In search of that perfect…fit

Hiring the right people for jobs and then encouraging them to stay is no small ask for employers. Patricia Moore reviews the recruitment market, the options and the rules of engagement.

Reports from the recruitment front have been somewhat confusing. Recruitment agencies are reporting an upturn in hiring and a raft of increasingly rosy reports indicating businesses are planning to increase staff numbers. Statistics New Zealand’s latest labour cost index shows an overall rise in wages of 0.4 percent for the June quarter and the quarterly employment survey showed an increase of 4.6 percent for the year in total gross earnings.
Paradoxically the July National Bank confidence survey showed hiring intentions were softening and the rise in the OCR at the end of July was seen in some quarters as putting a damper on hiring for the next few months.
Gay Barton, general manager at Drake International, says they’re seeing an increase in hiring among their clients, with those who previously had headcount freezes in place looking for new employees. However, they’re yet to see recovery extend to pre-recession buoyancy, she says. Candidate supply is also increasing although Barton says it’s not at full participation. “But productivity is high as the employers who downsized needed their remaining employees to take on extra duties.”
The first ‘Great New Zealand Employment Survey’ completed in May by Clarian Human Resources, also showed recruitment requirements are on the rise, says general manager Clare Parkes. “75 percent of respondents are currently in the process of recruiting, and the positive news continues with 61.4 percent of these positions to either fill newly identified roles or for new recruits as the business is growing.”
Simon Oldham, at QJumpers, a predominantly online recruitment service, says his research shows job numbers haven’t rebounded quite as much as reports suggest. In 2007, SEEK had over 22,000 job listings a month and TrademeJobs around 10,000. He says at the end of July this year SEEK had 12,823 vacancies listed and TrademeJobs 7,510. “And it’s worth noting that the ACNielsen statistics for job sites show record numbers of job seekers visiting sites.” Figures for May show 952,517 unique visitors to SEEK and 793,737 to TrademeJobs.
“Those are staggering numbers when you consider that in September 2007, in the middle of the job market boom, SEEK was congratulating itself on having more than 35,000 unique visitors.”
Low job vacancy numbers, high job site views and increasing candidate frustration have meant a high number of applicants for most industries, says Oldham. “Our average number of applicants per job vacancy, across all regions and industries, is now over 46. In 2006 this number was 14.”

More options for employers
For employers who are ready to recruit, the business of hiring has probably never offered a greater range of options. You can do it yourself (at your peril some would suggest), work with a professional recruitment company, or join the rush online, either through your company website or via job board. Then there are social networks, an area that is attracting a growing number of employers and candidates (see sidebar).
Oldham’s job board figures are backed by the findings of Clarian’s survey, which showed the vast percentage of both employers and employees using the Internet. So forget suggestions that baby-boomer employers (aged 45+) may not feel comfortable going online. Clarian HR’s Clare Parkes says Internet sites were the ‘most favoured’ means for baby-boomer employers, with 53 percent of survey respondents stating this was what they do. 22.7 percent used their own corporate websites, 30.4 percent recruitment agencies and 32.6 percent used press advertising.
Clients are getting results online, says Oldham, who has a heap of success stories, including, “a warehouse manager role that hadn’t attracted the right candidate through traditional advertising was delivered 33 online applicants, and we had 45 quality applicants for a website developer, generally a difficult role to fill.” He says online also offers ‘fantastic’ opportunities for employers who can’t find local talent. “With the number of applicants so high, many are willing to relocate. These people will not be reading the local papers but will search the Internet.”
Figures indicate there may be more tyre-kickers than actual candidates about and there are still skill shortages across many sectors – the Clarian survey highlighted managers/professionals and technical skills as areas of concern.
And, while generational differences are obviously a consideration, in order to both retain and attract good people employers need to understand what motivates today’s employee.
The opportunity for professional growth and development is a key factor, says Barton. Reward and recognition, a work/life balance, variety within a role, social interaction, responsibility and input complete the list. What employers are actually offering depends largely on the seniority of the role and the skill level required, she says.
Parkes says, while their employment survey didn’t go into the issue of incentives, remuneration (which covers incentives) is an ongoing bone of contention between employees and employers. “Over 60 percent of employers strongly agree people are attracted to their organisation because it offers a great benefits package, whereas only 17.9 percent of employees would remain at their existing organisation because of the benefits package.”
She says more than 45 percent of employees say better remuneration and rewards would be an attractive reason to go to another organisation.
The impact of workforce generational differences was highlighted in a white paper on the subject published by Drake in 2006. Barton says at the time it caused a lot of debate. “Fast forward four years and I believe employers are aware, and if possible, have shaped their hiring and HR processes for each demographic. If they’ve put some strategy behind their employment brand, and if their budgets were approved to execute that strategy, those companies should be well positioned today.”

Rules of engagement
Employee engagement is more than just an example of ‘corporate speak’. It’s an indication of the level of ‘connectedness’ a person feels towards their organisation, says Leighton Abbot, senior consultant at JRA (NZ) Ltd, specialists in stakeholder surveys and analysis. “Ultimately the engaged employee is one who goes that extra mile for the business,” Engaged employees feel valued and have a sense of personal achievement, he says.
But can engagement be guaranteed? And does a ‘well done’ in the staff newsletter cut it? Abbot says their research has shown this is most effective when it’s consistent and when employees feel it’s genuine.
So what about extra dollars at the end of a project? Using bonuses as a tool for recognising good performance, can have different effects in different organisations, he says. “A different thought process occurs for people when a bonus is given and expectations can be set for the behaviour required to receive them in future. Then, if they aren’t forthcoming people will notice and scale back their efforts. While people like more money it doesn’t necessarily drive them to do a better job.”
Abbott believes small businesses are often in a great position to offer employees a real sense of achievement because staff find themselves handling a variety of tasks through necessity. In addition there’s a much shorter distance between the job and any impact it can have on customer satisfaction, income and profit, he says. “Each person can see the effect they have on the successful running of the business.”
Business owners in smaller enterprises are also in a better position to personally recognise the efforts of individuals, says Abbott.

Personality pluses
“Hiring people is a difficult and onerous task and managers hate it,” says Rob McKay of AssessSystems, organisational psychologists. It’s time consuming, and costly, he says. And the interview, the most used tool in the selection process, unless properly structured and conducted by at least two people, is probably the least valid and most dangerous tool you can use, he says.
McKay’s study of the hiring process – and the best way to avoid a hiring horror – has made him a firm believer in the importance of psychometric assessment when hiring. “Forget that ‘I can read-em when I see-em’ attitude,” he says. “Nobody can read other people. But that’s what happens in the selection process. Somebody who looks good, sounds good, talks the talk, may not necessarily be able to walk the walk.”
The aim is job fit, and there’s a job for everyone, he says. “It’s about the right job; what we’re trying to do is understand a candidate’s mental ability, their attitudes and their personality. How does it fit with the job?”
McKay uses a tree analogy to explain the importance of assessing personality as part of a structured hiring system. “The fruit of the tree represents the knowledge, skill and experience (KSEs) required for the job.” Can the candidate do what’s needed? “KSEs are observable and therefore coachable and trainable, easily validated through the job application, CV and background checks.”
The roots represent a candidate’s personality, general mental ability, values and attitudes. Because these are innate it’s not possible to observe them in an interview situation, he says. “The only way to understand the roots is through a valid psychometric assessment.”
Most managers will hire on the fruits but will usually terminate or have problem employees based on roots, he says. “The fruits of the tree are about can, whereas the roots dictate how a candidate will fit the job and the company culture.”

The role of social networks and Google
Social networks are gaining importance and prominence in the recruitment arena, although as Clarian’s Clare Parkes points out, they’re not the preferred way to find either staff or positions (see graph). “Surprisingly it’s employers that use them more than the employees.” LinkedIn (the professional version) and Facebook are both sources of talent, but people need to be mindful of their posts, says Gay Barton at Drake International. “Stick to the ‘if you wouldn’t want your mother to see it, DON’T post it rule’ and use privacy controls if you’re job seeking and don’t want prospective employers going through your profiles.”

Since Google appeared, recruiters have regularly been backgrounding people online – a recent Microsoft study indicated 78 percent of job recruiters in the US did Internet background searches on clients – and reports suggest a high percentage of candidates are eliminated as a result of what is said about them online. But, employer alert! The reverse also applies; potential employees are checking your brand before they send their CVs. (When did you last go online to see what’s being said about your brand?)
For a price, help is at hand, as a whole new industry has developed to clean up the messy bits. Reputation managers, such as Reputation Defender in the US, are working to bury the bad and highlight the good in online footprints. BP take note.
Social networking is also throwing up new ways for job seekers to make themselves attractive to potential employers; so-called professional style blogs, such as Brazen Careerist, allow people to create opportunities for themselves based on their ideas rather than their experience – a trend that some have suggested will eventually see the demise of job boards.

Rat race tactics
A recent survey carried out by Galaxy Research in Australia highlighted an issue that’s probably not unfamiliar to many Kiwi employers; a third of job applicants are guilty of lying during job interviews.
17 percent of the 1010 Aussies surveyed, admitted to stretching the truth about previous work experience; 16 percent said they used mates as referees, while ten percent over-inflated previous salaries, six percent used entirely fake references and three percent lied about their qualifications.
What rats will do to get ahead!
Patricia Moore is an Auckland-based freelance writer. Email [email protected]

Relevant websites:
www.drake.co.nz
www.clarian.co.nz
www.assess.co.nz
www.jra.co.nz