Maximizing the Valueof Your TalentNetwork –Next GenerationReferral ProgramsColorado Talent Recruitment NetworkDenver, ColoradoAugust 24, 2011

Presented by:Master Burnett, Managing DirectorDr. John Sullivan & Associates

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 2

THE GROWTH OF REFERRAL PROGRAMS

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 3

Widespread adoption

Source: CareerXroads Colloquium, 9/2010

Program formality

Formal,

Dedicate

d Budget/S

taff

Formal,

No Dedic

ated B

udget/Sta

ff

Info

rmal M

anaged

Ad-hoc, N

o Managem

ent0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

2006/2007 2006/2007 TP 2008/2009 2008/2009 TP 2010/2011*n=267 n=40 n=252 n=45 n=41

Source: DJS ERP Benchmark Study (Formerly AIRS/DJS)

External hires

2006/2007 2008/2009 2010/2011*20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

26.2%27.1%

28.3%

35.0%

41.1%

46.3%

Overall Sample Top Performing

Source: DJS ERP Benchmark Study (Formerly AIRS/DJS)

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 6

A faulty assumption…

69% of the time is actually looks like this…

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 7

Experts at using other people’s time (OPT)

The Percentage of Hires They Achieve

47% 62%

63%

56% 82%

78%49% 56% 57%45%

51% 71%

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 8

THE BUSINESS CASE

Candidate knowledge

Source: DJS ERP Participant Experience Study

Retention Rates

Performance Appraisal

Manager Satisfaction

Actual Performance

Promotion Rates

MBO Attainment

Bonus Compensation

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%

2010/2011* 2008/2009 TP 2008/2009 2006/2007 TP 2006/2007

Real QoH measurement is rare

Source: DJS ERP Benchmark Study (Formerly AIRS/DJS)

Measure Employee Referral Job Board Difference

Cost per Hire (CpH)1 $2,306 $1,671 +$635Offer Acceptance % 94.7% 78.4% +16.3%Voluntary Turnover < 1 Year 6.8% 22.1% -15.3%

Voluntary Turnover > 1 Year 5.2% 14.9% -9.7%

Involuntary Turnover < 1 Year 0.9% 4.3% -3.4%

Quality of Hire QoH2 4.21 3.47 +21.3%

ERP versus Job Boards

Source: DJS Private Client Study, 2008

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 12

Referral hire ratio

Top Performing ERP3:1

Average ERP10:1

All Sources18:1

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 13

Diversity (do your assumptions carry out)

Source: CareerXroads SOH, 3/2011

Employee Referrals

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 14

THE PRACTICES THAT MAKE THE DIFFERENCE

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 15

Going beyond the generic

• Recommended referral programs• Social referral programs• Partner referral programs• Executive referral programs• Internal referral programs

Referral is an approach that can be applied to accomplish many different goals

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 16

A clearly established goal/charter

• Why are you leveraging referrals?– OPT; Huge requisition loads, fragmented pools

• Who do you need to participate?– Who can/will influence?

• What do you need other’s to do?– Your needs versus their ad hoc actions

• What will it take to trigger/sustain action?– Experience!

Source: DJS ERP Participant Experience Study

Comfort with prioritization

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 18

An infrastructure to execute

• Dedicated management (needs fluctuate)• Dedicated resources (fast response,

expectations)• Transparent process (POLICY)• Program communications• Administration

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 19

When infrastructure fails (most often)

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 20

Program marketing

• Awareness is horrible (>21%)• Variable messaging (campaigns)• Variable channels (3+)• Exponential marketing model

– Group centric, sharable content• Keep it top of mind (recruiting culture)

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 21

Frequency of communication

37%

22%

13%

12%

7%

9%

OccaisionalNeverAnnuallyQuarterlyBi-AnnuallyMonthly

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 22

The social referral program

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 23

Exponential marketing

Create

Publish

ReuseShare

Measure

Modular contentExtensibleEasy to excerpt

MultimediaMulti-channelMulti-stakeholder

RepositoryManually postAuto-syndicate

PropagationCycle

ReachImpressionEngagement

Source: DJS ERP Participant Experience Study

Great ERP results rarely just happen!

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 25

Driver based rewards & recognition

• Understand the motivations– Not the money!– Non-Employee participants

• Make it time relevant– Campaign tied

• Reward desired activity– Referrals, leads, interviews, repeat activity, etc.

Source: DJS ERP Participant Experience Study

Understand the motivation

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

The money doesn’t matter

Source: DJS ERP Benchmark Study (Formerly AIRS/DJS), 2008/2009

Source: DJS ERP Participant Experience Study

Comfort with variable rewards

Maximizing the Value of Your Talent Network, ©2011 Master Burnett, @masterburnett 29

Questions and follow up

mburnett@drjohnsullivan.com or master.burnett@gmail.com

masterburnett

@masterburnett

master.burnett

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