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Internal recruiters must win "buy versus build" battle
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Internal recruiters must win "buy versus build" battle
Internal recruiters must be prepared to battle other arms of HR for funding and have a strong argument for why "buy" beats "build", according to Dr John Sullivan.
HR politics get worse in a downturn, he told the Australasian Talent Conference this week. "The `build over buy` argument becomes huge, and training usually wins it. Most of the resources go to training so you need to be able to argue `no, it`s cheaper to buy`."
Sullivan says that "buying" talent is better than "building" it through training because "new ideas need outside people".
An outside hire has a proven track record, while you never know what the outcome of investment in training might be, he adds.
"If you`re going to develop talent, great, but it`s very risky and it takes a long time. If you really want to win right away you hire external talent. In addition to helping your own team, when you take someone from a competitor, it lowers their talent."
Take control of internal redeployment
"Whoever owns internal redeployment will be successful," Sullivan says. "Most redeployment is voluntary... it`s kind of a random thing. Many times [employees] get frustrated so you have to move people."
Top talent should be encouraged to move every 18 months so they don`t get bored, he says.
"If you don`t proactively move them they`ll get a new job from an external recruiter."
Managers tend to believe they "own" talent and are reluctant to let it go, so they should be measured and rewarded based on how well they retain, develop and release talent, he says.
Work with the CFO
The CFO has money and therefore power during a downturn, so recruiters should work with them, Sullivan says. "Show you`re efficient and low cost. Show the [dollar] impact [of hiring top performers]."
One top person can make a big difference to revenue not only through their own performance but also by attracting other good people, he says, so recruiters should find a way to quantify that value.
Executives are only concerned with money, he notes, but the cheapest and easiest people to hire are "the worst people; someone already rejected them".
When faced with cuts to their recruiting function recruiters should be ready with a calculation of the "risks, delays and added start-up costs of reassembling [it]", he says. "The best business case is dollars." (Click here to read Sullivan`s recommendations for demonstrating the dollar impact of talent management.)
Have a recovery plan ready
Having a recruitment plan ready to implement when the economy turns will prepare your organisation for the recovery and reduce the likelihood of further cuts to your function, Sullivan says.
The vital elements of a plan, he says, are:
1. Identify the first positions your organisation will open up after its hiring freeze. If your organisation isn`t `number one` in its market, watch your competitors. When they start hiring `x` roles again you should follow suit;
2. Identify likely turnover and retirement. Look out for employees who:
* buy new suits and go to the "dentist" every Friday;
* suddenly start attending conferences; and
* ask payroll about their entitlements.
3. Develop your talent pool and build relationships with the people in it. Send them regular newsletters to keep them up to date.
4. Update your recruitment tools and get some new strategies.
5. Identify low-cost tools - "because you`re probably not going to have a lot of money when this happens".
6. Do a competitive analysis of your brand. "When you open up jobs, so will your competitor. What is the other guy going to do? You have to be able to counter their actions."
7. Bolster your employer brand.
8. Identify candidate expectations. Candidates want "a job" and "security" in a downturn, but when things turn around they want "innovation; the ability to make decisions; the ability to make money... You better find out what they are".
9. Get executives to agree on the criteria that triggers implementation of the plan.
Source:
http://www.recruiterdaily.com.au/nl06_news_selected.php?act=2&stream=1&selkey=39
HR politics get worse in a downturn, he told the Australasian Talent Conference this week. "The `build over buy` argument becomes huge, and training usually wins it. Most of the resources go to training so you need to be able to argue `no, it`s cheaper to buy`."
Sullivan says that "buying" talent is better than "building" it through training because "new ideas need outside people".
An outside hire has a proven track record, while you never know what the outcome of investment in training might be, he adds.
"If you`re going to develop talent, great, but it`s very risky and it takes a long time. If you really want to win right away you hire external talent. In addition to helping your own team, when you take someone from a competitor, it lowers their talent."
Take control of internal redeployment
"Whoever owns internal redeployment will be successful," Sullivan says. "Most redeployment is voluntary... it`s kind of a random thing. Many times [employees] get frustrated so you have to move people."
Top talent should be encouraged to move every 18 months so they don`t get bored, he says.
"If you don`t proactively move them they`ll get a new job from an external recruiter."
Managers tend to believe they "own" talent and are reluctant to let it go, so they should be measured and rewarded based on how well they retain, develop and release talent, he says.
Work with the CFO
The CFO has money and therefore power during a downturn, so recruiters should work with them, Sullivan says. "Show you`re efficient and low cost. Show the [dollar] impact [of hiring top performers]."
One top person can make a big difference to revenue not only through their own performance but also by attracting other good people, he says, so recruiters should find a way to quantify that value.
Executives are only concerned with money, he notes, but the cheapest and easiest people to hire are "the worst people; someone already rejected them".
When faced with cuts to their recruiting function recruiters should be ready with a calculation of the "risks, delays and added start-up costs of reassembling [it]", he says. "The best business case is dollars." (Click here to read Sullivan`s recommendations for demonstrating the dollar impact of talent management.)
Have a recovery plan ready
Having a recruitment plan ready to implement when the economy turns will prepare your organisation for the recovery and reduce the likelihood of further cuts to your function, Sullivan says.
The vital elements of a plan, he says, are:
1. Identify the first positions your organisation will open up after its hiring freeze. If your organisation isn`t `number one` in its market, watch your competitors. When they start hiring `x` roles again you should follow suit;
2. Identify likely turnover and retirement. Look out for employees who:
* buy new suits and go to the "dentist" every Friday;
* suddenly start attending conferences; and
* ask payroll about their entitlements.
3. Develop your talent pool and build relationships with the people in it. Send them regular newsletters to keep them up to date.
4. Update your recruitment tools and get some new strategies.
5. Identify low-cost tools - "because you`re probably not going to have a lot of money when this happens".
6. Do a competitive analysis of your brand. "When you open up jobs, so will your competitor. What is the other guy going to do? You have to be able to counter their actions."
7. Bolster your employer brand.
8. Identify candidate expectations. Candidates want "a job" and "security" in a downturn, but when things turn around they want "innovation; the ability to make decisions; the ability to make money... You better find out what they are".
9. Get executives to agree on the criteria that triggers implementation of the plan.
Source:
http://www.recruiterdaily.com.au/nl06_news_selected.php?act=2&stream=1&selkey=39
