Generation Y: Taking Over the Workforce
Generation Y is starting to enter the workforce and there are a lot of them. In fact, there are more than 80 million, which is bigger than the Baby Boomers generation (Gronbach)! But what is Generation Y? They were born between 1985 and 2005, are very green, humanitarians, and do not see color.
Generation Y is flooding the labor market and may face 50% unemployment (Gronbach). This high unemployment rate will force many in this generation to create small businesses to make up for the lack of jobs. Many of the Baby Boomers are starting to retire, leaving many technical positions open. To fill these in demand jobs, Generation Y males are increasingly going to technical schools, hoping to find a high paying position. You can also expect more women to be leading and running companies. Right now, women outnumber men in college at a 60/40 ratio (Gronbach).
Gronbach, Kenneth. “The Age Curve.” CEO Council of Tampa Bay. Tampa, FL. 10 March 2011. Lecture.
Employment Varies State by State
It is common knowledge that the job market is difficult in these tough economic times. The Obama administration has been working hard to find ways to create new jobs for the unemployed. The efforts to increase jobs have been very effective in some states, while other states are finding it difficult to increase jobs.
The Bureau of Labor Statistics recently released a report containing state-by-state employment figures from January 2010 to January 2011. Texas topped the list, adding 253,900 jobs. Coming in behind Texas is California, which added a total of 89,400 jobs. Other states that added over 50,000 jobs are Pennsylvania, Michigan, Illinois, Ohio, and New York.
While some states are seeing big increases in jobs, others are actually seeing a decline in jobs between January 2010 and January 2011. New Jersey lost 20,900 jobs, the most out of any state. Coming in behind New Jersey, Nevada lost a total of 7,800 jobs. Other states that had a decline in jobs are Georgia, Arizona, Kansas, New Mexico, Alabama, and Rhode Island.
Thomas, Scott. “State employment totals (January 2011).” Buffalo
Business First (2011): n. pag. Web. 14 Mar 2011. <http://www.bizjournals.com/buffalo/datacenter/state-employment-totals-january-2011.html?appSession=616100782312532&RecordID=&PageID=2&PrevPageID=&cpipage=4&CPISortType=&CPIorderBy=>.
Engaging Employees is Key to Retention and Results
Is it becoming harder to find employees who are engaged and loyal to your company? If you answered yes, you are not alone. 80% of employers say that it is difficult to attract talent. Businesses want employees with the skills and experience to do the job correctly, but 57% of employers say that those employees are the hardest to attract. Compromising on the quality of new hires comes at a high cost; 51% of employers experienced a loss of business due to the lack of the right people.
The UNIVERSUM Employment Branding Insights 2011 survey shows that 64% of the 632 companies included in the survey say that their key employees leave to pursue new professional opportunities. The top performers are looking for greater challenges and opportunities or more money. The high turnover rate requires companies to spend more time and resources looking for qualified potential employees then ever before. Many companies are turning to outside firms, like Hire Velocity, to help with the recruiting cycle. These resource process outsourcing (RPO) firms are able to find qualified, available, and interested candidates fast using the trained recruiters and specialized tools.
This has not always been the case. Past generations have typically had the mindset that they will stay at the same company for their entire career, moving up the ladder to better positions. Generation Y has a different mindset and companies can no longer rely on people to stay with an employer for their whole career. It is difficult for employers to keep their most talented employees while other opportunities open up for them. Generation Y is slowly dominating the workforce with 74% of employers looking to hire talent who have recently graduated from college or have 8 or less years of experience. This is making it difficult for senior professionals, people with more than 8 years of experience, to find work as only 18% of the employers surveyed are looking to hire them.
The future is not hopeless; employers agree that a long-term employer branding strategy leads to better recruiting results. Creating and implementing a long-term employer branding strategy will improve the company’s ability to attract and retain the right talent. The positive sign of this survey is that 82% of employers are now investing in talent attraction which excludes direct recruitment, but includes employer branding and communicators. Many of these employers believe that developing brand awareness and esteem are the solution to this growing problem.
Research and Recruiting
Filed under: Recruiting, Recruiting Update, Services
Recruiting quality talent requires a great deal of research. Unfortunately, finding the right person for the job is not as easy as picking a random resume from a pile and giving the person a job. Performing these research tasks take time and effort, especially when you are targeting specific competitive companies to source from. When researching candidates from competitive companies, there are two services that Hire Velocity offers.
Name Generation is the first option offered by Hire Velocity. With Name Generation you specify competitive companies that you think will have the talent you are looking for. Upon getting this information we immediately begin researching to find candidates that meet the required job specifications. Hire Velocity uses a wide variety of search tools including job boards, social media, cold calling, and our proprietary tools. Leveraging our search tools, we identify the names, phone numbers, and emails of qualified candidates. The final product is a list of qualified candidates from the competitive companies you specified.
In addition to Name Generation, Hire Velocity also offers Talent Mapping. Similar to Name Generation, we research candidates that meet the required job specifications in competitive companies that you specify. Again, we use our search tools to identify the names, phone numbers, and emails of qualified candidates. Talent Mapping takes Name Generation to the next level and maps these names into the company’s hierarchy. This service can be extremely useful to visually see the hierarchy of the candidates. This service entails an even heavier load of cold calling and research to map names, but the results can be quite valuable to your recruiting efforts.
Active Sourcing and Screening
Filed under: Recruiting, Recruiting Tools, Services
What is it?
Active sourcing and screening is a sourcing strategy that Hire Velocity uses to find qualified, available, and interested candidates. Hire Velocity uses several different techniques to find a wide array of candidates that best fit your position’s description. We have access to over 200 job boards and have content partnerships in place with over 5,000 job-oriented websites. This gives us access to a large pool of candidates actively looking for a job. We also utilize social media such as Facebook, Twitter, LinkedIn, and blogs to find candidates that have the skills needed for our client’s positions. For an even more thorough search, we use our proprietary sourcing tools and our client’s application tracking system to search through resumes and find qualified candidates.
Upon identifying qualified candidates from our extensive searching techniques, we will telephone screen each candidate to assess his or her skills, education, and experience. The result is a list of qualified, available, and interested candidates for your open job positions.
How is it used?
Active sourcing and screening is used to find qualified, available, and interested candidates for positions that our client’s would like to fill.
Why would an organization use it?
It can be time consuming and expensive to source and screen a big pool of candidates and narrow it down to only the qualified, available, and interested ones. Hire Velocity has the resources and experience to be able to efficiently find candidates that meet our client’s specific needs and wants. Active sourcing and screening can save you time and money by driving down your recruiting costs by as much as 50%. We believe in speed and quality and pride ourselves on the ability to deliver quality candidates fast at a reasonable price.
Cost Per Hire
While calculating cost per hire (CPH) is not an exact science, it can be a valuable instrument that gives insight into the cost of the hiring process for various positions and do some comparisons. Cost per hire can also allow companies to evaluate how effective they are with various sourcing strategies in the hiring process. However to be most effective, a company should look at all of the factors that contribute to the cost per hire.
Many contributing factors have to be considered when calculating the cost per hire of an internal recruiting team. The first factor is the recruiter who is a fixed cost since he or she is an employee of the company. Then hardware related costs have to be added in such as the computers and the telephones. Expenses to get the word out about open positions like job fairs, job boards, referral bonuses, and the applicant tracking system will also need to be added into the cost per hire calculation. Finally add in training, on-boarding, and turnover costs. Once all those costs are added up, the total cost per hire can be determined. This total cost per hire is essentially the same whether a company is hiring an inexpensive person or an expensive person because it is the same person doing the recruiting. When recruiting internally, it is also important to remember that the recruiter is a fixed capacity so he or she cannot handle any surges in hiring.
The alternative to recruiting internally is using a recruiting agency for hiring needs. The cost per hire with a recruiting agency should encompass most of the items that are calculated into the cost per hire of using an internal recruiter
One option is using a contingency firm, who gets paid only when someone is placed into a position. Contingency firms typically charge 15- 30% of salary. This means if a company is hiring an employee who will be paid $50,000 a year, the contingency firm will charge between $7,500 and $15,000 per hire. This can be a very hefty fee. The other option is to utilize a recruitment process outsourcing (RPO) firm. An RPO allows companies to outsource a part of the recruitment process or the entire recruiting function. RPO’s typically result in a cost per hire of 5 – 10% of salary compared to the 15 – 30% that a contingency firm charges. Using the same $50,000 salary as before, an RPO would typically result in a cost per hire of $2,500 to $5,000. Even by comparing the lowest CPH for a contingency firm with the highest price for an RPO, there is a minimum savings of $2,500 over a contingency firm.
When a company is faced with any level of volume hiring, the savings to the firm with an RPO exponentially increase. This is one of the areas where real value is delivered. Think of the cost savings of using an RPO versus a contingency firm to hire, for example, five sales personnel with $50,000 salary. This could be a savings of $7,500 to $50,000!
Utilizing an RPO such as Hire Velocity, a company can achieve a more cost effective cost per hire while delivering flexibility and scalability in meeting hiring needs…especially in this market when many internal recruiting teams are at their smallest size. Additionally, the RPO helps the company avoid any of the fixed cost elements of the Cost per Hire calculation.
Related Posts:
Follow Us!
