If You’re Recruiting, Source of Hire Is Taking on Even More Importance

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Along with Quality of Hire, Source of Hire is starting to take center stage in the talent acquisition world.

The annual report tracking and analyzing Source of Hire from CareerXroads is out this week. Sources of Hire 2013: Perception is Reality contains truly interesting data – understandable and actionable. And the authors ask some really important questions about B2D (Big Bad Data) and how to measure the pre-application talent supply chain.

Early in the white paper, Gerry Crispin and Mark Mehler, the principals at CareerXroads, show the following chart of source of hire data from 1997 – collected by the Society for Human Resource Management and EMA (now part of SHRM).
sources-of-hire-1997

A sign of the changing times

Talk about a blast from the past! Newspaper ads generated the most hires at 28.7 percent of hires and Agencies – both contingent and executive search – generated 12.5 percent of hires.

My how the world has changed.

Here’s the 2012 data:2012-sources-of-hire1

Print has fallen from a combined (newspaper and trade journals) 32.9 percent down to 2.3 percent! “Internet” has grown from 2.1 percent (had Al Gore even invented the Internet in 1997?) to a combined (career site, job boards and social media) 44.4 percent!

Expectations for hiring on the rise

There is a lot in which to be interested in comparing these two charts, so have fun.

There nuggets of pure gold in this white paper. Two in particular stood out to me. The first is the expectation for increased hiring in 2013.

  • In 2012, respondents filled 8.6 percent fewer openings than the previous year (2011);
  • In 2013, respondents plan to fill 17.5 percent MORE openings than the previous year (2012).

If true, we’re about to see a whole lot of domestic hiring!

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The national hiring figures are trending slowly upward, but at the same time we read in the press that the implementation of the new health care rules is retarding hiring in the small business sector, the sector credited with being the job creation “engine.”

This will be interesting to watch. Will the need for growth overcome the risk and costs associated with that growth?

The second nugget is the reminder that the source of the majority of hires is the pool of existing employees.internal-movement-source-of-hire

Some good questions to ponder

The white paper accurately points out that internal movement and promotion are higher during difficult economic periods – and this is evident in the graph above. However, a steady increase in this category may also be due to the perception of a growing skills scarcity in the outside talent market.

Enjoy the white paper. And begin to ask yourself some of the questions posed by Gerry and Mark. Questions like…

  • How comfortable are you defending the 2013 plan for your budget, recruiters, technology tools, partners, vendors, training and your sources to your peers and colleagues?
  • How much should your 2013 recruiting strategy include improving your collection and analysis methods?
  • Are referrals the best source of hire?
  • What “Sources” interact with each other the most?
  • How can I collect Source of Hire data?

This originally appeared on China Gorman’s blog at ChinaGorman.com.

China Gorman is a successful global business executive in the competitive Human Capital Management (HCM) sector. She is a sought-after consultant, speaker and writer bringing the CEO perspective to the challenges of building cultures of humanity for top performance and innovation, and strengthening the business impact of Human Resources.

Well known for her tenure as CEO of the Great Place to Work Institute, COO and interim CEO of the Society for Human Resource Management (SHRM), and President of Lee Hecht Harrison, China works with HCM organizations all over the world to enhance their brands and their go-to-market strategies. Additionally, she serves on the Executive Committee of the Board of Jobs for America’s Graduates as well as the Advisory Boards of Elevated Careers, the Workforce Institute at Kronos, and WorldBlu. Addtionally, she chairs the Globoforce WorkHuman Advisory Board and the Universum North America Board. China is the author of the popular blog Data Point Tuesday, and is published and frequently quoted in media properties like Fortune, TLNT, Huffington Post, Inc., Fast Company, U.S. News & World Report and many others.

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2 Comments on “If You’re Recruiting, Source of Hire Is Taking on Even More Importance

  1. It’s always great to see the data Gerry and Mark share–so valuable. What I’d like to see change is source of hire to strategy of hire. What we should be doing is treating it like a recipe, adjusting the ingredients and seeing what the results are–what happens if we rely more on one social media channel than another? And if we rejigger the ingredients to our “hire strategy” what effect does it have? When we keep measuring a single source, we don’t accept the idea that single source is outdated. As Gerry and Mark suggest, social media is an influencer. So let’s measure it like marketers….!

  2. Great post, China! I broke into the HR profession in 1997. You know how I found that job? You guessed it…newspaper ad. I can still recall the days of scanning the Classified section, circling anything that looked like it could be a winner and then “dialing for dollars”. Wow…seems so archaic now.

    Thanks for sharing!

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