Latest Trends in Recruitment and Selection Andre O’Callaghan July 2011

Trends in SA Between : Less than 10% of school leavers wrote HG maths - of these only 50-60% passed 7% of all schools provide 90% of all engineering graduates 1/3 of all school leavers pursuing technical / natural sciences are PDI’s (well into 21st century majority of accountants, engineers and scientists will not be African)

Trends in SA Unemployment – 1997 to 2009

Trends in SA Employment by sector – 1998 & 2008

Recruiting gets a whole lot easier when you have a reputation for being a great place to work. Joanna Meiseles Recruitment – the elusive art of securing the perfect ‘fit’ between company and individuals. Is it possible? Introduction

Why should we appoint you? What are your key strengths and weaknesses? What do you have what we need? Does this sound familiar?

Attraction Ability Brand and image management Talent retention Value-add Cost Inherent factors to recruitment

Trends to watch in 2011 Older workforce Alternatives to Facebook

E-recruitment Social Networking Temporary staff Recruitment Outsourcing (RPO) SA Labour Market Risk Management Trends in recruitment

Trends in E-recruitment Findings of a SA survey with 144 students (average age of 18 years), and 60% female and 40% male: Digital platforms are the choice for communication (Facebook and BBM) continues to lose its effectiveness as a communication vehicle with this generation. Google is losing search market share to Facebook (50% of Gen Y chooses to use Facebook as a search engine over Google)

Trends in E-recruitment MXit is used less than one hour a day Facebook gets used up to five hours per day The Gen Y prefer  The internet over magazines  Their cell phone over the internet and  Tertiary education over their cell phone.

87% uses a HRIS 51% use technology in recruitment 75% use e-recruitment 94% of the global 500 use corporate websites and online applications Trends in E-recruitment

E-recruitment in SA Social Networks – Urban African Youth (1992 & 2000)

E-recruitment in SA Social Networks – Urban African Youth (1992 & 2000) Implications  SA African Youth – increasingly disassociated from social organisations  According to Stats SA (2005) only 10% of the age group use networks to find a job

The Internet is growing - 7 in 10 job seekers use it to search for jobs (Career Junction leads this space, followed by Careers24) Social media platforms were measured for the first time this year and results indicated that 17% of respondents have used it to look for a job 80% of job applicants say they don’t mind applying for jobs online, while two thirds prefer responding to job ads by means of – a significant increase from 50% in 2009 E-recruitment in SA

Nearly three quarters of respondents (3100) have loaded their CV’s onto a database with the hope of being contacted for an interview, of which more than half have been approached by prospective employers. 1.6 million job seekers on Career Junction (Feb 2011) Recruitment pages in newspapers are still the most popular resource (82%) - The Sunday Times Careers supplement continuing to dominate ( The Skills Portal, June 2011) E-recruitment in SA

Online job seekers and on-line advertisers - SA Career Junction – 27 Feb 2011

Reducing costs Automated processes – thus increase hiring speed (turnaround time) Widen the selection pool – Greater geographical reach Brand-building (enhanced corporate image) E-recruitment drivers

Standardisation – comparison of CV’s Streamline administration Speaks to younger generations Better co-ordination E-recruitment drivers

Access to vacancies 24/7 Reaches a global audience Cost effective way to build a talent bank Can handle high volumes Provide more tailored information to the post and organisation Ease of use for candidates Applications are instantaneous. E-recruitment advantages

Limit the applicant audience Cause applications overload or inappropriate applications Limit the attraction of certain groups Can be seen as discriminatory Is impersonal Can ‘Turn-off’ candidates Limited information and not user-frien dly E-recruitment disadvantages

Recruitment for the different generations Generation Traditionalists ( ) Baby Boomers ( ) Gen X ( ) Gen Y (1980+) Attitudes &Values Loyalty, Dedication, Sacrifice, Honour, Compliance & hard work Personal Growth, Youthfulness, Equality, Ambition, Collaboration Independence, Pragmatism, Results, Flexibility & Adaptability Confidence, Optimism, Social Awareness, Innovation, Diversity, Technology GoalsTo build a legacyTo put their stamp on things To be independent in all areas To find work & create a meaningful life

Recruitment for the different generations Generation Traditionalists ( ) Baby Boomers ( ) Gen X ( ) Gen Y (1980+) Recruitment Expectations Recruitment to be formal and traditional. Employer-driven negotiations Company to have a reputation/ stability In-person, relationship building recruitment Balanced negotiations Company to have strong leaders and a growth strategy On-site tours, meetings with potential colleagues Open, employee driven negotiations Company to have career opportunities, learning and development options Review of the company’s reputation Valued employee-driven negotiations Company to be socially responsible, diverse and creative

Facebook 500 million users (1 in every 13 people on the planet) 250 million people interact with Facebook from outside the official website on a monthly basis, across 2 million websites 200 million users connect via their cell phones to Facebook The 35+ demographic is growing rapidly, now with over 30% of the entire Facebook user base. The core year old segment is now growing the fastest at 74% year on year Social networking – X & Y generation

LinkedIn 102 million registered members 68% are over 35 Over 150 industries represented Social networking – X & Y generation

RPO – or Recruitment Process Outsourcing: The outsourcing of part, or all of its recruitment activities to a service provider Resource process outsourcing

Benefits RPO reduces recruitment costs - companies can save on agency fees, advertising fees, employee referral fees, travel expenses, etc. RPO can help the HR team to focus on their core activities. RPO is both time-saving and effective because the full scope of recruiting tasks is taken care of by an external dedicated agency Resource process outsourcing

South African labour market Risk Management (facts – Feb 2011) 6-20% = criminal records 18% = some financial record 18% = False Grade 12 qualifications 26% = False academic qualifications 16% = unverified driver's licences

Pre-employment screening Other tools Financial background checks ID verification Driver's licence verification

Factors impacting recruitment External Labour market conditions Government policy and legislation Trade unions Scarcity of skills and the brain drain

Factors impacting recruitment Internal Business/Corporate Strategy Organisational recruitment policy Recruitment criteria Costs Sources

3 possible scenarios 1. Labour demand exceeds supply 2. Labour supply exceeds demand 3. Labour demand equals supply

SA supply & demand (CJI) 2011

Recruitment versus selection Recruitment The process of searching for the candidates and stimulate them to apply The purpose is to create a talent pool of candidates Recruitment is a positive process

Recruitment versus selection Selection This is about screening and to find the most suitable persons for vacant posts The purpose is to choose the right candidate Selection is a negative process

Process to identify job scope and competencies Job analysis and role profiling determine the following: Job content Standards/outputs Minimum requirements Competencies required

Changes Internal and external Job ProfilingJob Description Job Job Grading Initiate Recruitment Job Analysis

Job analysis process example Skills Analytical English verbal and written communication Problem-solving Negotiation Behaviours / Attributes Decisiveness Handling stress Persistence Flexibility Knowledge GAAP Labour Law Budgeting process Accounting principles and tax regime

Advertising the job – AIDA principle A= Attention I = Interest D= Desire A= Action

The recruitment process MANPOWER PROVISIONING - A “Good Practice” Model Manpower Provisioning Needs Identification Retention Job Analysis Approvals & Budgeting RECRUITMENT Job Analysis Job Spec ManSpecifications Per position Job Grading Approval Requisition Source of supply(Internal/External) Advertise Pre-Selection and Shortlisting Selection and Decision Job Offer Appointment Annually Reviewed Monthly

The recruitment process Identify vacancy Prepare job description and person specification Advertising the vacancy Managing the response Short-listing Arrange interviews Conducting interview and decision-making

Pre-selection Telephone screening Paper screening Short listing

Questioning technique Behaviour-based interviewing KPA Outputs/Objectives Standards/Measures Activities Competencies Behaviour-based questions

Use the following approach: Position your question in a specific situation or task Ask the applicant what actions he or she took (what was done and how?) What results were achieved (effect of action) S T A R

Useful questions Rapport-building questions Open-ended questions Non-Question questions Use ‘soft’ words

SMME Recruitment challenges Absence of a professional HR resource SMME’s are used as a stepping stone The manager/owner fulfils a more diverse role that their corporate counterparts Recruitment is often informal, unstructured and reactive SMME’s need to compete for skills in a competitive environment

Internal vs. external recruitment Advantages internal recruitmentDisadvantages: Motivating for performance Promotion opportunities Assessment of potential Inspires morale and loyalty Inbreeding/no innovation Politics, infighting Need a strong management and leadership development Advantages external recruitmentDisadvantages New insights and ideas Existing hierarchy remains intact Diversity New energy Loss of time – to adjust Current staff do not apply “Fit” is sometimes an issue Costs

Assessments in recruitment SA Legislation (Section 8 of the EE Act) Any psychometric assessments must be valid, reliable and fair towards all employees and people Assessments must be validated for all cultures, situations and groups in SA Most tests are controlled by the Health Professions Council of SA (HPCSA) All test administrators must be registered as a psycho- technician, psychometrist or psychologist.

Assessments in recruitment Typical assessment tools: Cognitive Assessments Aptitude Assessments Personality Tests Interest Questionnaires

Questions and Answers

Fasset Call Centre