As the founder and CTO of PhillyTech, I’ve been involved in technology and consulting for 20 years. The biggest, most consistent challenge I’ve heard from founders, CTOs, CIOs, and VPs of Engineering and Development is hiring the right talent for their organization.
People are the most important asset in your organization. According to research by the Human Capital Management Institute, people make up 70% of an organization’s operational expenses. A bad hire who makes $100,000 a year costs an organization $250,000.
According to the Harvard Business Review, up to 80% of employee turnover is due to a poor hiring decision by management. It’s clear that hiring the right person doesn’t just affect company culture – it affects the bottom line in a big way.
Companies understand that in order solve these challenges they need to prioritize the quality of their hires. The ideal hire needs to excel in the position, and also remain with the company for a few years. New hires also need to blend into the company culture and grow within the organization.
I created Recruiting as a Service (RaaS) to help organizations transform the hiring process, reduce employee turnover by 25-50%, and improve employee satisfaction. Employee turnover will always be a major challenge for businesses, but by using a framework like RaaS you can increase your chances of hiring the right candidate with staying power.
Recruiting as a Service (RaaS): People, Process, Technology
If your organization is having challenges with employee turnover and satisfaction there is a strong chance that you have issues in one or all of these areas. They should be assessed individually as well as in tandem when evaluating your organization.
People refers to your company culture, the leadership within your organization, and the beliefs and behaviors that determine how your employees and management interact and work with each other. In order to determine if a new hire will succeed within your organization, you must define important beliefs and behaviors, and, if necessary, prioritize improvement in these areas.
For example, one of my clients told me that his company was experiencing 70% turnover of new sales executives joining their organization. This is a very large number, so I became determined to figure out why this was happening. All I had to do was go into Glassdoor and I quickly learned that their sales leadership was demanding sales techniques from twenty years ago that involved cold canvassing business parks. No wonder new sales executives were quickly disheartened and leaving the company in droves. It was clear that management wasn’t focused on their people and the requirements of their younger Millennial workforce.
Process refers to an organization’s specific model of candidate sourcing for the purpose of finding, recruiting, and hiring new employees. Typically, the ownership of this process resides either in Human Resources, if the organization is larger; or the CTO, Head Engineering, Development, or a combination of of these roles.
In my experience, I see many challenges in process within my clients. They typically don’t have a recruiting process in place and the biggest issue is actual recruiting is not happening. Companies stress the value of finding A-level talent, but don’t have the processes in place to attract these types of passive candidates.
Attracting top talent often means attracting and recruiting candidates who are currently employed and luring them away to a new position; however, companies must have processes in place that allow them to do this. Companies can do this themselves or hire a third-party consulting firm like PhillyTech.
Most organizations think that posting to a job board and waiting for candidates to roll in is recruiting. It’s not. This is simply sourcing candidates who are actively looking for a job – but these might not be the best candidates for your company.
The technology engine and software is the glue that bonds together People and Process. Technology makes the entire hiring process work more effectively. If you have challenges with People or Process within your organization, of course, no technology or software platform will solve it. Moreover, you might have solid People and Process, but if you lack technology and software that is an enabler for People and Process you will also fall short within the highly competitive hiring landscape.
Recruiting as a Service (RaaS)
RaaS considers three pillars: People, Process, and Technology. The engine or glue that makes RaaS work effectively is technology and software. The two key components to RaaS are your Application Tracking System (ATS) and your Marketing Intelligence (MI).
Applicant Tracking System (ATS)
The ATS is the single source of truth for hiring within your organization. People and Processes are wrapped around the ATS in order to make the engine run efficiently. I recommend and deliver SmartRecruiters as an ATS for my clients, but I’ve also worked with Bullhorn, Taleo, Greenhouse, Newton, Jobscore, Jobvite, Workable and SuccessFactors, iCims, and others. Any ATS you use needs to be paired with a screening process of candidates based on job requirements and the company culture.
Marketing Intelligence (MI)
Most clients have an ATS but lack the marketing intelligence to target passive candidates as part of their hiring processes. I recommend and deliver DiscoverOrg as a market intelligence solution for my clients. I’ve found that they are the only software platform in the market that consistently delivers new, actionable data that allows my clients to get a competitive advantage in recruiting and hiring talent.
Recruiters, see why DiscoverOrg fills the perfect passive recruiting pipeline.
Building a process for success
Once you have an ATS and MI solution in place, it becomes critical to build a process around this software and technology engine so your People can drive success in hiring. Here are the key components to this process.
Clear job requirements
Writing a great job requirement is an art and science. You need to blend in your company culture, PR, marketing, sales, technical, and creative writing to distinguish your job requirement – and include a specific, direct web link to share from all other jobs similar to yours.
I feel that the industry needs to understand the importance of having a web link for their job requirement, combined with an MI Solution and social sharing. In my experience, these are some of the missing links to hiring success. Recruiters can then send the job-specific link to top passive candidates via email or social media.
Post your job to all the major job boards, just like everyone else … but also hyper-target passive candidates using a data profile of your ideal candidate. Use your MI Solution to target these candidates through email, LinkedIn, Twitter, and Facebook, and also target communities of interest where candidates are located.
Evaluate resumes submitted to the ATS, screen candidates, and walk them through your process for interviewing. Present candidates with a compensation plan and benefits program that are in line or better than the competition. (You’re luring them away, after all.) At PhillyTech, we work with our clients to educate them on the types of salaries and benefits that candidates should expect to receive.
Finally, close the loop by soliciting feedback from the person you hired. Ask them about the process they went through during their first week, and after month one and month three. Their feedback can help consistently improve all aspects of People, Process and the Technology engine.
Michael Bertoni is the Founder and CTO of PhillyTech and has been providing consulting services to software companies, tech startups, medtech, healthtech and Fortune 1000 organizations for over 18 years. PhillyTech’s core consulting services competencies include:
- Engineering / development staffing & recruiting
- Website, app & software development
- Business development & lead generation
- Project management & business analysis
- Clinical trial & medical device services
Learn more about how PhillyTech can help your business, and get five free hours of consulting, including an initial consultation, assessment, solution proposal and review.