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Mark Mehler & Gerry Crispin 732-821-6652

Print is paper a candidate might read. College is a location employers target. Referral might be evidence of an employee connection. . Walk-in suggests where a candidate will work. Monster is an online place a candidate might search. Linkedin is an online place a recruiter might search . ALL of these are SOURCES firms attribute to a hire. NO ONE source is mutually exclusive. A cross-section of any ‘channel’ will surface several influences. Gerry Crispin & Mark Mehler CareerXroads www. CareerXroads.com, [email_address] 732-821-6652

2,139 200 36 1,229,750 213,375 Source: CareerXroads, 2/2012, Source of Hire Whitepaper Figure 1 During 4 weeks each year (January) 2012 25-50 competitive firms respond- each with 1500 to 10,000+ North American Employees. 150k-300k F/T openings are filled we ask 200 staffing leaders for their SOH data. by 1,000-3,000 Recruiters and Sourcers.

Source: CareerXroads, 2/2012 Figure 2 2007 2006 2005 2003 2004 2008 2009 36% 38% 32% 34% 28% 39% 51% 50% 41% 2011 2010

9.8% 6.6% 9.1% 4.3% 2.1% 2.2% 2.8% 1.9% 0.8% 8.8% 28.0% 20.1% 2011 (as reported) External Sources of Hire 18.8% 7.2% 5.0% 2.8% 2.4% 2.0% 2.3% 1.8% 0.7% 27.5% 24.9% 26.7% 27.3% 23.2% 13.2% 20.1% 12.3% Figure 3 NA Source: CareerXroads SOH, 2/2012 Career Fairs Print 3 rd Party Temp/Contract-to-hire Rehires Recruiter Initiated College Career Site Other Walk-ins Job Boards Referrals Social Media 3.5% New 2011 2010 2009 2008

Figure 4 1997 Sources of Hire 28.7% - Newspaper ads 19.7% - Employee Referrals 10.4% - Agency (Contingent) 8.7% - Contract Recruiters 8.3% - Job Fairs 5.0 % - Other advertising 4.6% - Image advertising 4.2% - Trade journals 2.9% - College 2.9% - Resume services 2.1% - Agency (Search) 2.1% - Internet 1.5% - Radio

Referrals Social Media Job Board How do Sources combine to influence candidate action?

Source: CareerXroads SOH, 2/2012 Referrals Career Site Recruiter/Sourcer Initiated Contact Job Boards Social Media Figure 5

Company Career Site Social Media Company Recruiter/Sourcer Initiated Contact Referrals Stand Alone Figure 6 Source: CareerXroads SOH, 2/2012

Company Career Site Social Media Job Boards Recruiter/Sourcer Initiated Boomerangs (Rehires) Source: CareerXroads SOH, 2/2012 Figure 7 76.7%

Company Career Site Recruiter/Sourcer Initiated Contact Job Boards Referrals College Source: CareerXroads SOH, 2/2012 Figure 8

O% - We don’t hire interns 1-5% 6-10% 11-25% 26-50% 51-75% 76-85% 86-90% 81-95% 96-99% 100% - Everyone we want. Q: What % of the INTERNS (that you want) do you convert? COLLEGE hires are drawn In part from a pool of Interns 50% larger than their employer’s F/T requirements… but only 37.3% accept an offer from where they interned. A: Source: CareerXroads SOH, 2/2012 Figure 9 3.0% 15.2% 9.1% 21.2% 18.2% 3.0% 6.7% 6.7% 18.2% 37.3%

A: Figure 10 *Source: CareerXroads, 1/2012, Referral Practices Nearly 1/2 of all companies* make at least 1 hire for every 5 referrals they get. Q: How many Referrals does it take to make one hire? 10.4

Source: CareerXroads SOH, 2/2012 Figure 11 Q: What impact does Social Media have? (Linkedin)

Source: CareerXroads SOH, 2/2012 Figures 12, 13 Q: What impact does Social Media have? (Facebook) Q: What impact does Social Media have? (Twitter)

Source: CareerXroads SOH, 2/2012 Figure 14 Q: What impact does Social Media have? (Other)

Q: How do you use major, niche and aggregate Job boards? Most Job board hires from Posted Jobs not Resume Searches Posted Job hires are slightly ahead of those from Resume searches Hires are pretty much balanced between Posts and Searches Resume Search hires are slightly ahead of those from Posted Jobs N/A. Recruiters aren’t posting jobs or searching for resumes . Most Job board hires are predominantly from Resume Searches not Posted Jobs Source: CareerXroads SOH, 2/2012 Figure 15 45.7% 5.7% 22.9% 22.9% 2.9%

Q: What % of your Job Board hires come from each site? Source: CareerXroads SOH, 2/2012 Figure 16

Q: How do you collect Source of Hire Data? Self-Report During interviews Job dist. service reports IP address reports Other New Hire Surveys After offer is accepted. Pure Guess Onboard- Focus Groups Source: CareerXroads SOH, 2/2012 Figure 17 66.7% 38.9% 33.3% 25.0% 22.2% 19.4% 16.7% 5.6% 2.8%

Q: Do You Oversee Everything Related to Recruiting? We touch every hire We don’t hire hourly at the plant We don’t hire Union We don’t hire hourly at the Store We don’t hire for every function i.e. Sales We don’t hire for every location We don’t hire for every division Source: CareerXroads SOH, 2/2012 Figure 18 65.5% 10.3% 24.1% 3.4% 3.4% 10.3% 10.3%

What Do You Plan To Change In 2012?* Improve Employee Referral Programs (ERP) Increase Social Media and Linkedin SOH Channels Invest in Sourcing- internally as well as contract - Decrease the dependency on job boards. - Equip our recruiters with better tools Develop talent community/talent pool Channels Sharpen Branding efforts particularly with Diversity *see appendix . Source: CareerXroads SOH, 2/2012 Figure 19

APPENDIX Additional details of our Respondent Profile Exempt, Contingent, International, RPO, Tools Sourcing, Top Influences, Plans

Distribution of EXEMPT / NON-EXEMPT Hires (~ 2/3 Hires were Exempt) Source: CareerXroads SOH, 2/2012 Figure A1 5.6% of the respondents were 100% Exempt / 0% N-Exempt 5.6% of the respondents were 30% Exempt / 70% N-Exempt 5.6% of the respondents were 40% Exempt / 60% N-Exempt 16.7% of the respondents were 90% Exempt / 10% N-Exempt 25.0% of the respondents were 80% Exempt / 20% N-Exempt 11.1% of the respondents were 70% Exempt / 30% N-Exempt 13.9% of the respondents were 60% Exempt / 40% N-Exempt 8.3% of the respondents were 50% Exempt / 40% N-Exempt 8.3% of the respondents were 20% Exempt / 80% N-Exempt

% Contract, Contingent & P/T % Employers Responding Distribution of Non F/T Workers (Average = 17.9%) Source: CareerXroads SOH, 2/2012 Figure A2 2.9% 17.6% 26.5% 20.6% 14.7% 2.9% 2.9% 2.9% 2.9% 5.3%

We have a master contract with a vendor to supply contingent labor with professional skills in areas such as Engineering, IT, etc. We have a master contract with a vendor for all hourly- P/T labor. We stay out of this area as much as possible and have little or no responsibility for it. We have dedicated recruiters and sourcers for these areas. We have bolted on vendor management modules to our ATS in order to better manage contingent labor. How Respondents Handle Contract/Contingent/PT Workers Source: CareerXroads SOH, 2/2012 Figure A3 51.7% 48.3% 31.0% 24.1% 3.4%

We hire Globally (in most countries) but have , no Breakdown of Sources We Don't Hire Globally We Hire Globally but have no data or, getting the data would be a major undertaking We have it all and can benchmark by country if the opportunity presented itself. Source: CareerXroads SOH, 2/2012 Figure A4 21.6% 16.2% 24.3% 37.8%

ALL of the US F/T hiring is done with our own Recruiters. ALL or most of our GLOBAL hiring is done with a centralized TA Leadership team. ALL or most of our GLOBAL hiring is done In a decentralized TA Leadership. We've outsourced SOME F/T US recruiting to an outside RPO vendor. We've outsourced SOME F/T Global recruiting to an outside RPO vendor. We've outsourced MOST F/T US recruiting to an outside RPO vendor. We've outsourced MOST F/T Global recruiting to an outside RPO vendor. We've outsourced ALL F/T US recruiting to an outside RPO vendor. Something Other Source: CareerXroads SOH, 2/2012 Figure A5 54.3% 42.9% 14.3% 17.1% 17.1% 2.9% 5.7% 8.6%

Source: CareerXroads SOH, 2/2012 Figure A6 Our CRM is integrated with our ATS [20.0%] We do not have a CRM [50.0%] Our CRM is independent of our ATS [30.0%]

Source: CareerXroads SOH, 2/2012 Figure A7 No Specialized Sourcing Roles Full Life Cycle Recruiters do it as necessary [48.4%] No Specialized Sourcing Roles We Purchase what we need [9.7%] We have a separate F/T Sourcing Group [41.9%]

Figure A8 Top 5 Influences on Sources of Hire

Source: CareerXroads SOH, 2/2012 Figure A9 Top 5 Influences on Sources of Hire

What Do You Plan To Change In 2012? We rebuilt our entire US recruiting model for 2012 to enable stronger sourcing of candidates by our recruiters (to lower agency spend) We do feel good about our ERP %. We are implementing a sourcing RPO model in 2012. Update and re-launch employee referral program as it has been declining; ongong review of job board ROI; More emphasis on direct sourcing, bought some new packages with Linkedin, Ladders, Obtain CRM system More targeted, better management of ROI for channels WE would like to decrease the dependency on job boards in order to control costs a bit more. We would also like to equip our recruiters with better tools (CRM, LinkedIn Recruiter) to be able to source more effectively and proactively in client meetings. More data and analytics to drive decision making vs. Recruiter gut feel on sources Moving away from job boards, towards social media tools – increase in LI and newer sources like Branch Out Advertising on Social Media More Pay-per-click promotion, strengthening SEO strategy Adding more mobile capabilities Retargeting applicants who join our talent community We're adding intelligence information (Wanted Technologies) and video interviewing technology (Interview Stream ?) which, if successful, may change how we approach our current process. Source: CareerXroads SOH, 2/2012 Figure A12

Add more sources, developing new career site and increasing social media. We are going to pilot some sourcing around military. We continue to be focused on Diversity sourcing, focusing on employee referrals and social media Recruiters taking more of an advisory role in recruiting. We are looking to leverage LinkedIn more and be less reliant on CareerBuilder. We are also looking to leverage sourcing capabilities vs "post and hope". Use of more social media Launched a new Employee Referral Program in late 2011 that should drive referral % up for 2012. New program includes social media technology (TalentVine) as well as new promotional strategy. Leverage more social media and increasing recruiter's direct sourcing capability and time. Launch a web 2.0/social media strategy to recruit and retain candidates. Increased utilization of LI job posting slots / continued focus on building a talent network accessible via our CRM / enhanced utilization of our sourcing team Refocus on social media Implement more data and analytics that track from apply to hire. Hire sourcing team, ramp up social media efforts, greater mobile presence, less job postings and invest more in marketing to passive channels, maximize resume and sourcing databases such as our CRM More direct sourcing Less reliance on job boards, continue to wind down print, track everything. Find those things we do well and focus on them in each LOB, market, and niche. Source: CareerXroads SOH, 2/2012 Figure A13

More sourcing for our most critical roles Increase social media presence and Integrate CMR web based tools to Oracle More competitive intelligence, broader use of Linked In, passive candidate sourcing, pay per click campaigns, eliminating major job boards. Engage more - less 'post and pray' for the right candidate Increased use of RPO for high-volume jobs More branding sharpening Explore community building based on skill set/thought leadership We have dramatically shifted from major boards to LinkedIn, SimplyHired and Indeed. We are also focusing more effort on Facebook and LI recruiter license use. We are now in the redesign phase of our career center as well. Increase brand recognition with Diversity sources to increase pipeline of diversity candidates. Source: CareerXroads SOH, 2/2012 Figure A14

Gerry Crispin & Mark Mehler [email_address] 732-821-6652 If you would like to be informed about our SOH whitepaper, please Register for our monthly Update at CareerXroads Good Hunting!

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2012 Sources Of Hire. Channels that influence.

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2012 Sources Of Hire. Channels that influence.

Editor's Notes