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IN THIS ISSUE
Newsletter Sponsors
A Note from the Editor
Breaking News
Today's Recruiting News Headlines
Featured Recruiting Jobs
Weekly
Article:
Metrics
in Centralized & Decentralized Staffing Functions
Special Trials and Discounts
Recruiting
Polls and Trends
Layoffs and Downsizing
Report
Recruiting Essential Bookmarks
Upcoming Conferences
Site Of The Week:
Internal
Corporate Phone Directories
Final Note - On The Lighter Side
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A Note From The Editor
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Breaking News
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Today's Recruiting News Headlines
View HR/employment
news
headlines or our Recruiting
Newswire.
Please send us with your
press releases, news items, personnel changes, etc. Click
here for submission instructions.
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Featured Recruiting
Jobs
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Weekly Article
Metrics in
Centralized & Decentralized Staffing Functions
By Yves Lermusiaux
Centralization of a staffing model is defined as the
extent to which management has direct control over the
staffing function. In a highly centralized staffing
function, management may exercise control over strategy,
resources, budget and process. In a decentralized
staffing function, responsibility for the recruiting
process is managed locally, with strategies and
processes that are tailored to local circumstances.
 The
corporate world heavily favors centralization: 59
percent of companies structure the staffing function on
the centralized model. Only nine percent of companies
deploy a fully decentralized structure. The remaining
companies (32%) place the staffing function somewhere
between fully centralized and fully decentralized model,
wherein some aspects of the recruiting process may be
managed centrally and others locally. For instance, 65
percent of companies characterize the sourcing function
as centralized1.
A centralized staffing model allows a company to
pursue a coherent strategy, set out a consistent
process, and provides certain economies of scale. On the
other hand, a decentralized staffing model may be more
focused on the hiring manager’s needs, and is more
flexible in nature.
The challenge for any company is to maintain a level
of service for the local hiring manager, while setting
corporate strategies and standards, and measuring
progress towards those goals. It is important for
corporate executives to know how staffing is performing,
regardless of the structure of the function. What then
are the issues pertaining to metrics that are common to,
and unique about, a centralized and a decentralized
staffing function?
Good Metrics
Regardless of the structure of the staffing function we
know that to be effective and reliable, the metrics we
choose to use need to have these key characteristics:
- Aligned with business goals
Corporate business targets and HR strategies need to
be synchronized, and then translated into the tactics
HR implements.
- Actionable
Too often HR measures for the sake of measuring. A
good metric must provide information that can be acted
on, and must have implications for a clear plan of
action.
- Consistent
A good metric must be consistent in what it measures
and how the data is gathered. The data and methodology
must be defined at the outset, and remain consistent;
otherwise the value of its comparison is useless.
- Tracked over time
A good metric must be tracked over time, to provide
information on the trend in the metric, not simply its
state at one moment in time.
Metrics in a Centralized Model
Adherence to corporate metrics is commonly mandated in a
centralized staffing environment, often to track
compliance to a standardized process. Therefore, metrics
can focus on the steps of the process in great detail,
with the aim of driving incremental improvements in
performance. A shared, centralized database can easily
be the source of data.
A perennial issue, afflicting centralized and
decentralized staffing models equally, is that reporting
is often an afterthought. If recruiters have to stop
what they are doing, and fill in data after the fact,
then there will be issues with the quality and integrity
of the data. Reliable metrics are possible only if the
reporting infrastructure is integrated with the
recruiters’ daily work.
The danger in a centralized environment is to measure
and report on too many metrics, simply because the data
is available. Be careful not to be too focused on the
data. With too much data, it is difficult to know what
is wheat and what is chaff.
Metrics in a Decentralized Environment
Much of the discussion of centralization and
decentralization of staffing functions has a subtle bias
against decentralization, implying that it is less
rigorous, and a second-class business practice. Yet, a
decentralized model is sometimes a necessity, depending
on the business model. For example, a retail company
with numerous small outlets typically employs a
decentralized structure, suited to the lightning-fast
hiring process typical of such environments. Introducing
metrics is one way of increasing rigor and raising
visibility of a decentralized staffing function.
If a centralized staffing function is faced with an
embarrassment of riches for metrics, a decentralized
function typically is faced with a desert of data. HR
generalists and hiring managers commonly are carrying
out the staffing work; collecting and reporting data
takes them away from the real work of the day. Again,
the reporting platform has to be integrated with their
daily work, or else the data will be missing,
inaccurate, or worse – made up.
By definition, there are few shared processes in a
decentralized staffing function. Each division may
devise its own procedures. Without shared processes, you
cannot craft metrics that measure specific steps of a
process. What you have to focus on instead is the output
of the process. Find outputs that are common across all
divisions, and define consistent and actionable metrics
for those milestones.
The challenge then becomes working backwards from the
outputs into what little data you have to identify ways
to improve. Imposing a limited number of standard
metrics on the branches of an otherwise decentralized
staffing function is a move towards centralized control.
Be careful however not to impinge on the very reasons
why decentralization makes sense for your organization,
such as freedom to react to local market conditions.
The Role of Technology
An enterprise staffing management solution provides the
ability to capture and report enterprise-wide metrics.
The efficiencies of a shared candidate database and the
powerful reporting capabilities of an enterprise
solution make a compelling case for centralization. The
same technology, though, also enables more effective
decentralization as it provides visibility across an
enterprise into the demand for and supply of candidates,
as well as real-time collaboration among HR generalists
and hiring managers.
Metrics are the key for HR to become more visible in
the organization. In either a centralized or
decentralized staffing structure, the requirements for
metrics are the same: do not measure for the sake of
measurement; keep metrics to a minimum; and measure
output and what is in alignment with the strategic goals
of the organization.
12003 Recruiting Metrics and Performance Benchmark
Report Staffing.org, Inc. and the Human Capital Metrics
Consortium, Inc.
About the Author
Yves Lermusiaux is president
and founder of iLogos Research, which benchmarks best
practices and analyzes the economics of talent flow. Mr.
Lermusiaux is well known as a public speaker and
industry analyst, and was named to the list of the “100
Most Influential People in the Recruiting Industry.” He
is often quoted in leading business media worldwide
including Fortune, The Wall Street Journal, Financial
Times, Business Week, and Time Magazine. As the head of
iLogos, Mr. Lermusiaux consults with major corporations
throughout the world on strategic staffing, human
capital management and metrics.
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Recruiting Polls and Trends
US job cuts rise 6.1 percent
in April - report
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Layoffs and Downsizing
Report
Recruiters Network has added
a layoff and downsizing report section to its
newsletter. This section can be a great leads source for
candidates.
More information on how to use this section here.
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Recruiting Essential Bookmarks
Industry Publications
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Upcoming Seminars &
Conferences
Zero Based Hiring -
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Performance-based, Interviewing, Assessment
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Final Note - On The
Lighter Side
From the worthless trivia
mailbag:
Typewriter is the only ten letter word you can type on
the top of
your keyboard.
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