How to build a meaningful compensation scheme for employees

When it comes to workforce compensation, the definition of fair is not so easy!

Ok! The first level should be easy: your compensation strategy has to ensure there is no discrimination (gender, ethnicity, age,…).

How to build a meaningful compensation scheme for employees

The second level is trickier, because this is when fairness does not mean equality. I am talking here about criteria such as performance results, cost of living, market rates, country benefits, job drudgery, financial results per business unit and sales incentives. Here, you need to find a good formula.

The third level is out of today’s discussion. This concerns compensation exceptions where unfairness is needed for business-critical reasons: retention of key talent or an increased offer to a top-notch candidate.

Modern compensation solutions allow you to organize, run and administer your compensation strategy end-to-end. They come with multiple features to automate calculations, enforce your rules, control user input, raise exceptions and many others…

So what can possibly go wrong?

Here are three important elements to take into consideration:

The human factor

The most obvious element that is difficult to control is the human factor. How can you ensure the responsible person to distribute compensation is unbiased?

One possibility is to remove this factor from the process! Some organizations automate the entire compensation distribution process. This can be about giving a bonus to only a subset of the company and based the department’s financial results. Or about managing compensation through salary grids/matrices and automatic adjustments.

This is just a minority because most organizations want to be able to consider the employee’s performance. A more common process tries to eliminate the human factor from the compensation process only. This means the employee compensation is automatically calculated based on formulas that can include some individual goal achievements or overall performance results, but there is a clear separation between talking performance and talking money. I guess this worth a future article on how to insure a fair performance evaluation!

Finally, the last approach is to give the manager the possibility to manage their budget. This is the best solution for me because:

  • You expect engagement from your managers, they expect in return that you trust them
  • Even with the best formula, you will miss some context that only the manager is aware of
  • It brings flexibility into the process

Modern compensation solutions help to secure data entered for managers and compensation administrators. Here are three examples:

Boundaries – while giving some flexibility to managers on how they want to distribute their budgets within their team, you can fix some lower or upper limits as a percentage value or as an absolute amount. These limits can be dependent on the current salary or mixed with other criteria such as performance or compa-ratio for instance.

Alerts – modern solutions are changing the way you work. The objective is to help you directly focus on the most important items. Alerts are used this way so that you will first look at exceptions and questionable compensation proposals instead of going line by line through the entire worksheet. It is possible to set up any kind of alert e.g. an employee who would be granted a more than x% salary increase while their performance is poor.

Justifications – In addition to having all history kept in the solution (who, when, how much), you may ask for justifications on certain conditions. That way, the manager who wants to give an extra increase or generally giving low salary increases to a specific person would have to explain this. This will be tracked in the system and requires an approval process including an audit.

The missing parameter

You define your compensation strategy the same way a star chef prepares their menu. Using multiple ingredients and great expertise, the objective is to make all customers satisfied and ensure they will not regret their choice even when glimpsing at their friends’ plate.

A dish can be ruined because you may have forgotten one ingredient. A compensation strategy can be unfair because you forgot one parameter when designing it.

Some parameters should simply be forgotten! This is the level one rule. Elements like gender, ethnicity, disability or age should not be taken into consideration for any eligibility rule, formula or filter.

 Source: Statista
Source: Statista

However, do not underestimate side effects. For instance, let’s say you want a bonus being prorated based on the duration the employee has been working in the department or business unit. I see sometimes this duration be prorated based on number of days in different assignments. Depending on the system you are using and the way it is set up, it may be that you are excluding paternity/maternity leave from the calculation. Most probably this is not on purpose but, doing so, you just created a difference between women and men as part of your calculation.

There is no one magic formula and this is the reason why you need a compensation solution that

  • Is flexible, allowing for multiple plans with specific eligibility and rules definition.
  • Allows you to do simulations to validate and rework your rules
  • Is integrated with your HR system (admin and talent) to be able to build rules based on any parameter

 The country budget bias

Another side effect I discovered and discussed with two international companies recently was linked to the country budget.

The compensation mechanism was based on three principles:

  • A team can be international
  • Manager is given a budget they can distribute with some flexibility within their team
  • The manager has to ensure that they are distributing according to the country budget

Here is an example:

Let’s say the UK decides on a 2% bonus (of the total wage bill) and Germany for a 3% bonus. A manager with a mix of employees from the UK and Germany will have a budget defined the following way:  Budget = UKbudget + GERbudget (where UKbudget=2% of total salaries of employees from UK and GERbudget=3% of total salaries of employees from Germany).

Then, to be in line with the third principle, this manager has to ensure that the overall bonus is distributed to his UK employees will not go over the UKbudget and same for his German employees.

It does not seem too bad! We can all understand that an international company may have different compensation strategies per country and, for legal reasons, have to ensure country budgets are given to employees from the same country. Also this could work if the amount was forced to the exact number (2% for UK employees, 3% for German employees).

But remember second principle was for the manager to have some flexibility. Let’s take an extreme example, the manager has 10 employees on the German payroll and 1 employee on the UK payroll!

The manager can distribute different bonuses to their German employees. They can give 5% or more to the best achiever as long as he does not go overall above the 3%. What about the UK employees? Here there is no more flexibility. He/She can simply not go above the 2% even if he/she might be the valued resource on the team!

Fair compensation requires some thinking, lots of testing and a modern compensation tool to ensure you reflect your company’s values, your business requirements and your industry specifics.

About the Author:

With a strong background in supporting, developing, maintaining, implementing and demonstrating HR oriented solutions, Nicolas Bouché understands the impacts of HR transformation projects. You can find more information on LinkedIn. Views are his own.

7 Ways to Become a More Successful Recruiter

7 Ways to Become a More Successful Recruiter

7 Ways to Become a More Successful Recruiter

How to become a more successful recruiter is a major concern of today’s modern recruiters.

The war for talent is raging on, and recruiters are facing new challenges. Do you have what it takes to thrive in today’s highly-competitive recruiting industry?

What makes a successful recruiter?

Recruiting industry has been going through a period of immense change in the last few years.

Unlike before, today’s labor market is completely candidate-driven.

According to research, 90% of recruiting professionals think that today’s labour market is candidate driven.


Consequently, finding and hiring ideal job candidates, especially those with in-demand skills, has become an extremely hard, expensive and time-consuming endeavor.

As the “War for talent” is getting more and more intense, recruiters are faced with new challenges which have changed the way we recruit.

The recruiters who are ready to embrace these new challenges will be successful, while the others will be left behind.

How to become a more successful recruiter?

In order to successfully tackle these new challenges and get ahead in the talent game, recruiters must adopt new recruiting strategies, tactics and tools.

Here is the list of the 7 most important recruiting strategies that will help you become a more successful recruiter.

1. Build talent pools

Gone is the time when you could post your job opening on a job board and wait for a great candidate to come to you.


Because only active job seekers visit job boards.

The war for talent is raging on, so your best job candidates are passive job seekers. These passive job seekers are candidates who aren’t actively looking for a new job, but would be willing to accept a better offer.

73% of candidates are passive job seekers who are not actively looking for new job opportunities.


In order to become a more successful recruiter, you need to go out there and proactively source and attract these passive job seekers. You need to become a talent sourcing pro.

You can’t afford to wait for the new positions to open to start recruiting.

You need to constantly build pools with great talent.

That way you will have the perfect candidates even before you have a new job opening!

2. Focus on candidates

When job market was employer driven, it made sense to focus on the wishes, wants and needs of employers.

But things have changed.

Now the job market is candidate driven, so you have to focus on your candidates.

In order to become a more successful recruiter, you have to focus on candidate’s wants and needs, hopes and fears. You need to understand what candidates are looking for from employers.

Why is this important?

First, when you know what really motivates your candidates, you can use that knowledge to attract them. You can turn your company’s employee value proposition (EVP) into a real magnet for attracting candidates.

Second, getting to know your candidates on a deeper level can help you build and maintain relationships not only with current, but also past and potential future candidates.

You will excel at candidate relationship management and build better talent pools.

Finally, you can encourage candidate engagement and significantly improve candidate experience.


3. Utilize specialized recruiting software

Today’s technology offers a great variety of specialized recruiting software which can automate, streamline and improve different stages of your recruiting process.

There are modern HR tools that offer all-in-one solution for finding attracting, engaging, nurturing and converting candidates into job applicants.

Adopting these tools will give you a huge competitive advantage in the war for talent.  


Before getting a recruiting tool,  you should first identify your recruiting goals and challenges.

This way, you will be able to better understand if you need solutions offered by Applicant Tracking Systems (ATS) or solutions offered by Recruitment Marketing Software.

4. Use data-driven approach

To become a more successful recruiter, you need to make better and more informed recruiting decisions.

You can do that based on the data form your recruiting software.

By tracking and reviewing the most important recruiting metrics, such as time to hire, cost to hire and quality of hire, you can get a clear and precise, data-backed evaluation of your recruiting efforts.


Based on insights that you get form data, you can adjust your recruiting strategies to improve your ROI.

For example, if your data shows that your best job candidates come from referrals, you can stop wasting your money on job boards.

In other words, you can save your time and money by investing in the channels that bring the best results.

5. Use social recruiting

When we say social recruiting, you probably think of posting your job ads on Facebook. Everybody does that these days. If you want to stand out and attract top talent, you need to go a lot further.

In order to become a more successful recruiter, you need to become aware of the power that social media networks hold, and be quick to utilize it.

Social recruiting goes beyond posting current vacant jobs ads on your company’s social network profiles.


You can use social recruiting to proactively search for potential candidates, build relationships with them and encourage them to apply to your vacant job positions.

6. Use employee referrals

To become a more successful recruiter, you have to set up a structured employee referral program.

By using a structured employee referral program, you can find talented people with the help of existing employees. You ask existing employees to recommend candidates from their networks, and you offer them employee referral awards in return.


Employee referral program is your best bet for finding and hiring the ideal job candidate and improving the most important hiring metrics such as time and cost per hire, quality of hire and employee retention.

7. Use marketing tactics

In order to become a more successful recruiter, you need to start using marketing tactics to attract talent. This new trend of using marketing tactics in recruiting is called Recruitment Marketing.

The main goal of Recruitment Marketing is to drive talent to apply for the open positions. In other words, it makes talent come to you.

In order to achieve this goal, you need to develop inventive Employer Branding strategies to build a picture of your company as a desirable employer.

Another important method for attracting top talent is Inbound Recruiting. Inbound Recruiting is a method of creating targeted, branded content to attract and engage talent.

This content needs to be informative and useful for talented professionals you want to attract. It can come in different forms, such as company’s career blog, team blogging about interesting projects, employer branding videos, interesting social media posts, employee stories and career advice.

If you’re looking for some inspiration and best practice examples, check out these great Employer Branding ideas.

Are you ready to become a more successful recruiter?

The above mentioned recruiting strategies are created in order to overcome new challenges in the recruiting industry.

If you follow this 7 recruiting strategies, we guarantee you will upgrade your hiring game, get better results and become a more successful recruiter!

Step-by-step guide: How to write, publish and promote job ads?


How to write a great job ad? Where should you publish it and how to promote it to attract the best candidates? Find out in this easy to follow, step-by-step guide!

What is a job ad?

A job ad is an advertisement for an open job position.

The purpose of a job ad is to inform potential job candidates about a new opening and attract them to apply. In order to do that, an effective job ad will highlight interesting information about your company and the benefits you offer.

How to write a job ad that works?

Step #1: Start form job description

If you want to write a great job ad, you first have to have a clear job description.

An effective job description explains your company’s job position and contains all the details about the role you are looking to fill.

You can find some great examples in 500 most common job descriptions templates.

Step #2: Create your candidate persona

Now, take your job description and imagine a person that would be a perfect fit for this position.

This representation of your ideal candidate is called candidate persona. 👩 This persona is formed by defining the characteristics, skills, and traits that make up your perfect hire.

Step #3: Craft your job ad

To write a great job ad, you have to go through few steps – the great 4 Ws. Your job ads need to answer the questions: What, Who, Where and Why. By following this 4 Ws, you will outline the structure of your job ad.

  • What is the job?

 Write a clear job ad title and list the main job responsibilities form your job description

  • Who is your ideal candidate?

List qualifications related to education, previous working experience, technical and soft skills of your candidate persona.

  • Where is your job located?

This is one of the main criteria job seekers use in job search, so be sure to mention it!

  • Why would someone want to work for your company?

Briefly introduce your company and focus on the benefits you offer. Include information about the salary range, exciting projects and perks.

PRO TIP: Customize your job ad

This step is the secret of writing a great job ad that will attract your perfect candidate!

You need to customize the content and tone of your job ad to specifically target your candidate persona. Use your imagination and put yourself in your candidate persona’s shoes!

How to publish your job ad?

Step #1: Publish your job ad on your career site

First and most important, you should publish your job ad is on your company’s career site. Did you know that 60% of job seekers start their search on career sites?


Here are our tired out tips and tricks that will help you get more job applicants from your career site.

Step #2: Publish your job ad on online job boards

Next, you should publish your job ad on online job boards.

Make sure to utilize the job boards where you can publish your job ads for free. Some of the most popular free job boards are Indeed, Monster, Simply Hired, Glassdoor, Stackoverflow and many others.


Here’s how to save your time by publishing your job ad on multiple free job boards with just one click!

How to promote your job ad?

If you want to attract high-quality candidates, it is not enough just to publish your job ad on your career site and job boards. Your best job candidates are passive job seekers, who are not actively looking for a new job. 75% of candidates are passive job seekers. That means they won’t be visiting your career site and searching job boards.

Step #1: Promote your job ad on social media

Social recruiting has become one of the most popular methods for finding and attracting best talent. Social recruiting is using different social media networks (such as Facebook, Twitter, LinkedIn etc.) to actively share and promote your job ads.


Check out our easy to follow Complete Guide on Social Recruiting and learn how to recruit on social networks like a pro!

Step #2: Promote your job ad through referrals

Another great way to promote your job ads is through referrals. Referrals are one of the most effective and most productive modern recruiting tactics. When using structured employee referral programs you can ask your existing employees to help you promote your job ads and motivate them with great employee referral rewards.


Learn how employee referral programs can improve time, cost and quality of hire.

Useful tools

There are many different tools and applications that can help you promote your job ads on Facebook, set up referral programs etc. You can check out the Ultimate list of best HR software by type and chose the one you need.

There are also all in one type of software that can help you with all phases of posting jobs, form writing to publishing and promoting.
With these modern recruiting tools you can access free job description templates, build beautiful career sites (no coding needed!) and publish your job postings on multiple job boards with just one click. You can also set up employee referral programs, create engaging email campaigns and easily share your job postings on social media – all from one easy to use platform!

The Benefits and Challenges of Hiring a Borderless Workforce In Global Economy

Today’s economy is extremely globalized. Many factors contribute to realizing success as a truly global business.

Expanding into other markets isn’t simply a matter of sending a sales team on an overseas mission. There is so much more required. According to a recent report by Accenture, companies need a human capital and HR strategy that is fully aligned with the business growth strategy. Often, the HR component of a business strategy is looked at as a follow-up measure to consider after the advanced team has established some presence in a new market.

To be successful, however, senior leadership must agree that this component isn’t a follow-up, but something that is part of the globalization vision from the very beginning. Additionally, it is critical to find the right balance between international structures and local processes. So, while HR systems will play an integral role in creating global operations that can function in accordance with local norms, establishing local credibility will be a matter of hiring the right people. Local credibility can only truly be achieved through the employment of a relevant and able workforce.

Ideally, it’s nice to think that hiring in a global economy is truly a borderless process. However, this is not the case. Different visa restrictions and legal policies in countries can often prevent the continuous seamless transfer of employees. It is becoming more difficult to bring talent into the United States.

For companies that want to succeed globally, management and leadership need to be well-versed with different countries and cultures. Diversity of board makeup is very important. For example, the board of directors at MasterCard, include executives from the United Kingdom, India, the United States, Mexico, Belgium and Hong Kong. Philip Morris International Management’s board includes members not only from the United States and Europe but also from Mexico and China. Thus, it is often best to bring this talent in from overseas to appropriately lead and orient teams who will be working with a specific region.

Unfortunately, visa requirements are abundant, and companies are finding it increasingly difficult to diversify the way they desire. While H1-B visas are limited and based on luck, another way to bring in talent, even temporarily is through the O-1 visa, for people with “extraordinary ability.” This is especially useful for company superiors and is more acceptable as it does not threaten local jobs. HR professionals need to be aware of possibilities such as these, that allow for a transfer of leadership talent when necessary. In this way, to be both globally efficient and locally responsive when necessary, a company must adapt HR models that are more agile.

A good example is the London-based Diageo, a premium beverages company with offices in 80 countries and a presence in about 180 markets. Diageo created appropriate HR operating models for different markets by using a customized shared services model that provides consistent service to employees and can quickly be adapted to adhere to local market requirements. The company has two centers (in Europe and North America) that serve as virtual hubs, providing faster service to employees, in terms of processing paperwork, legal requirements and more, wherever they are. For instance, a knowledge repository helps standardize functions and process transactions in accordance with local laws for any of Diageo’s offices/markets.

Virtual hubs like that of Diageo’s are only possible due to the major technological advancements in today’s day and age. Digitization has allowed for a plethora of opportunities in terms of streamlining work processes, boosting productivity and efficiency overall. One of the many benefits of digitization that is especially poignant to hiring in a global economy is the ability to work remotely. According to a recent report, 43 percent of American employees spent at least some time working remotely in the past year. So even if it isn’t possible to immediately hire local help in case of a work emergency, or for an entire team to relocate to another country for a short assignment, cross-continental telecommuting is a viable solution. Ease of access today helps with communications amongst worldwide offices, allowing for “borderless” workforces.  

Still, working remotely when it comes to leadership positions is not the smartest business decision, let alone very inconvenient. To be successful in the global economy, global experience and exposure is not a luxury, but a necessity. Sometimes, this sort of experience requires sending American personnel overseas for work. This is often in the form of long-term overseas assignments for employees.

However, there are more creative ways of facilitating this. Take the example of Royal Dutch Shell cited in the report by Accenture. Julian Dalzell — recently retired after 43 years in HR leadership roles with Royal Dutch Shell, employed a different approach. At one point, he had 11 people from his HR team, each with less than five years’ experience, working overseas on short-term assignments in Singapore, Canada, Holland, Brazil, Turkey, Qatar and Kazakhstan, among other locations.

This worked in a myriad of ways. More people were agreeable to sign up for shorter assignments, visa laws were more amicable to short term placements and there was less worry that outsiders were coming in to compete with local talent. Even though overseas assignments require a lot of preparation, Dalzell said “the unintended consequence was that they [employees] came home keen to share the incredible experiences they had and what they had learned. So it sparked an enthusiasm and an energy that we could not have created ourselves.”

In this way, HR processes must be in sync with the growth strategy for any company to succeed globally. Companies must create processes and work in ways that encourage innovation and efficiency at the local level, fostering an attitude of transparency amongst global and local offices, without compromising global set standards. To do so, hiring the right people in the right manner is significant for proper execution. As the world becomes more globalized, it’s easy to overlook some of the barriers that prevent a truly “borderless” workforce. However, with the correct human capital and HR strategies in place, companies will be able to get as close to “borderless” as is possible.

5 super easy Ways to attract the top talent to your organization

5 super easy Ways to attract the top talent to your organization

As a recruiting specialist, you will surely like to win applause for your ability to attract the top talent to your organization. In fact it’s a dream come true if you are able to consistently achieve this over a period of time.

These individuals can significantly push a firm’s productivity to a level that fully represents an organization’s objectives. Such talent is often hard to lure since they are fully aware of the value they can add and many of them would not want to have a career situation where their professional skills are under-utilized.

Attracting and retaining this talent isn’t easy since these individuals think beyond mere monetary benefits, a factor that many employees often prefer to base their career arguments on.

Many aspects come into play when a firm has the intention to recruit top, highly professional and competent professionals. There’s a lot that can be done to get you this pool of super achievers. However, what you must start with is to have the basics in place and here are a few things that you cannot simply forget:

  1. Create a conducive work environment 

In instances where employees are ever subject to overly harsh micro-management, they may get unsettled and start searching for potential employers who can offer conducive work environment. That means employers must establish the right working tools, human resources and an environment that encourages top professionals to deliver their best. In situations where vital work tools or human resources are missing or poorly structured, it may get incredibly hard for some professionals to work best as they would want to and that can only drive them into looking for new avenues that represent their career aspirations. Organizations’ managements should routinely engage their professionals and inquire from them anything they would need to boost their professional commitments in the best way possible.

  1. Recognize your top performers with Rewards & Recognition

You must ensure that your Rewards and recognition program is not merely intrinsic but also extrinsic. Extrinsic motivation is all about getting public recognition as well as external rewards such as bonuses and praise. On the other hand, intrinsic motivation can be considered as even more crucial as it allows employees to feel connected. It gives a sense of autonomy and freedom as well as offers an opportunity for personal growth.

  1. Give your employees some time off from their professional commitments

Though many organizations often perceive vacations as a wastage of valuable work hours, the fact is that employees have so many things to think about besides their professional commitments. If employers hardly give their employees adequate vacation to focus on personal issues such as family, the employees may get so unsettled by such work ethics. That can consequently lower productivity since such poor work ethics may drive some disgruntled top talents to searching for organizations where employees’ welfare is well taken care of through vacation incentives. It has also been proven that organizations that give their employees vacations tend to be more productive than ones that don’t. Top professionals would only want to stick to organizations that give them time to focus on their personal commitments, and in the absence of such motives, it would be very tough for an organization to attract treasured top professionals.

  1. Establish fair and well-balanced promotions within a professional workplace

It is fairly reasonable to argue that an organization cannot expect the same level of professional work input from all its employees. Some professionals obviously give their best to an organization than others and such efforts must be duly recognized and rewarded accordingly. Top professionals always strive to rise the corporate and leadership structure of any organization they are committed to and that factor must be properly recognized. Besides establishing salaries and wage increments for incredible professional efforts, any professional job ranks given to employees who show excellence must also duly deserve their professional inputs. The promotions and incentives should be awarded fairly so that no feeling of mistrust arises among competing employees.

  1. Prioritize Learning & Development as much as Employee Performance

In a cut-throat work environment, we often tend to push as hard as we can without taking any break or waiting for reflect on areas of improvement. This is when we also allow learning to pass us by. While this could have been alright earlier, companies today cannot afford to sacrifice continuous learning. With changes becoming the order of the day for most organizations, to compete effectively you must be geared up to out-think your competition. This can only happen if you build an environment of continuous learning, where personal & professional growth are viewed and valued as profitability.

These are some super easy ways that wouldn’t require a lot of fundamental changes to get the top talent want to work for you. The earlier you work towards incorporating these practices, the easier it will be for you to build a culture where top performers thrive and build their career.

5 Tips While Transitioning from Being an Employee to an Entrepreneur

Deciding to leave your day job and become your own boss is a huge step in your life, which is why you need to take it with utmost care. It’s a huge leap of faith but, if you do it properly, it can be rewarding and completely turn your life around.

However, merely thinking about following your dreams and actually starting your own company are two very different things. It’s not without its share of risks, and it can be very challenging but, if you’re sure that you are ready to do it, the first step you need to take is to forget about the fear of uncertainty and embrace the opportunity for success.

Fear can hold you down, so you need to believe in yourself and your vision, and fully embrace the change. However, switching from an employee to an entrepreneur still requires much more than that, so take a look at the most vital tips that will make your transition smoother and improve your chances for success.

Make a Plan before Quitting Your Job

Before you bid your boss and co-workers farewell, you should make a detailed plan for your new business venture. It takes time for start-ups to properly get off the ground, so planning everything at least several months before you go and quit your job is something that you should not underestimate.

You may have a clear vision of your future company and have it all figured out, but planning every single step that you are going to take in great detail will help you know exactly what you should do to start a successful company.

You need to set clear directions for your start-up and make a business plan that will include your company’s structure, objectives, vision and goals, your target market’s needs, your ideal customers, your unique value proposition, your marketing plan, financing, budget, and everything else that you and your team will do on a daily basis.

Connect with Other People in Your Niche

Building relationships with other people in your niche before you launch your start-up is extremely important because they could potentially become your clients, investors and even partners. They can provide you with expert advice and help you realize your vision.

Go to conferences, local meetups, and seminars where you can connect with thought and industry leaders, and don’t forget about online networks and forums, as they can also provide you with outstanding opportunities to interact with professionals who will support you once you launch your business.

If you have a good relationship with your boss and feel like you can share your plan with them, you can ask them for advice. You never know – maybe you end up collaborating in the future, so don’t burn any bridges when you decide to leave your job.

Get the Funds You Need

Financing your business is one of the most important steps to take, so make sure you get the funds you need well in advance. If you don’t have enough savings to fund your business on your own, there are many ways to finance your business, such as crowdfunding or getting a bank loan, for instance.

Whatever you choose, make sure you take into account the salaries, marketing expenses, equipment purchases, and all the other expenses that your budget will need to cover.

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Start Small

Before leaving your job, you can start your company on a small scale, so that you can test everything and see whether or not your ideas are actually realizing the way you want them to. This is an excellent opportunity to get customer feedback and make proper adjustments before you scale up.

Think about Outsourcing

Is outsourcing ideal for start-ups? The answer is definitely yes because it is very cost-effective and can bring you many benefits. However, you need to know which processes to outsource for the best outcomes. For instance, you can stick to outsourcing marketing and payroll functions when you’re just starting out, and work out outsourcing other business processes as you grow.

These are the most important steps to take when you decide to take the plunge and transition from an employee to an entrepreneur, but remember that the transition is much more complex and requires plenty more steps and challenges. Regardless, if you do everything right, it will be exceptionally rewarding, as you will do something that you love, and nothing is more important than that.


HR Challenge – Ensuring That Both The App and The Development Team Are Working As They Should

Forward Productivity

There are a lot of things which go into designing a software development team. Consider front-end designers, whose coding language handles the basic presentation of your company’s development project. Now consider backend developers, whose expertise is used for a variety of applications on a given page. Now consider mobile app developers, which has its own idiosyncrasies pertaining to compatibility.

Justifying everything together can be very difficult, and you need metrics which will help you to define that which works, and that which doesn’t. According to Stackify.com, when it comes to measuring software development team productivity, there are quite a few different schools of thought; one expert put it succinctly: “Working software is the primary measure of progress.”

Ideally, whatever solutions you bring to bear on your online solution, they should work as they’ve been designed to. In order to determine whether this is the case, as the experienced guys from Picnet like to emphasize – you’ll need to continuously test everything – both in the software development team and in the HR department.

In the development team, they mostly rely on load testing. If you’re not familiar, load testing is exactly what it sounds like: you’re stretching software to its limit to determine the “load” of activity it can handle. Ideally, it should be able to handle things several levels of magnitude higher than statistically traditional traffic. If you do well, you’re likely to have some spikes on occasion; you want to be prepared for them.

Employee Considerations

Still, even if you’ve got the absolute best software solutions around, if you don’t have the right team working with it, you’ll likely see productivity that is inferior to your business’s ability. If those who work on your software don’t have their “heart” in it, you may be leaving money on the table.

There is an old saying: the man who is lazy is a relative of the man who destroys. Basically, this saying is pointing out that a lack of diligence in work can be just as damaging as deliberate destruction. With tech people, you’ve really got to be careful with this. You want passionate, motivated individuals working for you. You don’t want lackluster, antisocial and egotistical techies who hold those that don’t think in programming languages as inferior to themselves.

Such individuals will design something which may work for a while, but should it have a tiny error that is transmitted through dint of simple human imperfection, getting them to fix that error may be like pulling teeth. The egotistical aspect of such an individual’s personality won’t allow them to admit they did something wrong until there is no other explanation for poor software activity.

The Right Team And The Right Numbers

Part of ensuring that your software runs as you intend means getting a design team who will take your instruction. You shouldn’t be having arguments. You’re the boss, even when you’re “wrong”, you’re “right”.

Finding such individuals may be easier said than done. If you’ve got multiple open positions and multiple viable candidates, you might hire two and set them into professional, “friendly” competition against one another within your business. This can facilitate motivation without you having to stand behind either and keep the candle lit, as it were.

Remember to ensure that mobile connectivity and utility are paramount in your forward software designs. This method of web connectivity defines modernity, and avoiding it will definitely hamper the effectiveness of any online solutions you’re able to acquire for your business.

Lastly, keep good numbers on everything. You’re looking for traffic increase that is progressively better, expanded clientele acquisition, and increasing profit. This should rise in a reliable way that you can build your budget around. The right software will help. The bad software will hamper you. Using good employees, keeping numbers, and finding techniques to motivate that are oblique as outlined earlier can definitely help you acquire the best software solutions.

HR & AI : The Perfect Collaboration?

HR & AI : The Perfect Collaboration?

Tech solutions for HR are getting smarter, requiring a more innovative and agile approach from employers to respond effectively to almost constant change. A recent report from Accenture[1] suggests that business success will depend on ongoing collaboration between people and technology to drive efficiencies and innovation.

The report notes:

  • Three quarters of organisations believe that intelligent technology is vital to give them a competitive edge.
  • If businesses followed the example of top performing organisations in their level of investment in AI and human-machine collaborations, their total headcount would increase by 10% by 2022.
  • Two thirds of UK businesses believe that AI will result in net job gains in the next three years.
  • Over half believe that human-machine collaboration is important for strategy.

The benefits of automation and AI have not yet been fully embraced by HR. Nearly two thirds of businesses only intend to use data ‘sometimes’ in talent acquisition[2]. More consistent use of the insights provided by recruitment analytics could lead to better hiring results at a time when sourcing qualified candidates continues to be a challenge.

AI needs HR

When used effectively, a collaboration between HR and AI creates a streamlined hiring process. In recruitment, it offers:

A more ‘human’ candidate experience

Automating tedious processes can ‘humanise’ the candidate experience. Personalised acknowledgements of job applications, automated updates of what to expect during your hiring process and efficient job application processes are just the starting point. Candidates don’t expect a tech-free hiring process – but they expect a human to be on the end of it.

Better diversity in hiring

Diversity is predicted to be a major hiring trend in 2018. AI can help to improve diversity but it can also interpret your historical biases as the standard for your candidate selection. Ongoing monitoring of your screening criteria and analysis of your new hires by HR is vital. It isn’t as straightforward as removing screening filters. For example, in attracting women into tech jobs successful employers promote positive role models, offer career development opportunities and tap into networks to understand more about the issues faced by women working in the tech sector. Automating tedious tasks frees HR’s time up to accomplish that.

Transparent recruitment processes

The GDPR means that recruiters and hiring professionals must be transparent over the use of automation in hiring decisions and the sharing of data gathered during the recruitment process. Consent from candidates to use automated processes and machine learning must also be obtained. A centralised candidate management system can help with that compliance.

Building relationships with talent

Automation replaces repetitive, time consuming tasks in candidate screening enabling HR to focus on engaging directly with talent. In onboarding, technology is invaluable in automating requests for mandatory checks and references so HR can develop a personalised onboarding experience for new hires. Direct engagement is critical during the period between job acceptance and start date.

Collaborating with AI

For employers edging their way towards a collaboration with AI in their hiring processes, the following points can help:

  • Take ownership of your data. Poor data produces poor quality results. An attitude of complacency among hiring teams has previously been observed relating to data but with the GDPR only months away, HR must take ownership of its data now.
  • Be specific with your job posts. If you don’t understand – or communicate – the key skills you need from your new hire, you won’t be able to attract the right candidates. Check the data gathered on your new hires in the past year to review the most successful. Consider a candidate persona for high volume or critical positions.
  • Create a bias free interview process, supported by the data gathered in your recruitment software. Interviewing is a skill which doesn’t necessarily come naturally to hiring managers and confirmation bias may affect your recruitment decisions.
  • Collaborate with AI and stakeholders in your final candidate selection and share that data with all interested parties. The CIPD notes that, where recruitment analytics are used, a quarter of business leaders are not being given access to that data, hindering their ability to make effective decisions[3].
  • If multiple areas of your recruitment process require attention, begin with just one, such as time to hire. The head of REC has warned of the difficulties companies are facing in finding ‘people with the right skills to fill the jobs available[4]. Reducing your time to hire enables HR to retain the attention of qualified candidates in your recruitment funnel.

According to Accenture, investment in AI and human-machine collaborations could boost business revenues by over a third by 2022. Change is inevitable but that means a shift towards that collaboration and more than an occasional use of data in recruitment.

A version of this article first appeared on Kallidus’ website.

Kate Smedley is a freelance copywriter specialising in HR, HR Tech and recruitment, with 18 years of previous experience as a recruiter. Kate also works with employers to identify problems in hiring processes, offering full support and advice throughout the recruitment cycle.


[1] https://www.accenture.com/us-en/company-reworking-the-revolution-future-workforce

[2] LinkedIn Global Recruiting Trends Survey 2018

[3] https://www.cipd.co.uk/about/media/press/230117-hr-outlook-survey-2017

[4] http://www.onrec.com/news/news-archive/search-for-staff-gets-tougher-as-vacancies-reach-record-highs-rec

4 HR Publications Every Business Owner Should Keep Up With

Staying tuned for the latest news from the world of HR is very important. Markets, paradigms, and the best practices are constantly shifting. The best HR practices from a few years ago might become obsolete tomorrow. Fortunately, for HR managers and business owners who want to stay updated, there are many HR publications online.

While many online HR publications offer news and developments, only a few of them share valuable content with the readership. If you want to find out about new trends affecting the workforce, the most viable data to measure their performance and learn about HR technology and how to assess employee engagement here are top 4 HR publications to bookmark, if not subscribe to them.

Fistful of Talent

Fistful of Talent is a website that was primarily brought to life to round up an all-star collection of recruiting and HR professionals who will provide their insights on an everyday basis. This happened back in 2007 and Fistful of Talent remained true to its cause to this very day.

FoT covers a lot of different topics on their HR blog: Leadership, Culture, Good and Bad HR, Compensation/Cash Money, Salary Caps and Employee Relations. In the Recruiting section, you can read all about: candidate pool, sourcing, making offers, working with recruiters, references, relocation, diversity, career paths.

They also offer 28 minutes long podcast packed with the latest HR and recruiting news with relevant professionals in the field as guests.

Corporate Leadership Council

Corporate Leadership Council is one of the best sources for HR professionals out there. You will have to subscribe to get access to their content. They cover almost all topics related to HR. Every claim in their articles is supported by real-world data and research findings. With a reliable methodology and data led strategy, they offer unique, actionable content to their readers.

This is one of the rare online jewels that uses actual data in their findings and publications. Although their content is designed to meet the needs of leaders, HR managers and recruiters can also benefit from reading it.



Quora is a great place to look for answers to a lot of different questions. After Quora implemented the “Topic” section on their website, it has become very easy to browse through what interests you most.

Currently, the most active topics are Human Resources (156k followers), Human Resource Management (43k followers), Recruiting (275k followers), and Hiring (164k followers). The Quora platform is very engaging and doesn’t get surprised when you stumble upon some of the top HR talents answering a lot of questions and giving free advice and insights.

ERE Recruiting Intelligence

ERE digital footprint deserves to be followed by anyone who wants to find out about the latest news and trends in the HR industry. Some of their authors even use the latest Hollywood movies as reference points to build up a story. Just like Dr. John Sullivan does in his post “Wonder Woman – Why Every Firm Needs to Hire One.”

Human Resource Executive Online

The Human Resources Executive magazine started publishing back in 1987. Today, they also publish online. Their primary goal is to publish articles that are focused on strategic issues in HR.

A majority of the content is written by human resource leaders. What can you expect to find on this website?

  • News and trends in HR
  • Success stories from HR innovators
  • Talent management
  • HR information systems

By staying tuned to the news and other articles found on these websites, you will keep yourself updated about the latest developments in the HR community. You can also read blogs of reliable outsourcing partners to make sure that you stay updated with the latest news in the outsourcing industry.

How HR Technology Can Help You Overcome Biggest Recruiting Challenges


Every HR professional and recruiter comes up against certain obstacles when they are trying to hire new employees. Learn how HR technology can help you overcome your biggest recruiting challenges and take your recruiting strategy to a whole new level!

What are your biggest recruiting challenges?

Are you struggling to find qualified candidates? Do you have problems attracting passive job seekers? Wouldn’t it be great if you could reduce your time-to-hire? Are you trying to find an easy way to measure the ROI and effectiveness of your recruitment strategy?

If you are nodding your head yes right now, don’t worry – you are not alone.

Mentioned obstacles are the biggest recruiting challenges every HR professional and recruiter comes up against when they are trying to hire new employees.

Luckily, in the modern world of HR, there are vast technological solutions created with an intention to tackle these problems.

Read on and learn how to leverage HR technology to solve your biggest recruiting challenges!

Recruiting challenge #1: Finding qualified candidates

According to Glassdoor research, talent shortage is the No. 1 hiring challenge today. A shocking 48% of employers say they are having difficulty finding qualified candidates to fill their open positions!


This lack of qualified candidates has completely changed the way we recruit. Compared to just a few years ago, candidates now have far more power during the job search. You don’t pick talent anymore. Talent picks you.
Consequently, finding and hiring the ideal job candidates has become the most pressing modern recruitment issue.

How can HR technology help you overcome this recruiting challenge?

Modern HR technology offers many different solutions for finding qualified candidates.

First, there are software programs with the possibility of posting your open job positions on multiple free and paid job boards with just one click. Posting your job opening on multiple job boards will widen your reach and increase your chance of finding the right candidate.

You can also reach more candidates with social recruiting tools. With HR technology you can create a specialized Facebook job tab and post and promote your job there, too.

Another great solution for finding qualified candidates is offered by Employee Referrals Tools. These tools offer the possibility of creating and automating employee referral programs.

Employee referral program is a system of utilizing and rewarding your existing employees for recommending high quality candidates for your company’s open positions from their existing professional and personal networks.

Finally, there are web sourcing tools which can help you proactively look for candidates. Web sourcing utilizes web search and scans millions of online profiles to retrieve candidates’ details including email addresses, resumes and more.

Recruiting challenge #2: Attracting passive job seekers

According to LinkedIn research, 73% of the global workforce is made up of passive job seekers, who are your best job candidates.


Passive job seekers are the candidates that aren’t actively looking for a job, mostly because they are already employed. That means they won’t be visiting job boards and browsing your career site.

However, if you approach these passive candidates in a right way, they would be willing to accept the better job offer. Remember, a better offer doesn’t necessarily mean more money. It can be flexible working time, education, opportunities to grow, benefits, cool projects, and many other.

That’s great, you may think, but how can I reach them and convince them to apply to my open positions? This is where HR technology comes in.

How can HR technology help you overcome this recruiting challenge?

Recruitment Marketing Software offers a solution for attracting passive candidates. Recruitment Marketing Software can help you to attract passive candidates and build relationships with them.

First, you need to grab their attention by showcasing your employer brand, company culture and employee value proposition.

That is how you’ll draw them in and make them eager to join your talent pool. Then you can use different tactics of candidate relationship management to engage and nurture them until they are ready to be turned into your job applicants.

Recruiting challenge #3: Reducing time-to-hire

Time-to-hire is one of the most important recruitment metrics. Reducing time-to-hire is crucial for two main reasons: hiring the best candidates and saving money.

Let’s examine both of them.

First we will explain how is time-to-hire connected with the possibility of hiring the best candidates.

Well, according to research, top candidates stay available on the market for 10 days only. That means you have to speed up your hiring process, otherwise some other, faster company will snatch your top candidates right under your nose.

Second, reducing time-to-hire means reducing cost-per-hire too. Needing less human hours to fill a position makes your hiring strategy more productive and cost efficient.

How can HR technology help you overcome this recruiting challenge?

While already mentioned sourcing and Recruitment Marketing tools help you find candidates faster, there are also specialized recruiting tools that can help you significantly reduce the time of your selections process.

These HR technology tools designed to streamline recruiting operations and fasten selection process are called Applicant Tracking System.

With Applicant Tracking System you can automate, simplify and fasten many recruiting tasks.

These tools make previously time consuming tasks like resume parsing, disqualifications of non-qualified applicants, interview scheduling and sending personalized recruiting emails to your candidates fast and easy.

Applicant Tracking System also saves your precious time by building talent pools, which can be used to find perfect candidates for your future roles and job openings.

Imagine how much time you could save if every time you had a job opening, you had a pool of talent from which you can just pick the best candidates!

In addition, as the graph below shows, Employee Referral Programs are a great way for reducing time-to-hire.


Recruiting challenge #4: Improving the quality-of-hire

Speedy finding and hiring a qualified candidate doesn’t mean a thing if it isn’t finding and hiring your ideal job candidate. Ideal job candidates are the ones that will stick around and perform their best.

You need to find candidates who will fit in perfectly in your team and be able to thrive in your company culture, otherwise you will end up disappointed with their poor performance, early leave or termination.

That’s why it is important to hire the best talent by finding the perfect fit for your company.

How can HR technology help you overcome this recruiting challenge?

Research shows that 78% of recruiters who use an HR technology have improved the quality of candidates they hire.


One of the most effective ways to improve your quality-of-hire is to utilize employee referral programs. Why is that?

Your current employees have a hands-on experience with your company culture, mission and vision. That means they can easily recommend candidates who make the best cultural fit for your company.

With HR technology, you can set up structured and automated employee referral programs, which will significantly improve your quality-of-hire.

Recruiting challenge #5: Measuring the effectiveness of recruitment strategy

More than ever before, modern HR professionals and recruiters are faced with a growing demand to demonstrate a clear link between their hiring practices and outcomes.

Management requires hard data and exact numbers, so evaluating and measuring the effectiveness of recruitment strategy has become one of the pressing pain points of modern HR professionals.


They are aware of how the most important hiring metrics can significantly improve decision-making, optimize recruiting effectiveness and maximize the value of HR investments in recruiting process.

However, most of these HR professionals and recruiters struggle with HR analysis and data driven recruiting question and dilemmas. Which recruiting metrics are the most important for my company? How to implement, track and measure them? How to analyse and compare them?

How can HR technology help you overcome this recruiting challenge?

Modern HR technology such as Applicants Tracking Systems and Recruitment Marketing Platforms can automatically implement, track and calculate the most important hiring and recruiting metrics like time-to-hire, cost-per-hire, source of applicants, hire to applicant ratio etc.

Moreover, these HR tools can create customized, detailed reports on most important recruiting metrics which will make it easy for you to analyze every step of your recruiting process.

With data backed insights provided by HR technology in a form of easy to read reports, you can quickly notice which parts of your hiring strategy work well, and which ones have room for improvement. That way you can make better and more informed decisions and improve your recruiting process and productivity.

Other recruiting challenges and HR technology solutions

Above mentioned recruiting challenges are the most common among modern recruiters and HR professionals.

However, if you are faced with some other specific recruiting challenge, take a look at The ultimate list of best HR software. It will help you comprehend all the different aspects and solutions HR technology can provide so you can identify the one that best suits your needs.