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Category: Business Page 14 of 18

LinkedIn as a Retention Tool

By now there are so many recruiters on LinkedIn that it is pretty clear it works as a recruitment tool. But what about as a retention tool?

The first clue I had about this was that a when a staff member was preparing to leave a company they tend to start pumping out the recommendations (and more selfishly, requests for recommendations). The best way to get great recommendations is to first write them for others, and I think the key points are best covered here. The same rules as resumes apply, don’t waffle and put in hard facts where possible. If an HR Manager starts seeing their employees engage in this mass-recommendation tactic then the warning lights should be on, just as they would be on if you saw them tidying up their CV at work.

On a similar note you might notice that the employees are becoming more connected to a competitive organisation, this could be as blatant as linking to a competitor’s recruitment manager or an industry recruiter. Again the real world parallel is seeing them having coffee downstairs with one of these people.

The LinkedIn company pages are also a great retention tool. For example looking at the realestate.com.au company profile gives the realestate.com.au HR manager a guide as to where their people are coming from and going to. The popular profiles might also suggest who is networking hard (or being recruited aggressively) within your company. It would help to keep this page up to date, it might be something that potential hires would find useful. I might have a crack at updating it now, I see LinkedIn have added the ability to upload company logos and company blog RSS feeds, cool!

Realestate Dramas

Domain Down

It is all happening in the world of Australian Online RealEstate tonight! The Realestate.com.au board have announced the immediate departure of their long serving (since 2001) CEO, Simon Baker. This was a huge surprise, although the fact that he sent out about 50 LinkedIn recommendation requests to people (myself included) late Friday night should have been a bit of a warning. Anyway at least Domain isn’t having the last laugh, their website is currently completely broken, simply stating that “an unexpected error has occurred”. I would say their support team are going to wake up to hundreds of thousands of error emails and a big headache tomorrow.

Globalisation Crunch

Starbucks Crushed
Some would say this is the silver lining to a US economic slowdown, a clean out of global mega-companies that prevent local competitors from entering the market. Starbucks seems to be the first to suffer publicly, with an announcement to close 61 of their 84 stores in Australia. The few stores that they are keeping (for now) are listed in this PDF. Looks like they are focusing on their more profitable inner city markets in Sydney, Melbourne and Brisbane.

Some commentators have had very strong words for Starbucks, particularly Chris Berg from The Age. He wrote an article putting Starbuck’s demise down to the vibrant coffee culture already present in Australia. It seems to me that Starbucks failure is a case of producing a sub-par product, rather than any local competition. Gloria Jeans for example is just as commercialised as Starbucks and has continued to grow rapidly over the last six months, but maybe they get a bit more local help.

Hopefully we are going to see more cases where fundamentally better products prevail. One could argue that GM and Ford are heading down this path too. I am definitely not anti-american either, I would love to work in the US at some stage in my life. I am simply an engineer, so I like to think that the best product will win at the end of the day; regardless of the marketing and sales pitch surrounding it. I have been in business long enough to know this isn’t always true, but cases like this make me feel less naive and more motivated to put that extra bit of effort into everything that I produce.

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