This is a thought leadership presentation delivered in a keynote address at the 2013 SourceCon event on Feb 7th. We discuss the concept of Sourcing Value & Impact through looking at: What is the role of a Sourcer; What does Good look like; What are the metrics that matter

1. Sourcing - Value & Impact
Strictly Confidential

2. What questions will we answer?
What is the role of a Sourcer?
What does good look like?
What are the metrics that matter?
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3. Perspective
Page 3

4. Talent Acquisition’s Top 3 Pain Points
Consistent Delivery
Page 4

5. Technology
Recruiters
Page 5

6. Channels
Technology
Recruiters
Page 6

7. Sourcers
Channels
Technology
Recruiters
Page 7

8. Sourcers
Channels
Technology
Recruiters
Page 8

9. Page 9

10. Increased # hires from Sourcing
Decreased Time to Fill
Increased Candidate Satisfaction
Market Mapping & Intelligence,
Lower candidate attraction cost
Sourcers
Channels
Technology
Recruiters
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11. Perception
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12. Perception
Hiring Manager
Wants resources, and thinks candidates
are lined up outside waiting for jobs
Recruiter Wants the visibility and control
Sourcer Wants acknowledgement and equality
Candidate Wants a job (& a good experience)
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13. Perceptions of Sourcing
 Sourcers don’t consult with
business leaders to bring
market insights, supply &
demand data, competitor EVP,
pay parody and assumptions
versus marketplace reality
 Sourcing is perceived by
stakeholders as largely, if not
completely, tactical
 Sourcing is often invisible…
Page 13

14. What is the role of a Sourcer?
Page 14

15. Sourcing Defined
Page 15

16. What do We Mean by Sourcing?
 External candidate focus
 Passive candidate identification
 Talent Pooling (build & manage)
 Specialist knowledge of industry and associated skills, nomenclature
and competition
 Possess tools and capability to locate & engage talent
 Sells the client brand & engages with candidates
 Builds and executes a Sourcing strategy
 Understand and contextualizes requisition and candidate’s job
qualifications
 Candidate Management – expectation management
 Brand champion – brand custodian
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17. Sourcing is Not
 Int Sched/ Admin  Responding to email
queries
 Not Dealing with Internal
Candidates  Preparing reports &
analysis
 Not Response mgt (job
posting or career site  Posting & Praying
responses)  “Faceless”
 No competency-based  Doing a recruiters admin
Interviews
 An optional resource
 Not Managing Agency
Candidates
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18. What does good look like?
Page 18

19. Recruitment Journey (Process) by Key
Tasks, Including Sourcing
0 2 4 6 8 10 12 14 16 18 20
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20. Who Should do What?
Sourcing Selection
Other
Research
Recruiter
Both
Sourcer
No One 0 2 4 6 8 10 12 14 16 18 20
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21. Task ownership by resource –
Specialist process
Sourcing Selection
What Good Looks Like
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
Company 7
Company 8
Company 9
Company 10
Company 11
Company 12
Company 13
Company 14
Company 15
Company 16
Company 17
Company 18
Company 19
Company 20
Map and compare Volume, Specialist & Internal processes
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22. What are the metrics that matter?
Page 22

23. Number of Requisitions Number of PositionsNumber of Key PositionsNumber of New RequisitionsNumber of Replacement RequisitionsNumber of
Open RequisitionsNumber of Open Aged Requisitions (0-30 days)Number of Open Aged Requisitions (30-60 days)Number of Open Aged
Requisitions (60-90 days)Number of Open Aged Requisitions (90-120 days)Number of Open Aged Requisitions (120+ days)Number of Open Aged
Requisitions (0-30 days) (%)Number of Open Aged Requisitions (30-60 days) (%)Number of Open Aged Requisitions (60-90 days) (%)Number of
Open Aged Requisitions (90-120 days) (%)Number of Open Aged Requisitions (120+ days) (%)Number of "On-hold" RequisitionsNumber of
Cancelled RequisitionsNumber of Pending RequisitionsNumber of Filled RequisitionsNumber of Remaining Positions to FillRequisitions-To-
Recruiter ratio (%)Number of RecruitersNumber of Offers ExtendedNumber of Offers AcceptedNumber of Offers Declined by CandidateDeclined
Offers Reasons Mix (%)Number of Offers Cancelled by Hiring CompanyNumber of Offers "On-hold" by Hiring CompanyInterview-to-Offer ratio
(%)Offers-to-Recruiter ratio (%)Offer Acceptance rate (%)Number of HiresNumber of "no-shows"Number of Pending HiresNumber of Pending
Hires (<1 month)Number of Pending Hires (1-2 months)Number of Pending Hires (3+ months)Number of Starters (Contingent)Number of Finishers
(Contingent)Number of Extensions (Contingent)Number of CandidatesNumber of Internal CandidatesNumber of External CandidatesNumber of
Contract Extensions (Contingent)Number of Activities Number of Applications Number of Sourcing & screening activities Number of HM (Hiring
Manager) review Number of First Interviews Number of Second Interviews Number of InterviewsNumber of Offers Requested Number of Offers
Extended (** included in Offers **) Number of Offers Accepted (** included in Offers **) Number of Hires (** included in Hires **)Applications-to-
Hiring Manager review ratio (%)HM review-to-First Interview ratio (%)First-to-Second Interview ratio (%)Second Interviews-to-Offers extended ratio
(%)Offer Requests-to-Offer Extended ratio (%)CV's-to-First Interviews ratio (%)First Interviews-to-Verbal Offer Accepted ratio (%)Candidates per
Hire ratio (%)Interviews per Hire ratio (%)Hires-to-Recruiter ratio (%)Source Mix of Candidates (%)Source Mix of Internal Candidates (%)Source
Metrics =
Mix of External Candidates (%)Source Mix of Agency Candidates (%)Source Mix of Hires(%)Number of ReferralsNumber of Sourced
CandidatesReferral Conversion Rate (%)Referral Rate (%)Volume Source MixDirect Mix (%)Sourcing Channel CostSourcing Channel Cost Mix
(%)Sourcing Channel UsageSourcing Channel-to-Hire ratio (%) Sourced Candidate Acceptance ratio (%)Sourcing Pipeline Average Agency
Costs/FeesAMS Costs/FeesRequisition CostCost-per-CandidateAverage Cost-per-HireCost on "empty seat"Total Hiring CostsCost per Candidate
per Recruitment StepRecruitment Expense BreakdownAverage Hire Starting SalaryContractor Salary (Contingent)Contractor Daily Rate
(Contingent)Fees billed against cancelled requisitionsApplication Cycle TimeRequisition Cycle timeTime-To-SourceTime-to-ShortlistTime-to-
ApproveTime-to-HireTime-to-OfferTime-to-StartTime-to-FillTime-to-First CSW ActionTime-to-accept (in working days)Time-to-accept (in calendar
days)Time-to-Last Position AcceptedContracted Time to StartTime-to-Offer ApprovedTime-Interview-to-OfferTime-Offer-to-AcceptTime-Offer-to-
ApproveTime-Offer-to-StartTime-to-First-CVTime-to-First-InterviewTime-to-First-Verbal-AcceptedTime-to-First-Verbal-OfferTime-Interview-to-
OfferTime Requisition on holdHiring Manager Satisfaction Survey Response Rate (%)Internal Candidate Satisfaction Survey Response Rate
(%)External Candidate Satisfaction Survey Response Rate (%)Hiring Manager Overall Satisfaction level (1-5 rating)Internal Candidate Overall
Satisfaction level (1-5 rating)External Candidate Overall Satisfaction level (1-5 rating)Employee Retention (%)> Employee Retention (at 3 months
service) (%)> Employee Retention (at 6 months service) (%)> Employee Retention (at 9 months service) (%)> Employee Retention (at 12 months
service) (%)> Employee Retention (at 24 months service) (%)Employee Promotion Rate (%)Number of Candidates: WomenNumber of
Candidates: MenNumber of Hires: WomanNumber of Hires: MenAverage Starting Salary: WomenAverage Starting Salary: MenNumber of Offers
Extended: WomenNumber of Offers Extended: MenNumber of Reports DeliveredNumber of Automated Delivered ReportsNumber of Partial
Automated Delivered ReportsNumber of Manual Delivered Reports% Manual Reports delivered% Automated Reports delivered% Partial
Automated Reports deliveredNumber of Ad-Hoc Reports DeliveredNumber of Report Changes RequiredNumber of Team Members producing
reportsAverage Report LoadingNumber of Complaints Received% Complaints ReceivedNumber of Reports Delivered within SLA (date defined
reports)Number of Simple Ad-hoc Reports Delivered (<1 day)Number of Complex Ad-hoc Reports Delivered (<3 days)Number of Highly Complex
Ad-hoc Reports Delivered (<5 days)% Number of Complaints (< 1%) Employee HeadcountEmployee Average Tenure in Company (in
years)Employee Average Tenure in Position (in years)Employee Average Tenure in Job (in years)Employee Average Tenure in Grade (in
years) Talent Group HeadcountTalent Group Headcount (%)Talent Headcound: WomenTalent Headcound: Women (%)Number fo Key
PositionsTalent Group ResignationsTalent Group Involuntary TerminationsTalent Achieving PromotionExpatriate TalentTalent "Ready for
International Assignement"Key Positions filledKey Positions filled (by identified Successors)Key Positions filled (by external
Candidates)SuccessorsSuccessors for Key PositionsSuccessors: Ready NowSuccessors: Ready in 1 yearSuccessors: Ready in 2+
yearsSuccessors for Key Positions: Ready NowSuccessors for Key Positions: Ready in 1 yearSuccessors for Key Positions: Ready in 2+
yearsTalent Gender DiversityTalent Average TenureTalent PromotionsTalent Demotions Learning & Development HoursLearning & Development
Hours (in-house hours)Learning & Development Hours (external hours)Learning & Development Hours per FTELearning & Development Hours (in-
Page 23 house hours) per FTELearning & Development Hours (external hours) per FTEEmployees attending at least 2 training daysNumber of
PromotionsNumber of Demotions Performance Rating Distribution (%)Mid-Year Performance Reviews Conducted (%)Year-End Performance
Reviews Conducted (%)

24. Cost Per Hire
 Cost-Per-Hire (CPH) is a measure of the effort
exerted, defined in financial terms, to staff an open position
in an organization.
 In February, 2012 the American National Standards
Institute (ANSI) in partnership SHRM defined COST-PER-
HIRE for several key hiring categories, Including
External, Internal and Contingent hires
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25. Sourcing: By the Numbers
Question:
Great salespeople — and great Sourcers — know their
conversion rates. At minimum, they know:
 % of suspects they are able to convert to become prospects;
 % of prospects they are able to convert to become candidates;
 % of candidates they are able to convert to being sent to hiring
managers;
 % of candidates sent to hiring managers receive offers; and,
 % of candidates who receive offers accept and become
employees
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26. Sourcing Funnel
Source: Mary
Parks. ERE
Page 26 Article

27. Know your conversion rates
Cold Calls:
N Qualified Candidates
Total Dials Total Call Backs (30%)
(33%)
10 3 1
100 30 10
200 60 20
300 90 30
Example: Cold Call conversion rates show
 A 30% call back rate &
 33% net of qualified candidates
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28. Other Important Metrics
Qualitative:
 Weekly submittals
Quantitative
 Percentage of
candidates
accepted
 Talent Pool health
 Hires (value)
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29. Value and Impact
Page 29

30. The Original Ulrich Model
HR Concept: Differentiates between transactional and
transformational. Emphasizes understanding the business
agenda and how your skills can help deliver it.
Process People
Strategic
3 4 Where do you
spend your time?
Transactional
1 2
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31. Transactional vs.
Transformational Sourcing
Process People
Every role is
Strategic
Strategic Expert: Change Agent: necessary but –
Adept with tools Finds and
Which person has
and techniques engages talent
the most direct
hires?
Who has the most
Transactional
Admin Expert: impact?
Completes Champion:
Strong Who is perceived
tasks as adding the most
efficiently relationships
value?
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32. Impact
Process People
Strategic Expert Change Agent
No real
Strategic
surprises here.
How do we
Admin Expert Champion make it happen?
Transactional
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33. Ulrich Model and Sourcing
Strategic Expert Change Agent
 Identify and find sourcing tools  Build and execute strategy
 Find passive candidates  Engage candidates
 Know your industry  Personify the brand
 Know the skills you source  Expert candidate matching
 Gathers & Communicates
market insight
 Manages talent pool data –  Communicate honestly and
Everything’s complete and manage expectations
correct  Makes talent pool feel like a
talent community
Admin Expert Champion
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34. Value of Sourcing
*channels: ROI by region, skill, industry, geography, device
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35. Channel Effectiveness: Media
Page 35

36. Channel Mix Comparison
Both companies use the same media but their channel mix is very different
Agency Job Board Careers Site Internal Referral Other Talent Pool
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37. Levers to Improve Performance
Set target to improve weekly output
Example
 20+ 7+17= avg of 14.6 Submittals Per Week (SPW)
 16+18+17= avg. 17.0 SPW [=120 MORE subs per year!]
Must be measured in the context of “quality” [target +/- 85% Recruiter acceptance]
 If you work as part of a team, set a weekly team goal for
submittals and have the team members flex to meet the goal
each week; regardless of difficult requisitions or team
members on sick leave or vacation
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38. Levers to Improve Performance
 Really “know” the EVP of the company you
represent (and your competitors)
 Know the competitive landscape of your
industry; leverage the strong points and
compensate for the weaker points
 Master the art of Engagement!!!
 Drastically improve your candidate conversion rate
 Drastically improve your networking Referrals
 Build your pipeline
 Increase your sector & domain knowledge
 Remember: Consistently good wins!!!!
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39. Levers to Improve Quality
Understand ―what good looks like‖ in your
environment
Be present & take the lead in the Hiring Manager
requisition briefing, and bring insight and data
Improve your sector domain knowledge
Work in partnership with your Recruiting counterparts
and as strategic advisors to your stakeholders
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40. Levers to Control Cost
 HAVE A PLAN!
 Use a structured project plan for the roles you source and
follow it
 Track and measure the ROI on the channels you use
 Impact the candidate experience (and measure it in
surveys)
 **Capture relevant information from prospects and
candidates (what’s going on out there? Who’s hiring? What
is the competition paying? Why are/aren’t you interested in
working here? What would need to change for you to
become interested?
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41. Dos and Don’ts
Do Don’t
 Have a plan  Hide behind technology &
email
 Pick up the phone and connect
with people  Waste time and money on
channels that don’t perform
 Change mind-set from one of
“finding” to “engaging”  Waste your time
 Leverage market insights to  Act passively
bring value to the conversations  Be invisible
with stakeholders
 Be lame
 Know the value you bring to the
business
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42. Final thoughts….
 Through the “glitz” of toys and
tricks, we may have hidden the
meaning and purpose of Sourcing
 If Sourcing (and Sourcers) are so
good, why are there still recruiting
agencies [and new ones every
day]?
 We need to get back to basics
 We, as a Sourcing
community, need to ask “what can
we do”?
Page 42  What can be outsourced will be

43. Thank You
Adam Lawrence
Adam.lawrence@alexmann.com