Feature:

Focusing Processes to Improve Recruiting: Johnson Controls in the Driver's Seat

For years, companies have strived to integrate key talent processes, from recruiting to performance management. Over time, however, these processes often lose their edge in terms of efficiency and productivity. Knowing when and how to step back and re-focus key processes takes a strategic perspective, and doing so can dramatically improve efficiency. A case in point is the story of Johnson Controls. A U.S. Fortune 70 company, Johnson Controls is a global leader in creating smart environments. Its businesses include automotive interiors and building design and safety, as well as batteries for cars, trucks and hybrid-electric vehicles.

In 2002, the company evaluated options for implementing a new talent acquisition system. While the new technology was important, the company also found an opportunity to improve the recruiting processes that the technology was meant to support. Recognizing the need, talent leaders embarked on an effort that re-focused those processes--an effort that led to a significant boost in recruiting speed and effectiveness.

A Long Process Reduces Recruiting Performance
A recruiting system had been in place in the company’s Automotive Division since 1998, and it helped save money by reducing the proportion of hires made through agencies. As a global programs manager for the company’s Talent Acquisition Systems, Russell Gallas needed to ensure a similar level of success in the company’s next-generation recruiting system. The effort is part of a continuously evolving recruiting capability that traces back to the advent of e-recruiting at the company.

In the late nineties, Johnson Controls began implementing six sigma practices, and one of the areas of development was in HR. “We made several improvements to our recruiting process, but none were tied together,” says Gallas. “Requisition approval, posting and tracking were all done separately; and the requisition approval process was long and inefficient. This inefficiency prompted managers to depend heavily on external recruiting agencies,” he noted. “In 1998, an average of 15 to 20 percent of hires were made through agencies.”

The company eventually chose a major e-recruiting system at the time and implemented that system in its automotive division. “We had enormous change management challenges,” he recalls. “We had a routing system that could move a requisition from approver to approver, but these users weren’t fully embracing the system. By 2000, however, the system was fully adopted by our recruiter users and we saw our hires from agencies drop from around 20 percent to around six percent. We saved a lot of money.”

By 2002, Johnson Controls decided that it needed a long-term, best-of-breed solution to carry the company forward. Sustainability was one issue, as many technology providers in the early 2000s went out of business, leaving their customers with major support challenges. Another issue was practicality and ease of use.

“A look at the requisition process as a whole showed us a great opportunity for improvement in the automotive business,” says Gallas. “Even though we’d had an e-recruiting system in place for nearly four years and had gained several efficiencies in the staffing process, it took a long time for a (headcount) requisition to get approved.”

The managers were still not engaged with the system. They couldn’t see where the requisition was in the approval process, so they had to call recruiters constantly. "In some cases, approval chains contained as many as nine different people,” Gallas explains. “The approval process was a next-in-line Yes or No procedure. Any time there was a need for questions or explanation, that had to be handled outside of the system. We had managers calling recruiters and recruiters bird-dogging answers for managers, instead of finding candidates.”

“We engaged an outside expert to help us look at the processes and the technology,” says Gallas. “We found that we could greatly improve the user experience by implementing best-of-breed technology and also by re-focusing the processes that the technology was meant to support. Specifically, we took a careful look at how our headcount approval aligned with our recruiting process. What we found was an opportunity to reduce steps in the process and help us recruit more proactively.”

Re-focusing Headcount Approval and Recruiting
The solution to the issue was a plan to treat headcount approval as a distinct effort, eliminating the headcount steps that had drawn out the recruiting process. “The main advantage of this approach was that managers and recruiters could once again be actively engaged. Recruiters were no longer lost in multiple levels of approval—they could focus on what they do best, finding the right talent.”

As the company’s implementation of new technology moved forward, Johnson Controls proceeded with a strategy of separating its headcount management process from the requisition approval process. According to Gallas, the re-focused processes yielded both immediate and long-term advantages.

In addition to stimulating the engagement of business leaders, hiring managers, and Humans Resources, Gallas points out another key advantage to the strategic approach: proactivity. “In the past, recruiters were limited until headcount approval was granted,” he notes. “The problem was that by the time you got approval, you were already behind in recruiting. Our current process provides our recruiters with a view into the business so they see and understand what’s coming. They can respond to the business need (forecast) and fill the pipeline with talent as needed. So when the headcount request is approved – the recruiting process has already begun!”

Gallas admits that it is not a perfect process, and it requires a seasoned recruiter who understands the businesses he or she supports to make it work. It’s a team effort between HR and the business units. "The combination of hiring managers and recruiters working closely together improves efficiency," he notes. "The efficiency gained by starting the recruiting process before headcount approval improves days-to-fill. This is more than a convenience for managers and recruiters, it’s a competitive advantage for the business.”

With the ability to efficiently handle headcount processes and data as an enterprise, Johnson Controls now has opportunities for improving strategic efforts. “I believe that JCI’s approach to headcount management will enable more robust workforce planning,” says Gallas. “We have more visibility into our needs and better data for making strategic decisions. This will drive true workforce planning and give us a proactive recruiting capability.”

Lessons Learned Along the Way
As with any competitive recruiting operation, Gallas and his organization are constantly looking for ways to learn from their experience and apply what they know to evolve the recruiting process.

“We learned a lot from the entire effort, from both the technology perspective and from the process view,” he says. “I think many companies have done what we’ve done in the past—that is, implement a system and then try to force existing processes to fit the system. It should be the other way around. You should have the best processes in place for your organization and then have the systems to make those processes work.”

Today, Johnson Controls has achieved success in implementing effective systems and refining the recruiting process in its automotive business. “Johnson Controls has a very dynamic business portfolio," Gallas explains. "So whether we’re creating an innovative environment in your home, car, or where you work, we know we must have Talent Acquisition systems and processes with the visibility and efficiency to bring the best and the brightest to our company. Our challenge now is to develop a best-practice approach to implement Talent Acquisition globally.”

From its first jump to an automated recruiting capability to its current effort at planning for global recruiting systems, Gallas’s group has experienced nearly all the issues that have challenged talent acquisition operations over the past decade. “There is no silver bullet system,” notes Gallas. “To work toward that enterprise-wide capability, you need patience, and you need to keep pushing--whether it’s improving processes or selecting a new technology. It’s not about knowing all the answers, it’s about knowing what questions to ask.”

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