Applying Upstream Problem Solving to Address High Offer Decline and Interview Stage Withdrawal Rates
Adam Treitler
Challenging Assumptions and Reshaping Purpose, Policy, Process, & Products in the World of Work
Introduction
?? Navigating the Currents of Challenge
In the dynamic landscape of Talent Acquisition, we often find ourselves caught in the currents of recurring problems. The instinctive approach is to address these challenges as they surface, focusing on immediate solutions. However, this 'downstream' thinking can lead to a cycle of temporary fixes without ever resolving the underlying issues. It's here that Dan Heath 's concept of "Upstream" problem solving offers a transformative perspective.
?? Uncovering the Source with Upstream Thinking
Upstream thinking is about moving against the current to find the true source of the problem. It involves stepping back to understand the bigger picture, asking critical questions to uncover underlying factors, and developing proactive strategies to prevent issues from arising in the first place. This approach shifts our focus from reactive to proactive, from constantly 'putting out fires' to building fire-resistant structures.
?? A Tale of Transformation: The Expedia Case Study
An excellent example of successful upstream problem solving is seen in Expedia's approach to customer service. Initially, they tried to reduce high call volumes by hiring more agents and altering scripts. But this only increased call volumes, staff burnout, and decreased customer satisfaction. A shift in strategy was needed. By looking upstream, they identified the root cause: customers were frequently calling to confirm their itineraries. The solution was elegantly simple yet effective – adjust the thank you page and confirmation emails to include clearer itinerary details. This proactive change drastically reduced customer inquiries, dropping complaints from 58% of customers to just 12% and saving the company $100m annually reducing operational costs and improving customer retention.
?? Applying Upstream Principles to Talent Acquisition
Inspired by Expedia's approach, let's dive into a specific talent acquisition challenge and explore how applying upstream problem-solving can lead to transformative results.
Facing the Talent Acquisition Challenge: High Offer Decline and Interview Withdrawal Rates
?? The Emerging Dilemma
Let's focus on a specific challenge: a company experiencing an unsettling trend of top candidates consistently declining job offers or withdrawing from the interview process. This pattern isn't just a minor inconvenience; it's a critical barrier to building a robust and talented workforce. The company's success hinges on attracting and retaining the best candidates, making the resolution of this issue imperative.
?? Initial Reactions and Unintended Consequences
In response to this growing concern, the company takes what appears to be direct and logical steps. They increase base salaries, hoping to entice candidates with more lucrative offers. Additionally, they streamline the interview process, reducing the number of rounds to make it less daunting and time-consuming for candidates. On the surface, these measures seem like the right approach to making their roles more appealing.
However, these actions lead to an unexpected and counterproductive outcome. After implementing these changes for three months, the company observes an increase, not a decrease, in the rates of offer declines and candidate withdrawals. This surprising result throws them for a loop. It becomes evident that the problem is more intricate than it appeared and that superficial fixes are inadequate.
?? A Moment of Reflection
This scenario prompts an essential question: What drives top talent to decline offers or withdraw from the process, and how can these underlying issues be effectively addressed?
Shifting Gears: Adopting an Upstream Approach to Talent Acquisition
?? Digging Deeper: The Need for a Root Cause Analysis
Confronted with the perplexing increase in candidate decline and withdrawal rates, the company realizes that mere surface-level adjustments aren't sufficient. It's time to shift gears and adopt an upstream approach. This means conducting a thorough root cause analysis to understand the deeper reasons behind candidate behaviors.
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?? Utilizing Data and Feedback for Insight
The first step in this upstream journey involves gathering and analyzing data. The company meticulously reviews each stage of the hiring process, looking for patterns and anomalies. They survey recent candidates, both those who accepted and declined offers, to gain insights into their experiences and decision-making processes. This feedback is invaluable in pinpointing where the process may be falling short.
?? Collaboration is Key
Addressing these challenges requires collaboration across various departments. The Talent Acquisition team partners with People Analytics to dive into the data, HR to understand candidate engagement, and hiring managers to get on-the-ground insights. This cross-functional effort ensures a comprehensive understanding of the issue and also gains buy-in from key participants who may lead the charge in bearing change.
?? Uncovering the Real Issues
Through this in-depth analysis, several key factors emerge. Candidates often felt the interview process lacked transparency and communication. Some found the technology used for coordinating interviews and reviewing offer letters cumbersome and impersonal. Others felt that interviewers were inadequately trained, leading to a less engaging and informative experience.
?? Implementing Upstream Solutions
Armed with these insights, the company begins to implement targeted solutions. They revamp their communication strategy to ensure candidates are regularly updated and well-informed throughout the process. They invest in better technology to streamline interview coordination and offer reviews. Additionally, they initiate a comprehensive training program for interviewers, focusing on effective interviewing techniques and ways to positively represent the company culture and values.
Seeing the Impact: Results of the Upstream Talent Acquisition Strategy
?? The Transformation Begins
After implementing the upstream solutions, the company begins to see a notable transformation in its talent acquisition process. The changes, grounded in a deep understanding of the root causes, start to yield positive results.
?? Improved Candidate Experience and Response
Candidates now report a significantly improved experience during the interview process. The enhanced communication strategy means they are well-informed and feel valued, leading to a more positive perception of the company. The upgraded technology for coordinating interviews and reviewing offers makes the process smoother and more candidate-friendly.
?? Reduction in Decline and Withdrawal Rates
One of the most telling signs of success is the reduction in the rates of offer declines and candidate withdrawals. Within a few months of implementing these changes, the company witnesses a substantial decrease in these rates. Top candidates are not only accepting offers more frequently but are also more engaged throughout the interview process.
?? Training Pays Off
The investment in interviewer training also pays dividends. Hiring managers and interviewers are now better equipped to conduct effective and engaging interviews. They represent the company's culture and values more accurately, which resonates well with candidates. This leads to a higher quality of interactions and a better match between candidates and the company.
?? A Ripple Effect of Positive Outcomes
These improvements in the talent acquisition process have a ripple effect. The quality of hires improves, employee retention rates increase, and the overall employer brand strengthens. The company's reputation as a desirable place to work grows, attracting more top talent to its pipeline.
Conclusion: The Power of Upstream Problem Solving in HR
This case study highlights the transformative power of upstream problem solving in the realm of HR and Talent Acquisition. By moving away from reactive, symptom-focused approaches and diving into the root causes of issues, organizations can create more effective, sustainable solutions. The company's journey from facing high decline and withdrawal rates to significantly improving their talent acquisition process exemplifies the long-term benefits of this approach. It's a testament to the fact that investing time and resources in understanding and addressing the core issues can lead to exponential returns on investment.
Lead consultant in HR Strategy & Value Management. Enhancing Value through Human Performance. Delivery of Equality, Diversity & Inclusion Training. Lecturer and International Speaker on HRM and Value Management.
10 个月Great post Adam Treitler - I found the example of talent acquisition of particular interest. I spent a number of months looking at this problem and found that a high percentage of employees, that left their previous employer, had highlighted a lack of professional development. The reason was that there was a poor lack of communication and collaboration, whereby implicit knowledge was not being shared. I then looked at how this had affected recruitment. I found that candidates not only looked at 'what' development was on offer - they were now looking at 'how' that development was being delivered. Like you have highlighted, there is often a need to step back and take a long look at problems that arise in the workplace. Thank you for sharing.