Contents:

Achieving Superior Staffing Performance EXECUTIVE SUMMARY 1 Project Overview 1 Study Methodology 1 Figure S.1-Benchmark Class 2 Figure S.2-Interviewed Benchmark Companies 3 Figure S.3-Sample Interviewee Titles 3 Report Structure and Organization 4 Key Findings 5 Figure S.4-Requisitions/Staffing FTEs 6 Figure S.5-Time-to-Start 7 Figure S.6-Average Number of Hiring Positions Managed 8 Figure S.7-Time-to-Fill vs. Average Number of Open Reqs 8 Figure S.8-Overall Acceptance Rate 9 Figure S.9-Level of Technology Integration/Operational Capability 10 Figure S.10-Use of Automated Systems 10 Figure S.11-Average Cost to Fill a Job Opening 12 Figure S.12-Impact of Average Cost to Fill on Average Time to Start 12 Next Steps 15 SURVEY DATA ANALYSIS 17 Survey Introduction 18 Response Segmentation 18 Data Analysis Findings 20 Figure 1.1-Benchmark Class 21 Figure 1.2-Industry Profile 22 Figure 1.3-Staffing FTE Allocation 23 Figure 1.4-Staffing FTE Allocation II 24 Figure 1.5-Requisitions per Recruiter-Overall 25 Figure 1.6-Staffing Personnel and Workload 26 Figure 1.7-Reqs per Recruiter: Cross Industry 27 Figure 1.8-Reqs per Recruiter: Cross Industry II 28 Figure 1.9-Average Time-To-Start 29 Figure 1.10-Average Time-To-Start 30 Figure 1.11-Average Time-To-Start: Cross Industry 31 Figure 1.12-Average TTF: Posting to Acceptance 32 Figure 1.13-Impact on Reqs on Average TTS 33 Figure 1.14-Technological Capability 34 Figure 1.15-Skills Inventory 35 Figure 1.16-University Outreach 36 Figure 1.17-Offer Acceptance Rate: Overview 37 Figure 1.18-Offer Acceptance Rate by Segment 38 Figure 1.19-Offer Acceptance Rate by Industry 39 Figure 1.20-Declined Offers 40 Figure 1.21-Declined Offers by Industry 41 Figure 1.22-Filled by Target Date: Overall 42 Figure 1.23-Positions Filled by Target Date 43 Figure 1.24-Filled by Target Date: Industry 44 Figure 1.25-Cost Impact on Filling Positions 45 Figure 1.26-Reqs/Recruiter vs. Target Date 46 Figure 1.27-Screening Systems 47 Figure 1.28-Talent Pool Composition 48 Figure 1.29-Pre-employment Activities 49 Figure 1.30-Pre-employment Activities by Industry 50 Figure 1.31-Average Cost to Fill - General 51 Figure 1.32-Average Cost to Fill - Narrow Definition 52 Figure 1.33-Average Cost to Fill by Industry 53 Figure 1.34-Speed vs. Cost 54 Figure 1.35-Outsourcing 55 Figure 1.36-Hiring Manager Accountability 56 Figure 1.37-Workforce Regulations 57 Figure 1.38-Key Performance Measures 58 Figure 1.39-Other Performance Measures 59 Figure 1.40-Actual Performance 60 Figure 1.41-Other Measures 61 PROFILES OF SELECTED STAFFING ORGANIZATIONS 63 Company C 66 Figure 2.1-Company C Organizational Chart 67 Figure 2.2-Company C Staffing Process 70 Company E 71 Figure 2.3-Company E Organizational Chart 72 Figure 2.4-Company E Staffing Process 76 Company F 77 Figure 2.5-Company F Organizational Chart 78 Figure 2.6-Company F Staffing Process 81 Company G 82 Figure 2.7-Company G Organizational Chart 83 Figure 2.8-Company G Staffing Process 87 Company K 88 Figure 2.9-Company K Organizational Chart 88 Figure 2.10-Company K Staffing Process 91 Company Z 92 Figure 2.11-Company Z Organizational Chart 93 Figure 2.12-Company Z Staffing Process 97 PROCESS PLANNING AND MANAGEMENT 99 Top Implementation Tactics 102 Figure 3.1-Planning & Management Tactics 103 Forecasting 104 Figure 3.2-Data-Driven Forecasting 105 Figure 3.3-Company I’s Conservative Forecasting Approach 108 Figure 3.4-Communicating with Proposal Teams 109 Facilitating Efficiency Through Structure 113 Managing Internal Client Expectations 116 Figure 3.5-Managing Internal Clients 116 Internal vs. External Hires 121 Other Process Elements Affecting Time-To-Fill 124 Figure 3.6-Reducing Time-to-Fill 124 Figure 3.7-Sample Scorecard 128 Other Process Elements Affecting Offer Acceptance Rate 131 Figure 3.8-Coaching to Improve Offer Acceptance Rates 131 Creating Rules for Closing Requisition Postings 134 TALENT POOL MANAGEMENT 137 Top Implementation Tactics 139 Figure 4.1-Talent Pool Management Tactics 140 Building a Pool of Prospective Hires 141 Figure 4.2-Building a Strong Talent Pool 146 Measuring Talent Pool Quality and the Effectiveness of Talent Pool Generation Activities 147 Figure 4.3-Measuring Impact of Talent Pool Generation Activities 150 Establishing an “Employer of Choice” Reputation 151 Figure 4.4-Partnering Internally to Advertise as an Employer of Choice 152 Managing Workforce Demographics and Changing Skills 155 Figure 4.5-Managing an Aging Workforce 156 RECRUITING AND REQUISITION MANAGEMENT 159 Top Implementation Tactics 161 Figure 5.1-Recruiting and Requisition Management Tactics 161 Establishing Requisition Quality Control Measures 162 Figure 5.2-Controlling Requisition Quality 165 Screening Applicants with Automated Steps and Systems 166 Figure 5.3-Screening Candidates more Efficiently 167 MANAGING PRE-EMPLOYMENT ACTIVITIES 171 Top Implementation Tactics 173 Figure 6.1-Pre-employment Management Tactics 174 Logistical Support for Recruiters to Manage Pre-Employment Activities 175 Proactive Steps at or Before Acceptance 176 Figure 6.2-Expediting Pre-Employment Tasks 178 Leveraging System Automation to Accelerate Pre-Employment Phase 180 Figure 6.3-Coordingating Activities with Automated System 180 Managing Communications with Candidates from Offer to On-Boarding 183 Figure 6.4-Expediting Salary Negotiations 184 REGULATORY COMPLIANCE AND DIVERSITY 187 Top Implementation Tactics 188 Figure 7.1-Tactics to Satisfy Workforce Regulations 188 Applicant Definitions 191 Figure 7.2-Applicant Definitions 192 Communicating Diversity Policies and Programs 193 Figure 7.3-Centralized Diversity Management 194 Documenting and Enforcing Compliance 196 Figure 7.4-Using Automated Notices to Execute Diversity Recruiting 199 Figure 7.5-Separating Employee Referrals to Ensure Fair Hiring 200 UNIVERSITY AND COLLEGE INTERACTION 203 Top Implementation Tactics 205 Figure 8.1-Managing College & University Interaction 205 Conducting University Outreach Efforts 207 Figure 8.2-Developing a Formal University Relations Model 208 Figure 8.3-Leveraging Alumni & Affinity Groups for College Recruiting 210 Creating Interest Among Exceptional College Candidates 214 Figure 8.4-Attracting Exceptional College Candidates 215 Managing College Recruiting -& Traditional Staffing Processes 218 ACCOUNTING FOR STAFFING COSTS 219 Top Implementation Tactics 221 Figure 9.1-Staffing Accounting Methods 222 Methods of Staffing Cost Accounting 222 LESSONS LEARNED AND TOP CHALLENGES MATRIX 225

Summary:

Technology-based companies face the daunting challenge to recruit and select highly qualified candidates for hundreds or thousands of technical positions each year. To meet this challenge, many such companies recognize the staffing group as one of the most important functions in the entire corporate organization – and are evaluating their staffing group’s performance accordingly. Advances in processes and technologies are leading to significant improvement in the quality of the candidate pool, the time to fill required positions, and the cost to hire the best individuals. Depending on industry and company size, the volume of requisitions that staffing organizations process and fill varies greatly. Yet it is important for staffing executives who are responsible for large amounts of technical hiring to understand their relative position to competitors and other large companies with respect to performance metrics, processes, and best practices. This report examines these topics among leading staffing organizations across the Aerospace and Defense, Technology and Finance industries. STUDY METHODOLOGY Best Practices LLC has conducted a comprehensive analysis of these performance dimensions. The first step in the process was to identify a set of companies that are 1) highly regarded for their staffing practices, 2) have a large number of requisitions to fill, 3) have a significant technical component to the skill sets required of candidates, and 4) a large number of unique or differing job descriptions. This project placed an emphasis on companies within the Aerospace and Defense (A&D) industry, but also considered a host of companies within other industries to ensure that the very best practices could be identified. To understand relative performance between these like companies, the Best Practices, LLC research team created a staffing metrics survey and invited thousands of staffing and HR executives to participate. After scrutinizing all of the survey responses received, 106 companies or company units were included in the metric analysis. Large companies (or their business units) with more than 500 staffing requisitions per year accounted for 35 of these responses. Of that group, 25 companies had greater than 1,000 requisitions per year. The analysis of these responses is segmented into various groupings (all responses, those with >1,000 requisitions/year, those with 500 – 999 reqs/year, those with > 500 reqs/year, etc.) to assist the reader in understanding his or her relative standing in the appropriate grouping. The following slide identifies some of the companies that participated in the survey: The analysis also includes industry segmentation to report relevant comparisons. In this capacity, the survey responses were analyzed by groupings such as A&D, Information Technology, Health Care, and other industries. Based on survey responses, the top quartile of companies from each major category was identified. These categories were roughly aligned with the major process metrics common to all participants, as well as the major staffing process elements. Such factors include: - Key staffing metrics such as time to fill a requisition, offer acceptance rate, and cost to fill a requisition - Staffing levels and productivity - Staffing structure and processes - Regulatory and diversity compliance - University relations - Staffing cost allocation systems Based on this analysis, executives from each top company (as well as major players in the A&D industry) were asked to participate in an interview. These in-depth discussions were designed to uncover qualitative factors and practices around the company’s staffing structure, processes, roles and responsibilities, successes, and top challenges. In the end, executives from 14 top companies participated in these interviews, detailing a wealth of insights described in the best practice chapters of this report.

Companies Mentioned

Allstate Insurance Company; Chiquita Brands International; Amgen; Applied Materials; Aventis; Autodesk Inc.; Bank of America; BAE Systems; Blue Cross and Blue Shield of North Carolina; BASF Corporation; Cisco Systems; CACI; Entergy; Cardinal Health; Federal Reserve Board; Computer Sciences Corporation; Honeywell; EG&G; Lockheed Martin; Electronic Arts; Microsoft; Public Service Enterprise Group; NCR; The NORDAM Group; Northrop Grumman; Yankee Candle Company; Novartis; Peoples Energy Corporation; Pfizer; QUALCOMM; Raytheon; Sun Microsystems; Verizon; JP Morgan Chase