|Will CRM Revolutionize Staffing?
|Our research confirms that it’s time to rethink the traditional just-in-time recruiting model. Today’s job marketplace has evolved over the past decade and corporate staffing practices and procedures developed a half century ago no longer deliver optimum results. Even with the help of technology the old model is increasingly inefficient.
Reviewing 10 years of data, we are struck by the consistency of time and cost statistics, candidate quality and hiring manager satisfaction scores, and candidates’ ratings of the application process. If, after a decade of rapid innovation, we are working as hard as ever but not delivering better qualified, better prepared candidates both more quickly and less expensively, then perhaps it’s time to think differently. Is there a better model for corporate recruiting? Research suggests there is.
The Traditional Just-in-Time Model
Fast forward through the recruiting innovations of the past decade and recruiting ought to be a piece of cake. We can post jobs to enormous audiences in minutes and gather hundreds of resumes in a day. Information about both candidates and employers is plentiful and easily accessed. The old hiring constraints of visibility, time and distance have become relatively minor or disappeared entirely. Staffing ought to be easier but it clearly isn’t. The recruiters we talk to feel their job is as difficult as ever, perhaps even more so. Old timers agree.
It appears that the major impact of all our new technology – electronic job postings, Googling, social networking, vast databases, and computerized job matching – is to make the front end of the old system – the sourcing end – work faster. We’ve upped our unit processing to the point that we’re now flooded with so much data that, while we can store it, we can’t process it. We have captured thousands, even tens of thousands of units (i.e. people) in our systems, but the influx isn’t translating into better efficiency and effectiveness.
The CRM Model
The principles of the CRM model are straightforward: an intense and constant focus on understanding, servicing, and communicating with customers. Customer needs are front and center at all times and every resource of the enterprise is directed toward addressing those needs. Job seekers are considered customers.
A complete list of the ways that CRM thinking impacts staffing runs long, but clearly includes these ten:
1) Current employees are recognized as the foundation of the company’s hiring brand and are treated as a strategic company asset. Their enthusiasm for the firm and willingness to recommend new hires are greatly valued. CRM-based firms have exceptionally high percentages of total hires from internal sources: 50%- 75% is not unusual. All employees, including executives, are considered adjunct recruiters for the firm.
2) Corporate culture is very much on display and actively promoted. Recruiters must find candidates who are not only capable but also compatible with it. Disproportionate resources are dedicated to explaining and displaying the culture so candidate fit can be mutually assessed.
3) Information flow is robust. The more candidates know about the company and the company knows about the candidates, the better the chances of a proper fit. Disproportionate resources are also allocated to encouraging that flow.
4) The hiring bar is set unapologetically high from the onset, with the emphasis on quality over quantity. Candidates are actively recruited out as well as in.
6) Short-term and long-term goals are equally balanced, which leads to the careful treatment of both active and passive candidates. This approach also acknowledges the enormous numbers of casual job seekers on the Internet who, if treated respectfully and courteously, can become tomorrow’s hires.
This CRM-based emphasis on a comprehensive, high-quality customer/candidate experience might seem at first to be a misguided throwback to a bygone era, as well as indefensibly time-consuming and expensive. In fact, the reverse turns out to be true. Companies that operate by people-focused rather than process-focused principles can blow past traditional recruiting benchmarks because:
Recruiters Love CRM
We would welcome case studies that explore CRM-based recruiting. If your company is applying these principles today, please tell us about it.
For more up-to-date research,trends,and commentary check out the 2009 Recruiting Metrics & Performance Benchmark Report.
Will CRM Revolutionize Recruitment?