Recruitment, Big Data & Horses
“If I had asked people what they wanted, they would have said faster horses."
There has been some dispute whether this phrase was actually uttered by Henry Ford, the founder of The Ford Motor Company, however it is very often attributed to the industrialist who revolutionised the American motor industry.
The American population had a need; they wanted to get from one place to another in the most efficient way possible. Now unless you were one of the lucky few that could afford an automobile, the only real option was by horse. Ford had a vision of producing the first mass market automobile at a low cost, a vision which can be seen realized today.
The above quote got me thinking about the recruitment industry as it currently stands and the options that are currently available to Inhouse Recruitment Teams. Some argue that Ford is suggesting that people are stupid and don’t know what they want and that only he knows what they want; they want faster horses but he knows that what they really want is a car. I prefer to look at it in a different way; people knew that they wanted to get from Point A to Point B and with only a few options available, the horse was the only real choice for the masses.
Inhouse Recruitment teams know that they want to:
• Cut the cost per hire
• Cut the time per hire
• Achieve both of the above whilst still attracting the best talent
The options that are currently available to Inhouse Recruiters are to:
• Advertise on a job board
• Use a 3rd party Recruitment Agency
• Search CV Databases
• Search Social Media sites such as Linkedin, Twitter etc.
The first two options can be very costly, often costing thousands of pounds. The second two options can be extremely time consuming. So looking at it in this way, none of the currently available options meet the needs of the Inhouse Recruiter.
When you post an advert on a job board you are relying on that perfect candidate visiting that particular website and completing an application. What if that perfect candidate doesn’t visit that website, the perfect candidate doesn’t generally visit job boards.The perfect candidate is what is known in the industry as “The Passive Candidate” and passive candidates do not visit job boards. Not only are job boards expensive, it is very much a hit and miss approach to advertising your positions and promoting your employer brand.
Recruitment Agencies are a very expensive way to source talent. If you find a good recruiter, they can certainly cut the time per hire if they already have access to a pool of passive talent just waiting for the right opportunity to come along. It is only the very good recruiters that will have this type of passive candidate available; it is well known that the vast majority of agency recruiters do no more than advertise on job boards and search CV databases anyway. We all know the cost per hire when sourced via a recruitment agency – usually anywhere between 15-20% of the candidate’s salary. Companies have spent millions of pounds in recruitment fees over the course of a year due to their reliance on 3rd party recruiters.
Spending your day searching CV Databases is a laborious and time consuming way to spend your day as an Inhouse Recruiter – I know because in a previous life I’ve spent many many hours glaring at CV after CV. When I talk about CV Databases, I’m referring to those offered by the job boards mentioned earlier. Besides being a time consuming process, sourcing candidates from a CV database means that you are competing with every other person who has access to the same database, mainly recruitment agencies and other Inhouse Recruitment teams. Going back to the classic ‘Passive Candidate’ idea, how many of these candidates do you think have uploaded their CV to a job board database recently?
The last of the main options available is Social Recruiting, which to most (not all) Inhouse Recruitment teams means searching through LinkedIn for candidates and tweeting a few jobs on Twitter. Scouring Linkedin is as equally time consuming as searching through a CV database, plus you are still competing for candidates with agency recruiters. On the plus side, searching Linkedin will allow you to search through a ‘living database’ which will include a large number of passive candidates. In addition to the time spent searching Linkedin, you also have to consider either the time it takes you to build your network or the cost involved to effectively search if you only have a small Linkedin network.
So that pretty much covers the four main options that are available to Inhouse Recruiters, none of which are ideal.
We wanted to develop a way to combine these four options into a single solution that allows Internal Recruitment teams to achieve their goals of attracting talent in a cost effective and speedy way. What we came up with is JobsTheWord.
On the face of it JobsTheWord may look no different than a job board, but if you look a little more closely you’ll see that there are no job advertisements posted by recruitment agencies. Straight away you are cutting out the competition for talent from thousands of agency recruiters who post on job boards every day.
The technology that lies behind JobsTheWord is what makes the solution a little bit special. People (candidates) leave an infinite amount of information online on Linkedin, Twitter, Facebook, blogs and in forums. Imagine a solution which can take all of this information, organise and then interrogate it intelligently to match potential candidates with your vacancies, and then make sure that these candidates see your adverts.
This is where Big Data comes into the equation. Whilst still a relatively new concept, particularly in the recruitment industry, we have adopted this technology very early on to identify and contact potential candidates about positions that may be of interest to them, including that sought after ‘Passive Candidate’. Much in the same way that Tesco uses their Club Card data to promote and market new products to specific sections of their customer base, we are able to match and market your positions to your target candidate base.
This solution takes away the need for costly hit and miss job board advertising, expensive recruitment agencies and time consuming CV Database and Social searching. JobsTheWord allows Inhouse Recruitment teams to:
• Cut the cost per hire
• Cut the time per hire
• Achieve both of the above whilst still attracting the best talent
So, do you still want that faster horse or are you going to jump in the car?