next

generation
recruitment:
battle strategies
for the talent war

next
generation
recruitment:
battle strategies
for the talent war

The Hudson 20:20 Series

auspoll research

The Hudson 20:20 Series is Hudson Australia/New Zealands

Hudson commissioned Auspoll Research to conduct a wide-ranging

flagship research publication. The series investigates talent and

qualitative and quantitative research study into the employment

recruitment issues with a critical impact on business performance.

market and how current recruitment practices are impacting on

Titles in the series include: Positioning for Growth: Building a

hiring outcomes.

Dynamic Workforce in the New Economic Era; Talent Tightrope

Further information on Auspoll Research can be found at

Managing the Workplace through the Downturn; Candidate

www.auspoll.com.au.

Buying Behaviour; and Seven Key Drivers of Mature-aged Workers.

About Hudson
Hudson is a leading provider of permanent recruitment, contract
professionals and talent management services worldwide.
From single placements to total recruitment process outsourcing,
Hudson helps clients achieve greater organisational performance by
assessing, recruiting, developing and engaging the best and brightest
people for their businesses. The company employs more than 2,000
professionals serving clients and candidates in around 20 countries.

Hudson 2011

contents
Foreword

executive summary

Introduction

1. the employment and recruitment market: complex and challenging

australia and new zealand: economies moving forward

10

optimism is on the up

11

growth is on the cards

12

organisations are getting fit for growth

12

baby boomers are preparing to exit the workforce

12

employees are becoming more elusive

12

candidates are becoming choosier

13

employers are more cautious too

13

breaking the cycle of insanity

14

the new grail for recruitment

15

2. what are employers up against?

the pursuit of talent

18

the quest for quality

20

the right recruitment model: getting the balance right

26

3. battle strategies
no. 1: take a talent-centric approach

30

no. 2: create an authentic employer brand

36

no. 3: utilise best practice attraction strategies

39

no. 4: create a future talent pool

44

no. 5: assess attitude, motivation and cultural fit

45

no. 6: develop a flexible and efficient recruitment model

48

4. future forecast and conclusions

future forecast

52

conclusions

52

5. research methodology

53

foreword

Those in the earlier stages of their

Recruiting the right people has

careers when the GFC struck learned

never been more critical. The cost of

the value of career development

a bad hire is very expensive. Current

opportunities and readjusted their

approaches to recruitment can deliver

expectations around remuneration.

unreliable outcomes. If we know

That has changed. Australia has

that, why arent we doing something

become an incredibly expensive place

different? And the only answer to that

to live and that, combined with the

is that we either dont believe it or

pressure on certain skills, means wage

we dont value it.

pressures are back with a vengeance.

The recruitment landscape has

In New Zealand the overall economy

clients find great people to help them

changed significantly over the last

is still somewhat deflated. From an

achieve great performance. Our aim

12 months. A year ago the balance

economic perspective theyre not at

with the Hudson 20:20 Series is to

of power sat with employers but as

the same point in the cycle as Australia

share some of the latest thinking

the labour market has tightened weve

but we do still see strong demand in

to help them do that.

seen a shift towards employees.

infrastructure and technology.

Strong candidates now attract multiple

Organisations looking for skills and

job offers, particularly in the areas of

resources locally need to understand

the greatest skills shortages. They

you have to pay for those in the

are very selective, making sure an

current market. Your target market is

Mark Steyn

organisation they are considering

probably not those who are currently

CEO, Hudson Australia/New Zealand

joining is a place that will give them the

unemployed but those who already

opportunities theyre looking for, will be

have jobs and are not necessarily

financially rewarding and is going to be

actively looking. To interest them you

a good fit for them, both from a lifestyle

have to offer something that is really

perspective and culturally, in terms of

differentiated and attractive.

the work environment.

People are an organisations biggest

For more senior roles it is still difficult

asset: with the people comes the

to extract candidates from an existing

culture which determines the success

employer. Senior people are very aware

of the work environment. Other things

of the global economy and really weigh

can be replicated such as process

up what theyre going to have to give

and technology but its the people

up to move, not only from a monetary

you bring on board, how well they fit,

perspective senior people these days

how well they team, how well aligned

get tied in with stock and options but

their motivational drivers are, that

in terms of walking away from

will differentiate organisations from

something they know well and an

their competitors.

environment where theyve spent years

building their personal brand.

Our business objective is to help our

executive summary
|| Confidence is returning to the

|| Organisations aiming to attract

Australian economy. Hiring

the best talent must improve

intentions are strengthening.

the rigour of their selection

|| The New Zealand economy is in

recovery mode. Organisations are
becoming more optimistic in their
outlook, translating into modest
hiring intentions.
|| As organisations develop their
growth strategies, talent is
back on top of the agenda.
Good quality candidates are
increasingly hard to find.
|| In this tight talent market, the
balance of power has swung to
candidates. Organisations wanting
to attract, retain and engage the
best people must adopt a more
talent-centric approach.
|| Central to this approach is the
development of a strong Employee
Value Proposition (EVP).
|| Organisations report that 44% of
hires are not good. Such hires
come at a high cost to business.

processes. This means placing

greatest emphasis on measuring
a candidates capability and
attributes (can do) and
motivational fit and career fit (want
to). These are the most accurate
indicators of high performance.
|| Organisations should develop
long-term sourcing strategies
to meet their needs for talent.
Cultivating a talent pool is
essential to such a strategy.
|| Innovative digital sourcing
strategies are now in play and
help organisations find and
engage with passive job seekers.
|| The web and social media have
an increasingly important role
in recruitment, particularly for
identification and research of
potential candidates.
|| Recruitment functions must adapt
to survive this talent-poor market.

|| Recruitment processes tend

Many organisations are reviewing

to focus predominantly on

the balance between recruitment

a candidates technical skills

insourcing and outsourcing, to

and experience (know how).

ensure they have the most flexible

These are relatively simple to

and efficient option in place.

measure but are low indicators

of high performance.

introduction

Next Generation Recruitment: Battle

It explores how Australian and New

More than 1,300 employees

Strategies for the Talent War is the

Zealand employers can balance

contributed to a survey about what

latest white paper from Hudson. It

current market dynamics to achieve

they are looking for in a new job and

takes a close look at the tightening

the best, long-term and most

their experiences of the recruitment

recruitment market and assesses the

effective recruitment solutions for

process. This research highlighted the

implications for employers as talent

their organisations in short, how

disconnect between the perceptions

shortages bite.

organisations can win the battle

of employers and employees, and shed

for talent.

further light on how the recruitment

Central to this years Hudson 20:20

process can be improved to benefit

Series is the question of how and why

The white paper contains new research

current recruitment procedures are

findings from Hudson. This years

failing organisations and how they

research comprised qualitative in-depth

We hope you will find the findings of

can be improved. It also discusses the

interviews and discussions with key

the Hudson 20:20 Series interesting

key elements of an effective attraction

Hudson clients and candidates.

and wish you victory in the talent war.

strategy including the significance of

This was followed by online surveys.

Employee Value Propositions and the

Close to 1,000 employers participated

role of technology.

in a survey covering the employment

The white paper also looks at the

importance of creating talent pools
and how employers can do more
to achieve a greater proportion of
optimum hires. By optimum hires,
we mean employees who will be
engaged in their roles, achieve high
performance, be more productive,
and stay with the company for longer.

both parties.

market, resourcing levels, staff

shortages, what employers are looking
for and approaches to candidate
sourcing and selection. The research
demonstrates how current hiring
practices are impacting on
organisations quality of hires
and highlights opportunities
for improvement.

Such employees are the strongest

ambassadors for an employer brand,
attract more high-calibre employees
like themselves, and deliver more value.

THE EMPLOYMENT
AND RECRUITMENT
MARKET:
COMPLEX AND
CHALLENGING

THE EMPLOYMENT AND

RECRUITMENT MARKET:
COMPLEX AND CHALLENGING

Australia and New

Zealand: economies
moving forward

New Zealand has gone through

Australia emerged from the GFC

economy was returning to growth at

relatively unscathed in comparison with

other developed economies. Although
the economy, buffeted by the brunt of
floods and cyclones, reported negative
GDP for the March quarter, it is

a global recession. Then just as the

the end of 2010, the Christchurch
earthquake hit. As we go to press,
the aftershocks are still continuing.
The impact has shaken GDP,
economic outlook and therefore

expected to bounce back by the end

business confidence.

of the year. The resources boom is

Nevertheless, optimism is slowly

expected to help deliver growth and

returning to the market. Unemployment

economists are typically forecasting

is at 6.6% 2 and the economy has been

growth of around 3% for the next

given a short-term boost with

financial year. Unemployment is fairly

rebuilding projects in Christchurch.

steady at 4.9%1.

Export commodity prices are strong

The resources sector is helping drive

and the retail sector is performing well.

a two-speed economy. The sector is

a powerful magnet, attracting every
ounce of available sector-specific
talent and drawing in talent from other
sectors, inflating salaries and reducing
the size of the talent pool for other
industries as a consequence.
While customer-facing industries are
struggling, overall, the economy is
accelerating. Australias future depends
to a large extent on the talent it trains,
nurtures, and attracts as migrants.

10

a domestic recession followed by

Australian Bureau of Statistics, figures for May 2011.

Statistics New Zealand, figures for March quarter.

The prospect of the Rugby World Cup

in September and October is bringing
back some of the feel-good factor. All
these elements translate into positive,
albeit modest, hiring intentions.

Optimism is
on the up
Nearly 85% of Australian employers
believe their overall outlook is
either upbeat and opportunistic or
cautiously optimistic. Outlook varies
according to industry: the resources,
private healthcare and utilities sectors
are predictably buoyant, while non-profit,
IT, construction/property/engineering,
professional services and financial
services are also confident and poised
for growth. Overall, of the employers that
survived the GFC, many find themselves
leaner, stronger and hungrier than they
were several years ago.
Sentiments are similar in New Zealand.
In spite of the multiple blows of global
recession, domestic recession and
the Christchurch earthquake, 74% of
New Zealand organisations say their
future outlook is either upbeat and
opportunistic or cautiously optimistic.

How would you describe the overall outlook of your organisation in todays
post-downturn market?

THE OVERALL OUTLOOK

All respondents

30

Australia

34

New Zealand

18

51

16
50
56

12
14
23

12
12

The overall outlook is upbeat and opportunistic

The overall outlook is one of cautious optimism
The overall outlook is one of uncertainty
The overall outlook is bleak
Dont know/cant say

11

THE EMPLOYMENT AND

RECRUITMENT MARKET:
COMPLEX AND CHALLENGING

Growth is on
the cards
In both countries, most organisations

Organisations are
getting fit for
growth

Employees are
becoming more
elusive

have now moved out of survival mode

As organisations develop their growth

While employers are getting hungry

and are gearing up for growth. Those

strategies for the months and years to

for new blood, employees are

that have delayed hiring to keep

come, workforce planning is a priority.

somewhat ambivalent:

headcount and overheads down can

Those lean companies that have shed

stall no longer. Having the right team

fat and muscle during the months of

in place is vital for expansion.

recession will want to ensure they

The need has never been more acute:

while skills shortages are here to stay,
more than half (53%) of organisations
say they are very or somewhat
under-resourced. Senior management
is the hardest category to find: 65%
of organisations say it is very difficult
or quite difficult to find staff at
this level. Where and how will
organisations find the talent they
need for future growth?
How do you currently find yourself resourced
as an organisation in terms of staff?

ORGANISATIONS CURRENT
RESOURCING LEVEL
6

15

build muscle a strong, flexible and

enduring team to stand them in
good stead for the future. Building

current roles.
|| Employees are voting with their feet

more about quality of candidate

six in 10 employees are actively or

than speed of hire, about looking at

passively seeking new jobs.

the potential for future performance

rather than ticking off experience on
the resume.

Baby boomers are

preparing to exit
the workforce
The workforce is ageing and the first
of the baby boomers are starting to
retire. We could be facing a retirement
and knowledge or at least a change
ease their way into retirement by
working fewer hours or days or on a
contract basis. Where will employers
find the employees to fill their shoes?

40

Somewhat under-resourced
About right in terms of resources
Somewhat over-resourced
Very over-resourced
Dont know/cant say
Very under-resourced

are actively disengaged in their

Hudson research shows around

in working practices as the boomers

12

New Zealand3 are not engaged or

such a team is an investment strategy

spike and consequent loss of skills

48

|| 81% of employees in Australia and

The State of the Global Workforce, Gallup Consulting, March 2011.

The worlds topperforming

organisations understand
that employee engagement
is a force that drives
performance outcomes.
In the best organisations
engagement is more
than a human resources
initiative it is a strategic
foundation for the way
they do business.
Global research company, Gallup

|| 81% of employees plan to leave their

employer within the next two years.

Which of the following best describes your current job seeking status?

Most believe they will find an

equivalent role easily.

JOB SEEKING BEHAVIOUR LIKELIHOOD TO STAY OR LEAVE

All respondents

31

Working full time

26

On a contract

32

31

Australian workers

32

29

New Zealand workers

27

29

40

|| 92% of employers strongly agree or

agree that staff shortages are
increasing the pressure on existing

29

45
37

staff in their organisation.

Employers may be losing employees
almost as fast as they are hiring them.
Staff shortages are beginning to bite

28

39
45

Actively seeking a new job in the process of applying for jobs

Passively seeking a new job thinking about changing jobs
Plan to stay in current job

how can organisations attract and

retain the best employees?

Candidates are
becoming choosier

Employers are more

cautious too

The pendulum has swung in their

Employers recognise that employees

favour and good quality candidates

are getting choosier 87% agree

are becoming choosier about potential

this is the case and 70% say it is

employers. Remuneration remains

a good thing for their organisation,

important, but in many sectors has

believing that choosier employees

stayed relatively static. Strong

are likely to be more committed and

candidates are likely to attract multiple

better suited to their roles.

offers with similar levels of pay, so other

factors such as opportunities for career
development, work life balance and
organisational culture come in to play.

Do you think good quality candidates are becoming choosier in the roles they are willing to accept?

ARE GOOD QUALITY CANDIDATES BECOMING CHOOSIER

IN THE ROLES THEY ARE WILLING TO ACCEPT?
Line managers

85

HR professionals

92

Total

87

15
8
13
Yes, good quality candidates are becoming choosier
in the roles they are willing to accept
No, good quality candidates are not becoming choosier

13

THE EMPLOYMENT AND

RECRUITMENT MARKET:
COMPLEX AND CHALLENGING

Better fitting employees are good

news for organisations. With up to
44% of hires currently described
as not good, there is a great deal
4

at stake. Hiring the wrong person

for the job can have serious
consequences. Not only does it
compromise the rest of the team
and affect the engagement of those
employees, but is likely to increase
levels of absenteeism, impact on
customer service, reduce productivity
and ultimately affect profitability.

Breaking the cycle

of insanity
Just as employees are learning to
be more selective in their choice of
employer, employers themselves are
realising that the tried and trusted
recruitment techniques theyve relied
on for decades frequently deliver poor
results. Albert Einstein suggested the
definition of insanity is to do the same

So why are companies continuing with

recruitment strategies that are serving
them so poorly? Is it lack of knowledge,
tools or resources? Is it lack of belief
that things can change? Or is it that
they dont know how to go about it? In
truth, traditional recruitment strategies
have their place. Assessing skills and
experience (the know how) will remain
important for many roles.

thing over and over again and expect

Understanding a candidates ability

different results.

and personal qualities (the can do)

is necessary too. But motivational
and cultural fit (the want to) are the

Employers: Comparatively, what is your level of concern with the following possible
consequences of a bad hire? (Respondents chose two.)

CONSEQUENCES OF A BAD HIRE

greatest indicators of an employees

performance and yet only a miniscule
proportion (6%) of hiring managers
usually assess this area (see page 20).

Impact on teamwork/
engagement

51

Here lies the opportunity to break the

Loss of productivity

34

cycle and use expert methodologies to

Impact on staff morale

33

achieve optimum hires.

Opportunity cost to
your organisation

21

Impact on customer service

18

The cost to your organisation of

back-filling the role

17

Decreased business
earnings/revenue

Source: Positioning for Growth: Building a Dynamic Workforce in a New Economic Era, Hudson 20:20 Series,
August 2010.

Employers: Based on your past experiences,

approximately what proportion of hires in
your organisation would be considered good,
average or bad?

PROPORTIONS OF GOOD,
AVERAGE AND BAD HIRES
56
13

31

A good hire
An average hire
A bad hire

14

Source: Positioning for Growth: Building a Dynamic

Workforce in a New Economic Era, Hudson 20:20 Series,
August 2010.
4

Positioning for Growth: Building a Dynamic Workforce in a New Economic Era, Hudson 20:20 Series, August 2010.

The new grail

for recruitment
Motivational and cultural fit will become
the new grail in recruitment. Scientific
data shows using formal procedures
to measure motivation and cultural fit
results in more hires with an overall
excellent level of performance 5.

The potential rewards of such a

process are great. Recruiting
employees who are best suited to their
role and to the environment in which
they work can deliver exponential value
to organisations: the more engaged the
employee, the greater their contribution
to the business. Superior employees
deliver superior outcomes, which are

Cultural fit is the alchemic ingredient

reflected in the companys stock price

which delivers high performance. Yet

and market value 6.

few companies assess it formally gut

feel is a frequent measure possibly
because it seems intangible and
therefore more difficult to measure
than experience and skills.
Refining the recruitment process

How can Australian and New Zealand

employers balance these dynamics and
achieve the best, long-term and most
cost-effective recruitment solutions for
their organisations? In short, how can
they win the battle for talent?

means giving greater weight to those

qualities, attributes and competencies
that are the greatest predictors of
success. For most companies such an
approach requires a fundamental shift
in thinking about the hiring process.

5 Robertson & Smith, Personnel Selection, Journal of Occupation and Organisational Psychology, 2001, 74, 441472;
and Schmidt & Hunter, The Validity and Utility of Selection Methods in Personnel Psychology, Psychological Bulletin, 1998, 124(2), 262274.
6
Employee engagement at double-digit growth companies, Hewitt Research Brief, Hewitt Associates, 2004;
and Understanding what drives employee engagement, The 2003 Towers Perrin Talent Report, Towers Perrin HR Services, 2003.

15

WHAT ARE
EMPLOYERS
UP AGAINST?

WHAT ARE EMPLOYERS UP AGAINST?

The pursuit
of talent

The implication is clear: in an

increasingly tight employment market,

Finding good quality candidates for

roles is hard and getting harder. Only
around half of all organisations say
they always or mostly have enough
applicants for roles to ensure they

organisations need to do more to

attract those high-calibre candidates
who deliver the greatest long-term
return on investment because they are
more productive and stay longer.

find a high quality candidate. Added

These are, of course, the very people

to the pressure of finding sufficient

who are most likely to be already

candidates is the need to improve

employed, satisfied with their employer

quality and reduce costs in the

and only passively (at best) looking for

recruiting process: more than half

a new role. How can employers reach

(55%) of respondents said they are

these hard-to-find passive job seekers,

under equal pressure to control the

and ensure the bulk of their recruitment

cost of the recruiting process and to

resource goes towards attracting the

improve the quality of the candidates

most desirable employees?

they source and select.

Overseas or over here?

Once upon a time, the solution to

PRESSURES TO IMPROVE
QUALITY AND REDUCE
COST IN THE RECRUITING
PROCESS

the lack of quality candidates might

have seemed to be to cast the net
wider. International sourcing is now
commonplace; expats and migrants

27

have certainly brought knowledge and

skills with them into our marketplace.

18

However, international sourcing is

beyond the scope and means of some
55

organisations and many of them are

looking to develop a sustainable
sourcing strategy that focuses on
attracting and retaining the best

We are under more pressure

to control the costs of the
recruiting process.
We are under equal pressure
to control the cost of the
recruiting process and to
improve the quality of the
candidates we source and select.
We are under more pressure to
improve the quality of candidates
we source and select.

18

local talent.

Organisations are often faced with a need

to control the costs of the recruiting
process and to improve the quality of the
candidates they source and select. Which of
the following best characterises the focus
of your organisations recruiting process?

The wonder of the web:

bringing people closer

A strategic and well-managed digital

The impact of technology on

combined with specialist knowledge,

recruitment has been huge. Identifying,

applied intelligence and networking

tracking and communicating with

with people in person. Technological

people is now possible on a scale that

tools are just that: no more, no less.

was unimaginable a decade ago. The

They are not an end in themselves but

web is the best way to find and engage

wielded with skill and insight can bring

with those hard-to-reach passive job

unprecedented scope and breadth to

seekers; its possible to find and

the recruitment process.

connect with them via social media,

industry bodies and professional
networks. Getting on their radar in this
way takes time and investment of
specialist resources. Doing it badly can
be a huge drain on resources and is
probably worse than not doing it at all.

presence is most powerful when

Company referral programs:

risk or reward
Social media allows us to network with
people we dont yet know; employee
referral programs bring people on the
periphery of a network closer. Such
programs are popular with employers

Its not a quick-fix recruitment solution

(over a third say they have used more

but a long-term strategy that creates

word-of-mouth to find suitable

a deeper talent pool of prospective

candidates than before), who believe

candidates for clients and makes

that employees are most likely to

those candidates more interested in

introduce good people who will fit in

the client from the outset.

with the company and that it will

Clear command of the web may be a

cost less than advertising or using

core competency for the 21st century

recruiter, but employers should be wary
of those who rely on technology more
than technique. The best recruiters
(in-house or agency) still operate

a recruitment firm. The trend for

companies to offer increasingly
generous incentives for employees to
introduce their own contacts makes it
more likely employees will want to take

within specialised markets and know

advantage of this.

the best candidates and their career

While employee referral programs can

paths well.

be a useful source of prospective new

employees, problems can arise for
both employer and employee if a
normally rigorous recruitment process
is compromised because of the source
of the lead.

19

WHAT ARE EMPLOYERS UP AGAINST?

The quest
for quality
Poor hiring decisions are costing
organisations dearly: nearly half

Employers: Which procedures/tools does your organisation currently use during the hiring process?

TOOLS/PROCEDURES CURRENTLY BEING USED BY EMPLOYERS BY %

KNOW HOW

(44%) of all hires are not good 7

according to Australian and New
Zealand companies and the cost is

CAN DO

significant. In addition to the negative

impact on the rest of the team and
consequent reduction in engagement
and productivity, there is also the
missed opportunity of making a good

WANT TO

Technical testing
Skill testing
Resume screening
Background interviewing
Reference checking

62

Behavioural interviewing
Assessment centres
Job trial
Personality testing
Intelligence testing
Business simulation
Role plays

32

Cultural fit measures

6

hire and the potential benefits it could

have brought.
The problem here is that scoring

Skills and knowledge are the easiest

highly in the know how category

and quickest factors to measure, so

of technical skill and experience

the problem is compounded when

is not an accurate indicator of high

employers add speed of getting a

performance8 . The want to category,

person into a role and the cost of

which typically receives the lowest

the recruitment process as additional

and want to.

emphasis in the hiring process,

metrics. That is, they put the focus

Its important to take all these factors

is the greatest indicator. By high

on the least effective indicator.

performance, we mean someone

methods used by most companies may

reveal some of the reasons why hiring
is such a hit and miss affair. There are
three factors that predict a persons
ability to do the job: know how, can do

into account when hiring. Hudson

research shows the most commonly
used recruitment techniques are
reference checking, resume screening
and background interviews. Practices
and the thinking behind them havent

who doesnt just do the job well

we mean someone who outperforms
the expectations of the role.
Low indicator
of performance

changed much for decades. All of

HUDSON PERFORMANCE
DRIVER MODEL
CATEGORIES
MEASURES
KNOW HOW

these techniques measure know how

rather than can do or want to: as much

Experience

as 62% of employers current hiring

category, only a third of techniques

Attributes

measure the can do category and just

20

Capability

WANT TO
High indicator
of performance

Career fit
Motivation

Positioning for Growth: Building a Dynamic Workforce in a New Economic Era, Hudson 20:20 Series, August 2010.

Robertson & Smith, Personnel Selection, Journal of Occupation and Organisational Psychology, 2001, 74, 441472;
and Schmidt & Hunter, The Validity and Utility of Selection Methods in Personnel Psychology, Psychological Bulletin, 1998, 124(2), 262274

EFFECTIVENESS

CAN DO

practices focus on the first know how

6% measure the want to category.

Technical skills

CURRENT FOCUS

A closer look at the recruitment

Creating a virtuous
employment cycle

and profitability and increasing the

It seems
employers want
to hire someone who
is already doing that
exact job. I dont want
a job I can already
do 100%. Where is the
challenge in that? I
want a job that I can
grow in. Turnover is
going to be high if you
always choose the
perfect candidate. Soon
they will be bored.

amount of time they are likely to be

Employee Survey Respondent

Employers looking to consistently

recruit high performers must review
their hiring processes. Assessing
potential employees attitude,
motivation and cultural fit with an
organisation pays greater dividends
in the longer term. An employee that
fits his or her employer is more likely
to be happy and engaged in their
work, leading to greater productivity

retained by an organisation (and the

longer they stay, the more productive
and profitable they are likely to be).
Additionally, a highly engaged and

Selecting the best

motivated workforce will attract more

If selecting candidates based on

employees of the same ilk and help

attitude, motivation and cultural fit is

create a virtuous employment cycle.

key to identifying the highest potential

employees for an organisation, it

In our experience
over 90% of
employee problems
can be traced back to
what was said (or not
said) and what was
done (or not done)
during the hiring
process.
Australian Federation of Employers
& Industries

follows that a far greater proportion

of the hiring process should focus
on these attributes.
Employers report that motivation,
attitude and the right behaviours and
capabilities are the most important
attributes they are looking for when
hiring new employees. The right
functional skills (cited by 49%), the
right cultural fit (45%) and having
enough appropriate experience (47%)
are all seen as moderately important
while specific industry experience
is seen as less important (28%)
(see page 22).

21

WHAT ARE EMPLOYERS UP AGAINST?

Which of the following do you think organisations are looking for most when they assess candidates during the recruitment process?

ATTRIBUTES THAT EMPLOYERS ARE

LOOKING FOR IN HIRING CANDIDATES
The right behaviours
or capabilities

21

The right motivation

and attitude

19

The right
functional skills

18

The right cultural fit

for our organisation

15

Enough appropriate
experience

12

20

Experience in our
specific industry

12

The right traits

or personal style

17

18

19

21

3 4

The right behaviours

or capabilities

11

12

The right motivation

and attitude

11

13

The right
functional skills

13

The right cultural fit

for our organisation

14

Enough appropriate
experience

24

Experience in our
specific industry

23

The right traits

or personal style

16

15
15

15

ATTRIBUTES THAT EMPLOYEES BELIEVE

EMPLOYERS ARE LOOKING FOR

15
9

% who think this is the most important attribute

% who think this is the second most important attribute
% who think this is the third most important attribute

The idea of
transferable
skills and the ability
to learn about a
specific market
seems to have gone
out the window. I find
recruiters will give
every encouragement
but when it comes
down to the line,
employers always
play safe.
Employee Survey Respondent

22

17
16
15

16

12

13

16

22
18
7

13

10

% who think this is the most important attribute

% who think this is the second most important attribute
% who think this is the third most important attribute

Employees have a different

It seems employees consider

perspective, seeing a discrepancy

employers to be more conservative

between what employers say they are

than they admit and unwilling to

looking for and what they value in

consider less experienced candidates

practice. They believe employers are

even when they have the right

looking for enough appropriate

motivation, attitudes and capabilities.

experience (62% say this is one of

the three most important attributes
employers look for) and finding
candidates with experience of a
specific industry (54% cite this as one
of the three most important attributes).

WHAT ARE EMPLOYERS UP AGAINST?

Which of these same attributes do you think is the hardest to determine when selecting candidates?

ATTRIBUTES THAT EMPLOYERS THINK

ARE HARDEST TO DETERMINE
The right motivation
and attitude

30

The right behaviours

or capabilities

22

24

The right cultural fit

for our organisation

21

17

The right traits or

personal style

17

The right
functional skills

Experience in our
specific industry

222

The right amount of

experience (no of yrs)

12 3

17

28

21
6

22
20
26

10

% who think this is the hardest attribute to determine

% who think this is the second hardest attribute to determine
% who think this is the third hardest attribute to determine

Hudson research shows determining

Determining whether candidates will

whether a candidate will have the right

have the right behaviours or capabilities

motivation and attitude is the most

is not considered to be much easier

difficult attribute for employers to

(68% rated this in the top three for

measure during the selection process

difficulty). Cultural fit (rated among the

(75% of employers say this is one of the

top three by 58%) and the right traits

three hardest attributes to determine).

or personal style (rated in the top three

by 64%) were considered moderately
hard. In contrast, it was considered
relatively easy to assess whether
candidates have the right amount of
experience/experience in a specific
industry (only 6% rated these in
their top three hardest attributes to
determine) or the right functional skills
(23% cited this among their top three).

24

I dont understand
why a business in
these times would not
place importance on
motivational and cultural
fit. If your recruitment
decision is primarily based
on technical skill levels
you are putting your
ultimate success rate at
risk. We prefer to train
and coach in skill gaps and
maximize the motivational
and cultural aspects
of our candidate pool;
just because you can do
something doesnt mean
you want to and without
the motivation and desire
to work within a specific
cultural environment you
will not be the best you
can be and will ultimately
become disengaged.
Sheryn Grant, Group Manager HR,
Sourcing, Retention & Systems, Sensis

The too-hard box

More haste, less speed

One of the reasons organisations

Ironically, it is often organisations with

rely on measuring the skills and

the greatest need to attract superior

experience of a potential employee

talent who say they do not have the

may be that these attributes seem

time to invest in ensuring they make

easier to measure.

the best possible hires. Yet hiring

Difficulty in assessing attitude and

motivation may in part be caused by
the belief that candidates misrepresent
themselves in the interview process
and that measuring motivation and
attitude, the less visible qualities, may

without due attention to a candidates

motivation and attitude simply makes
it more likely that the outcome will be
a poor hire and that the organisation
will be looking to recruit again sooner
rather than later.

simply be too hard.

Although psychological assessment
tools such as psychometric testing can
provide a measure of a persons ability
and aptitude for tasks they are still far
from a standard part of the hiring
process and are generally reserved
for senior level hires.

Making a poor
choice means
you will have to go
through the hiring
process a second or
even third time.
Beverley Saidel, Communications
Manager, SkillsDMC

The survey results demonstrate that

the most important qualities can also
be the hardest to find. Measuring these
less tangible candidate attributes
requires commitment, time and a
bespoke selection process.

25

WHAT ARE EMPLOYERS UP AGAINST?

The right
recruitment model:
getting the
balance right

Overview of recruitment
models: their evolution,
challenges and benefits

While this model saved money and

The DIY model

low fees and arduous processes that

Over the past 10 years in Australia and

In the early 2000s, hiring manager DIY

caused many recruitment consultants

New Zealand a variety of different

models were relatively commonplace

to allocate their time and best

recruitment models have evolved as

and, in some areas, remain so today.

candidates elsewhere. In addition, the

employers seek to win the war for talent.

While superficially flexible and cost

model did not resolve issues associated

effective, these models resulted in

with inconsistent hiring practices.

These include the hiring manager

DIY model, utilisation of recruitment
consulting firms, preferred supplier
model, centralised model and hybrid
model. All differ in two essential ways:
1) the degree of insourcing or
outsourcing; and
2) the level of centralisation or
decentralisation.
There is no perfect model; each
organisation must choose the model
most appropriate for that point in its
evolution. In addition, we often see a
blending of models for maximum results.

a lot of inconsistency in brand

representation, candidate care and
selection and assessment practices.
The result was often poor quality hiring
and, over time, increased staff turnover.
Moreover, the focus on recruitment
took the hiring manager away from
their other core responsibilities, adding
to the indirect costs of this model. The
hiring manager often supplemented
their efforts with ad hoc use of
recruitment agencies which failed to
create agency loyalty or leverage the
clients buying power.
The preferred supplier model
The problems with the DIY model
encouraged HR and procurement
to join forces and formalise their
relationships with recruitment agencies.
The result was a series of preferred
supplier agreements (PSA) between
an organisation and its suppliers to
standardise service levels, fees and
commercial terms.

26

freed up the hiring managers time,

these agreements often resulted in

The centralised model

organisations employment brand

As a consequence, we are seeing

As HR and procurement saw the

and diversify sourcing channels

clients move from insourced to

advantages of innovative overseas

to increase direct hiring levels

outsourced models and, in some

recruitment practices, new models

and thereby save money, while

instances, a blending of both

started to emerge. These models tried

implementing centralised, standardised

approaches in the hybrid model where

to achieve many of the commercial

and streamlined processes to improve

the team is jointly staffed by the

benefits of the preferred supplier

quality, service and speed of hire.

organisation and an RPO provider. The

model while avoiding the challenges.

Organisations sought to supplement

A key theme was the desire to create

the work of these teams with specialist

a centre of recruitment excellence,

recruitment agencies under a PSA

either by establishing an internal

model. However, the big difference now

function or by outsourcing the function

was that the roles given to recruitment

There is growing recognition that cost

to specialist Recruitment Process

agencies to source were much more

cannot be the key driver in this talent

Outsourcing (RPO) experts. The role of

specialised and harder to fill, and often

equation as organisations understand

these teams was to strengthen the

the PSA fees were not changed to

that, in the longer term, a cost focused

reflect this new reality.

strategy can impact organisations

The hybrid model

Today we are seeing the models

use of recruitment agencies for these

solutions is also becoming far more
selective and focused on the hardest to
fill, highly specialised and senior roles.

dearly in terms of delivering poor

quality hires and a higher churn rate.

change again. During the GFC, the

No place for complacency

high fixed costs of many insourced

In todays market there is a variety

recruitment models were seen to be

of recruitment models, tools and

a drawback. Likewise, once business

technologies to choose from to help

demand returned and companies

win the talent war. Organisations need

needed to increase headcount quickly,

to continually review their performance

insourced models were not always able

and benchmark themselves against

to scale up quickly enough to meet this

others to ensure they are a step ahead

demand. In this context, flexibility and

of the competition. There is no place

scalability of the recruitment model

for complacency and while investing in

became key and this is where RPO

talent acquisition remains critical for

models deliver very effectively.

most organisations growth strategies,

it is important to recognise where to
invest in order to achieve the greatest
value and return on investment.

27

BATTLE
STRATEGIES

battle strategies

no. 1: take a TALENTcentric approach

Prioritising talent

Quality talent is in short supply; many

centric approach is identifying and

companies are not in a position to

prioritising the different talent needs

import expatriates or migrant workers.

of your organisation as follows:

They are under pressure to find

1) Strategic: people essential for

high-quality people close to home.

delivering business strategy and likely

During the GFC, there was a lot of

to be the most challenging to source.

talk about the liquidity of the talent

The greatest allocation of resources

market, even though the so-called

should go to attracting and retaining

abundant supply did not necessarily

this business-critical talent.

deliver a greater proportion of

high-quality candidates.

2) Critical: people who are important

for the day-to-day running of the

As talent shortages start to bite, its

business but who are not especially

time to treat quality candidates as the

hard to find. This category is the

scarce resource they are. Managing

second priority for investment

them appropriately is a strategic

of resources.

priority: the best candidates will

always have multiple options. So
we must re-evaluate our approach
to sourcing, communicating and
engaging with the people who have
the greatest potential to add enduring
value to the organisations for whom
they work.

30

The first step in adopting a talent-

3) Core: people who may be relatively

easy to find but may have a high
turnover. This is the lowest priority
cost-efficiency is key in this
category.

Understanding what makes

candidates tick

Our research shows that candidates

Employees were also asked which of

take immediate and longer-term

these same aspects are the hardest

Having identified the distinct segments

benefits into account when

to find in a new job. Comparing the

of your talent pool, you can then start

considering a new role. Employees say

two sets of results yields crucial

planning how to attract those potential

the most important thing they will look

insights for employers seeking to

employees who are most important to

for in their next job will be finding a

improve their Employee Value

you. Doing this means paying close

role that they are more interested in

Proposition to attract talent.

attention to their motivators, attitudes

(54% ranked this is as one of the

and behaviours just as you would to

three most important factors). This

any other target audience or customer.

was followed by finding a job with

Having a model that defines and

better career opportunities (43%),

finding a job with more pay (43%) and

measures motivation, attitude and

finding a job in an organisation that

behavior is a non-negotiable element of

will make them happy (42%).

recruitment. It is not required simply to

assess candidates when youve found
them. It is critical in determining how you
market to them in the current climate.

Which of the following aspects will be most important to you in looking for your next job?

THE IMPORTANCE OF VARIOUS ASPECTS IN LOOKING

FOR A NEW JOB
Finding a role that I am more interested in

23

Finding a job with better career

opportunities than I currently have

18

Finding a job with more pay

than I currently have

17

Finding a job in an organisation with

a work culture that will make me happy

14

17

14

13

12

13
14

Finding a job with strong leaders

and a boss I respect

11

Finding a job with better working conditions

than I currently have (e.g. more flexibility)

Finding a job with more seniority and

responsibility than I currently have

Finding a job in an organisation

with values that I believe in

Finding a job with better educational and

training opportunities than I currently have

13
14

12
10

10

% who said this was the most important aspect

% who said this was the second most important aspect
% who said this was the third most important aspect

31

battle strategies

A good job is hard to find

aspect to find (37%) and given its

Results showed employees find it

weighting should also be central to

most difficult to find a role they are

an employers value proposition.

more interested in (45% ranked this

Finding a job with better working

as one of the three hardest aspects

conditions (for example, greater

to find). Given this is also the most

flexibility) was nominated as the

important aspect it needs to be

fourth hardest aspect to find (36%)

a core component of an Employee

and accordingly presents another

Value Proposition.

opportunity for employers to

Finding a job with strong leaders, and

differentiate themselves.

Employee Survey Respondent

a boss that employees respect, is

perceived to be the second hardest
attribute to find (41%). There is
therefore an opportunity for employers
to use this to differentiate themselves.
Finding a work culture that makes
employees happy is the third hardest

Which of the following do you think is the hardest to find when looking for a new job?

THE HARDEST THINGS FOR CANDIDATES TO FIND

IN LOOKING FOR A NEW ROLE
16

13

Finding a role that I am more interested in

16

Finding a job with strong leaders

and a boss I respect

15

Finding a job in an organisation with

a work culture that will make me happy

13

13

Finding a job with better working conditions

that I currently have (e.g. more flexibility)

13

11

Finding a job with more pay

than I currently have

14

12

14
11
12
8

11

Finding a job in an organisation with

values that I believe in

Finding a job with better career

opportunities than I currently have

11

Finding a job with more seniority and

responsibility than I currently have

Finding a job with better educational and

training opportunities than I currently have

10

10

13
11
8

% who said this was the hardest aspect to find

% who said this was the second hardest aspect to find
% who said this was the third hardest aspect to find

32

As I am looking
more at a longterm career as
opposed to a role,
then it is important
that Im in line with
the culture of the
company and vice
versa.

When employees were asked about

triggers that would cause them to
consider looking for a new job, there
was a 7% increase in the proportion
of employees who cited boredom or
looking for new experiences compared
with 2010. There was a 6% increase
in the proportion that would consider
leaving because of relations with
colleagues and managers. There was
no change in the proportion that would
leave for financial reasons.

Finding a company
with a work culture
that is right for me
is definitely the most
important thing. To get
the most out of myself
in the role, I need to
beinthe right team
that I respect and
enjoy working in.
Employee Survey Respondent

33

battle strategies

Broadening horizons
These changes characterise

The proportion of respondents who noted that an organisation with an incompatible

culture or values is a trigger, or would be a trigger, to them considering leaving their job.

a workforce with expectations

THE IMPORTANCE OF CULTURE
ACCORDING TO JOB LEVEL

broadening beyond financial

considerations to self-fulfilment,

44

better relationships at work and an

improved work environment.
The importance of culture and

The organisations culture or

values are incompatible with
how I want to work

values alignment was a mid-ranking

42
34
28

trigger for all employees leaving a job

Senior Management

(35% cited this) but it was more

Middle Management

important to employees in high-level

Non-managerial professional/Specialist

management (44%) and middle

Admin/Support staff

management roles (42%). Attracting

culturally aligned candidates is
therefore vital for senior roles where

The importance
of communication

candidates are most difficult to find.

These findings represent an

opportunity for employers to do a
much better job in promoting these
aspects in communications to potential
candidates. Importantly, the research
also showed an ongoing correlation
between communications performance
in the selection process and the
engagement of employees.
Around seven in 10 employees (71%)
who said their organisation did a good
or excellent job in communicating
expectations of their role, and what
was needed to be successful in it,
also agreed they feel motivated and
engaged at work. In contrast, only 23%
of those who said the organisation
did a poor or very poor job of
communicating the expectations of
the role and what was needed to be
successful in it agreed they felt
engaged and motivated.

34

Battle strategy No. 1:

recognise that talent-centricity helps attract,

engage and retain the best candidates.

How would you rate the performance of your organisation in communicating the following to you when you
were recruited by them? How much do you agree, or disagree that the following statements describe your
current situation at work?

THE EFFECT OF COMMUNICATING ROLE EXPECTATIONS

AND SUCCESS CRITERIA DURING THE INTERVIEW
PROCESS ON WHETHER PEOPLE FEEL ENGAGED
AND MOTIVATED AT WORK
My organisation did a good or excellent job
in communicating the expectations of my role
and what was needed to be successful in it.

71

My organisation did a poor or very poor job

in communicating the expectations of my role
and what was needed to be successful in it.

23

16

28

13

49

Agree I feel motivated and engaged at work

Neither agree nor disagree
Disagree that I feel engaged and motivated at work

Employees who met the team they

A poor work culture is the biggest

would work with during the interview

concern for candidates when

process were more likely to agree they

accepting a new job. More than half

were engaged and motivated.

of respondents (55%) were most

concerned that the work culture and
environment would be poor.

Which of the following aspects are you most concerned about in accepting a new job?

KEY CONCERNS IN ACCEPTING A NEW JOB

That the work culture and
environment will be poor

18

That the job will not be secure

for as long as I expect

19

That the level of remuneration will

not meet my expectations

16

16

That I wont get on with

my boss and colleagues

16

18

That the working conditions will

not meet my expectations

11

That I will have to work harder/

longer hours than I expect

That I wont have the skills

or abilities to do the job well

11

19

18
12

13

13
14
19

16
14

12
7

% who said this is the most concerning aspect

% who said this was the second most concerning aspect
% who said this was the third most concerning aspect

35

battle strategies

NO. 2: create
an authentic
employer brand
As competition intensifies for talent,
organisations must find a way to

The amount of effort being invested in an organisations branding to attract better quality candidates.

Investing in the branding of our organisation

with the specific objective of attracting
better quality candidates

INVESTMENT IN BRANDING TO ATTRACT

HIGH QUALITY CANDIDATES
17

25

distinguish themselves from their

We are putting a lot of effort into this

competitors. The strongest candidates

We are putting a fair amount of effort into this

are likely to find themselves with

We are putting a little effort into this

We are not putting much effort into this at all

multiple offers, and organisations

We arent doing this at all

must offer more than attractive

salaries and benefits to secure
the best talent.

Quality talent is
always hard to
find. However, good
employment branding
and talent acquisition
practices decrease
the level of difficulty
ten-fold. Without the
investment we have
made in our value
proposition for
existing and potential
employees and our
investment in our
recruitment capability,
partnerships and
systems, we wouldnt
be as competitive as
we are now in the
candidate market.
Antony Hall, Head of Talent Planning &
Strategy, Telecom NZ

That something more is a uniquely

powerful employer brand that will
attract prospective employees and
make them want to work for you more
than any other employer who is looking
for their skill set.
Building a positive employer brand
doesnt happen overnight, nor is it
possible to whip one up to suit hiring
needs. Developing a strong employer
brand is a long-term process and
results in being known for more than
the goods or services you offer
customers. It means being known for
your company values, for the way you
conduct business, for the way you treat
and speak to employees, in good times
and in bad.
Research shows that only around one
in five organisations (17%) currently
put a lot of effort into branding
but those that do reap dividends:
organisations who put a lot or a fair
amount of effort into branding are 37%
more likely to always or mostly have
enough candidates apply for roles
compared to organisations who dont.

36

30

13

15

The relationship between the amount of effort organisations are putting on sourcing-related branding and the ease with which
they are able to find high quality people to fill roles.

INVESTMENT IN BRANDING RELATED TO SOURCING

ENOUGH CANDIDATES
We are putting a lot of
effort into this

63

We are putting a fair

amount of effort into this

56

We are putting a
little effort into this

51

We are not putting much

effort into this at all or not
doing it at all

46

20

16

28
30
31

16
20
23

We always or mostly have enough candidates apply to ensure we find a high quality person
About half the time we have enough candidates apply to ensure we find a high quality person
We rarely or sometimes have enough candidates apply to ensure we find a high quality person

Creating a positive employer brand

means managing the business with
authenticity, integrity and transparency
on a daily basis. These qualities must
be evident in all the organisations
transactions with every stakeholder.
Communicating the employer brand
effectively is critical of course, but we
are not talking about hollow claims and
promises. Employees are looking for
tangible values that align with their
own belief systems, giving them a
reason to buy one employer brand
rather than another.

An EVP thats clearly

defined and broadly
understood by your
hiring managers and
candidates is vital
to attract people of
great quality and, most
importantly, great fit. Its
about attracting people
who truly believe in and
relate to the goals of the
business and therefore
choose to contribute
discretionary effort to
ensure its success.
Ryan Atkins, HR Manager, sanofi

37

battle strategies

Battle strategy No. 2:

distil a meaningful and appropriate EVP and work,

communicate, recruit and live by it.

Acting to attract

The best brand ambassadors

(59%), through contacts in the industry

As the talent pool dwindles employers

Employees are the most powerful

(56%) and via word-of-mouth (55%).

must maximise the value of their

ambassadors for an organisations

LinkedIn was also a source; 22% of

employer brand ensuring they:

employer brand. Their experience and

candidates used the site to research

advice will be sought by potential new

prospective employers. Speaking

employees long after they have left the

with people who had worked for the

company. Hudson research shows that

organisation was considered the most

|| Incorporate a strong Employee Value

Proposition (EVP) in every facet of
the recruitment strategy.

speaking with people who have worked

useful source of information.

|| Speak with an appropriate corporate

for an organisation is considered the

voice the way in which they talk

Hudson research also shows that

most useful source of information by

to and engage with current and

organisations doing a better job

candidates. Organisations ignoring

prospective employees. Language,

of promoting the benefits of their

this dynamic do so at their peril.

organisation are significantly more

A high proportion of candidates

likely to:

evaluate numerous sources of

|| have enough candidates applying

tone and content all contribute to

employer voice.
|| Promote career development

information about organisations for

for roles

opportunities within their

which they are considering working.

organisation. Organisations

In their last job search, most employees

committed to development and

evaluated the organisation through its

growth programs for employees

website (80%), via a Google search

|| find it easier to source employees

|| have low staff turnover.

should promote them whenever

and wherever appropriate.
|| Ensure communications always

Which of the following sources of information did you use to research a potential organisation or role
during your last job search?

reflect the culture of the employer

SOURCES OF INFORMATION EMPLOYEES USED

IN THEIR LAST JOB SEARCH

organisation. Authenticity and

transparency are paramount; accurate
projection (and therefore reception)
of the cultural vibe is most likely to
attract candidates who will be happy
and flourish with the company.
|| Communicate salary packages
clearly alongside other less tangible
benefits such as flexible working
practices that may be valued highly
by employees. Hours and conditions

Recruitment company/agent

80

Organisations website

80

Google

59

Personal contacts within the industry

56

Word-of-mouth

55

Industry specific websites

46

Current employees of the organisation

40

News websites

38

LinkedIn

22

Other

Facebook

communicated clearly and any

Other social networking sites

areas of flexibility highlighted.

Twitter

of work are also very important

to employees, and should be

% who said they used this source during their last job search

38

no. 3: utilise best

practice attraction
strategies
Hudson research shows job search
sites and recruitment firms are the
most popular methods employees
use to look for new positions.
The common links here are ease, range
and independence. Job search sites
allow people to quickly research, in
their own time, a wide variety of roles,
presented on a level playing field.

How often do you use the following methods when you are looking for a new role?

METHODS EMPLOYEES USE IN LOOKING FOR NEW ROLES

Job boards (inc. Seek, MyCareer,
CareerOne and others)

57

Recruitment company/agent

30

Contacts within the industry

12

25

Word-of-mouth

12

26

32
44

Industry specific job search websites

18

Newspaper advertisements

17

Contact organisations that I would like

to work for directly

12

LinkedIn

Referral program for existing employees

14
15

22

20

Facebook

11 5

12

15
13

27
34

20

48

20

49

23

21

34

24

18

16

53

81

12 14
12 8

14

36

25

2 6

Twitter

34

26

3 8

18

25

Industry-specific magazine advertisements

Other

10

73

88

I always use this

I often use this
I sometimes use this

I rarely use this

I never use this

39

battle strategies

When job seekers turn to recruitment

Knowing this may change the way

agents they are looking to streamline

you market roles, strategically and

Translating EVP into

attraction strategies

the process by accessing a range

tactically. It forces consideration of the

There is great opportunity for

of options through a single source,

job seekers online journey, from the

organisations to promote their

reducing the time they need to put

moment they click on an ad to their

Employee Value Proposition online

into their job search. They also value

experience of a potential employers

in an authentic and meaningful way

independent insights into what it might

website. Information should be

by providing passive job seekers

be like to work at a particular company.

presented in compelling, authentic

with engaging content in areas of

chunks that will create interest in an

professional interest. Podcasts,

organisations culture. Staff should be

webinars and live online discussion

ready at these peak times to answer

forums can all be used to engage

questions about the role.

passive job seekers and gather market

If these are the ways job seekers

behave, it is important for organisations
to optimise these online and offline
channels, for example by reviewing the
performance of online ads (hit rates,

Employers should also bear in mind

response rates, success rates) and

that any message must suit its medium.

considering the candidate segments

This means considering optimising a

most likely to be working through

website to make it mobile user-friendly.

recruitment firms.

For example, tailoring information to

First stop the web

The impact of technology on
recruitment has been enormous:
today the web is the first stop for any

the size of the mobile internet screen

intelligence. The fluidity and constantly

evolving nature of this space means it
is essential to keep abreast, at the very
least, of innovation and to generate
superior quality content.

rather than expecting a reader to scroll

A compelling
corporate website

down a lengthy page, and ensuring it is

One of the first things prospective

easy to take action when needed.

candidates do is research companies

on the web and they do this before

employee who is feeling even mildly

they apply for a role, making it a critical

curious about what other opportunities

part of an attraction strategy.

might be available to him or her. In just

a few moments, he or she can be
browsing opportunities near and far.

So a good careers section is essential

for every corporate website. Provide
video content where possible to make

Smart phones mean the workforce

it engaging. Let them see the CEO

can access job boards 24/7 and we

and divisional managers in action,

are seeing significant shifts in job

and provide cultural insights from

seeker behaviour as a result of more

employees speaking freely. Wherever

people searching for jobs on the way

possible, supplement this with the

to and from work.

opportunity to speak with current

employees who can answer questions
either in person or online.

40

battle strategies

Social Media and online

communities

|| Choosing the best way to engage

with this market. Start an online

Social media is about people and

community or join an existing group.

connections, making them a perfect

Starting your own community is more

recruitment tool. While current

costly but you will learn more and

statistics suggest they are not the main

have significantly more potential

way people look for or find jobs, we

and freedom in how you engage

know it is increasingly the means by

with prospective candidates. The

which they interact and consume

two main ways this is done in

information. They will almost certainly

recruitment are either directly as a

become the main channel for attracting

potential employer (for example, via a

talent to an organisation. Social media

company Facebook page) or through

must be part of an organisations

some common interest shared by the

attraction strategy, building capability

target audience (for example, around

and preparing for the future.

their specific discipline).

One of the greatest challenges in

|| Selecting the appropriate channels

recruitment is finding the best passive

when building your own community;

job seekers those desirable, high

for example, Facebook, LinkedIn and

calibre employees who are more likely

Twitter, and keeping goals simple

to be satisfied in their current roles and

and focused, such as increasing the

not actively looking for work. Finding

number of likes on Facebook or

quality passive job seekers through the

number of followers on Twitter.

web is both an art and a science.

|| Using existing networks (such as

Consider employing dedicated digital

current employees, their friends and

experts as part of the recruitment

job applicants) to build membership.

function and use these experts to

Keep it focused on your target

develop skills within the organisation.

segment (dont encourage everyone

Core functions include:

and anyone to join) so that your

|| Identifying key job seeker markets

messaging will be relevant to the

to target; that is, important role

categories with an active
online demographic.

members. Build momentum from

there with other marketing strategies.
|| Measuring your success in numbers
of referrals, applications and roles
filled from the group.

42

Battle strategy No. 3:

incorporate best practice attraction

methodologies into your recruitment strategy.

Building social media skills

Social media is very accessible and
stories abound of instant fame and
success (along with failure). However,

Using market intelligence

to attract candidates
Organisations are sitting on
goldmines when it comes to

it is important to look past the hype

marketing to job seekers.

and recognise there are skills and

Individual resumes contain much

knowledge required to make this work

information to help profile and segment

for your business.

the market. Every interview is an

Eventually recruiters will all be social

opportunity to spend an hour getting

media experts knowing their

audiences, the media they prefer,

to know and understand a member of

the target audience which is what

the content that will be relevant and

recruitment consultants do every day.

engaging, their place in a particular

Organisations should use their

community and the appropriate

recruitment databases and start

frequency and type of interaction they

collating this intelligence. There is a

should achieve. Until that point, and

real opportunity for digital specialist

as part of the journey of getting there,

agencies and recruiters to work more

dedicated digital experts are going to

closely together, using this information

be an essential part of the

to take some of the guesswork out of

recruitment equation.

digital campaigns.

43

battle strategies

Battle strategy No. 4:

create a niche talent pool of individuals at various

stages in their careers who, based on their skill set and
expertise, might be appropriate employees of the future.

no. 4: Create a
future talent pool
The inconvenient truth is that there
is no quick way of creating a pool of
talent for an organisation. Those that
have invested their time and other
resources into developing a bespoke
talent pool know it is an ongoing
process, requiring constant nurturing
and cultivation. If done well, it is the
best and most strategic source of
talent for organisations and can deliver
huge competitive advantages.

Recruitment is now more than ever a

Networking

marketing function. Like any other such

On and off line, networking remains

function, it must segment its target

the most effective method of

audience or consumers. In times like

establishing a talent pool. It is a

these, when talent is king, the scarcest

medium to longer-term strategy, and

talent with the potential to bring the

employers and their recruiting partners

greatest value to organisations must be

should network with key bodies and

the highest priority. For organisations,

individuals including professional,

trying as many are to do more work

specialist and industry groups together

with fewer people or simply to achieve

with high profile, high performing and

greater return on investment from

highly engaged employees.

the recruitment budget, its essential

to allocate the greatest share of
resource to attracting the highest

The starting point for every talent pool

calibre candidates who will add most

is market intelligence. Before you can

value to the organisation.

effectively identify, communicate and

engage with passive job seekers you

Rewarding relationships

must have a clear idea of who they

In practice, this means the best

are and where you might find them.

in-house and agency recruiters will

Search engines and social media are

be specialists who invest time with

the talent hunters friend here but the

those individuals and operate in niche

task is much more sophisticated than

areas throughout their own careers.

simply identifying a group of individuals

They will keep up to date with their

and trying to strike up an online

candidates professional progress,

conversation with them.

remuneration and career goals; be

able to offer strategic career advice
and alert them to appropriate
opportunities throughout their careers.
Social media enhances but is no
substitute for this kind of relationship.

44

no. 5: assess
attitude, motivation
and cultural fit

interviews (always or often used

As weve seen, many employers

selection process.

continue to make hiring decisions

While traditional recruitment

based almost solely on assessment of

techniques have their place, they are

past experience and technical skills.

given a disproportionate amount of

Reference checking (always or often

focus; the most effective recruitment

used by 95% of employers), resume

strategies incorporate a framework

screening (always or often used by

structured around know how, can do

75% of employers) and background

and want to. Moving forward means

The recruitment
industry hasnt
moved with times as
fast as it could have.
In an age of social
networks, internet
communications,
technology and global
communities, some of
the old recruitment
practices are no
longer relevant.

by 75% of employers) are the most

common techniques used in the

Antony Hall, Head of Talent Planning &

Strategy, Telecom NZ

focusing on the attributes that are

the greatest indicators of performance
and therefore deliver the greatest
return on investment.

Which of the following techniques does your organisation use during the hiring process?

TECHNIQUES USED IN THE SELECTION PROCESS

Reference checking

82

Resume screening

54

Background interview
(past work experience)

47

Behavioural interviewing

43

Cultural fit measures

13

Personality testing

10

13
21
28

16
15

17

Intelligence testing

11

Practical skills testing

17

4 7

Assessment centres

3 7

Business simulation

2 7

Role play

2 8

15

25

41

17
20

21
22
21

23

17

21

44
46

26

42

25

43

We always use this

We often use this
We sometimes use this

13

37
19

27

32

38
19

27

20

24

5
7

20

23

14

22

Technical testing

Job trial

12

4 1

We rarely use this

We never use this

45

battle strategies

For years, organisations have struggled

Using these procedures results in

It is critical therefore that employers

to identify the factors that determine

significantly more hires with:

have a very clear understanding of the

whether a hire will be good or bad.

Even though it has long been known

|| overall excellent level of performance

intuitively that attitudinal, motivational

|| excellent cultural fit

and cultural fit have a major impact on

|| excellent functional skills and abilities

the outcome, even the most forward

thinking organisations have struggled

|| excellent motivation and attitude.

and tools for this.

in the HR and business communities:

of hiring success: 91% of hires were

regarded as excellent or good when
formal procedures were used to
measure motivation or cultural fit.

Many organisations have been slow

for a particular team or business

to embrace this thinking and put it

means much more than finding

into practice. Barriers to doing so

someone with just the technical skills

typically include perceived difficulty

to do the job. A candidate who has

of implementing formal procedures to

the right attitudinal, motivational and

measure these attributes, as well as

cultural fit is much more likely to be

time pressures, difficulties in evaluating

engaged and will therefore stay longer

results and caution about costs.

Thinking again about these recent hires, were there any formal quantitative or qualitative
procedures, specifically designed to measure these candidates motivation or cultural fit, used
as part of their recruiting process? How would you rate the quality of these hires on each of
the following attributes?

THE EFFECT THAT USING FORMAL PROCEDURES

TO MEASURE MOTIVATION OR CULTURAL FIT HAS
ON THE OVERALL PERFORMANCE OF HIRES

46

39

Formal procedures were not

used to measure motivation
or cultural fit

30

|| will perform in their role.

we know that finding the right person

and be a more productive employee.

Formal procedures were

used to measure motivation
or cultural fit

|| will suit the company culture

|| will stay

This knowledge is now widely accepted

and cultural fit is the biggest indicator

them to select a candidate who:

|| is the right fit for the role

to develop formal assessment criteria

Assessing attitudinal, motivational

role they are trying to fill to enable

52

55

12

Excellent

Good

Poor

Very poor

3
Fair

Battle strategy No. 5:

assess candidates attitude, motivation and cultural

fit wherever possible: to deliver high-performing
employees who stay with your business and
add value for years to come.

Invest to excel

Similar results show that the use of

So how can employers know whether

formal procedures also resulted in hires

implementing such procedures is

who were significantly more likely to be

worth the investment of time, effort

superior in regards to their cultural fit,

and budget?

functional skills and motivation.

To examine whether these procedures

The marked improvement in quality

actually make a difference we asked

of hire when formal assessment

employers to rate the performance of

procedures are used suggests it is

the three most recent hires they were

worth investing in this aspect of

personally involved with, and then to

recruitment. Dividends will include the

indicate whether formal procedures

benefits of hiring a greater proportion

were used during the selection process

of high-performers and minimising the

for each hire.

risk of bad hires.

Results show that 39% of hires ended

up being excellent performers in the
cases when formal procedures were
used. However, when formal procedures
were not used, only 30% of hires
ended up being excellent performers.
This represents a significant 27%
increase in the proportion of excellent
performers resulting from the use of
formal procedures.
There was also a 37% decrease in the
proportion of fair or poor hires in the
cases when formal procedures were
used (9% of these hires were fair or
poor) compared to the cases when
formal procedures were not used
(15% of these hires were fair or poor).

47

battle strategies

No. 6: develop
a flexible
and efficient
recruitment model

would create the most value for

my organisation?
A) Employment brand How are

Most companies today realise that

we viewed as an employer,

talent lies at the heart of an

internally and externally?

organisations strategic advantage. They

understand they need to invest in talent
acquisition and develop a differentiated
strategy that is well executed, and they
need to do this better than their
competitors. In todays market there is a

B) Quality How is the quality of

our talent viewed internally and
externally? How long do our staff
take to reach productivity?
C) Retention What are our rates

variety of recruitment models and tools

of staff retention and how do they

to choose from to help win the war for

compare to industry averages?

talent. The choice can be overwhelming,

Why are people leaving? How

so where do you start?

many employees do we lose to

Start by asking some fundamental

questions:
1. Business strategy How are we
performing as a business? Are we in
start-up mode, growing locally or
internationally, reducing headcount
or changing our business mix?

competitors and why? How can we

change our recruitment practices to
stop people leaving?
D) Cost What is our average cost
per hire (total spend divided by total
number of hires per annum)? How
does this cost break down by our
talent segments? Are we trying to

2. Culture Do we have a culture of

save money, invest or keep costs

insourcing or outsourcing? What

steady? Would we prefer to vary

have been our past experiences

our costs or fix them?

and learnings?
3. Roles How many roles do we
expect to recruit each year? Is this
volume regular or sporadic? Are our
roles largely homogenous or made
up of many one-off skill sets?
4. Segmentation Which of the roles
in my organisation are strategic,
critical and core? How well should I
distribute my hiring resources to
optimise my results in each segment?

48

5. Pain point What, if addressed,

E) Speed How long does it take

us to hire new talent? What most
often causes delays?

Battle strategy No. 6:

review your recruitment function and commit to

developing the most flexible and efficient model
to serve the needs of your business.

F) Service What is the experience

Alternatively, maybe your recruitment

a matter of putting in place the

like for all stakeholders including

process is too long and you are losing

right model for your size, maturity,

candidates, hiring managers, HR

good candidates as a result, or maybe

business strategy and pain point,

and suppliers?

you are growing quickly and

and committing to an ongoing cycle

recruitment cant keep pace with

of continuous improvement.

G) Compliance What is our

compliance to our recruitment
model? What is the reason for
non-compliance? What is our
compliance to policy?
H) Reporting What management
reporting is available and is this
effective? How is it used to inform
decisions?

demand. Most organisations have a

recruitment pain point and this is what
you need to uncover. This might be
different by business unit, geography
or talent segment so it is helpful to
segment your analysis in a way that
matters for your business.
For small start-up businesses with

In summary, recruitment functions must

evolve to meet the needs of a talentpoor market. Those organisations that
take necessary steps to put in place the
optimal recruitment model for them and
commit to a continuous cycle of review
and improvement will ensure they stay
at the forefront in the war for talent.

restrictions on cash flow, maybe the

Review the range of options

do it yourself (DIY) model might be

available.

right for a period of time. For cashed

Once you have answered these

up new business ventures, using a

questions, you can begin to review the

recruitment agency or Recruitment

range of recruitment options available.

Process Outsourcing (RPO) specialist

You dont need perfect answers for

is more common.

everything as it is often hard to find

For organisations open to outsourcing,

complete data. What you need is

but recruiting either sporadically

directional information that will help

or frequently but with much role

you answer these questions and

differentiation and specialisation, then

pinpoint the key issues.

maybe alignment with a small number

For example, maybe your cost per hire

of specialist recruitment agencies

is low but you are losing talent to

makes sense.

competitors. Or maybe your quality and

For other companies who recruit

retention of talent is good, but you

homogenous and specialist roles on a

believe you are paying too much.

very regular basis and have a culture of

We will continue
to partner with
specialist recruiters
to complement us by
selling the story of
the journey we are on,
therefore assisting us
to strengthen our EVP
and identify candidates
with specific skill sets.
Tina Morgan, Recruitment Manager,
New Zealand Post Group

insourcing, then an internal recruitment

function might work, supplemented by
a specialist recruitment panel. If these
same types of companies are open to
outsourcing, growing rapidly and
wanting to variabilise their cost base,
then maybe an outsourced RPO model
makes more sense. There is no right or
wrong answer and no ideal model. It is

49

future forecast
and conclusions

future forecast

There is no prospect of the tight labour

term (eventually quality candidates

market easing: the only solution for

will seek out these employers

employers is to make sure they hire

for themselves).

to a model that will deliver high

performing, best-fitting talent for their

|| Developing a tailored and flexible

recruitment operation; outsourcing

organisation every time.

where appropriate and working with

To this end, forward-thinking

specialist recruiters to source

recruitment strategies will include:

candidates for business-critical

and hard-to-fill roles.

|| Focusing on quality of hire and

cultural fit rather than cost per hire.

|| Greater use of technology in

the recruitment process: not to

|| Implementing more reliable and

save time, but to garner more

science-based recruitment methods

sophisticated market intelligence

that take the risk out of recruiting.

|| Building EVPs that not only attract
candidates today but also appeal to

and candidate data.

|| Employing experts to develop a
proactive talent pipelining function

passive job seekers in the longer

for the organisation.

conclusions
As Australian and New Zealand

Selection

employers battle the challenges and

|| Employers should adopt a scientific

constraints of the current recruitment

approach that measures motivation,

market, the question remains: how can

attitude and cultural fit, to help select

they win the battle for talent?

the best and most appropriate

Hudson believes there are three critical

employees for their organisations.

areas to be addressed in answering

this question:

|| Whether insourced, outsourced or a

Attraction

combination of the two, organisations

|| Development of sophisticated and

must ensure they have a strategic

effective attraction strategies to

and flexible recruitment function able

ensure a pool of quality candidates

to meet the human capital needs of

for roles. This includes creating

the business. The model should be

an authentic and compelling EVP

flexible enough to manage volume,

and establishing an appropriate

and specialist enough for niche skills.

digital presence.

52

Model

research
methodology

RESEARCH METHODOLOGY
Summary

EMPLOYER
SURVEY

20-minute online survey of Hudsons employer clients from

Australia and New Zealand.

Respondents either working in HR, or are involved in hiring process.

Margin of error associated with sample size of 999 =+/- 3.1%.

Respondents were sourced from a range of industries

and professions.

COMBINED DATA
REPORT
Includes results of
both surveys

EMPLOYEE
SURVEY

20-minute online survey of Hudsons employee candidates from

Australia and New Zealand.

Respondents currently working in either a casual, part-time, contract

or full-time role.

Respondents were sourced from a range of industries and professions.

Margin of error associated with sample size of 1,321=+/- 2.7%.

All percentages in this report are rounded to whole numbers and consequently graphs may not always total exactly to 100%.

53

research methodology

sample characteristics

employers

employees

% of sample

No. in sample

% of sample

No. in sample

Male

51

509

59

777

Female

49

490

41

544

Under 30 years

91

22

291

3039 years

35

346

34

444

4049 years

37

365

28

365

5059 years

17

173

14

182

60 years and over

24

39

Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.

industry

employers

employees

% of sample

No. in sample

% of sample

No. in sample

Advertising/Marketing/Media

12

56

Construction/Property/Engineering

62

71

Education

45

52

Financial Services/Insurance

15

151

12

160

FMCG

22

16

Government

18

178

14

187

Healthcare (Private)

31

31

Healthcare (Government)

24

22

Information Technology

57

14

190

Manufacturing

55

53

Non-Profit

34

29

Professional Services

50

91

Resources/Mining

54

65

Retail

27

36

Telecommunications

34

60

Tourism/Hospitality

16

29

Transport

29

29

Utilities

40

41

Wholesale/Distribution

24

31

Other

54

72

Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.

54

current work situation

employers

Involvement in hiring processes

Number of full time employees

sample sub-segment

% of sample

No. in sample

I am involved in the hiring

process as an HR
manager or part of the
HR team

32

315

I am involved in the hiring

process, but my main role
is not as an HR or hiring
professional

68

684

I am not involved in the

hiring process or
workforce planning at all

25 or less

43

26100

13

128

101200

93

More than 200

74

735

Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.

current work situation

employees

Currently employed

Number of full time employees

Time in current role

sample sub-segment

% of sample

No. in sample

Full time

52

685

Part time

22

Contract

41

536

Casual

78

25 or less

13

176

26100

11

142

101200

108

More than 200

68

895

3 months or less

28

371

4 to 6 months

23

309

7 to 12 months

25

331

13 to 18 months

70

19 to 24 months

38

2 to 3 years

69

3 to 4 years

55

4 to 5 years

26

More than 5 years

52

Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.

55

research methodology

location

employers

employees

% of sample

No. in sample

% of sample

No. in sample

Australia

74

742

75

986

New Zealand

26

257

25

335

Australian Capital Territory

35

68

New South Wales

31

231

30

297

Northern Territory

Queensland

14

106

16

157

South Australia

13

93

12

121

Tasmania

Victoria

28

210

25

249

Western Australia

67

90

Auckland

42

108

40

134

Christchurch

14

37

14

46

Wellington

44

112

42

141

Other

14

Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.

personal profession

employers

employees

% of sample

No. in sample

% of sample

No. in sample

Accounting and Finance

17

170

15

204

Human Resources

29

291

72

ICT

15

145

24

323

Financial Services

45

45

Legal

18

35

Technical and Engineering

51

11

143

Office Support

56

10

133

Public Sector

42

31

Sales, Marketing and Communications

92

13

177

Other

89

12

158

Senior Management

123

Middle Management

22

296

47

617

Admin/Support staff

19

247

None of these

38

Non-managerial Professional/Specialist

Not applicable

Total sample = 999 (employers) and 1,321 (employees). Please note that percentages have been rounded, and may not equal 100%.

56

Adelaide

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