH THE CULTURE OF A COMPANY.

LIKE...


THINKING COMPANY CULTURE?I BET MISSION STATEMENTS, OFFICE DÉCOR AND PERSONAL DEVELOPMENT COME TO MIND.

POP QUIZ:When it comes to

company culture, what matters most?



*(IT ALSO PROTECTS THE BOTTOM LINE.)

THE ANSWER: A GOOD COMPANY CULTURE RECRUITS AND RETAINS TALENTED PEOPLE.

Professional Services

WHAT ARE THE BENEFITS OF A GREAT COMPANY CULTURE?

100 BEST COMPANIES VOLUNTARY TURNOVER BY INDUSTRY

Comparison data provided by BUS. ”100 Best” data includes FT & PT turnover; BUS data includes the same in addition to turnover for temp/contract workers. Copyright© 2014 Great Place to Work ® Institute, Inc.

Source: “100 Best data provided by Great Place to Work ® Institute, Inc.

Manufacturing & Production

100 Best (%)

Healthcare

Information Technology

Construction & Real Estate

Financial Services & Insurance

Hospitality

5% 10% 15% 20% 25% 30%

24.5%38.0%

35% 40%

5.8%10.5%

6.0%17.1%

8.0%16.2%

8.7%19.4%

10.3%12.6%

10.4%25.9%

Industry Average (%)

BEST COMPANIES HAVE 65% LESS TURNOVER


COMPARATIVE CUMULATIVE STOCK MARKET RETURNS

Copyright© 2014 Great Place to Work ® Institute, Inc.

Source: Russell Investment Group

500%

FORTUNE 100 BEST COMPANIES TO WORK FOR®

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

400%

350%

300%

250%

200%

150%

100%

50%

0%

+170.08%

+155.68%

RUSSELL 3000 S&P 500

BEST COMPANIES PERFORM BETTER.

+495%


WHAT ARE THE BENEFITS OF A GREAT COMPANY CULTURE?

CULTURE IS THE CONTEXT FOR CANDIDATES.


SO, WHAT MAKES A GREAT COMPANY CULTURE?


GROWTHTO LEARN NEW SKILLS


BHAVIN PARIKH, CEOOur employees receive a monthly stipend to take classes on anything they want. Classes have ranged from ceramics to ukulele to chocolate tasting. I’ve noticed an unexpected benefit — employees now also take more professional development classes and are getting better at their day-to-day work. Learning is contagious.


HAPPINESSWORK IS BETTER WITH FRIENDS


PEOPLE WHO HAVE A BEST FRIEND AT WORK ARE SEVEN TIMES MORE LIKELY TO BE ENGAGED WITH THAT WORK, ACCORDING TO GALLUP RESEARCH. GALLUP RESEARCH SHOWS THAT CLOSE FRIENDSHIPS AT WORK BOOST EMPLOYEE SATISFACTION BY ALMOST 50%.


LIAM MARTIN, CEOWe run a remote company with more than 50 employees, so finding a time to have everyone just hang out is rare. Therefore, we implemented a video game day when everyone can come together and play online. So far, it has been a great success and really helpful with inter-division communication.


ABUNDANCENOT NECESSARILY BEING RICH, BUT LIVING A LIFESTYLE WHERE YOU FEEL RICH


AOL’S HIP AND MODERN PALO ALTO OFFICE


NETFLIX AND OTHERS OFFER UNLIMITED VACATION TIME


SIGNIFICANCEFEELING THE WORK YOU DO MAKES A DIFFERENCE


These brands collectively outperformed the S&P 500 almost 400 percent over 10 years. The study concluded that the best businesses “were built not just on innovative product or service ideas but on ideals.”

Research consultancy Milward Brown found in the Stengel Study of Business Growth that the top 50 high-growth brands were, on average, more likely than their competitors to be driven by ideals.




MEANINGWORKING TOWARDS A HUGE, SEEMINGLY IMPOSSIBLE GOAL.


“IF YOU WANT TO BUILD A SHIP, DON'T DRUM UP PEOPLE TO COLLECT WOOD AND DON'T ASSIGN THEM TASKS AND WORK, BUT RATHER TEACH THEM TO LONG FOR THE ENDLESS IMMENSITY OF THE SEA.” —ANTOINE DE SAINT-EXUPERY


“TO PROVIDE A FREE WORLD-CLASS EDUCATION TO ANYONE ANYWHERE”

“TO MAKE PEOPLE HAPPY”

“THE END OF SOFTWARE”


SAFEGUARD THE CULTURE


People leave managers, not companies.

! REMEMBER


THE ULTIMATE CULTURE FORMULAINTRODUCE THESE 5 ELEMENTS INTO YOUR COMPANY:

GROWTHOpportunities to learn new skills.

HAPPINESSWork is better with friends.

ABUNDANCELiving a rich lifestyle at work.

SIGNIFICANCESupport an ideal that rallies your workers.

MEANINGWorking towards a big goal.

Let social contagion take root. Nurture it through the managers. Set an expectation of high performance. Pygmalion Effect.

SAFEGUARD YOUR CULTURE It is what will help you recruit and retain talent!


OKAY, JIM. ALL THAT BEING SAID, WHAT IS THE FIRST THING I SHOULD DO TO BUILD A GREAT COMPANY CULTURE?


START SETTING HIGH EXPECTATIONS!


I GOTTA TALK TO JIM STROUD!

Senior DirectorRPO Recruitment Strategies & SupportRandstad Sourceright

JIM STROUD

AUTHOR OF:Resume Forensics: How To Find Free Resumes and Passive Candidates On Googlecreatespace.com/4228076

Content Is the New Sourcing: Strategies for Attracting and Engaging Passive Candidatescreatespace.com/4693823

!

EMAIL: [email protected]

LINKEDIN: www.linkedin.com/in/jimstroud

TWITTER: @jimstroud


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www.linkedin.com/in/jimstroud

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How to Use Company Culture to Attract Passive Candidates