Unleash Your Construction Future
With Superstar Talent
Haugan Group’s End-to-End Talent Delivery System is designed to Help Founders, Construction Executives, and Talent Acquisition Leaders Consistently Recruit, Hire, Onboard, and Retain the Top 10% of Construction Leaders
HERE'S THE COLD, HARD TRUTH: THERE'S A 50/50 'FLIP-OF-THE-COIN' CHANCE YOUR NEXT HIRE WILL BE A MIS-HIRE IN THE NEXT 12-18 MONTHS.
...and if they last, odds are they will be an average performer at best
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According to a study by LeadershipIQ, 46% of all hires will fail within 18 months, while only 19% of those hires would be considered a success in that same time period. This 3-year study was compiled studying 5,247 hiring managers from 312 organizations, collectively hiring over 20,000 employees. The numbers don't lie...
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The way most Construction leaders manage their interview process can be seen as a form of Russian Roulette when you take into account the potential cost of a mis-hire (up to 15 times the cost of annual salary according to Bradford Smart, or even up to 24 times according to other sources). Additionally, not to mention, the negative effect a mis-hire can have on a once-promising career.
Rus sian rou lette
/'.rəSHən ro͞ oˈlet/
noun
the practice of loading a bullet into one chamber of a revolver, spinning the cylinder, and then pulling
the trigger while pointing the gun at one's own head.
​
an activity that is potentially very dangerous.
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With Russian Roulette your odds of failure are only at 16% (1 bullet out of 6 chambers), but Construction hiring managers routinely play a game with close to a 50% failure rate, and a success rate of less than 20%. Let that sink in for a minute...
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It's our mission to de-risk your next hire, by eliminating the 46% of mis-hires and the 35% of average-performers.
We help you to hire for
success, 100% of the time
THE STATE OF THE MARKET
72% of CEOs are concerned about the availability of key skills
Jack Welch, in building General Electric to become one of the most respected companies in the world, famously spent 50% of his time on talent issues. Why were talent issues such a focus of his? Because he believed despite a company's technological innovation, intellectual property, or brand recognition, talent alone is the only true sustainable differentiator that really matters. Larry Bossidy - Jack's most well-known protégé, CEO of AlliedSignal, famously said:
Nothing our company does is more important than
hiring and developing superior talent.
To be a great leader, the quality of the team supporting you should be your number one concern. But as a hiring manager who is judged by the quality of the team you can field, you know that finding Construction talent, let along hiring and retaining the top 10%, is challenging.
The market has changed; candidates are in high demand and traditional hiring methods are becoming outdated. Ever more increasingly, the top Construction talent are no longer hanging out on job boards. It's not that they're not interested in opportunities, but it's because of the constant white noise created by thousands of recruiters copy / pasting their clients job postings, and because of the negative candidate experience of submitting their resumes to a black-hole portal never to be heard from again.
They don’t respond to cold calls or InMails from recruiters they have no relationship with. They find this approach off-putting and damaging to the hiring company's employment brand. One search on LinkedIn for the phrase "recruiters, do not contact" bears this out. It's no wonder given that recruiters make up the largest job demographic on the platform.
Almost 100% of recruiters still rely on job boards, LinkedIn, and their email lists as their main source of candidates. And with only 18% of the Construction talent pool actively seeking a job at any one time, 82% of the talent pool can remain untouched and unaware of your current or future hiring needs. Given that 86% of the most qualified candidates (the top-performers) are already employed and not actively seeking a new job, relying on these outdated recruitment methods leaves hiring managers with limited access to the top 10% of the candidate market.
It's this lack of access, combined with a weak Employer Value Proposition (EVP) to attract top-performers, a haphazard interview process that can't screen the Superstars from the wanna-bees, and no thought given to a retention program to keep the best people from being headhunted away...
...means that Construction Leaders' operations are severely impacted, their top-talent are going to their competitors, and they have to settle for hiring the best of the worst.
THE CHALLENGES YOU FACE
As a Founder, Construction Executive, or Talent Acquisition Professional you have likely experienced these common challenges:
Construction Talent Acquisition is getting more expensive
Not only are salary levels increasing faster than the national average, but it's so easy to waste money on poor advertising or recruitment fees for non-performers
The caliber of Construction leadership and technical candidates aren't up to par
For example, Construction candidates have robust resumes outlining their experience, but when you dig in further it turns out they don’t have the depth of experience their resume portrays, or they don't have any relevant quantifiable accomplishments that would indicate a verified record of success.
It takes too long to fill critical Construction openings
By the time you're ready to hire an Construction leader, your candidate of choice is either choosing between multiple offers or has already gone off the market. Top candidates stay available for an average of only 10-14 days before getting hired.
Project deadlines are impacted, leading to high turnover rates
A shortage of skilled Construction staff is impacting projects. Delayed project costs, increased hiring times, and increased workloads on existing staff are daily concerns for Construction leaders. Due to the lack of Construction talent, organizations are having to focus on high-priority issues at the expense of training and planning, which is leading to team burnout, retention issues, and lost institutional knowledge.
Mis-hire risk within your Construction organization is on the rise
You've had new Construction leaders stay with the organization only briefly, but their negative impact is felt long after they leave. Decreased moral, increased turnover risk, missed project deadlines, and more stress on the current team members are all consequences felt.
Frustration with recruiters' lack of domain knowledge
Recruiters who are not experienced in the Construction market and don’t truly understand hiring needs, role objectives, or candidate profiles are increasing your workload, and wasting your time having to review unsuitable resumes and interviewing mismatched candidates.
Recruiters aren't putting your opportunity in front of every potential candidate
Recruiters only fill 1 out of 18 jobs they work on, so they lump your critical role in with all the others and only scrape the low-hanging fruit, the 18% of the candidate pool that is actively looking at any given time. They can't afford to perform a deep-dive on a search they only have a 6% chance of filling, acting less like your agent and more like a broker trying to make a quick buck, leaving you holding the bag.
Your process for recruiting top Construction Talent lacks continuity
You don't have a passive candidate pipeline or a system in place that can give you predictable results every time so every search has to start from scratch and feels like a game of chance (reactive vs proactive).
THE TRADITIONAL
RECRUITMENT MODEL
IS BROKEN
Do you ever wonder why it feels like your recruiter represents the candidate when you're the one footing
the bill?
The problem isn't the recruiter. The entire framework is flawed and benefits no one.
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The framework within which external recruitment agencies work is fundamentally flawed.
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The traditional contingency model is based on volume and speed while lacking in quality. It is KPI-driven and based on numbers, with recruiters usually having to work on 18 roles to just to fill 1. This means they are working for free 94% of the time.
This model encourages recruiters to act more like candidate brokers rather than recruiting agents working for their clients. They are incentivized to gather the best candidates they can easily get (usually active candidates), and market them to as many companies as possible to try to earn a fee, including your competitors.
This means that your recruiting partners are sending your potential hires to the companies you compete with, causing unnecessary bidding wars and potentially meaning you having to start the whole search process again.
Lack of quality and increased competition are only 2 factors in the whole myriad of reasons why traditional recruitment is fatally flawed:
THE PROBLEM
Almost all recruiting firms recruit only out of the Active Candidate market, only 18% of the total candidate market, through 3 traditional methods:
1) Job Postings - Recruiters copy and paste your open job postings, banking on 'information-asymmetry,' tagging the candidate as theirs before they apply directly to you
2) Emails / LinkedIn InMails - Sending 'spammy' mass emails to their database only results in about a 10% reply rate, leaving you with only 1.8% coverage
3) Cold-calls - Cold Calling success rates are completely dictated by the skillset of the person making the call (IF) they even get a person on the phone. Most cold calls are made by rookies, and only result in a 1-2% success rate
Typical contingent and commission-based recruiters work on roles that will yield a higher return and not the hard-to-fill ones. On average they work 18 roles to fill 1.
Because of the competition with other firms (and HR) in only a limited slice of the market, recruiters are incentivized to present candidates as quickly as possible without fully vetting them, so as not to lose out on 'candidate credit.'
Most Construction recruiters are actually generalists and have very little experience working with the skillsets within the Construction space.
THE IMPACT
Less candidate coverage - You are given limited access to the market, only looking at 18% at any given time.
Poor candidate quality - The right people don’t know you are hiring, only the ones who need a job.
Lack of transparency - When presenting candidates, recruiters are incentivized to not be transparent about candidate sources, leaving you without confidence a thorough, robust search has been completed on your behalf.
No warranties are made to the level of effort (or lack thereof), and usually, search activity ends when some candidates are presented, and will not resume unless those candidates presented didn't produce a hire.
Emphasis on generating candidates only, and less of a role in selection results in less accountability, which results in a short, nominal guarantee. As soon you pay the fee, the recruiter is long gone.
The recruiter loses all leverage with the candidate in the offer process because the candidate knows the vested interest is with him/her to accept an offer, otherwise, another recruiter may earn the fee. This is why the recruiter represents the candidate, even though you are the one footing the bill.