Taleo Business Edition Summary Report

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Taleo Business Edition Summary ReportEnsuring a Perfect Fit:How Smart Screening Guarantees a Better Workforce

CONTACTwww.taleo.com – info@taleo.com1.877.818.2536 – U.S.1.888.922.5665 – InternationalABOUT TALEOTaleo (NASDAQ: TLEO) is the leader in on demand, web-based talent management solutions that empower organizations of all sizes,around the world to assess, acquire, develop and align their workforce for improved business performance. More than 1,380 organizations use Taleo, including 35 of the Fortune 100, for talent acquisition and performance management, with over 1 million users processing 71 million candidates from over 100 countries. Requiring no capital investment, Taleo’s software as a service and on demand deliveryoffers 99.9% availability.Copyright 2008 Taleo Corporation. All rights reserved. No portion of this document may be reproduced in any form without the prior written permission of Taleo Corporation.Taleo and all Taleo product and service names mentioned herein are trademarks or registered trademarks of Taleo in the United States, France, The Netherlands, U.K., Canada,Australia, and several other countries. All other product and company names mentioned herein may be the trademarks of their respective owners.

Every Business Like an Ad AgencyThere’s an adage about the advertising industrythat says, in a business founded on ideas, all of anagency’s assets walk out the door at the end of theday. That an agency is nothing without its people.Today every business is like an ad agency, with acompany’s people more valuable than ever. In comparison to even ten years ago, companies employfewer people, each of whom is expected to solvemore problems, assume greater responsibilities,and be more productive than ever before.Case in point: the airline industry. Whatever difficulties the airlines are currently experiencing can’tbe laid at the feet of their flight attendants. Whereonce a flight attendant was expected to provideonly for a traveler’s comfort, now she is expectedto know CPR, be adept at detecting security risks,and have a minimal level of training in anger andcrisis management.With so much riding on their people, organizationsare demanding more quality in every hire. Whereasin years past an employer primarily valued acandidate’s skills and education, now judgment,personality traits, and emotional maturity areadded to the mix.Hiring managers are struggling to keep up. Despitea softening economy and rising unemployment, 59percent of hiring managers in a 2008 study say thatfinding qualified workers is their biggest challenge,an increase from 52 percent in 2007.1Lack of time and focus are problems. In a separatestudy of 537 senior HR executives in charge ofrecruiting, many spoke of inefficiencies in earlystage recruiting tasks such as sourcing, initialscreening, and interviewing.2On a brighter note, however, a firm majority saidthey believe that technology offers the best meansto help their in-house recruiting staff become moreeffective.1 Employment Dynamics and Growth Expectations (EDGE) Report, Robert HalfInternational and CareerBuilder.com, www.rhi.com/EDGEReport20082 Hansen, F, Survey Data Emboldens Cry for Recruiting Funding, 85/index.html, (August 2008) Copyright 2008 Taleo CorporationIn this paper, we’ll examine one such technology. It’s called Smart Screening, and it works intandem with an employer’s applicant trackingsystem (ATS) to assess candidates electronicallyand shave countless hours from some of the moreonerous early-stage recruiting tasks. We’ll providedetails on Ace Screening and Knockout Screening,processes that electronically fast-track the mostqualified candidates and eliminate the least promising applicants within moments of an applicationbeing submitted. We’ll examine the degree towhich skills and behavioral assessments factor intoSmart Screening, along with the increased relianceorganizations now place on screening for fraud andcriminal histories.Smart Screening a Boon to SMBsFor the small to medium-size business (SMB),Smart Screening offers a cost-effective way to havean in-house recruiting function without churningthrough limited financial and employee resources.Not only will Smart Screening quickly steer hiringmanagers toward the most promising candidates,it will assist you in building a repository of prequalified, ranked candidates to draw from in thefuture. (As a supplement, see the summary reportWhat SMBs Should Look for in an Applicant TrackingSystem, also from Taleo.)It’s a point worth repeating: Smart Screening is notjust about finding employees, but finding the mostqualified employees. The employees who, based onskills, behavior, and prior history, will fit perfectlywithin your organization.Let’s examine how it works.First Things First: Knockout ScreeningEvery organization evaluating job applicantsdistinguishes between mandatory requirements(needs) and desired attributes (wants). Mandatory,of course, is a condition that must be met if theapplicant is to progress on to the next round ofevaluation. Failure to meet any one of the requirements means rejection.Ensuring a Perfect Fit: How Smart Screening Guarantees a Better WorkforcePAGE 1

Assessing SkillsMandatory requirements may include authorization to work in a country, specified job certifications, union membership, degrees awarded,business affiliations, or a minimum number ofyears experience in the position being applied for.Past experience managing a team of people and/ora budget and experience with specific technologiesmight also be included.Typically the mandatory requirements are decidedby the employer. However, in a few cases – suchas authorization to work in a country – they are amatter of law.Knockout Screening applies technology to assessthe data entered into the system by each applicantand determine automatically whether the application merits further consideration – that is, whetherall of the mandatories are being met. No humaninteraction on the part of the employer is necessary.When you consider that nearly a third of employers report that more than half of all job applicantsprove unqualified,3 you get an idea of the amountof time that Knockout Screening can save.Consistency is one of Knockout Screening’s virtues,the knowledge that every applicant is beingscreened uniformly and without bias. However,in the event that too many applicants are beingscreened out, you might chose to set the bar lower.By relaxing your requirement on academic degrees,for example, or the number of years experience inmanaging people, you knock out fewer applicantsand give yourself more candidates to consider.The inverse is true as well. If not enough applicantsare being screened out and you want to set the barof entry higher, you might bump up the type ofacademic degree or add a foreign language requirement. Flexibility is built into the system.3 Employment Dynamics and Growth Expectations (EDGE) Report by Robert HalfInternational and CareerBuilder.com, www.rhi.com/EDGEReport2008PAGE 2Imagine that you work in the hospitality industryand that you’re tasked with staffing a new upscalerestaurant. You know that good bartenders arehard to find and that this job is likely to attract alarge number of unqualified applicants. Begin byencouraging applicants to apply through yourwebsite.Use Knockout Screening to eliminate those whoeither aren’t authorized to work or aren’t qualified.Because some applicants will probably choose toinflate or otherwise distort their experience (seesidebar next page), an online skills assessment is avaluable tool for narrowing your list of candidates.A skills assessment can include any number ofquestions in a series of different formats. In theexample of the bartender, you might begin byasking applicants to list the ingredients in a dozenor more drinks, including garnishes. You couldtime them as they answer, then quiz them on thetype of glass each cocktail is served in. You mightask some questions about bar etiquette. By addingsome essay and how-to questions to your multiplechoice questions, you can get a better idea of howeach applicant thinks. The goal is to determinethe applicant’s skillset and find out whether heapproaches a task in a suitable fashion and knowsthe specific answers.With Smart Screening, every applicant who passesKnockout Screening and completes the skillsassessment is scored. As the person responsiblefor hiring the bartender, you may choose to invitethe five highest scorers to the restaurant bar for amix-off. You won’t have any trouble identifyingthem because the system will have already singledthem out. To this point, your only investment intime will have been in authoring the questionnaire.Everything else – the knockout screening, the skillsassessment, even the interview invitation – wasmanaged automatically.That’s bartending. You could as easily developa questionnaire for waitressing, retail clerks,landscaping, building maintenance, etc. SmartEnsuring a Perfect Fit: How Smart Screening Guarantees a Better Workforce Copyright 2008 Taleo Corporation

The Cream Rises: Ace ScreeningScreening can also be applied to more complexoccupations such as engineering, accounting,hotel management, plumbing, website development, architecture, law enforcement, healthcare,teaching In short, anything that permits a skillsassessment.Ask for Their ReferencesMany job seekers decide they need to give theirprospects a little boost. The following are among themost common falsehoods told on a resume:s 38 percent surveyed admitted they had embellishedtheir job responsibilities.s 18 percent acknowledged lying about their skill set.s 12 percent said they had fudged their start and enddates.s 10 percent confessed to lying about an academicdegree.s 7 percent said they had lied about the companiesthat had employed them.s 5 percent said they misrepresented a previousjob title.Let’s look at another example. Say you’re lookingfor a controller with three years experience andyou have a number of candidates to choose from.Two of your stronger candidates have five yearsof experience. A third candidate has seven. What’smore, this third candidate has worked in the sameindustry as your company and possesses nearly allof the attributes you identified as highly desirable.Finally, she scored in the top five percentile on yourskills assessment.This candidate can be automatically flagged by thesystem as an “ace,” or top candidate, and immediately be offered an opportunity to interview. Byacting proactively, you escalate the hiring processand dramatically improve your chances of landingone of your top choices.And what of the candidates who are not singledout as aces and offered the chance to interview?These are candidates who met many of the criteriabut were trumped by others who were more qualified. Their applications will be kept in the system– along with their scores – in the event they want tobe considered as candidates later. By gaining moreexperience in their field they improve their chancesof securing an interview the next time a positioncomes open.Data from Outrageous Resume Lies, compiled from a survey ofhiring managers by Rosemary Haefner, CareerBuilder.com seniorcareer adviser. Copyright 2008 Taleo CorporationEnsuring a Perfect Fit: How Smart Screening Guarantees a Better WorkforcePAGE 3

Safeguarding an SMB Against Chargesof BiasSmart Screening’s greatest advantage over manualapplicant processing is the speed with whichrecruiting decisions can be reached. Close behindare the professionalism and consistency in thehiring process that Smart Screening offers employers. When everyone is scored against the samecriteria, charges of bias carry less weight. Somesmall to medium-size employers struggle to applyfederal job mandates consistently. Smart Screeningimplemented on an ATS system rectifies this byretaining a record of each applicant’s assessmentand safeguards employers by proving that thesame set of questions were asked of each applicant.The score is what drove the opportunity to interview. Case closed.The Flood and the DroughtLike the economy, hiring is cyclical. When jobsare scarce and many people are contending forthe same position, hiring managers can afford tobe more selective. You might choose to set yourjob requirements higher in the hopes of securingan extremely productive employee, maybe even arainmaker. Whereas you might ordinarily ask fora Bachelors degree, now you ask for a Masters.You bump up the years of experience and lookfor entrepreneurial skills. The screening questionson your ATS system require more intelligence toanswer.You ask for more, because there is a deep pool ofcandidates to choose from. And you are quicklyproven right when an ideal candidate submits herapplication and immediately jumps to the head ofthe queue.Even when there is a dearth of candidates andyour competitors are pining for warm bodies,Smart Screening gives you an advantage. YourATS system will already contain the applicationsof hundreds if not thousands of past job seekers,each of whom was assigned a score. Many of thetop scorers would make excellent employees. YouPAGE 6can pull their names up immediately and schedulethem for interviews.What’s more, you’ll have first crack whenever newnames come onto the job market. Smart Screeningwill quickly bubble the top candidates to thesurface, sparing you any time wasted in weedingthrough lesser applicants. That ace candidatewhose application just landed in the system? Callhim today, before your competitors know he’s evenavailable.Predicting the Future: The Role ofBehavioral Assessments in HiringWhile people are under more pressure to perform,they’re finding fewer opportunities to escape theircolleagues. Individual offices have largely givenway to cubicles. The increase in intimacy and jobpressures has led to a new phenomenon called“desk rage.”Says Paul Spector, professor of industrial andorganizational psychology at the University ofSouth Florida, “Desk rage extends across industryand class lines, from top white-collar jobs to grittyblue-collar work, and companies pay dearly interms of lost productivity, sagging morale andhigher absenteeism.”“The worst offenders are overachievers,” saidRachelle Canter, a workplace expert and socialpsychologist. “They are so invested, I would saymaybe over-invested, in success and in everyonebeing every bit as driven as they are that they justlose their sense of perspective, and they can lashout at other people.”4Desk rage is a symptom of a larger problem. Thefastest growing category of murder in the US nowis workplace violence. In any given week, oneperson is killed and 25 seriously injured by currentor former co-workers.54 Wulfhorst, E, Desk Rage Spoils Workplace for Many Americans, 5320080710, (July 10, 2008)5 Background Checking: Uncovering the Facts, Taleo Research White PaperEnsuring a Perfect Fit: How Smart Screening Guarantees a Better Workforce Copyright 2008 Taleo Corporation

Because employers can’t afford to have theiremployees live in fear of one another and telecommuting is not yet universally accepted, one solutionis to discourage violence and other crimes by hiringa workforce – including overachievers – moreprone to cooperation. Proponents of behavioraltesting argue that there are strong financial incentives to test for behavior. Vendors have respondedby offering behavioral assessments as a componentof Smart Screening.Behavioral assessments take different approachesto arrive at different sets of information. In oneapproach, all of the candidates might be askedthe same set of questions and judged against therequirements for a specific job. This approachemphasizes a characteristic profile of the candidateand a search for the appropriate job. Anyone whohas taken the Myers-Briggs Type Indicator test willbe familiar with this approach.The Past as Prologue: BackgroundScreeningBackground screening has become increasinglyrelevant in the last ten years. Originally implemented by the government and major corporationsas a safety measure to prevent introducingconvicted felons or drug users into the workplace,it eventually expanded to include verification of allkinds of personal data, including employment andacademic credentials, even credit history.Background screening is now a fixture at organizations of every size. The reasons for its growingpopularity include the rise in workplace violence,recent and still-raw corporate fraud scandals onthe order of Enron, and litigation – both real andpotential – surrounding negligent hiring (seesidebar, A Failure to Screen). Background checksalso help employers nail some of the 30-40 percentof job candidates estimated to lie on their resumes.In another approach, the job requirements determine what questions get asked of the candidates.The questions asked of applicants for a job in saleswill be entirely different than those asked of applicants for a position in accounting. The responsesmight be compared with those of your top peoplecurrently in similar roles on the theory that theirsuccess is largely the result of their temperament– and striving to duplicate this temperament is agood thing.A Failure to ScreenBehavioral assessments can help gauge a candidate’s likelihood to remain on the job long enoughfor the company to recoup its investment in him.Bringing someone on board and investing monthsin their training can cost thousands and even tensof thousands of dollars. In an SMB environment inwhich job overlap is uncommon, losing a new hirejust a few months into the job can be devastating.The prospect of more months searching for areplacement and the lost productivity in gettingthe new hire up to speed has a negative impact onthe company’s financial prospects. Anything tomitigate such an outcome is desirable.From Background Checking: Uncovering the Facts, a Taleo Research Copyright 2008 Taleo CorporationA large San Francisco bank had employed an agencyto provide janitorial services. They did a spot background check on the 217 workers who were performing services at the time and found 12 had knownpre-employment felonies and major misdemeanors.Luckily there was no incident and the agency wasfired.White PaperThe fact is that every employee has a history.Because past performance is frequently anindicator of what to expect in the future, it’s smartbusiness to know more about potential hires andtheir suitability for your company before you hirethem.Unlike other components of Smart Screening,background screening is typically implementedEnsuring a Perfect Fit: How Smart Screening Guarantees a Better WorkforcePAGE 7

Finding the Perfect Fitnear the tail-end of the hiring cycle. Intended toprevent abuse against a company’s employerand employees rather than confer any strategicadvantage, it is meant to be implemented quicklyand accurately and enable the timely onboardingof the successful candidate. More on the types ofbackground screens can be seen in the sidebar.Types of Common Background ScreensCriminal background . 88%Employment verification . 76%Drug screens . 70%Education verification . 69%Credit checks . 57%Other. 20%Data from 2007 Background Screening Trends, Kress EmploymentEmployers continue to expect more from employees and employees continue to deliver. Productivitycontinues to rise, as fewer workers produce moregoods and services than ever before. However,cracks in the labor market are appearing. Even asjob growth flatlines and the ranks of interested jobseekers swells, hiring managers are struggling. Afull 59 percent of them report difficulties in findingqualified help to fill vacancies. A majority pointedto inefficiencies in early-stage recruiting tasks suchas sourcing, initial screening, and interviewing.Smart Screening promises to cut through theclutter and help employers quickly identify themost viable candidates. It works in tandem withan employer’s ATS system to assess candidateselectronically and rank them by score, movingthe most promising candidates to the head of thequeue for an interview. Screening of candidatesoccurs in stages, and may include any combinationof qualifying and skills assessment followed bybehavioral and background screening.Screening, 2007Originally designed for large corporations,screening is now increasingly valuable for SMBemployers. With fewer people available to assumemore responsibility, the SMB has more riding oneach hire.In an environment where you’re only as good asyour people, hiring the best talent is your objective.Smart Screening can help you identify the candidates you need quickly. Finding a perfect candidateisn’t practical. But finding a candidate that fitsperfectly may be.PAGE 8Ensuring a Perfect Fit: How Smart Screening Guarantees a Better Workforce Copyright 2008 Taleo Corporation

WORLDWIDE OFFICESNORTH AMERICAEUROPEASIA PACIFICDUBLIN — HEADQUARTERS4140 Dublin BoulevardDublin, CA 94568, United StatesTel.: 925.452.3000Fax: 925.452.3001EMEA — HEADQUARTERS10 Barley Mow PassageChiswikLondon W4 4PHUnited KingdomTel.: 44 (0) 20.8400.6166Fax: 44 (0) 20.8400.6167SYDNEYLevel 12, 1 Pacific HighwayPO Box 639, North SydneyNSW 2059AustraliaTel.: 612.9959.1034Fax: 612.9959.3003PARIS19, Boulevard Malesherbes75008 ParisFranceTel.: 33 (0) 1 55.27.36.62Fax: 33 (0) 1 55.27.37.00MELBOURNELevel 3, IBM Towers60 City RoadSouthbank VIC 3006AustraliaTel.: 613.9626.2413Fax: 613.9626.2455CHICAGOOne Energy Center40 Shuman BoulevardNaperville, IL 60563, United StatesTel.: 630.983.9609Fax: 630.983.9509JACKSONVILLE7660 Centurion Parkway, Suite 100Jacksonville, FL 32256, United StatesTel: 877.394.5644Tel.: 904.493.8800Fax: 904.493.9146QUÉBECR&D Facility330, rue St-Vallier Est, Bureau 400Québec (Québec) G1K 9C5, CanadaTel.: 418.524.5665Fax: 418.524.8899AMSTERDAMPoortgebouwBeech Avenue 54 - 801119 PW Schiphol - RijkThe NetherlandsTel.: 31 (0)20 658.6699Fax: 31 (0)20 658.6111Visit www.taleo.com to learn moreabout Taleo and register for afree 30-day trial ofTaleo Business Edition.Also ask us about ourweekly live web demos.Click here for a free 30-day trialSINGAPORE3 Temasek AvenueLevel 21 Centennial TowerSingapore 039190Tel.: 65.6549.7006Fax: 65.6549.7001Find and Attract QualifiedCandidates that You WantTaleo SmartSourcingSourcing - the way it should beLearn more0174032105070908

www.taleo.com – info@taleo.com 1.877.818.2536 – U.S. 1.888.922.5665 – International ABOUT TALEO Taleo (NASDAQ: TLEO) is the leader in on demand, web-based talent management solutions that empower organizations of all sizes, around the world to assess, acquire, develop and

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