HR.com (00:10):

Welcome everyone. Thank you for joining us for the webcast, leveraging conversational AI to convert top frontline candidates and save massive hiring costs, sponsored by paradox. This webcast has been pre-approved for H R C I and SHRM Credit. Please be sure to attend the complete webcast. In order to receive your credit, you will receive an email from hr.com within two business days. It will include the certification, credit information. You may also log into your account and view the credits that you have received. If you have any questions during the webcast, click on q and a in your webinar controls and type them in. And now it's my pleasure to turn it over to our presenter, Joshua Seacrest.

Joshua Secrest (00:55):

All, hi. So so great to be here. Thank you for having me. Can't wait to dive into really my favorite topic which is a, around high volume hiring and, and front time frontline recruitment. We're gonna be talking a lot about conversational ai, the current labor market, and really the technological advancements that have been here. I think, you know, this presentation will be great no matter kind of where you are within HR career. If you're running an HR team, a TA team or are kind of within the, the HR team, thinking about high volume hiring. There's gonna be lots of really good stuff for, for all of you. Just my, my background, so Joshua Seacrest I just am really passionate about the talent space in HR space. I work for Paradox. I'm our Vice President of marketing and client advocacy, which means I get to go and advise and, and work with a lot of our clients and, and partners but have, have spent my career almost the past 20 years within HR senior leadership roles.

(01:59):

So previously was the head of global talent acquisition and talent strategy at McDonald's. I'm gonna get a little bit into our story at McDonald's, obviously a huge frontline <laugh> employer. And, and then also was able to spend a formative part of my career at Abercrombie and Fitch, where I got to lead global talent acquisition culture, philanthropy but then also got to spend a lot of time as an H R V P and, and in other parts of the, the business. If you could do me a favor within the, the chat, I want this to be a really interactive session. So please drop in just your name and, and where you're from. Any, any questions throughout? I've got my partner in crime Darryl Carr, who's gonna be helping kind of field some of these questions.

(02:47):

I'll pause halfway through. And then at the end, just to make sure that we're really kind of getting this engagement going, going throughout, I think there's gonna be a lot of really cool topics for us to discuss. So I'm gonna go into paradox in a little bit. But really, the, the overarching is that, that paradox is, is conversational ai. We're automating really every part of the high volume hiring process through conversations. And so that's allowing for us to be able to save teams days, hours of, of time to be able to hire faster, to be able to remove work from their plate, and to be able to save a lot of money. So this idea that we are trying to be able to have people spend more time with people and less time with software, really, that's, that's our paradox and excited to be able to share with you how that's really shaken up.

(03:42):

Frontline recruitment and high volume hiring. I know we've got a bunch of our clients that are on the, the call today too, so that's really exciting. Those clients have really helped us gain a foothold within the the world of high volume recruitment, as well as supporting corporate recruiting teams. We're now the fastest growing company in, in recruiting technology. Number one by Deloitte. We've won three of the past four years of the HR executive top Product of the Year award. I'm gonna show you some of that technology and have just been able to really kind of change the game in terms of high volume hiring happens. It's faster, it's easier, it's cheaper, it's more personalized, it's more inclusive. So, so some exciting kind of trends that we've been able to see there. And just get to work with some amazing clients from McDonald's to Disney, Lowe's, Unilever, gm, Amazon, FedEx Anheuser-Busch, Valvoline, Salesforce.

(04:44):

You'll see some of the biggest high volume employers here. I'm gonna be able to tell quite a few of their, their stories as, as we go through, so you can really start to see what's going on within this environment. As you heard about a little bit in the last session, right, we've got kind of two worlds converging, converging that our making frontline hiring so valuable to organizations. So, I'm gonna walk you through this because I think it's really put a lot of us in our careers, in hr, in recruiting, in a revenue driving seat. And, and that's really exciting. It's, it's why so many of us chose this profession, right? We didn't just wanna do HR to do hr. We, we wanted to join HR because we felt like people drove businesses and drove business results. And we're seeing that right now in, in frontline high volume hiring.

(05:38):

So why, okay, so first off, we're gonna go into that labor demand is outpacing labor supply. That's really happened just for the first time, pre covid and after Covid. I'm gonna walk through some of that, but what's happening is we're seeing our C-suite really see how much that's impacting revenue and wanna drive change, right? We're then also seeing this like AI technology advancement. That's really happened from like 2018 on. I've got some cool charts to be able to show you on just how fast things are rapidly improving. We've all seen it with open AI and chat sheet, bt how that's starting to filter into HR and recruiting. And then wherever there's opportunity, it means that there's gonna be winners and there's gonna be losers, right? Because of the competition in the market, and because of the fast rate of technology advancement, some of the early adopters of technology solving some of these problems directly will save or drive millions of dollars, right?

(06:36):

And, and they're doing that because they're faster to candidates. They're staffing their restaurants or their stores or their warehouses faster and getting to productivity faster, right? So there will be winners and losers. I'm gonna make sure that you get all the tips and tricks so that your organizations are on the winning side of this. But the worlds are really converging that's making this interesting. Okay? So in the chat please, if it's a virtual hand you know, please, please throw it up. But I think all of us as you know, HR and people practitioners, you know, we've heard this, right? Raise your hand. People are our greatest asset. You know, we've, we've heard that throughout the organizations. It's, it's why we wanted to be able to, to get into the, to HR and into recruiting. But then we also hear this, which is when times are tough, talent acquisition is a cost center.

(07:26):

Anybody hear that? So that's really interesting, right? Those two things seem to be quite at, at conflict. And what, what we're gonna be talking about today is, is this, which is, we are absolutely not a a cost center. You know, we are definitely driving people initiatives. And these people initiatives are right now a million dollar opportunity that is putting recruiters and TA teams at the table. Because an exceptional TA strategy, yes, bits of tech, but also your process and your people can drive millions of dollars in revenue and cost savings uniquely right? Now, if you take advantage of this technology, skip, right? If you're able to put some of these processes and things in place that give you a competitive advantage, all right? So we're gonna go through all this. I'm gonna start with labor. Don't worry. There are some, some some charts here.

(08:22):

I'm gonna walk you through them, but I think they're, they're really cool to be able to, to ground for you. But then also, if you need some really good documentation to be able to bring to your C-suite, I found these really helpful. As, as I'm chatting with CPOs, CHROs CFOs, CEOs, okay? So the first is this context that labor demand is higher than labor supply, really for the first time in a couple decades. So this chart goes all the way back to 2000. You see where there's red, that is where the labor demand more jobs, right? Is outpacing labor supply humans to fill those jobs. We were there just before Covid Covid drops off, right? And now look at this, look at this as we're coming, coming back out, right? This is why it's so hard to recruit within frontline right now.

(09:08):

There is so much demand and labor supply hasn't quite caught up. What does that look like from a different kind of angle or chart? I love doing this. If you don't do this already, I really recommend it within your organization. As soon as those unemployment rate numbers come out, you can do the math behind the scenes on this. So the most recent unemployment rate is 3.7%. What does that actually equate to in terms of employed workers in the market? It equates to about 6.1 million unemployed workers right now. But the number of open roles, number of open positions that are out there, and this is dis you know disparately impacting frontline hiring 10.1 million open roles, okay? So we're seeing a 4 million gap in, in open roles to workers. Why is it so hard to recruit right now? Well, you're competing against a lot, okay?

(09:58):

And then we've been able to see technology shift, and it's making things a lot easier for people to be able to apply. That's great. But when you look at, at the Indeeds of the world, and we see applicants coming in, you know, it's a reminder to our organizations that indeed is advising for people to apply to about 10 to 15 jobs every single week. So when you look at the applications that are coming into your applicant tracking system, and you see some of these, these some of the applicants, you really are getting one 15th of that applicant. And if you don't act within that week, then you're now competing not only against 14 other employers for that applicant, you're competing against another 15. So now within two weeks, if your process is taking two weeks, you're competing against 29 other companies, right? That's, that's, that's really interesting.

(10:45):

So it's competitive out there way more jobs than there are people to fill them. When we get an application in it's, it's one 15th, we're competing against 14 other companies within that week. Our C-suite is starting to see a couple different ways that this is impacting if we can't staff our organizations. Well, there's one piece here that there's almost a vicious cycle regardless of what industry you're in, it looks probably something like this, right? If you're understaffed, you potentially have more turnover, both at manager and frontline positions. You're potentially sacrificing customer experience. You're ticket times potentially slow, you're decreasing your revenue, okay? Or, and some of you have seen this, you have to close, close your shop or close your restaurant, or close close early for a few hours per day. Or you wanted to be able to open 50 stores, but you understaffing didn't allow for you to do that, and so you had to delay the opening of those stores.

(11:43):

Each time you're doing that, you're sacrificing the revenue per day, right? So this competition that's happening from those first couple slides is now really feeding into these top line results that our C-suites looking at. So why do we have their attention? Oh my gosh, all of this that's going on, labor shortages are hitting every corner of the economy. It's leading to about a potential 8.5 trillion on unrealized revenue. Okay? This is our moment, right? The convergence of this labor supply and demand, and this technology shift that's really causing, you know, this huge gap in, in revenues for our organizations. We've got the attention of the C-Suite to be able to act now, okay? So this sounds pretty hard, right? We know we need to move fast, but you know, the whole point of this presentation is there's this huge opportunity, and a big part of this is because this labor supply issue is coming right at the moment where we've been able to experience this technology shift.

(12:43):

So I won't bore you with a total history lesson, but wow, his technology made this total hockey stick that we're all getting to take advantage of, right? This is just a quick chart of like, through the decades, right? First computers built in the 1940s, first microprocessor, 1970, early days of the internet, 1990. Wow. We're really fast forwarding first iPhone, right? Like early two thousands until now, and we're already starting to see conversational, generative ai, you know, all this different stuff that's really making a huge impact. Here's another view, right? For those of you that have been able to see, you know, through the eighties and nineties, you know, going from mainframes to decks, desktops, you know, in the two thousands, we've got Career Builder and monster.com and Hot Jobs, kind of this e-commerce platform, 2010, you know after Google, we've now started to really see, you know, apple and Google and Microsoft.

(13:39):

We've saw the introduction of LinkedIn, we saw Indeed, but now in the 2020s, right? We're starting to see, you know, our user interface go from, you know, visible to inter invisible. We're starting to see generative AI and conversational ai, you know, come onto the scene automation intelligence experience, right? It has been a massive transformation. How massive, okay? This is, this is a lot to take in, but I want you to look at these lines. So what this is basically showing is AI advancement, right? It's showing it really over the last 20 years, but where I've circled is the last even four or five years, okay? It's showing advancement in handwriting recognition, speech recognition, image recognition, reading comprehension, language understanding. Look at these hockey sticks really from this point of 20 17, 20 18, 20 19, and on, right? We're at this point where this black bar is basically saying AI within these areas has surpassed human capabilities, some of the average human capabilities here, right?

(14:41):

So what does this mean for us within HR tech? Well, this is pretty wild, right? Because it basically says, if we haven't in the, been in the market for modern next gen hiring or HR technology within the last few years, we're probably very, very outdated. And it's time to be able to go back into the market and start to see what that, what's out there and what this generation skip can be. Because holy cow, are we in a, a whole different era than we were even four or five years ago? Okay? So really, really exciting stuff. So what does that start to look like, right? This is the stuff that we're seeing, you know, every day. Impacts our com, you know, commercial experience, our shopping experience, our social experience you know, the, the, the Snapchats of the world, TikTok how we interact with you know, different consumer brands, how easy it is to shop on Amazon, one click, or now shopping through Instagram, right?

(15:36):

It's mobile, it's modern, it's easy, it's intuitive. We can take our iPhones outta the box and we can work work off of them with, without pulling out the training manual. Technology hasn't just gotten better. It's actually gotten easier, right? What are we starting to see? How has that really changed? Okay. You know, AI radically is improving. You know, in driving 24 7 automation, there's this conversational interface that's just exploded since chat. G P T. Everything's really mobile first designed and like mobile enabled that we're starting to be able to, to see, right? But then somehow within HR technology, a lot of us, this is probably for, for a lot of you on the phone, what you're still kinda seeing, right? It's logins, it's clunky. It's not a modern interface. It's not commercial grade, it's not consumer grade. You know, what we're, where we've been able to find a lot of success within, within paradox is starting to move to a format that really feeds more into like the most modern state-of-the-art consumer grade, commercial grade technology that you're already seeing in your personal lives.

(16:51):

Why not bring that over into your work life, right? How much easier is that gonna be to use intuitive, modern technology? So one of our frames is always, you know, imagine if you had a 24 7 recruiter or assistant to help you, you know, what work would you do? Would you have it do? And so this isn't that crazy of a question, right? We're just kind of seeing the series Alexas of the world, the chat GPTs of the world, how like an assistant can potentially automate and take some things off of our plate and be able to help us. So that's what we're starting to do. And, and, you know, we've been the market leaders now for the past seven years on doing hiring automation and conversational AI within the recruiting and HR space. So this is what this is looking like for, for our clients, and it's why it's giving them such a strategic and competitive advantage, right?

(17:38):

It's mobile first. It's personalized career sites. What's a personalized career site? Mean most career sites, right? It's the same for every single person. For us, we deliver unique to the person, unique to the individual experiences. So if somebody has a question, we're able to answer that or serve up videos or content to them. It's effortless conversational engagement. It's really built for speed. So in high volume hiring, right? And we're gonna get into this. Speed is king, right? That's the faster we can move, the faster we can staff our warehouses, our restaurants, our our hotels and the faster we are to revenues. So we're able to move 24 7 really fast, and we're able to lift a lot of the work off of, off of the team's plate so that they can be focused either on onboarding candidates high value sourcing or or, or being able to work directly with our, our customers.

(18:33):

So, high, val high degrees of automation within that. So this is really this conversational, modern mobile interface, you know, is, is it's modern, it's fast, it's frictionless. So just a couple ways for you to be able to think about this. And again, I'm gonna go through a couple of these different applications of this technology. But going mobile, you're gonna be able to see a lot more candidates, right? You're meeting candidates where they are, you're allowing for them to quickly text or scan a QR code. If you're in retail, they're shopping your store, they can quickly check out scan your QR code, apply and get scheduled for a position before even leaving your store, because it's 24 7 and it's instantaneous. There's no waiting. That means you're hiring faster. There's no back and forth. You're not losing candidates because of these black holes, because you're instantly automating things.

(19:22):

It's less work for you and your teams. You can put your humans, you can put yourself in the places where you're adding the most value into that process, since you're removing the friction, the barriers to entry all the different logins and apps to download. There's none of that. And so you're gonna have way less drop off. We're gonna be able to show that. And then scheduling, which is such a huge pain point that has all these back and forth moments where we see ourselves losing a lot of candidates in frontline. We removing that back and forth. Okay? So in this challenging labor market, what if you could make hiring competitive advantage for your organization? What would that be worth? Right? What revenues could you drive? What costs could you save? You have that seat at the table, you have the C-suite listening right now. What would this be worth? So I wanted to share a little bit about my experience at McDonald's here. If you could drop into to chat gimme a couple guesses on how many hires you think we make at McDonald's per year.

(20:28):

I'm gonna let this tick up a little bit. We need at least a couple guesses. Help me out. Oh, you're the best. Thanks all. Okay. Yeah. So 37,000 locations. We're making about 2 million hires per year. This is across 120 countries. So I was able to be the head of global TA and talent strategy there. What that meant was I was overseeing our corporate recruiting team and then supporting our restaurants around the world. So supporting, because 92% are owner operators. So franchise organizations. So wanted to be able to deliver them the best technology in the world to be able to, to pull down from the best processes in the world. You know, what we saw is, this is similar to that vicious cycle chart you got to see before was when we had an understaffed restaurant, right? We could really see the impact on revenue within that, that restaurant, right?

(21:24):

We, we'd see the turnover because we had turnover, and because we weren't maybe able to fill orders fast enough, right? You'd see the drive-through lines during peak hours get a little bit longer. What do we all do when we see long drive-through lines? Potentially keep driving. We might drive onto a competitor. And so we would actually see slower ticket times. We'd potentially get more complaints from, from customers. It wasn't as ideal of an experience. They were interacting with our brand understaffed more frequently than they were staffed, and we were seeing ultimately a decreased revenue, and we could kind of actually calculate that, and QSRs can calculate that across the board where you're potentially losing hundreds of dollars per year. This is not a McDonald's number, but from a Q S R average typically restaurants that are understaffed will lose between 200 and 700 to $800 per day even by being one person understaffed, right?

(22:16):

This is because of the, the this drop in ticket times, then this drop in revenue. Think about that. You know, in qsr we talked about the drive-through line. Think about though, if you're just at your kind of favorite restaurant local to your, your home, right? Not being served fast enough means maybe you're not gonna order dessert and you might not order those extra drinks. So you're being able to see that impact on revenue. For us at McDonald's, the, the goal was kind of threefold, right? We felt like there was this opportunity to turn what was a competitive disadvantage into a competitive advantage. We anchored really on speed. Like if we could be the fastest 24 7, we felt like we could get to candidates faster than some of our competition. We recognized that people were applying to 15 jobs in the same, the same week.

(23:04):

So if we could be the fastest to let them apply fastest to get back to them to say that they qualified to get them scheduled, to get them into interview, to get them an offer to get them started on day one, we have an advantage we could get more people into, into McDonald's restaurants. We felt like if we could return time in hours, is how we measured success to our managers. That meant our managers could spend more time onboarding our new hires and spending time with customers. Even in those moments where we're understaffed, if they didn't have to worry about kind of posting a job to indeed, or writing a job description or sorting through different applications, then that time would be better spent kind of front of house. And then just because we were gonna automate and we were gonna look for technology, didn't mean we didn't care about the candidates.

(23:50):

In fact, we hyper. We were hypersensitive to the candidates for McDonald's, right? The overlap of customers and candidates is almost one-to-one, right? It's almost a pure overlap. Our customers are candidates, so we wanted to make sure that they had fun, simple personalized experiences as they moved through the process. What we were able to do is partner with Paradox. We actually were able to co-create mhi. This is now available to all of you. It's the conversational ats for for paradox. So it's this end-to-end hiring solution. For McDonald's, it's the, the career site, the applicant tracking system. Also a short assessment that's about two minutes long. It's in around 18,000 McDonald's. It made everything mobile first. We automated over 95% of the process, and things just got simple and easy, both for our candidates as well as for our managers, right?

(24:46):

Kind of the dream of high volume frontline hiring no longer a, a heavy clunky ats, but a streamlined, simple hiring machine that let you do the most high impact work within, within the restaurants. So what was the actual results of this? I think a lot of, a lot of us are you know, HR and recruiting geeks on, on, on the phone. We just love this stuff. But just, you know, as we talk about this generation, skip, I mean, this is really what I mean. Our application and scheduling time went from three days, right? Think about all that back and forth. It was about a 20 minute application. And then lots of back and forth was taking three days down to three minutes, okay? Applications doubled. Candidate satisfaction rate was hovering around 99%. People loved that. It was simple and an easy, it didn't take a lot of time, and they knew exactly where they stood.

(25:42):

After applying time to hire went from 21 days down to about three days. Now think about that again, common Q S R by taking your time to hire down 18 days, and then again, an average Q S R you know, per day you were losing $500 per restaurant. If we took some of those numbers and applied it here, that's every hire. You're recouping $9,000 in revenue back into the organization. And then huge for, for McDonald's. And across our clients in Q S R, we're returning about four to five hours per week per per manager. And just again, where they were able to spend that time was critical for our customers and for our team members. So, just really neat. Th that's the McDonald's experience. I wanted to share that in case you wanted to dig into it. It was neat to be able to live through that.

(26:35):

It was a lot of hard work but it was, it was well worth it. With the transformation, we were able to be able to see and really start to see how that's been able to impact a lot of other organizations and, and kind of change the face of how frontline hiring starts to look. So what if your organizations on on like a Workday or sap or you're just not in, in restaurants or hospitality? No problem. I've got a couple different examples here. Love this one from general Motors. You know, they were really innovating and modernizing their entire organization was able to partner with gm. For them. It was a centralized recruiting team, and they had had to bring on a lot of coordination support just because of the high volume that they were hiring in at to schedule interviews.

(27:24):

So by bringing in paradox to automate this scheduling of interviews, they were actually able to save about 2 million. They scheduled over 90,000 interviews. And this 99% decrease in time to schedule is pretty wild. What does that actually look like when you start to say like, well, you know, purchasing technology, there's almost this component of you spend a little bit of money to save a lot of money. Well, within gm, you can see just like across kind of their first 12 months of rolling out automation. You know, we hope you all inquire more about Paradox, but just in general, looking at this automation, you know, they were able to return on the paradox investment within two months, right? Because of this impact that they were able to already drive and, and move forward. So, pretty neat. What if you're a part of a huge global organization?

(28:16):

Oh my gosh, it's, it's so complex. We've gotta do high volume, but we're doing high volume hiring kind of all over the world. Well, this is Nestle. Nestle partnered with paradox as well as sap. Their core platform is Success Factors. So the way to think about this is Paradox sits on top of Success Factors, really automates all the high volume hiring stuff or recruiting components. Nestle rolled, rolled Paradox out in about 47 countries, 17 different languages. You're kinda seeing this 8,000 hours per month returned over 4 million saved. So they were really able to help their recruiters be a lot more efficient in their days, kind of take on more high value work alongside really wild conversion rates. The next one just love Compass Group. I think if you're not kind of reading about some of the stuff that Compass Group is doing right now one of the, the largest employers you know staffing stadiums and, and universities, and, you know, huge demand in terms of what they need to do in terms of lots of different locations, lots of volume.

(29:26):

And I'm gonna point in your direction to this, this this middle data point. They have a centralized high volume recruitment team. Their recruiters are hiring 5,000 people to one recruiter. So just, just while you know, I'm gonna keep saying this generation skip in technology, what's the generation skip? Well, as we think about technology and, and any of us who've purchased technology in the past, you'd have technology. It felt clunky. You had some challenges or problems with it. You win out for an R F P, you bought a new technology that maybe closed that gap and it got you 10% better. We're now seeing with all this modern technology that's coming, that's cons, commercial grade and consumer grade, it's not just 10% better, it's 10 x better. It's 20 x better. It's 50 x better. And this is, I think, a great example of that.

(30:14):

You know, one recruiter hiring 5,000 people and the experiences more personalized, warmer, more inclusive. So just really neat. You know, as you think about paradox, I'm gonna dive into a couple of these because it's not just paradox. It's, it's how you're thinking about automation, automating your hiring process, where to start. But you can really think about it from apply to screen, to schedule, to hire, to onboard. At this point, you can automate this entire part of your process. It's where do you feel like the, the humans and the talent within our HR and recruiting teams, where do they add the most value and insert them there and dedicate their time. And brains there, you know, have them be these talent advisors that, that are helping us bring in next level talent. So I'm gonna dive a little bit deeper into some of these capabilities.

(31:06):

I'm gonna go through this pretty quick, but I just want you to be able to get a read on what this type of technology is capable of, how easy it is, right? It's, it's complex and sophisticated behind the scenes, right? This is really powerful AI built in natural language processing so that there's no people aren't getting stuck. This isn't a chatbot anymore. This is sophisticated conversations that are happening. You can have a candidate go through their full application process just by pulling through your drive-through scanning a QR code and texting a short code. You can automatically get them quickly scheduled. If a candidate has life come up, year end, they need to reschedule. Or you need to just ping them with reminders. This'll massively reduce drop off by doing that. Or again, candidates are gonna have their own experiences. They're gonna have their own questions that are unique to them.

(32:00):

You, some may care about your scholarship programs and some may care more about your health benefits. How are you allowing them to be able to ask those questions? How are you allowing them to ask the question of what they should be wearing to their, their interview, right? And so, being able to have this conversational layer, not only quickly gets 'em through an application process quickly, screens them quickly, schedules them, but then also allows for flexibility for every candidate to be able to get the information that they might need, okay? From a manager's standpoint, you know, similarly, how do you make this as simple as possible? So one is, you know, we wanna get candidates in and involved as fast as they can as soon as they apply and they're qualified. So we make it easy for a candidate to be able to, or a manager to be able to quickly drag onto a calendar so that their open times can get filled up with candidates for job management, all you have to do is toggle the job on, and it's gonna send your jobs to Indeed and to your career site and other job boards quickly be able to go, go in on your phone or the computer in the back office be able to offer offer a candidate pay rate, start date.

(33:11):

You can do video interviews straight from this inline conversation, right? We're never sending a candidate to another website or to another location. We're keeping it all in line. What's amazing about conversations is it's super easy to be able to, to change languages on the fly. For McDonald's, we had a large Spanish speaking population and being able to do this, welcome them in for one of our clients, US Express, this has been a real differentiator within truck driving recruiting drivers because they've been able to appeal to a lot of different demographics that may not have English as their first language making referrals super, super easy. So, hey, Olivia my friend Stephanie would like to be able to apply, here's her email address, and then the assistant reaches out directly, how do we know how, what a candidate actually thinks about this, this process at different points so that we can report back that we're serving up a four star or five star experience.

(34:08):

We can send surveys within the, the inline experience. We've all dedicated a lot of time to employer branding. What does that start to look like within a conversational experience? Well, what if you could send different videos day in the life tips and tricks before the interview? It's not necessarily has to be right during that point of application, but it's where you can add value assessments. Now, this is tradify that we're showing, this is our assessment in under two minutes. We're seeing a 96% completion rate. It's impacting the amount of short-term turnover. So typically turnover that you see within that first month, we're reducing that by over 20%. We're seeing onboarding become a lot easier by not sending these things forms like tax forms or W2 I nine s to to the email, right? You can actually do this straight from your phone.

(35:03):

Career sites are getting flipped on its head so that you can be sending, you know, content that's unique to the individual, up to the individual, or you can even organize online hiring events to be able to make this super, super simple to be able to hire kind of in, in bulk, right? So as you're starting to see this, wow, how different, right? Than, than where we were at four or five years ago. As you start to think about like, oh, a McDonald's or a FedEx or a Compass Group and Nestle gm, you know, how are they hiring hundreds of thousands of people? You know, you're, I think you're, you're starting to get a sense of this, but I wanna make it clear that our, our clients are only, aren't only made up of, you know, fortune 500 organizations because we s got a, a, a big start with McDonald's and partnering with owner operators who maybe owned four or five restaurants.

(35:53):

We know how to be able to automate for smaller organizations or mid-size organizations across a lot of different industries. But we can also do big, global and complex. So for the, the, the last you know, 20 minutes, I wanna be able Tori dive into you, you know, you saw automation, hopefully those, those that automation feels modern and feels cool, but it's not just that it's cool, right? It's that it drives r o I. And so this is where I've been focusing a lot of my time because we saw such impact within McDonald's, which is, you know, s what's important here, right? If I can hire faster, I can drive revenue, right? I can get my stores staffed faster so that I'm not leaving dollars on the table. If I convert more candidates, I'm not spending as much money on Indeed and job boards because I already have the candidates that I need.

(36:46):

If I'm automating, I'm getting time back and I'm driving productivity because I'm getting to use my talent in ways that are higher value, right? I'm spending time more with our customers, I'm spending more time onboarding. If I'm improving experience for my candidates, then I'm gonna drive quality, right? I get to have more people to be able to choose from cuz they're excited to be able to come and work for us, right? That should be able to lower my turnover and drive up retention results. Okay? So just a lot of different ways for you to be able to drive roi. I'm gonna dive kind of deeply through here. Again, I'm gonna move through pretty quickly so that we can get to, to questions on these, but some neat ways and frames for, for this. So the, the one piece for high volume is we need to think about this way different than maybe how we think about what a high skill corporate recruiter needs, right?

(37:38):

And by high skill, I don't mean that all of us doing high volume frontline are also high skill. It's that that corporate recruiter is doing kind of one-to-one hiring. Whereas for us, we might have to hire hundreds or thousands for our organization. What do we want? We want a hiring machine to do it all. Or if we're a centralized team, an assistant to be able to like really supercharge me in my results. Think back to that Compass example. You know, I, I wanna be a talent advisor. I wanna drive as much impact for the organization. So what am I seeing across the market? You know, what's been really interesting is that we're seeing across industry lines how different hiring profiles can actually kind of cross these different industries. So I'm gonna dive into this because it impacts how much automation is occurring within these hiring profiles.

(38:26):

So we see on the far left, maybe a high, high volume support position. So think about this as like distribution center or warehouse where we're seeing some companies do almost a hundred percent automation, right? They're hiring within a day, they're getting someone started. They're even doing they're starting contingent on a background check passing. You then have frontline customer facing. So in frontline customer facing, this might be retail hotels restaurants, right? You're automating almost everything up until the point of interview and then everything afterwards, right? We wanna be able to meet that person because they're gonna be interacting with their customers. High volume skilled, this is, these are positions where there's probably a license or a certification that's that's required. And so we're gonna go through kinda that full process, but then we're gonna be able to, we wanna make sure that we get to interview them and verify those licenses.

(39:22):

Frontline manager, those might come internally. They're gonna have a few more different interviews in the mix. We might add an assessment there. And then corporate corporate's, obviously wide ranging fully acknowledge that our university hiring process is gonna be very different than our executive hiring process. But the point here is how do we automate and kind of give an Iron Man suit to our our recruiters to really supercharge them tap into their talent advisory work. So here's another view of that. You know, I was able to kind of say, oh, on the far left side, you know, organizations that have high volume support positions might be automating up to a hundred percent. And they're dedicating their talent resources to really that day one, week one onboarding process in frontline customer facing, right? This is where, how can you, how can you get people to that interview as fast as you can in high volume skill?

(40:14):

How do you get them to that interview as fast as you can, but also make sure that the license and qualifications are, are there? What's key here is almost all of our organizations have multiple profiles like this. Very few of us only have one. So within McDonald's, I had a frontline customer facing position, our, our crew, and then frontline manager. And then as I told you, I was also overseeing our corporate recruiting position. So I had to kind of think about different ways where automation made a lot of sense and where I wanted those people that I brought onto the HR team who were, who are super skilled professionals where we were able to dedicate and maximize their time and their brain power, right? So this is not about automating everything. This is about knowing and having the confidence that you can automate the ad administrative stuff, the stuff your team shouldn't or doesn't need to be spending time in so that they can be dedicating time to their, their highest value output.

(41:11):

All right, so now let's go into speed. So speed is really critical because in the past, in high volume, we've been really constrained by all this weighting, right? Because we had to sleep, right? Someone would apply, we'd come in the next day, we'd look at our candidates, we'd reach out to those after we screened, we'd then wait for them to get back to us, and it was taking us industry average and frontline. And still this, to this day, 21 days. What we're starting to see, though on the right is this process starting to fall down to four days on average, right? Really being able to, to move through this quickly and fast. So what is this new time to hire, start to look like? This isn't just like us putting numbers on a page. This was aggregated from our highest performing high volume clients.

(42:01):

We were able to do some research there. This is over a million applicants total. So I, I wanted to break this down by stage so that you could have some comparison points to be able to bring back into your organization. So the first is the apply process. What are we seeing that average apply process start to look like? Super streamlined, as easy as possible. Typically about seven to eight questions under two minutes. If you add a assessment to the, to the mix typically keep that assessment under three minutes. You want that apply process in total to at least be under five minutes. After that point, you start to see drop off. Ok? The screening process, we're seeing this be instant, right? 24 7 instant. We're, we're easily able to qualify these candidates based on these minimum qualifications and say, Hey would love to be able to meet you.

(42:54):

And then I'm gonna instantly send you some times to be able to come in. So I'm, I'm sending you, I'm sending you now available times for interview. I'm usually trying to do this like so that you get times almost immediately. So it's top of mind. And then I'm trying to get you in within 24 to 48 hours. So we're seeing this now at the interview. Usually after about 72 hours that's where you start to see frontline drop-off. We really advise clients to be looking for that 48 to 24 hours. What does this look like? I love the example of a retailer where someone's in your store, they're applying, they've gotten scheduled. Can you actually offer them up that same day? You know, if they're walking around the mall, they can actually come back in an hour. If you're going through a drive-through at a quick service restaurant, you're applying while you're in, in drive-through and you're being able to get scheduled for the, the very next day, think of the advantage you have for your organization by getting people in that quickly.

(43:53):

Also, the phenomenon that starts to happen when we were talking about the Indeed Statistics is if you're getting them scheduled first, they actually stop applying to other jobs because they're excited to be able to have that interview and focus their attention there. Especially if the interview's within 48 hours. The next piece is speed to offer, right? As soon as we've met them and, and we've liked them, we're gonna get an offer out in three minutes. The key to that is making that a super simple, not heavy process for your managers. And finally, we wrap with onboarding which is, you know, under 48 hours. So really working with background check vendors with paradox to be able to make this super streamlined and mobile across the board. So what you start to see here is about a two to four day, you know, time to hire.

(44:39):

So let's go into why is that so critical? Why is that important? And I wanna look at this from a, a revenue and savings standpoint, right? So this chart basically goes in and it says on the left side, right? The, the value per hire. And then we're going along the bottom here with time to hire in days, right? So the longer that I take to hire, the more I'm in this red zone, right? I'm spending more on job boards. I'm spending more time until I hit higher, and then I'm ramping that higher up. I'm onboarding them into the organization that entire time. I've got productivity loss in my warehouse or my distribution center. I don't have enough truck drivers to, to drive to fill need. I don't have enough caregivers to go out to homes to fulfill the demand that's coming in.

(45:23):

They finally ramped and at that point I'm optimized, right? They start to contribute. They're contributing more right revenue than they're they're costing the organization. And so I need them to work until this breakeven point, right? So until the point where they've been able to almost pay off their the cost per hire, why do I wanna get there? Because I wanna have positive value hires within high volume. Otherwise, if they leave before that, I'm losing money per hire. Our organizations don't want that. So what's the value of moving faster, right? It's not just a, a cool stat to be able to show. It is driving productivity, it's driving revenue, and it's increasing the amount of great hires that we're having. So hiring faster, you're having a lower cost per hire, you're getting them ramped faster. So your productivity loss is lower. The amount of days a customer experiences your brand understaffed is lower.

(46:18):

Your breakeven point shifts way up, right? So now we're being able to have better hires that are value plus to your organization and to your, to your business. So this is an a, a a chart and a way to be able to talk about this with your chief financial officer or C H R O that really starts to, to click for them on all the different ways that hiring faster adds savings, as well as ads to your top line. Okay? So just a reminder here on great benchmarks across the board here in terms of what you can look at within stages of your process and how fast you can be moving. So now let's go on to conversion. I think conversion's gonna be really critical because if you convert more, right? The opposite of this is dropoff. So if you have less dropoff throughout, you're gonna not have to spend as much money on job boards, right?

(47:13):

And we're gonna have more candidates to be able to select from. So no longer are we saying, oh, I'm gonna hire anybody with a pulse, right? I'm gonna have more people to be able to select from, based on your selection criteria, you should be able to hire folks who are gonna be staying a little longer. So retention results are gonna go up. Your turnover results are gonna go down, okay? So you're saving money in a lot of different ways. So again, we ran studies across traditional conversion rates and then the conversion rates that we're seeing across top clients in the high volume space. Again, this is over a million candidates within this dataset. What I want you to look at is how this dropoff starts to compound, right? In the apply process, where we start to see dropoff is anytime you require a login or a password, we see massive dropoff.

(48:02):

Or if you're application's too long or too clunky, right? So just in this phase, someone's starting to apply and then don't finish the average, you know, ATS is dropping off about 80% of your candidates. So I make sure that you're looking into those numbers. Within conversational ai, within paradox, we're seeing that on average be 92% completion. So already just this headstart. Now again, we're scheduling people almost instantly off of this, right? So we're not having much drop off at that scheduling point. The back and forth that we all kind of endured for the last decade, you know, has about a 50% dropoff rate, right? We can't get ahold of somebody. Our competition has already gotten there. First, it's not 24 7. We're reliant on a human getting back and forth to them, okay? Interviewing then, because we're not getting them in within 72 hours, we're starting to see drop off.

(48:51):

Something comes up, we're not allowing them to reschedule without shame. So then they're just not showing up results in ghosting within conversational because it's so easy to be able to reschedule because it's reminded because it's happening so fast. There just isn't this dropoff. So we're starting to see how this is all compounding. This last one is really fascinating. If you're in this boat, know that you're not alone, which is that onboarding has been a major suck of talent within the last couple years where we're seeing over 35% dropoff in anything that's going to email or traditional onboarding programs in front lines. So that means somebody's accepting your offer and then not starting day one, 35% on average. So we're taking too long, it's getting stuck in email. It feels really complex and heavy to them by bringing it to text in their mobile devices, helping them walk through, help them populate some of these forms being able to, to keep that onboarding to you know, a really efficient rate.

(49:48):

So what we're seeing is a 73% total conversion within conversational AI and only a 3% conversion. And this is kind of what we would've had as the benchmark only five, seven years ago, right? I would've said five or 7% would've been great a few years ago because that's almost, you know, a hundred percent increase of, of what it was. We're now seeing a 24 x, right? So back to this, what's a generation skip look like? You know, this data point, I think is just a, a really loud one in terms of, oh my gosh, we finally have started to break the back in high volume where we can hire way faster and we're converting more candidates. It's resulting in that being a lot cheaper, right? And we're better candidates that are, are staying longer within our organizations because we have more choice. So hopefully you're starting to see where this strategic advantage is starting to, to come from, right?

(50:37):

And then I'm just gonna end with the, the last couple pieces, which I would just challenge everybody. You know, especially some of you that are taking hr.com classes for this is map out what your R o I model is within your industry. I think it's really helpful for us to be able to figure out where the dollars are coming in from. And so this is showing that kind of the value per hire. So revenue minus the cost of that, the, that hire. So how much you're paying that individual at, at staffing levels, right? So in a restaurant, as we kind of talked about the like quick service restaurant idea is if I'm one person understaffed, my ticket times are slowing and I might not be generating as much revenue. So I wanna be at this peak of this curve for as long as I possibly can, right?

(51:22):

I always wanna keep my restaurants fully staffed. I don't wanna go over it because then I'm spending excess money. But if I'm under it, I'm not giving and delivering great customer service. One person under could be 200 to a thousand dollars of revenue per day, right? So a great chart to be able to bring to your chief financial officer to be able to say, Hey, this is what this is costing us. You know, I want to try and be at this peak as many days as possible. Here's my plan to be able to do that. Now, if you're in retail, that curve doesn't go as steep, right? What we've got in retail is we need to make sure that we've got our staff to be able to open our locations. We're then gonna make sure that we have the staff. If you're in grocery, right?

(52:00):

Think of this as you're at the deli counter and you have someone helping folks out with, you know, picking out their wine. But ultimately you're gonna start to see a like middle where you're adding some folks for customer service impact for long-term revenue generation, even if it's not revenue generation. So a slightly different curve you might get by with being understaffed by one or two. But once you get very understaffed, especially during peak hours or peak seasons, you're starting to really see the impact of revenue. And then if you're in healthcare or services or somewhere where people are your revenue generator this is a really exciting moment, right? Because the more you're able to get your team and organization highly operating within staffing, really the more people you can help, the more dollars that you can bring in, there almost isn't a peak within these organizations.

(52:54):

So I think just some different interesting frameworks in terms of, you know, if we think about recruiting and hiring through these frames, right? I mean, if I hire faster, I'm driving more revenue, if I convert more, I'm saving more dollars on job spend. If I know my staffing model and how that relates to revenue within the business, I can come up with better and better strategies that are gonna be received and ultimately green lit by my Chief people officer and C F O just kind of the power that we have right now in this moment. And we have these solutions to be able to bring into our organizations to solve this. So I'm gonna leave you with this. This is one where please feel free to screenshot it or take a take a photo. Cause we're not gonna be able to go through every single component of this.

(53:37):

But as you're thinking about bringing on next gen hiring tech, what I did was outlined almost a like business case maker for you, right? You wanna be able to list out all the different costs that you you'd potentially incur by bringing in new technology. You'd then be looking for hard savings or cost offsets, right? Potentially that's reducing job advertising spend or reducing the technology providers in your tech stack. Maybe it's, you don't need to add the coordinator or the headcount that you, you'd had on kind of the wishlist because you're that much more efficient, or you don't need to use some of the R P O or contract resources. And then you also are gonna be looking at some of the operational benefits that come in, right? Some of the things that we covered today, if you're hiring faster, what does that mean to your organization?

(54:23):

If you can hire 18 days faster, you, what do those days mean? Ask your C F O and c p o to, to quantify some of that stuff with you. Grab your analytics team. If you're improving business productivity, if your customers are experiencing your locations fully staffed more often, what's that worth? What are manager hours worth to your organization? If you could get five hours back per week, multiply by all the managers within your system, you know, what does that start to do? What would you have have them do with that? So there are a lot of different ways for us to be able to look at this. Not every single one of our business cases is gonna have each one of these things but you can kind of cherry pick the things that make sense and work for you. The reason for separating the hard savings from the operational benefits is hard savings is a way for you to be able to show your C F O, Hey, I can pay for this almost instantly.

(55:10):

Think back to that GM curve. You know, Hey, within three months we're gonna be able to pay this back. Your operational benefits is then also gonna catch their attention because you can say, Hey, with the cost sets, cost offsets, I can almost pay for this based on our current budget. But look at all these changes. I'm gonna drive, look at all these revenue or cost savings that I could potentially drive by transforming hiring for our organization. Okay, so I'm gonna wrap here. I know there are some really good stuff going on in chat and a few different questions. So Darryl, maybe I'll, I'll, I'll, I'll turn it to you and anyone else who would like to ask some questions?

Guest Speaker (55:47):

Yeah, Josh, we have a really good one in the chat that a few other people kind of double clicked on. So a lot of the companies that were used in the presentation today are large and have a lot of expendable capital. So if you just can just share a couple seconds on how cost effective this can be for smaller to medium-sized businesses say 200 to a thousand employees and, and how they can discover that roi.

Joshua Secrest (56:16):

Yeah, what's really neat is you know, we've got almost 40,000 restaurants now working with Paradox. And so some of those are two to three restaurants, some of those are 30 restaurants. It's allowed for us to really kind of sharpen you know, sort of this, this R o I model. So I'm gonna kind of click back to this one because I think it, it's, it's a nice way of being able to show this regardless of the size of your organization. The key places that I see, even in 200 to a thousand hires, I think the first one is looking at your job advertising spend. Typically you're gonna see a reduction of about 50% in that spend by automating more. The second piece is reducing technology. What we're starting to see is, whereas maybe seven, eight years ago, we all needed to, I'm, I'm part of this, we all needed to kind of build up some, some tech stacks with five, six vendors kind of all best of breed to help, help support some of our hiring and, and frontline.

(57:22):

It was the only way to, to go about doing this. We did this at McDonald's. I did it prior to that. What, what we're seeing now though is you can usually by going with a vendor like Paradox, it can really go from end to end. You're able to reduce some of those technology providers. You're able to almost pay for or even reduce your spend on total technology within these, these upgrades. And then I'd I'd also just say from this like manager or ta you know, personnel, like by getting them hours back, what's that worth to your organization? Even hiring a thousand people. I mean, that's massive for those of you that are, that are doing that, right? Who, who's in charge of that right now and what would it be worth to your organization to make them more efficient, right?

(58:09):

And so those are some of the pieces. I think this is a great one for y'all to, to screenshot. This was built and I built business cases for 500 higher companies, a thousand higher companies, you know, 50,000 higher companies. So I think a, a lot of good stuff to be able to do that. Our average, you know, restaurant or retailer is paying paying back like r o i time to time to value, and usually about six weeks to two months. So kind of the, the spend for that and what their return is, is, is pretty dramatic.

Guest Speaker (58:51):

I think we are right at time, Josh.

Joshua Secrest (58:54):

Great. Well, all thank you so much. Would love to be able to, to answer any other questions, please connect with me on LinkedIn. Also to check out paradox all the different things that we can offer. We've got NextGen career sites. ATS can solve your scheduling needs. So check out paradox.ai. Give us a follow on LinkedIn. Would love to hear from all of you. And as you can tell, we're, we're geeks in the space. We love this stuff. And always just happy to brainstorm and kick the tires with you and, and answer any questions. So thanks for spending time with us today.

HR.com (59:28):

Thanks, Josh. This concludes our webcast today. I would like to thank our presenter as well as all of you for joining us. If you joined late and would like to view the webcast, again, the recording will be available on hr.com on our archived webcast page. Please take a few moments and fill out the webcast survey that will open on your screen. Your feedback is very important to us. This concludes our webcast. Enjoy the rest of the event.

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