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How RPO Impacts Talent Practices in China

 

Lessons from an Australian RPO Executive Operating in China

While working in China, I have been asked many times what I see as being the main differences between recruiting in Australia where I am from, versus in China. Basically, there are many, and I’m still finding differences each day! While the main process steps remain the same, the key variations are not surprisingly the culture, but also where China is at as a country, an economy and its evolution of producing and managing talent. First and foremost, China is still developing; so recruitment and HR practices are still evolving too. RPO solutions therefore can partner with businesses and HR teams to help shape and progress these talent practices, to ensure businesses engage and retain the talent they need to keep up with China’s growth. Below are some of my key learnings and observations in how RPO is positioned to do this.

I think we are all guilty, myself included, of picking up processes that are tried and tested in another developed country and then attempting to implement them in China. It doesn’t work. One of the key lessons I learnt early on is to localise, localise, localise. Recruitment teams within China are very eager to learn best practice and better ways of sourcing and selecting talent; however they also know what will and won’t work in China. Everything has to be localised.

Selection process objectivity. Internal referrals are high in China; there is a strong culture of recruiters seeking referrals and employees referring people. You don’t actually have to even know them, just meet a person somewhere, exchange name cards and boom – referral made. The average referral rate is between 40-60% in China. While having a high number of referrals can be a great thing and is a really important sourcing channel, our challenge as RPO specialists is making sure they go through a consistent process and to influence managers to show objectivity when choosing their preferred candidate.

Brand is currency! As we know, China loves their brands. So employment branding and image is everything here. However the concept of an EVP is still relatively new. Many big MNCs have their headquarters in Shanghai now, and there is also more competition from local companies for talent. The perception of a company’s brand, their positioning in the global market and reputation as an employer of choice is therefore critical. While China is a massive country, word of mouth still spreads fast! RPO has a great opportunity here to work with clients to develop strong, localised value propositions for their current and potential employees. People in China love to work for a company they makes them proud.

‘A whole new world’. The speed of growth in China means high vacancy and turnover rates. Even though China has a massive population, quality is still hard to come by and speed can’t come at the sacrifice of quality. While hiring turnaround times need to be fast to keep up with the market here, as RPO specialists we also need to push back and manage expectations in regards to timeframes, ensuring we get the right person. Due to the respect of hierarchy in China this can at times be culturally sensitive, so the role of an RPO Leader is to build the team’s confidence to do this and show it’s a way for them to demonstrate their worth and value, by ensuring we hire quality people. Stakeholder management and assertiveness are therefore vital skills for RPO specialists in China.

HR now has a seat at the table. Until the last few years, Human Resources within China focused heavily on recruitment and associated administrative functions. A greater need existed then to ‘buy’ talent. Fast forward to now, and the focus has shifted to developing and managing internal talent. The demands on talent are increasing and China businesses are expecting their new employees to work in complex, global organisations. Therefore HR Directors need to be both strategic and commercial, and HR Managers are now moving into true Business Partner roles. This means that Recruitment too is now seen as a specialist area requiring specialist skills.

Build or Buy talent? Due to increasing people demands, as well as increasing wages costs in China, there is a shift to promote more internally and ‘build’ rather than ‘buy’ talent. HR now must strategically help their businesses to plan for future talent needs. Some capability however doesn’t yet exist in China, so the requirement for RPO solutions to develop specialist sourcing strategies to ‘buy’ key talent is still required.  

Local autonomy required for talent management. For MNCs operating in China, local HR and Talent teams must retain some local autonomy for talent management. The workforce in China is much younger than most Western countries and also the years of experience are lower. With many frameworks and development programs designed and rolled out from global headquarters, local flexibility is needed. For example, employees within China may not yet have developed the same level of competency in some areas that their global colleagues possess; therefore talent programs need to be localised. RPO Specialists can assist HR teams here by providing local market data.

Global mobility programs remain a challenge. Identifying and developing China talent for global roles can be challenge. Family is fundamental in China; therefore family ties can make it difficult for Chinese workers to be mobile. RPO teams can work with the business to identify stretch assignments and secondments, which can be effective ways of giving China talent the global exposure they need, while allowing them to still honour their long-term family commitments.

Competition for talent.  A large portion of China’s economic growth has come from the successful rise of locally owned companies, which now are beginning to attract top talent. Working for a MNC has always been viewed as prestigious, however now senior employees at local companies can get direct exposure to CEOs and Executive teams. To do the same in an MNC, they would need to move internationally. More than ever, RPO Specialists need to work with businesses to ensure their EVP and employment brand is current and competitive in the market.

Support from the C-suite. In China, people respect authority and will follow the ‘Boss’. This means when the CEO and senior management team get behind recruitment and talent strategies, it works. Buy-in from the C-level is therefore critical to ensure a successful RPO solution and recruitment outcome for the client.

Need assistance with your talent solutions in China? Contact our team.

 
 
 

Illuminating the Darkness on LinkedIn

Tools and techniques for unearthing hard-to-find talent on LinkedIn

This blog article originally appeared on SourceCon on November 25, 2014.

A few years ago I read Glen Cathey’s article called “LinkedIn’s Dark Matter- Undiscovered Profiles.” Reading the article set my mind in motion. In the article Glen calls “dark matter profiles” the profiles that exist on LinkedIn that do not contain enough key words to be returned in most searches. So while these profiles do in reality exist, they rarely, if ever, are discovered.

To illustrate his point he suggests running a search for people in the US with the current title of “Software Engineer” or “Software Developer.” A Boolean search string is added that removes the mention of any technology. The search string would look something like NOT java, NOT C#, NOT Ruby NOT PHP and so on. When you run this search from a LinkedIn Recruiter seat you will get nearly a million results. His article used the example of Software Engineers I will do the same for the sake of continuity.

The problem is there is often no simple way to know if you should approach a person about a job based on title alone. Let’s use a search for Java developers as an example. Using the word Java in your search string will exclude all of nearly one million profiles with the title of “Software Engineer or “Software Developer” that do not include the word Java. A significant portion of those Engineers or Developers are Java developers but you will never see their profiles returned in a search that contains the word Java. These dark matter profiles exist in every profession.

So is there a way to systematically shed some light into this darkness? I answer, yes! One solution provided in the article was to search by group affiliation. For the sake of simplicity let’s continue using the example of Java developers. If you run the same search as before and add a filter that included results for java developer groups then there is a high probability that they are in fact a Java developer. This is a solid way to illuminate some of the darkness in a systematic way. That raises a second question. Are there other methods that can be as, if not more, effective? I answer yes!
 
While thinking about this problem I reflected back to my school lessons in Geometry. In Geometry we learn that to draw a straight line we require at least two points.

So, if we now think of the profile itself as a single point of information we can think of the missing information as an unknown second point. What can we use to add that second point? The great news is that are multiple tools available to us to create that second point of data and one of them is a tool you have access to and use every single day. We have massive amounts of data in our Applicant Tracking System or ATS.
 
LinkedIn now offers us a feature that allows us to merge information to LinkedIn profiles. This feature is called Talent Pipeline and it is included in the price of a LinkedIn Recruiter seat. It simply needs to be turned on by your administrator. This feature allows you to upload lists or resumes into your LinkedIn account and will automatically match them to existing profiles. If it is unable to confirm a match it will provide you with the opportunity to match them manually to the closest profiles that it can identify. If it is still unable to find a match it will simply create a shell profile that is only accessible from your LinkedIn account.

The good news is that most ATS systems have a reporting tool. What I like to do is run a report that gives me the first name, last name, email address, phone number and the name of job that every candidate in our ATS has applied to. I then filter my list to remove the duplicates. From there I break up my list into groups of 5,000. 5,000 is limit that LinkedIn has set for uploading lists into its system. I upload those lists using Talent Pipeline. I match first name, last name, email address and phone numbers. I then put the title of the job the candidate applied for in the notes field. I then identify the source as my ATS.
 
There are several advantages to this approach. It allows me to get a large amount of data into my system in a short period of time. There are now several good things that happen. The first is that I have good contact information for a large pool of potential candidates. When people apply for a job they use a number they answer and an email address they check. This helps improves my response rate and reduces my dependency on inmails. I can now also follow up my email with a call. In addition, it helps improve candidate experience. If I find a candidate in my LinkedIn search that has been identified as having come from my ATS I’m able to reach out to the candidate in a more personal way.

I can send an email that acknowledges their past application, indicate that I kept their information and I believe that I now have an opportunity that maybe of interest for them and the new skills they have acquired. Imagine how much higher your response rates will be! Everyone says, we will keep your information on file and get back to you if we have something else, but almost no one actually does it!

Finally, I know what type of job the applied to in the past. The notes field is searchable! Because I now know 2 years ago, they applied for a Java development job with my company I have enough information to engage. While this person that identified themselves only as a Software Engineer on their profile I know they are in fact a Java developer. This second point of information has allowed me to connect the dots and illuminate some of the dark matter!
 
This is an efficient and effective way to leverage the information in my ATS. What is even better is that it gives me a competitive advantage while preserving my limited recruiting dollars. Finally, once I have done this work once it is in the system forever. It is automatically included in all my future searches. Business will love this feature as well because it becomes institutional knowledge that will stay with their account even after the recruiter that has that seat has moved on.
 
There is another method available to illuminate some of this darkness. There are many an adds on offered by the many social aggregators that are commercially available. Tools like Entelo, Guild and others that allow you to pull information from other social media platforms and match the information to LinkedIn profiles. There are two drawbacks to these tools vs using the Talent Pipeline feature.
 
The first is that you cannot search this information from LinkedIn and the second is that it will cost you almost as much as a LinkedIn seat. However, if you have the budget for them they can provide additional information and illumination to possible candidates that have not applied for a job at your company in the past.
 
Geometry still has more that it can teach us. Geometry tells us that in order to create a shape we need at least 3 points.

​Is there another way we can use the information from our ATS to create a third data point and increase our competitive advantage? I answer yes! Your ATS is full of key word rich resumes. LinkedIn Talent Pipeline allows for the uploading of up to 500 resumes at a time. My experience has been that it is best to upload no more than 150 at a time locks up the system. It is my understanding that LinkedIn is working to resolve this issue.
 
My next step is to extract resumes from my ATS and then match them to my LinkedIn Recruiter account. While working as a sourcer at one company I invested the time to upload over 20,000 resumes to my LinkedIn account.

By now you are probably thinking wait a minute, can’t I just search my ATS and save myself the time and effort? I answer yes and no. Yes all this information is already tucked away in your ATS. However there are a few significant drawback.

The first is that the search engine is not going to be as developed as the one that LinkedIn now offers. Another drawback to most ATS search engines is that it limits the number of results. This means that even if you have several thousand resumes in your search engine you will only ever be able to access a few hundred. This is why, I believe, that over time recruiters stop searching their ATS. They believe that they have mined the database when in reality the nature of the search engine and their search string sets an upper limit on the number of resumes they will ever be able to find.

There is another major drawback of resumes in the ATS. The resume itself is another point of data but in the ATS it remains alone point of data. Resumes start to go out of date as soon as they are written. If you source a two year old resume from your database for a job you have today, that person may or may not be a viable candidate for your current search.
 
So what is the benefit of doing all this extra work? I believe there are a few benefits that justify the time investment. The first major advantage is that it saves you time, in the long run. All your information is in one, searchable location. It is now possible to effectively search your ATS using LinkedIn. The search results can be filtered to return results that are tagged as coming from your ATS. It is then possible to contact the possible candidates in a manner that improves the candidate experience, increases the probability of a response and gives you more timely information about that possible candidate’s relevancy to your current needs.

Additionally, it allows you to customize your message and send that message to an email address that has a higher likelihood of being read. It is also easy to follow up that email with a phone call as all the contact information will be matched automatically to the profile and will show up on the profile page.
 
While I have been working as a Sourcer using this technique had paid dividends multiple times. For example I was required to identify 30 java developers in a specific market. Because I had already done the leg work I was able to quickly search my market and get good information that allowed me to deliver 47 resumes to my hiring manager within 48 hours. The manager and the recruiter I was supporting were blown away. This was a market they expected to have difficulty identifying even a few candidates in. Sending 47 on point resumes in a short time was enough to earn a nice thank you note to my boss from my hiring manager.
 
This approach takes two different systems and merges them in such a way that reinforces the strengths of each while mitigating their individual weaknesses. By matching the information from your ATS with the information available in LinkedIn profiles you are able to illuminate at least part of the “dark matter” of LinkedIn. At present there is no way to illuminate all the dark matter profiles but this technique is the most effective way to shed light on the profiles that are most likely to be relevant.

Mike Wolford is the Recruiting Manager at PCAOB via Hudson RPO. You can connect with Mike on LinkedIn or Twitter 

 
 
 

Why High-Growth, Middle-Market Companies Struggle to Hire & Keep the Best Talent

And what they can do about it

As the economic outlook in the United States continues to show improvement, growth is a major priority for middle-market companies. A recent American Express survey of Mid-sized Companies confirms this – nearly 60 percent of the financial decision-makers who responded stated that they intend to hire to support expected business volume. 

For those middle-market companies looking to grow, it’s wise to look at how their peer organizations are doing it. The National Center for the Middle Market did just that by researching a small group (9 percent) of middle-market firms – called “Growth Champions” – whose members significantly outperform their peers. Among other qualities, Growth Champion firms tend to have exceptional talent management practices. In fact, Growth Champions are nearly twice as likely as their middle-market peers to place a premium on attracting top talent with valued skill sets. 

Recruiting has long been one of the greatest challenges facing most middle-market companies. With less established employer brands, middle-market companies must try harder to attract the best people, often losing quality employees to bigger businesses. 

Recruiting and talent management tips for middle-market companies to rev up their recruiting and retention efforts:

  1. Build your employer brand.
    An employer brand defines an organization’s value to potential hires and educates them about the workplace culture. With a clearly identified employer brand, companies can attract candidates that are a better cultural fit, which is shown to result in greater employee productivity, increased levels of engagement and higher rates of retention. [Download Hudson’s Employer Brand Guide]
  2. Develop a competency framework for all key roles.
    If a company does not know what it wants, it’s unlikely to recruit the best candidates to fit its needs. That’s why you must understand the core competencies of all positions. A competency is a set of skills, knowledge, abilities, attributes, experience, personality traits and motivators that predict whether an individual will effectively perform in a job. Assess your star performers. What competencies do they have? Competency frameworks provide clarification around the behaviors needed at different levels throughout the organization, and assist in recruiting and selecting employees who match these defined characteristics. 
  3. Get the interview right.
    The truth is that few hiring managers have been trained in effective interviewing techniques. Hiring managers are a critical component to hiring new employees who will shape the success (or failure) of your organization. In many cases, these people lack the skills to assess candidates effectively, so instead they hire people who are like themselves, who may or may not be the fit. In fact, a recent survey asked HR professionals at medium-sized companies if the managers at their companies were strong interviewers. About half of them said no. There’s a definite advantage to helping hiring managers improve their interview skills. Since the interview plays such an integral role in the recruiting process, even small improvements can lead to big increases in effectiveness of the overall process. Formal interview skills training for hiring managers can pay huge dividends in reducing staff turnover and its associated costs.
  4. Develop and keep good employees.
    A recent survey from consulting firm Watson Wyatt showed that more than half of all companies have no employee retention strategy. Middle-market companies often struggle with employee retention, especially of their top performers. An improving economy may only exacerbate this problem. 

Lack of career advancement opportunities is one of the main reasons that desirable, high-potential employees leave a business. According to a recent LinkedIn “exit survey” of 7,350 members across five countries, the top reason workers left their jobs was because they wanted greater opportunities for advancement. 

That’s why it’s important that you offer employees a career path and a career development plan. Doing so not only demonstrates an organization’s commitment to developing its talent, it also allows employees to have a better sense of their opportunities within the company. Gaps in skills or experiences can be addressed by a career development plan, which lets employees know the organization wants to prepare them for the next step. As a result, employees don't feel that their careers are stalled with nowhere to go within the company, problems that are major drivers of turnover and low morale.

Even with smaller HR staffs, middle-market companies can still have the same talent management practices as larger organizations – and reduce recruitment and hiring costs – by partnering with a third-party provider like Hudson RPO. We’ll work within the existing HR management structure to deliver either a comprehensive HR solution managing the entire recruitment lifecycle or select services where the business needs it most.

In addition, with Hudson RPO, companies have access to a full suite of talent management services, including employer brand/employee value proposition development, interview skills training, candidate assessment and testing, and career development workshops. 

 
 
 

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Hudson is a global talent solutions company with expertise in leadership and specialized recruitment, recruitment process outsourcing, talent management and contracting solutions. We help our clients and candidates succeed by leveraging our expertise, deep industry and market knowledge, and proprietary assessment tools and techniques. Through relationships with millions of specialized professionals in 22 countries, we bring an unparalleled ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients. We combine broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve higher performance and outstanding results. More information is available at Hudson.com.