talent acquisition systems

ACHIEVE TALENTMANAGEMENT SUCCESS

Talent Acquisition Systems: Industry Trends and Best Practices

Presented by: Ed Newman

Copyright © 2007. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.


Agenda

• Shift from Applicant Tracking to Talent Acquisition

• The Selection Process• Research Methodology• Customer Satisfaction/Market Landscape• Key Players



Ten Year Technology Market Evolution

WorkforceManagement

CandidateManagement

ApplicantTracking

Contact ManagementSocial NetworkingContingent workers

Performance Mgmt.Succession Planning

Learning/Development

Profiling/Job Seeker Mgmt

HRIS-Total Solution

Talent Management



More than just tracking an applicant

• Corporate career site presence and branding• Job postings to 3rd party boards• Candidate search and data mining• Prescreening questionnaires• Testing and assessment• Interview management• Candidate relationship management• Employee referral program• Integration with third party services (background,

reference, etc.)• Reporting, metrics and analytics



Technology Selection Methodology

Phase I - Planning• Prioritized business

requirements• Process mapping and

alignmentPhase II - Analysis• RFI/RFP• Finalist Demonstrations• Usability testingPhase III - Selection• Final selection and contract

negotiation• Gap analysis• Pre-implementation planning

Technical

Functionality

Focus

Capability

CostService

BusinessGoal



Sample list of requirementsCategory Sub Category Priority Score

Applicant Experience Allows for applicant logins high

Applicant Experience Applications can be saved by the applicant so that they can come back later and finish

High

Applicant Experience allow candidates to go back and check their statusHigh

Document Storage & Collection Ability to attach multiples types of documents to a candidate record (resumes, CL, portfolio, phone screen, etc.)

High

Document Storage & Collection Ability to easily download, print, save, and manipulate documents

High

Document Storage & Collection Multiple formats supported (word, pdf, text, html) High

Document Storage & Collection Resume keywords High

Document Storage & Collection Unlimited document storage for each candidate High

Managing applications Ability to attach and detach groups of candidates to a requisition

High

Managing applications Ability to edit the records of a group of candidates simultaneously

High



Sample of List of requirements (Continued)

Publicizing Job Openings Open positions can be posted to job boards through the system High

Publicizing Job Openings Ability to track effectiveness of our sources Medium

Reporting Ability to apply date parameters to criteria High

Reporting Ability to export reports into excel High

Reporting Ability to report on groups of candidates, as well as the pool overall. i.e. Be able to slice and dice data in different ways

High

Reporting Ability to separate out the different phases of the process High

Reporting Robust capability with customizable parameters High

Reporting Can the system incorporate satisfaction survey data into the records; can surveys be completed in the system?

Low

Reporting Allows access to the SQL database so that we can create custom reports

med

Reporting Works with Crystal Reports Med

Search Requisition data, both general and candidate specific, is maintained even after a requisition is closed

High



Vendor Evaluation: Demo/Summit Agenda

8:30 – 10:00 Executive Presentation and Company Overview (Main Room)Agenda: Market Strategy Presentation and Overview of vendor business strategies, mission, financial position, market penetration, and support model

10:15 – 12:00 Vendor Product Overview and Demo (Main Room)Agenda: Product overview – all modules, current and proposed, product demonstration of all functionality.

12:00 – 1:00 Lunch Buffet1:00 – 3:30 Functional Product Evaluation (Computer Lab)

Agenda: Hands on application testing/evaluation, scripted recruiter, manager, candidate activities to measure usability and navigation.

1:00 – 3:30 Technical Product Demo/Evaluation (Main Room)Agenda: Detailed technical product discussion, integration to HRMS, migration path for current data, Implementation services, support requirements, etc.

4:00 – 5:30 Summit Debrief (Main Room)Agenda: Review Summit activities, collect summaries, summarize questions, concerns, next steps



Vendor Evaluation Form (Sample)



Vendor Evaluation Matrix (Sample)

Category

Weight Category Score

Weighted Score

Category Score

Weighted Score

Category Score

Weighted Score

Category Score

Weighted Score

Category Score

Weighted Score

5 0 0 0 0 0 0 0 0 0 0

5 0 0 0 0 0 0 0 0 0 0

10 0 0 0 0 0 0 0 0 0 0

20 0 0 0 0 0 0 0 0 0 0

30 0 0 0 0 0 0 0 0 0 0

30 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0

100 0 0 0 0 0Totals

CapabilityFocus

Service

Cost

Technical

FunctionalityRFI - Questions

Vendor 5

Company NameVendor 1 Vendor 2 Vendor 3 Vendor 4



Vendor Evaluation Matrix - Detailed

Functionality

Weight Raw Score

Weighted Score

Raw Score

Weighted Score

Raw Score

Weighted Score

Financial Cash Position 5 0 0 0Revenue and Profit Growth 5 0 0 0Management Track Record 5 0 0 0Stable workforce (percentage turn 5 0 0 0Product Release Schedule History 5 0 0 0Market Commitment 5 0 0 0Market position/share 5 0 0 0Other 5 0 0 0

Vendor Viability Total 40 0 0 0

Credible Market Vision 5 0 0 0Path to profitability 5 0 0 0R & D Investment strategy 5 0 0 0Customer Support Investment 5 0 0 0Advisory Board/Customer Board of 5 0 0 0Strong Partnership Strategy 5 0 0 0

Vendor Vision Total 30 0 0 0

Capability

Focus

Service

Company Name

Vendor Requirements

Vendor 1 Vendor 2 Vendor 3



Talent Acquisition Systems 2007

• Industry Analysis and Buyers Guide• Trends shaping the market• Vendor company profiles

– Background– Recent changes; Future Plans– Implementation Methodology– Pricing– Product highlights

• Detailed product functionality matrix



New this year

• Two international players were profiled - MrTed and Jobpartners. Both looking to expand in APAC and US.

• Closer look at Integration with HRMS and third-party recruiting services

• Reporting and analytics was added as a key product – all vendors profiled offer or plan to offer both ad hoc and standard reports

• Contact Management is examined more closely as vendors are announcing this new product

• Hourly/high-volume – the benefits of a separate module vs. the same module. Defining the difference between high-volume and hourly



Research Methodology

• Quantitative Analysis: 554 survey respondents including corporations, educational institutions, governmental agencies and non-profit organizations with internal recruiting functions

• Qualitative Analysis: Follow-up interviews with companies currently using a TAS and companies in the selection process



Most Companies are Satisfied

30%

42%

14%

9%

4%

Very Satisfied Satisfied Neutral Unsatisfied Very Unsatisfied



Lifecycle of a TAS

• 65% of companies surveyed have been using their TAS for over a year

• Over the past 5 years, 65% of companies have invested in only one TAS system; 32% have invested in two systems and 3% have invested in three solutions

• 60% of companies surveyed expect the lifecycle of their TAS to last for 5 years or more



Likelihood of Recommending…

34%

16%20%

13%

7% 8%

AlreadyRecommended

It

Very Likely Likely Neutral Unlikely Very Unlikely



But What About Customer Support?…

How Often Do You Communicate with Your Vendor Representative

12%

31%

17%19%

9%

1% 1%5%

Every day Once aweek

Every 2weeks

Once amonth

Every 6months

Once ayear

Longer thana year

Never



Pricing

• 50% of companies surveyed indicated that the extra costs associated with their TAS are minimal; 20% indicated that there were no unexpected costs and 16% indicated more costs than expected.

• 37% of respondents did not know how much they were paying for their TAS.



Does Integration Matter?

9%

18%14%

8%5% 6%

40%

7%

17%11%

7% 5% 7%

47%

VerySatfisfied

Satisfied Neutral Unsatisfied VeryUnsatisfied

Don't Know Have notIntegrated

Integration with Third Party Recruiting Services Integration with HRMS



What Else Can My TAS Do?

• 56% of companies surveyed indicated that they use their TAS to track candidates supplied by third party staffing agencies.

• 54% of companies use their TAS provider for contact management.



KPI’s…Who’s Measuring What?

• Time to hire……………………………..77%• Time to fill ………………………………76%• Job vacancies…………………………..73% • Total acquisition cost per hire…………50%• % of applicants that turn into hires……31% • Quality per hire………………………….27%• Average new hire tenure……………….21% • % of clicks that turn into applicants…...12%



Vendors Profiled

• Active Recruiter – Job Partners• ADP- Virtual Edge • ATSmart - HRSmart• Authoria Recruiting 2007• First Advantage HMS• Hodes iQ• iCIMS - iRecruiter• Kenexa BrassRing• Kenexa Recruiter• Mr. Ted• OpenHire - Silkroad• Peopleclick

• Peoplefilter• PCRecruiter• Smartsearch Online• SonicRecruit• TMS – by Monster• Taleo Business Edition• Taleo Enterprise• Vurv - CE• Workstream• Kronos/Unicru• Oracle – iRecruitment• Peoplesoft TAM, by Oracle



Key trends to watch

• Commoditization– Race to deliver features and functions– It appears all vendors have all features– Trend can be deceptive

• For smaller and less complicated environments– Needs are basic (web site to post jobs, central repository, email

communications– Lots of choices – Evaluate on price and quality of service

• For larger and more complex organizations– Features vary in depth and flexibility– Just because they have it does not mean it will fit– Evaluate on detailed business requirements and value creation



Key trends to watch

• Consolidation– Talent Management vision is driving consolidation– Vertical vs. Horizontal consolidation– Acquisition vs. Organic development– Consolidation may cause proliferation– Integration will be key



Key trends to watch

• Integration– HRMS and 3rd party service providers pretty well established– Seamless integration between functional area is hard to find– Will it be a single suite, or integration of niche players?– Competency management to become the common language



Key trends to watch

• Innovation– New innovations have been few and far between– There needs to be a focus on delivering value with what exists

today (recruiters use a fraction of the capability of most systems)

– Some areas to look for advances:• Contact management• SMS Text messaging• Web Services integration• Analytics



Having a system only half the battle

• Every application and vendor in the market has gaps

• Expect and anticipate challenges

• Success is 10% decision and 90% execution

• Strong relationship between HR, IT and the Vendor is imperative



TNG Operational Excellence Model

• Critical Success Factors– Technical Infrastructure

– Process Alignment

– Information Management

– Change Management

– Operational Support

• Operational support is the core driver

• Continuous cycle



Thank you!

Questions?

[email protected]

www.tng.futurestep.com

talent acquisition systems

Business

kornferry

kornferry

collection

rights reserved

main room

companies

integration

high