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[ernie] The Interbiznet ERNIE_00.11.14




IBN: Defining Excellence in Electronic Recruiting
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It is better
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John Sumser

Reality
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John Gall


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If you can't
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Applicant Trucking

(November 14, 2000) The history of the Applicant Tracking Industry is littered with an odd kind of failure. There are so few cases of the software actually being used that it is very rare to discover a user sophisticated enough to judge whether or not a particular system works. For the most part, applicant tracking tools have been used to develop statistics for the Equal Employment Opportunity Commission rather than actual hiring workflow.

Led by an incredible market push from Icarian, companies began to understand that Recruiting is fundamentally an inventory problem. Workforce Analytics, a term used by Icarian's charismatic leader, Doug Merritt, is a system of measurements for reviewing workforce optimization, labor deployment, skills penetration and out year employment requirements. Although Icarian itself has floundered somewhat, the important trend is the introduction of longer term, lifecycle thinking into the disciplines of Recruiting.

In earlier days, Recruiting was practiced as a reactive art. The employment requisition, itself a highly politicized instrument, is issued following the agreed upon determination that a need for a new or replacement employee exists. Given typical organizational functioning, the "req" was traditionally released between 6 days and 6 months after the requirement became clear. As a result, a professional recruiter was on the receiving end of the organizations slowness to respond to market conditions. This created an environment that was failure prone and layered with "ass covering".

In Icarian's approach, managing current and future requirements simultaneously allows the organization to spot its own hiring, attrition and retention trends while maximizing the output of each individual in the company. Training and assignment rotation get folded into the Recruiting process. Icarian's contribution has been to expand the language of Recruiting.

In the immediate future, all Recruiting Operations will be required (by market forces) to view their efforts on a five-year horizon line. The operational question has become: What are your employment requirements over the next five years?. In order to guarantee the availability of an adequate (and adequately trained) workforce, Recruiting Organizations will increasingly build broad talent pools that can be drawn from over time.

In more physical settings, the American inventory system has undergone radical changes over the past 20 years. From balance sheets that were drowning in excessive inventory, industry has tamed the beast with Just-In-Time practices that require tight communication between departments within a firm and their vendors. Built using Enterprise Software systems from Peoplesoft, SAP, Oracle, Lawson, Baan and others, these 21st Century inventory practices have streamlined capital structures while making firms more productive and able to adapt to changing market conditions. The central component of inventory practice is a firm's capacity to adequately describe production requirements over both long and very short terms.

As HR Departments (or their successors) move towards more fully grappling with the Labor Shortage, they discover that some of the answers can be found in these approaches. Knowing which human assets are required when and where allows the cultivation of value based relationships. It also fosters a climate of feasibility in the HR Departments that take a longer view.

During 2001, the language of HR Departments will evolve to include Human Capital Management, Human Inventory Management and Minus 30 Recruiting (the idea that a candidate can be in an orientation program in advance of the physical requirement). The realities may catch up with the language in 2002 or 2003. The Peoplesoft Recruiting Village is a significant step in the right direction.

- John Sumser

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