Thought Leadership Blog

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Skills Gap Solutions: "If You Build It, They Will Come..."

Executive Summary 

The Problem:

• Company is facing an issue with the Skills Gap
• Potential for 30+ % growth foreseen, handicapped by diminishing quality of incoming talent
• Company Leadership: Internal HR Department of One needs recruitment specialists to assist
• Resources strapped for internal training due to labor intensity.

The Approach:

• HRS: "Build infrastructure to further become an endorsed Employer of Choice; you’ll find yourself winning the war for limited talent and then able to select the best of the best with an elite internal recruitment process.”
• Recruitment in fact proves to not be the only issue. Through first few weeks, HRS finds a higher-than-average rate of candidates selected for hire whom ultimately don’t take the job
• HRS 360-degree research (including candidates) produces the following findings:
     o Misaligned goals and miscommunication between organizational leaders led to outdated job descriptions and noncompetitive internal training programs
     o HR manager had previously identified some opportunities for improvement, however was not given tools or authority to succeed
     o Internal marketing was missing opportunities to sell competitive advantage as a workplace
     o Current handbook handicapped both trainers and managers in consistent policy application

The Results:

• Through attacking above-mentioned areas of improvement in a 360-degree format, Company found themselves in a better position to win the war for talent
     o Growth in number of applicants
     o Growth in number of candidates who accepted an initial offer
     o Quickened time-to-learn on the floor
     o Reduced screening time and time-to-hire
• HRS’ endorsement and presence bought trust in the candidate community and sold Company as an Employer of Choice


Case Study

The Problem

Company Unlimited, a materials manufacturer with operations in Wisconsin and Arizona, is having an issue with the dreaded skills gap. Experiencing a lack of qualified applicants responding to their recruiting ads, they’re having trouble meeting their otherwise projectable growth. Unlimited’s leadership foresees the potential for more than 30% growth in the next 2 years alone, if only they could hire qualified individuals interested in a career in manufacturing and machine operation positions. Unlimited has not had proper success with any of the staffing services in the region, training resources are strapped, and they’re in need of quality talent. Unlimited needs both talent that can grow from entry-level operators and others which can plug more quickly into skilled trades and precision technical roles. Unlimited’s leadership decides to make the call to HRS, looking for answers.

"Give us six months, and we’ll design, build, prove and streamline a process for you. You’ll then have a powerful system which you can self-administer or deploy partners as you choose. We’ll give your team the keys to success, and we’ll maximize the bottom line!"

The following week, HRS shareholders meet with Unlimited’s leadership to discuss the issue at hand. The issue appears to be very straight-forward; machinist, tool & die, warehouse, and other trades positions remain unfilled, and they’ve tried every iteration of recruiting they can think of. Leadership believes they need recruiting-specific consultants to assist their HR Department of One in tackling the numbers. Furthermore, they need help filling several senior roles which are projected to open, including a General Manager. HRS begins the discovery process, detailing how our process will be different than solutions such as PEOs, Staffing Agencies, or other recruiters.

“HRS will be recruiting under your brand name,” explains the HRS shareholder, “as we’re not part of the recruitment industry and we leave that process specifically to those who focus at such. Our focus is to work with your internal team, build an executable system, and return the keys to you at project completion and/or at your discretion. Yes, we will be handling talent evaluation for you and presenting you with ‘top-of-the-pile’ candidates from recruitments and assessments we will help you design, but the real solution comes in helping you build a s trong talent optimization infrastructure which will aid in selling you as an Employer of Choice. Give us six months, and we’ll design, build, prove, streamline and endorse a process for you. We’ll give your team the keys to success, and we’ll maximize the bottom line!”

The discussion between HRS and Unlimited continues from here, and Unlimited agrees to move forward with HRS services as they see how the solution aligns perfectly with their vision of being an Employer of Choice.

The Approach

“I think we found our proof that we’re not dealing with a purely recruitment issue here,” states an HRS consultant to her coworker. HRS is a few weeks into operations for Unlimited, and while the percentage of qualified-to-unqualified candidates is certainly low, another issue begins to arise. Among the first group of eligible candidates identified through HRS’ rigorous selection process, 70% of candidates identified for potential hire and final evaluation ultimately do not take the job. While refinements have been made, and will continue to be made, through 360-degree feedback to determine what an optimal candidate looks like, Company Unlimited still faces a much higher than average decline rate at the final stages.

Further HRS assessment and root cause analysis identified the following causes leading to their talent issues:
• Misaligned goals and miscommunication between organizational leaders led to vague job descriptions and ineffective internal training programs
• HR manager had previously identified some opportunities for improvement, however was not given tools or authority to succeed
• Leadership was not selling the company correctly to incoming employees; e.g., unique benefit package was often discussed as “what we do and don’t offer” instead of selling strategy of benefits being designed through direct employee feedback
• Poorly constructed handbook handicapped both trainers and managers in consistent policy application

Inconsistency with internal policy led to difficulty in initially engaging incoming employees and directly affected acceptance and retention rates. Unlimited’s leadership believed that such policy issues could be addressed once the right talent was in place. They were not considering that it could have affected an incoming employee’s initial production capacity.

The Results

After presenting hard findings through data analysis, we began our work on the identified problem areas. Through our expanded reach, HRS was able to balance production and leadership needs to achieve a precision implementation which increased the candidate pipeline by 240% in only three months’ time. In the war for talent, Unlimited was now finding themselves in a position to select from a higher number of qualified candidates.

HRS was additionally able to screen and evaluate this improved candidate pool while completing our other projects on implementing the new tools and practices. Beyond this immediate influx of production talent, HRS onboarded a highly preferred General Manager candidate for future vision, as well as complementary engineering, HR, and Accounting talent. Unlimited’s leadership felt inspired and energized by the additional leadership brought on board, stating “We never would have thought a candidate like this would be available.”

HRS’ work also recognized further benefit by selling to incoming candidates that our mere presence positioned the company as a preferred employer. Through third party objectivity, it was found that candidates within this specific market had grown distrustful of other recruiters in the area as Unlimited’s largest competition had grown a reputation for “churning” employees and “never hiring them” following a probationary period. Through our practice and endorsement of direct hire for Unlimited, our workforce reputation, and our known presence by the candidates, candidates were openly trusting and appreciative of Unlimited. Positive perception of Unlimited as a preferred employer began to grow, further facilitating the talent pipeline into the future.

As the number of open positions reached a closing point, HRS began work in turning the keys for recruitment back over to internal talent. Said the internal HR manager, “Thank you. I’ve never loved my job this much before!” as a result of the systems we implemented. While HRS remained as a partner and a relationship available to Company Unlimited, we concluded our project and positioned ourselves for potential further needs.

Note: HRS does not take a stance against staffing agencies or other such recruiters, as we recognize they serve a different mission and we will work alongside and recommend them in specific situations. Situations in this case study above were found to be the result of Unlimited’s competition as opposed to the recruiting agencies themselves. These findings represent our approach as a distinctive talent solution from such providers. HRS prides ourselves on finding the right solution for the right employer, getting the right people doing the right things.

The Team At HRS - Monday, February 19, 2018