Success story after success story have supported the use of pre-employment assessments to improve the quality of hire for customer contact positions like frontline service, support, and sales. However, using assessment tools is just part of the overall recruiting process. The reality of high volume agent selection systems is that the use of valid assessment tools is only part of an effective recruiting process.
Recruiters who focus on sourcing candidates with more effective, lower cost strategies can improve the frontline agent recruiting process.
Using data from a multi-location organization hiring frontline service, support, and sales employees provides an understanding of the gain that can be realized with the effective use of recruiting sources to reduce overall recruiting costs.
Recruiting marketing for this organization were classified into “Tiers” as follows:
- Tier 1 – traditional recruiting sources like newspaper and radio ads
- Tier 2 – internet based recruiting ranging from job boards to resume bank searching
- Tier 3 – direct person to person sourcing like employee referral programs
The chart below shows that in Year 3 the recruiting cost per hire decreased to 40% of the recruiting cost in Year 1. This cost reduction was accomplished by shifting recruitment marketing away from expensive Tier 1 sources to lower cost and more effective Tier 2 and Tier 3 sources. In Year 3, for example, Tier 2 sources increased to over 40% of overall candidate volume while Tier 1 sources dropped to about 12% of overall candidate volume. In particular, this organization made effective use of its corporate career webpage which became the second largest internet source. This became a low cost, effective source of candidates.
When it comes to frontline agent hiring, having the right sized recruiting team enables effective use of recruiting tactics. For example, over 40% of candidates come from Tier 3 sources which include employee referral programs. Having the right number of recruiters per site enables this team to effectively run the employee referral programs to create significant candidate volume.
Improving quality and driving down costs can take time. In this example, the organization worked over a four year period to reduce attrition and shift costs from high cost recruiting sources to lower cost sources. This only worked because a data-driven approach to the recruiting process linking quality of hire (measured by assessment scores and performance data) to recruiting sources helped the recruiting teams target which sources to eliminate and which to emphasize.
Workforce planning is critical to maintaining the right ratio of recruiters to hires. This recruiting organization was able to work with workforce planning to forecast increased hiring volume which enabled it to grow the internal recruiting team to effectively maintain its key strategies and tactics.