iSixSigma

Six Sigma and reducing recruitment costs?

Six Sigma – iSixSigma Forums Old Forums General Six Sigma and reducing recruitment costs?

Viewing 16 posts - 1 through 16 (of 16 total)
  • Author
    Posts
  • #29343

    arrann young
    Participant

    I have read a number of threads on this board that touch on the subject of the impact of Six Sigma on the cost reductions and process improvements that can be made in the non manufacturing areas of a business. It seems to me that whilst we are constantly trying to nail our suppliers and improve manufacturing processes in order to reduce time, waste, stock holding or improve our JIT environments we are ignoring one of the major things that hits our bottom line – that of our inability to recruit the right people at the right time with the right skills in the right geographical location. I know HR don’t keep a list of people that are begging to work for us, but why does it seem to take so long and why are the people that are put forward to us so poor? Can anyone out there suggest an improvement that has worked for them?Arrann.

    0
    #74935

    Mike Carnell
    Participant

    Arrann,
    I have seen a model generated by a woman in Phoenix that could be used to predict the length of time a person could be expected to stay with a company based on questions asked in the interview. The analysis can be done. Actually if you look at a lot of the Stats from the social sciences it makes the stuff we do in industry look very simplistic. They have lengths of time and all types of environmental factors that have to be considered. It is actually pretty impressive that they get any information at all.
    AS far as the poor selection. You have to break that into two pieces. They don’t generate the requirements so first you have decide if they are providing what is being requested (did they meet the criteria specified?). The second piece – assuming they did meet the criteria – the quality of the specifications. I would really doubt they are providing poor quality candidates on purpose.
    Another choice would be to outsource it toa recruiter. People act like it is a dirty profession but in actuality there are some very professional guys in the business (a fair number of them read this site). These guys are in the business and can produce candidates that will fit anything you want. The cool part is you pay nothing until they produce someone acceptable (so why would you carry headcount to do this?). They are taking a risk right along with you. A lot of people get shakey when they see the price tag. Remember, expensive is relative – it is probably cheaper to pay a recruiter than to get a new hire that turns over in the first year.
    Do the stats. Baseline the current process in terms of turnover and customer satisfaction (of the hiring manager). Outsource some of the jobs and see if there is a statistical difference.
    Look at it this way. As hiring manager you do interviews and hire how frequently? A recruiter does it daily. Who do you believe is better at it?
    Good Luck.

    0
    #74937

    Adam L Bowden
    Participant

    Good morning Mike,
    You stated in your reply that;
     “I have seen a model generated by a woman in Phoenix that could be used to predict the length of time a person could be expected to stay with a company based on questions asked in the interview. The analysis can be done. Actually if you look at a lot of the Stats from the social sciences it makes the stuff we do in industry look very simplistic. They have lengths of time and all types of environmental factors that have to be considered. It is actually pretty impressive that they get any information at all.”
    Could you give me a call or e-mail me as I’m very interested in the “Phoenix Model” as it is something that one of our BB/GB can use in their current project.
    Appreciate your help;
    Adam
    ph 720 332 3737  e-mail [email protected]
     
     

    0
    #74940

    Mike Carnell
    Participant

    I will call you this morning.

    0
    #75053

    rohit k
    Member

    Mike,
    Please forward the model to me alos, best if you have it/get it paste it on the site….this is something all of us can use.
    Thanks, Rohit

    0
    #75056

    Keshri
    Participant

    Mike,
    Please forward the model to me alos, best if you have it/get it paste it on the site….this is something all of us can use.
    Thanks, nayan

    0
    #75057

    arrann young
    Participant

    Mike,
    You raise an important point that her study would apparently address – that of retention. I wasn’t aware that someone had studied this info in any great depth. I’d be keen to see it because I think that we have tended to take the approach that getting someone on board in the first place is the difficult thing and that they’ll look after themselves once they’re with us. Maybe we should take the point of view that getting them on board is the relatively easy part and that keeping them challenged and motivated and delivering the things we promise at interview is where we should put the effort in. I’ll look at our policy and processes for recruitment and see where we can make improvements.
    As for the recruiters we may pursue that route but we’ve had our fingers burnt before, and most of them don’t seem that keen to work in competition with other recruiters even though surely the more we speak to the better the chance we have of getting the right person. If you have the info for the study in Pheonix I’d appreciate a copy / the chance to discuss it.
    Arrann Young
    +441159496407

    0
    #75060

    Mike Carnell
    Participant

    All,
    I appreciate everyones interest in the paper. The woman who did the study is no longer at Motorola or at least no under the name I knew her. I do know the university she attended when she wrote the paper. I am pursuing it through the library system.
    I will be in India for the next two weeks but I will have someone else following up. Sorry for the delay.

    0
    #75062

    Jeff
    Participant

    An option to consider is:
    What does your vacancy picture look like?  Then build a model based on the Poisson distribution of probabilities of having 1, 2, 3, etc. vacancies per a set period of time (i.e. month).  If vacancies are independent events, this will work well.
    Use the Kanban approach from lean manufacturing to determine an optimum recruiting rate, needed lead time, WIP (essentially considering people as if they were “items”) to set up a proactive recruiting process.
    An approach like this can get you out from being “behind the eight ball” and allow for improving your candidate selection, diversity, special skills, etc.
    While I can’t provide more details, due to company confidentiality, I hope this helps.

    0
    #75067

    Mike Carnell
    Participant

    Arrann,
    Just a quick note on recruiters. I am assuming from your phone number you are outside the US. My experience is primarily within the US. In the US most recruiters will provide some type of guarantee the person stays for X amount of time or else they find a replacement for free. It actually does make them judicious in who they send because nobody wants to do the job twice and get paid once (rework).
    As far as working in competition it has its good and bad side. If they compete it may let you haggle price – short term benefit. If you lock down on 1 or 2 that are willing to learn your business, learn your people, lean your company culture. They can do a much better job for you and will more likely view you as a partner rather than a customer. Their behavior is typically dictated by the parameters they have to operate in.

    0
    #75069

    Pete Schofield
    Participant

    Here’s a scenario where I’m attempting to provide Six Sigma logic to help a client prove a point to group purchasing on the ‘cost versus cost-effectiveness’ issue.
    The purchasing department of a major UK employer celebrated the ‘savings’ made by securing a contractor supply deal at a fixed 8% margin. This is the logic:
    c100 contractors were employed at an average hourly pay rate of £25.
    The margin under the previous agreement was 12%, equating to a supplier mark-up of £3 per hour.
    At the new rate of 8%, the supplier mark-up was just £2 per hour, equating to a ‘saving’ of £100 per hour across the 100 contractors. Multiplied by 40 hours per week x 48 weeks per year, this equated to a total annual saving of £192,000.
    However, with the new supplier there existed no qualitative measure and skills matching was purely a paper-based exercise, carried out by administrators, which resulted in an increased monthly churn (attrition) to an average of 10 contractors per month. The line manager being forced to utilise this ineffective service made the following calculation:
    For every contractor that left mid-contract, there was a 4-week ‘wind-down’ period whilst notice was served, plus an additional 4 week familiarisation period for the replacement contractor. In addition, he took into consideration the time of the project leaders who had responsibility for hand-over.
    In total, the line manager calculated that 8 weeks wages were wasted every time a contractor left his department. Taking the charge rate of £27 per hour x 40 hours per week x 4 weeks x 2 people = £8,640.
    Multiply this figure by the 10 contractors per month = £86,400 x 12 months = an annual salary wastage of £1.03million (without even considering project disruption issues).
    Can Six Sigma be applied to this scenario?

    0
    #75082

    Maggie Lohkemper
    Participant

    Mike Carnell, I’m also interested in that model from the woman in Phoenix determining length of time an employee will stay .  Can you please e-mail me the facts at [email protected]

    0
    #75089

    jane kite
    Participant

    I am an HR professional.   You need an unusual modelof HR services that gets HR people involved in your strategig and tactical planning, and plans that address personnel and competency needs so they can be researching employment markets and even cold calling potential recruits.  Do you have key people complete plans suggesting who insie and outsie the company, have the skills to duplicate or complement existing people and etams?  That’s your richest source of leads.  Also, your management and staff have to view themselves as recruiters and view involvement in industry activities as a recruiting resource.   Not a simple fix, but a profound change in thinking about people as resources.

    0
    #75090

    jane kite
    Participant

    HR folks call this ‘on boarding’ the buzz word for managing more than getting the person to their chair the first day.   Check out the Society for HR Management (SHRM) and the Cornell ILR (Industrial and Labor Relations) web sites.

    0
    #181072

    Shilpa
    Member

    Hi,
    Please can you mail me the Reducing Recruitment Costs Model.. This will be og great help to me.
    Thanks in advance.
    Regards,
    Shilpa
     
     

    0
    #181074

    pournima
    Participant

    Mike.,
    Please forward me also.
     

    0
Viewing 16 posts - 1 through 16 (of 16 total)

The forum ‘General’ is closed to new topics and replies.