The last couple of days, we’ve spent some time talking about how the dynamics of Facebook are changing.  From a recruiting perspective, these changes may be difficult to leverage in your efforts to source candidates.

However, don’t throw the proverbial baby out with the bath water…  Social networks (both online and traditional networks), from a word-of-mouth perspective, can be a power component of a sourcing strategy.  More specifically, gaining access to the social networks of your existing employees multiplies your sourcing efforts.

EE = (1-N) X (R/P)

I want to point out an article written by Raghav Singh in the Electronic Recruiting Exchange last week.  Singh figured out a way to measure the effectiveness of a hiring manager’s social networking candidate sourcing efforts.

“Like prospectors during the gold rush, recruiters everywhere are flocking to social networks in search of hires.  But like the experience of many during the gold rush, getting results is not easy.  Reaping the benefits of social networking requires engaging with those networks.  There’s plenty being written about how to do so, but to know if what you’re doing is working, consider the following metric:

EE = (1-N) X (R/P)

Where:
EE = Effectiveness of Engagement, expressed as a percentage

Engagement, in this context, means getting ready access to employees’ networks, regardless of the mechanism for doing so.  Virtually 100% of employees have social networks and connect to them using different means (networking sites are not the only way to do so), but only a certain proportion of employees may be willing to give an employer access, by either making the contacts available or agreeing to forward job postings to them.

N = The proportion (%) of employee networks that an employer or recruiter has engaged with.
R = The average number of qualified referrals received per month per employee
P = The average number of postings accepted by employees to their networks per month

So if an employer is engaged with 10% (N) of employees’ social networks, and on average each employee accepts 3 (P) postings per month, and produces 2 (R) qualified referrals:

EE = (1-10%) X (2/3) = 60%

If the same results are achieved by engaging with 50% of employee networks, EE = 33%

Engagement is more effective the larger the number of qualified referrals received for the same proportion of employee networks an employer is engaged with.  However, this is not a bottomless pit.  Research shows that beyond a certain threshold of postings, the volume of qualified referrals starts to flatten out and even reduce.”

Before you gloss over this and nod off like you did in math class, take a minute to plug some of the numbers from your own organization into this formula.  It’s not as hard as it looks.

Try tracking the effectiveness of your engagement (the EE %) over a few months and see what happens.  If the resulting percentage is consistently low, then you are missing a major pool of the most qualified candidates available. 

It should cause you to ask yourself some questions:  Do your existing employees not trust you enough to give you referrals?  Are the job opportunities you’re pitching compelling enough that people would naturally want to share them with others in their network?  Are you afraid to ask your existing employees for their help?

Metrics help illuminate problems and find solutions that are not otherwise obvious.  Get your calculator out and give this a try!