The Basics of Balanced Recruitment Marketing

The Competition for Talent

The national job market is poised for a dramatic change in the next few years. Baby
Boomers are starting to retire, smaller replacement generations are entering the workforce
and the available pool of qualified talent is shrinking. This situation is made more dire
given the findings from a recent CareerBuilder.com survey1 stating that one-in-ten hiring
managers expect to hire more than 100 new employees in the next year. In general, job
openings are projected to increase by 13% or nearly 19 million jobs through the year
2014.

So the recruitment market is faced with economists what have been dealing with for eons,
supply vs. demand. The supply of adults in the workforce, not to mention highly qualified
talent, is shrinking yet the demand of organizations looking fill thousands of job openings
continues to increase. This will become even more apparent should there be an upturn in
the nation’s economic strength and companies begin expanding even further and hiring
from a stagnant, if not shrinking pool of candidates.

Currently, 38% of hiring managers surveyed by CareerBuilder stated that they are facing
difficulties finding qualified talent. It is evident that the competition for top-notch talent
is heating up and will continue to intensify within the foreseeable future. In order to
minimize the impact felt by this “perfect storm” in the recruitment market, companies
must take a proactive stance to their hiring process to ensure they retain top performers
and attract the new qualified talent they need, quickly and efficiently.

The Ever-present Active Candidate

“The most persistent responders to job ads and internet postings are active candidates –
often these candidates are either unemployed or disgruntled job seekers who are
desperate for ANY job with ANY company”2
Candidate Market
According to the U.S. Bureau of Labor Statistics, active job seekers
16% make up 16% of the American workforce. Active candidates are
widely considered the “low-hanging fruit” of the labor market. They
84%
are probably the most obvious recruitment audience because they
are the easiest to target and the most likely to respond immediately
to job openings. They are “in-market”, currently pursuing a new job,
constantly posting and updating their resumes on job boards, surfing recruitment
websites, blogs and networking sites.

1
Careerbuilder.com, Small Business Advisor: Hiring Tips, “Will Passive Job Seekers Apply to Your Job?”
2
HTC Research Newsletter Jan 2003, “The Value of the Passive Candidate”

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Active candidates are replying to multiple openings and may have more than one
opportunity in process at once. They are potentially taking the first thing that comes
along regardless of fit, skills or career path. On the other hand, a passive candidate has
plenty of time to truly examine how the new job opportunity will benefit his or her goals,
career growth and personal life.

Debbie Goodman, Managing Director of Jack Hammer Executive Headhunters, states

that “only 20% of employees in any designated market sector are actively looking for
jobs and those are the ones that will respond to job advertisements. Of the remaining 80%
approximately, 75% are passive job seekers who are open to hearing about alternative
career opportunities…”3 Yet companies continue to rely on the smaller pool of active
candidates for their staffing needs. In a recent Unicru survey4, 100 staffing managers for
Fortune 1000-size companies indicated that 75% of their time and effort were focused
solely on active candidate recruitment.

Active candidates are on the full–time job hunt and constantly visible in the candidate
market, therefore the competition is intense even for these “low-hanging fruit”. Many
smart companies have recognized this competition and have increased their recruitment
efforts in targeting the elusive passive candidate.

The Elusive Passive Candidate

Dr. Michael Boyd, Human Resourcing Strategies Research for IDC refers to passive
candidates as the “Holy Grail” for recruiters, “They’re among the most highly valued
prospects, and yet by virtue of fact that they typically aren’t going to employment sites or
speaking with recruiters, they’re the hardest to find. A job site that also functions as a
regular destination… puts career opportunities right in front of candidates who might not
otherwise learn about them. It’s like a win-win for the prospective employee and
employer alike.”5
Avg. Months Employed
Passive candidates are highly skilled, happily employed individuals 43
who are not actively seeking new job opportunities. And because
most are happily employed, these candidates are also considered 15

more loyal and more stable (on average passive job seekers stay
with a company three years and seven months, compared to only
Active Passive
15 months for active job seekers6), therefore more valuable, than
active job seekers. They have a job in which they have already
demonstrated ability to make a contribution, potentially translating into a higher chance
of success within your organization. As a result, they are extremely hard to target.

3
Bizcommunity.com, “Best Job Candidates Slipping Through the Net”, April 11, 2005
4
Electronic Recruiting Exchange; How to Attract and Hire Passive Candidates, Part 5; Lou Adler;
3/11/2005
5
TechTarget.com Press Release, March 2001
6
Hospitalityjobsonline.com; FAQ’s

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These “Hidden Gems” are not found through an active recruitment marketing campaign
on job boards, networking sites, online databases or in help wanted ads. They do not want
to jeopardize their current employment by being exposed on a job board or resume
database, etc. Passive candidates are busy performing quality work at their current job not
actively looking for another one, however, they are proactively or passively thinking
about their career path and are willing to entertain new opportunities should
circumstances change.

Although job seekers become less likely to take potential risks and change jobs as they
age and become more experienced, some passive candidates may become active job
seekers as a result of a change in management or location that could potentially impact
their quality of life or simply having a bad day during their current job. Their motivation
could also come from a potential opportunity offering increased career challenge, higher
salary, more attractive compensation package, a shorter commute or better work/life
balance in general. A recent worker commitment study from AON, an HR consulting
firm, showed that over 25% of employed workers would change jobs for a salary increase
of 10% or less, 50% would change jobs for a 20% salary increase.7

Lastly, passive candidates who have reached a point in their current job which they see
no career growth, expansion of skills or salary increase, are more likely to be swayed by
openings that appeal to their long-term career goals. These candidates are interested in
opportunities offering careers, not just jobs. A “job” normally lasts for a year where as a
career offers multiple jobs with corresponding growth through many years. You do not
try to convert a passive candidate into an active candidate, you make sure that they
remember your company and know how to reach you when they have had a bad day. This
is when they are likely to start looking at other opportunities.

Lou Adler, president of The Adler Group (a training and consulting firm focused on
performance based hiring), believes that there is a 30% solution in attracting passive
candidates8. These candidates look for the new job to offer 30% improvement compared
to their current situation. This improvement can consist of a percentage increase in any of
the following: compensation, job stretch (doing the work they enjoy and that taps into
their existing skills and abilities) or long-term company/career growth.

A company’s growth prospects are an important consideration for passive candidates.

The quality of the senior management and leadership teams as well as recruitment
collateral and information on the website is also very important. While technically
“passive”, these candidates are career focused and interested in related articles, research
and stories, reading everything in the career section on your website. Therefore, it is
important to maintain consistent PR and brand advertising.

7
StarTribune.com 10/21/03; We Are All “Passive Job Seekers”
8
Electronic Recruiting Exchange, “How to Hire Passive Candidates, Part 4: The 30% Solution, March 4,
2005

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The passive candidate is under no pressure to find a new job. They spend more time
evaluating, the position, the company, its strategy, the hiring manager and the
management team. You cannot hire these candidates quickly. Not only do they take
longer to find they also take longer to decide. Therefore, you need to start looking before
you need them. A strong passive recruitment marketing plan will work only if you have
enough time before the position needs to be filled.

An employee’s lack of movement between jobs also directly correlates with the
economy. During poor economic times, top candidates are less willing to explore
different job opportunities and more likely to do so when the economy is booming.
However, there is also increased demand for this talent sourcing from the same supply
pool. Passive candidates are becoming recognized for their value and are more frequently
targeted by recruiters, making these candidates more frustrated with these tactics. It will
become harder to reach these candidates as the demand increases. That is why it is
imperative that companies proactively target and recruit a mixture of active and passive
candidates. This perspective will generally cost less and produce better results than
relying on reactive means alone.

The Importance of Recruiting a Mixture of Active & Passive Candidates

“Consistently and regularly engaging both active and passive candidates is the best way
to maintain a pool of qualified candidates. Much like a sports team, a company should
maintain a “bench” of candidates who are ready to step in and do the job if one of the
regular players is no longer part of the team. This requires the company to maintain a
“we’re always hiring” footing to the outside world. Companies that wait until they have a
vacancy before they start building their candidate pool are at a disadvantage in finding
the best candidates.”9

As recruiting consultant Howard Adamsky puts it “Staffing needs can change in the blink
of an eye… it is not possible for most businesses to predict what tomorrow will bring.
When a call comes in to open an office in New York and staff it with 20 people by
yesterday, there is no time to dally. You had better be ready to do more than look at
passive candidates as a recruiting model.”10

Companies need to focus on long and short term needs to come up with a balanced active
and passive recruitment campaign. According to a recent PricewaterhouseCoopers survey
of Chief Executive Officers, two-thirds of corporate executives use a planning cycle of
only year or less11. Peter Weddle, recruiter and HR consultant, explains, “such
nearsightedness virtually guarantees that recruiting will be an ad hoc, reactive and often
crisis-driven process.”12 CEOs who responded to the survey said that their greatest
business risk (except economic downturn) was their ability to acquire the talent they
needed to accomplish their mission.
9
www.tidemarkprofiles.com; HiringCenter; Creating a Constant Flow of High-Quality Candidates
10
Electronic Recruiting Exchange; Howard Adamsky; The Myth of the Passive Candidate; May10, 2005
11
PricewaterhouseCoopers Survey of Chief Executive Officers
12
Weddle.com; Peter Weddle; Cutting Corners to the Best Candidates

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With such a short planning cycle companies simply do not have the time to properly
attract passive candidates and must rely on the quickly attainable active candidates as
almost a sure-thing to fill an urgent opening. This obviously exposes the risk that a top-
notch or more qualified candidate is not filling the position, simply a candidate that is
available and may have some of the needed experience.

Given that 16% of the American workforce is made up of active job seekers, “limiting an
organization’s recruiting to fewer than one-out-of-every-five workers will inevitably
depress its performance over the long run”. The competition for the few top performing
active candidates increases rapidly, as recruitment planning timelines become shorter.
Weddle refers to this as the “War for Talent”; 67% of corporate recruiters are competing
for 16% of the workforce population, creating a constant demand with an artificially
limited supply.

Most companies design their recruiting needs around active candidates. To keep a
consistent flow of top-notch candidates you must attract a mix of active, passive and
semi-active or passive candidates. You will face increased competition for prime talent
from all angles of the recruitment world. You should market your organization to these
candidates as if you would market your products or services to a consumer. You must go
above and beyond a simple job description, duties, line of business, location, etc. Hiring
the best candidates requires that your marketing mix lets the candidate know what it is in
their best interest to work for your organization.

According to a WetFeet.com survey13 of more than 3,000 experienced professionals,

more than a third of the respondents who were currently employed were open to
accepting a new position in the next six months. 53% were not interested in accepting a
new position. Concentrating your recruitment marketing campaign on the other half, a
mixture of active and passive candidates, would increase efficiency and hires.

How the Total Experienced Professional Population Breaks Down

Currently "between jobs" (unemployed), seeking employment 2%
Currently employed, seeking new employment 9%
Currently employed, open to accepting a new position in the next six months 36%
Happily employed, not open to accepting a new position in the next six months 53%
Base: experienced professionals (n=3371)
Source: Recruitment Marketing Strategies: Building Employer Brands That Attract Talent © 2000 WetFeet.com

Despite the fact that passive job seekers are more plentiful, active job seekers still
account for the most hires. 39% of survey respondents stated that they were extremely
active when they switched jobs.

13
Recruitment Marketing Strategies: Building Employer Brands That Attract Talent © 2000 WetFeet.com

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Source: Recruitment Marketing Strategies: Building Employer Brands That Attract Talent © 2000 WetFeet.com

This demonstrates that the current hiring process is set up to recruit candidates reactively,
not proactively. “It is easier to deal with applicants who come to you then try to seek out
new applicants. Without doubt, that is why actives account for such a disproportionate
percentage of hires.”14

Another reason for the disparity may be that top-quality candidates regularly move
between the active and passive realm, even exhibiting behaviors of both candidates
depending on the job market, the economy or individual needs. In the following diagram,
the dashed lines illustrate the open boundaries between candidate statuses.

A successful recruitment marketing campaign must

utilize a complete media mix to cover the full-range
of candidates in the job market as they move
throughout the boundaries. “With the right message,
a strong advertising campaign will reach active
candidates immediately. However, a successful
branding campaign will also resonate with passive
job seekers when they enter the market.”15

14
WetFeet.com; Laura Sewell; Passive Candidates: Who They Are and How to Find Them
15
HEALTHeCAREERS.com 2/06 Newsletter; Capture Top Candidates with a Complete Media Mix

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Creating a Balanced Recruitment Marketing Campaign
Transforming passive candidates into active prospects requires much more information and
detail. Companies must generate awareness among passive candidates before they are
ready to start actively searching. “To get these candidates the information needed to
evaluate the opportunity objectively, companies must use a series of different recruiting
and information-sharing approaches. The goal is to move candidates smoothly along a path
of increasing knowledge and interest.”16 The point at which a candidate has enough
information to realize the job is a good career move and shifts from a passive buying mode
into an active selling position is referred to by Lou Adler as The Recruiting Inflection
Point.

To facilitate this transition, companies must build top-of-mind awareness by utilizing

various media to brand your company and educate potential employees on the benefits of
your organization. Events expose candidates to your organization without the hard sell.
They can meet with company representatives and get a feel for the organizational culture
while recruiters can gather contact information and softly sell or evaluate candidates. News
media and non-recruitment vehicles target the passive candidates while job boards or help
wanted sections reach active candidates.

30% of all passive candidates in the WetFeet.com survey say they investigated employment
opportunities with a company as a result of seeing their employment ad and 28% did so
after seeing a general, branding or non-employment ad. 24% stated that they used news
media to research employers in whom they were interested. Again, we see the significant
role brand advertising plays in not only attracting clients or customers but also recruiting
the quality passive candidates you need while staying ahead of the competition for talent.

Boston Globe Media can help generate a consistent pool of the qualified active and passive
candidates you need through our branding and targeted recruitment marketing capabilities.
We offer truly integrated multimedia marketing solutions through print, online, television,
events and direct mail that cover as much or as little of the market as you need, reaching
who you need, where you need them. Maintain a consistent brand presence and educate
Boston’s top-notch passive candidates with the #1 news sources in the market, The Boston
Globe and Boston.com, in the City region with Boston Metro and in the Western corridor
with the Worcester Telegram & Gazette. And fill your openings quickly through active
candidate targeting via BostonWorks print and online capabilities.

With a balanced recruitment marketing plan your company can enjoy a steady stream of
quality candidates while avoiding the effects of the baby boomer retirement and increased
competition for talent.

16
Electronic Recruiting Exchange; How to Recruit and Hire Passive Candidates, Lou Adler, Friday
December 17, 2004

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