FOCUS:
TALENT
ACQUISITION
EMPLOYMENT
BRANDING
SOURCING &
RECRUITING
SCREENING &
INTERVIEWING
HIRING &
ONBOARDING
TALENT
ACQUISITION
STRATEGY
TALENT
ACQUISITION
TECHNOLOGY
PREHIRE
ASSESSMENT
Examine how Red Hat has used an array of tools to identify and
acquire talent, with an emphasis in recent years on social sourcing
Explore how and why Red Hat has sought to gain a competitive
advantage by supplementing its social sourcing efforts with an
analytical sourcing approach that goes beyond social networks
Examine Red Hats pilot program for a new data-driven tool and the
implications for Red Hats efforts to identify highly skilled talent
Member RoundtablesA place where you can connect with other peers
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Contents
Company Overview
HR Organization
10
Driving Efficiency
12
13
13
14
Business Impact
14
15
Next Steps
16
Conclusion
16
18
Key Learnings
18
18
Questions to Consider
19
20
About Us
21
Company Overview
Red Hat is one of the worlds leading providers of open source information
technology solutions. Founded in 1993 (see Figure 1), the company made
its name by bringing a free, open source platform known as Linux into the
mainstream enterprise data center market. Few expected that Linuxor Red
Hatcould compete against established operating systems produced by the
industrys dominant players. Today, Red Hat Enterprise Linux powers more
than half of the worlds financial trading volume2, and open source software
is the backbone of many companies IT infrastructures. The Red Hat product
portfolio has grown to include open source solutions for cloud, storage,
middleware, and virtualization applications.
While Red Hat was the first successful open source software solutions
company, it now competes against some of the biggest technology
companies in the world. In 2012, Red Hat became the first company focused
exclusively on open source software and solutions to hit $1 billion in annual
revenues.3 It is estimated that more than 90 percent of the Fortune 500 use
at least one Red Hat product or software solution.4
Headquartered in Raleigh, North Carolina, Red Hat employs approximately
5,900 people around the world. Approximately 900 of those employees
work in Raleigh, but reflecting the global nature of its business, Red Hat
has more than 80 offices in 35 countries around the world and employees in
Tullahoma, Tennessee; Beijing, China; Pune, India; Brno, Czech Republic; and
Sao Paolo, Brazil, to name a few.
Figure 1: Red Hat at a Glance
2 Source: Red Hat Enterprise Linux Powers the Globes Stock Exchanges, Red Hat,
March 23, 2012, www.redhat.com/about/news/archive/2012/3/red-hat-enterpriselinux-powers-the-globes-stock-exchanges.
3 Source: Red Hat: The first billion dollar Linux company has arrived, ZDNet.com /
Steven J. Vaughan-Nichols, March 28, 2012, www.zdnet.com/blog/open-source/redhat-the-first-billion-dollar-linux-company-has-arrived/10692.
4 Source: Products and Services, redhat.com, 2013, www.redhat.com/overview/
products-and-services/.
5 Source: Red Hat Reports Fourth Quarter and Fiscal Year 2013 Results,
redhat.com, March 27, 2013, http://investors.redhat.com/releasedetail.
cfm?ReleaseID=751668.
HR Organization
Red Hats HR organization operates on a business partner / centers of
excellence (CoE) model. These CoEs include talent acquisition; compensation,
benefits, and mobility; learning and development; HR operations; and
people, performance, and engagement. Additionally, each geographic
region has its own dedicated HR business partners, as well as HR generalists
(see Figure 2). Those HR business partners and generalists report to the HR
leader in each region.
In the case of Red Hats talent acquisition function, regionally based
employees report directly to the talent acquisition CoE, with a dotted line
connection to the HR leader in their region. For example, a talent acquisition
specialist based in Tokyo works directly with hiring managers, business
leaders, and HR business partners in their region, but reports directly to the
head of the talent acquisition CoE in Raleigh, North Carolina.
6 Source: Tech unemployment rate sees slight uptick, Boston Business Journal /
Patricia Resende, July 12, 2013, www.bizjournals.com/boston/blog/techflash/2013/07/
tech-unemployment-rate-sees-slight.html.
CEO
Compensation,
Benefits &
Mobility CoE
Talent Acquisition
CoE
Five Centers of
Excellence (CoE)
Learning &
Development
CoE
Chief HR Officer
(CHRO)
People,
Performance &
Engagement CoE
HR Business Partners
HR Operations
CoE
Regional HR Directors
HR Generalists
KEY POINT
The Red Hat
Ambassador
program turns the
companys 5,900
employees into
recruiters. In 2013,
more than half of
all new hires at
Red Hat came from
employee referrals.
KEY POINT
Today, companies
in almost every
field are looking
at ways to harness
and analyze
multiple streams
of data. If that
concept could be
applied to sourcing
candidates
taking data from
everywhere a
candidate has an
online presence
such a solution
could potentially
be more powerful
than any one
single source.
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11
KEY POINT
When piloting a
program, start with
a small team of
users, instead of
rolling out across
an entire global
organization.
Driving Efficiency
One of the challenges for Red Hats recruiters is determining where to
devote their energy on a daily basis. Should they start by scouring social
media sites? Should they check in with open source online forums? Or should
they follow other leads for prospective candidates? The new platform did
not necessarily change the order of this daily routine. In fact, HR leaders at
the company did not insist on any specific rules for how, when, or if talent
acquisition strategists used the tool, preferring to let each strategist choose
how to leverage it into his or her individual processes.
Here is a typical example of how a talent acquisition strategist used the
platform during the pilot. Strategists would start their day searching
keywords and profiles on social networks to identify candidates. Next, the
strategists would use the recruiter tool to scan online job profiles for the
names found during the keyword search. This might generate a lead list of
50 potential candidates.
Not all 50 candidates are the same, though. And
the trick for our team is to figure out who the best
candidates are from a pool of 50 or 60 leads.
Vice president of talent acquisition
and infrastructure, Red Hat
Copyright 2014 Deloitte Development LLC. All rights reserved.
This material is licensed to Gild, Inc., for distribution only.
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KEY POINT
By combining the
new data-driven
platform with
existing solutions
and tools,
talent acquisition
strategists were
able to quickly
target a small
group of 5 or 6
candidates, as
opposed to
50 or 60.
The new data-driven program scans these specialized sites, retrieving profiles
and relevant postings in order to give recruiters a more comprehensive view
of candidates. Additionally, coders often embed contact information in the
code that they post for review on these specialized sites and forums. The
solution provider platform is able to extract this information as well.
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Business Impact
As Red Hats global talent acquisition team looks to keep pace with the
companys growth, it has searched for solutions that can help make its
organization more efficient. While already highly skilled at using social
recruiting tools and in-house referrals, the organization was looking for
a way to increase its efficiency. Red Hats goal is to drive down the time it
takes to identify and hire talent. For example, while a typical search might
identify 50 candidates, Red Hat has found that in most scenarios, there are
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Test several solutions. The pilot project that Red Hat employed was
a good match for this open source software company because the
solution is able to search technology-specific forums where programmers
exchange information. Other options are available for companies outside
of the high-tech field.
Dont go too broad. Red Hat has talent acquisition strategists spread
across the world, and the pilot platform was, in theory, available to all
of them. However, not all of the strategists leveraged the tool in the
first year. Keep your pilot program targeted to just a few strategists,
and then roll out to a wider group once the benefits have been
clearly established.
15
Use forums. Red Hat sometimes posts its tricky problems on online
forums and seeks out those who come up with creative solutions.
Next Steps
With the pilot program nearing the conclusion of its one-year trial, HR
executives at Red Hat believed there was enough anecdotal information and
positive feedback from their strategists to warrant extending the platform
across the global talent acquisition team.
As part of the wider rollout, Red Hat has gone back to the solution provider
and asked them to develop an engagement plan and a change-management
plan for their strategists.
If we have a great solution, but people arent using
it, then thats not a success. Its important to give them
the tools, the know-how, and the resources to use these
tools effectively. Thats really something that the solution
provider needs to provide.
Vice president of talent acquisition
and infrastructure, Red Hat
Additionally, Red Hat is embarking on a new internal pilot program to analyze
the effectiveness of all its talent acquisition efforts. The programs data will
include information on all new hires, cross-referenced by recruiter, their
source (for example, referral or various databases), and an employees annual
talent review rating. This data will begin to allow the company to see if
certain sources are more effective at driving in the highest-quality employees.
KEY POINT
Ask your solution
provider to
assist with the
development of
an engagement
plan and changemanagement plan
when rolling out
a new platform
across your entire
organization.
Conclusion
In 2012, Red Hat became the first open source software company to hit
$1 billion in annual revenues.10 While the company is the leader in this
technology field, its success has also meant competing against some of
the biggest names in the industry. Once a small corner of the softwaresolutions field, Red Hats open source software is now part of the IT
10 Source: Red Hat Becomes Open Sources First $1 Billion Baby, Wired.com / Robert
McMillan, March 28, 2012, www.wired.com/wiredenterprise/2012/03/red-hat/.
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Key Learnings
Below is a list of key learnings from this case study:
1. The Red Hat Ambassador program turns the companys 5,900 employees
into recruiters. The company gives employees cash rewards and other
incentives when a referral is hired. In 2013, more than half of all hires at
Red Hat come from employee referrals.
2. When piloting a program, start with a small team of users instead of
rolling out across an entire global organization. Lesson learned for us
on pilots: start small and then expand usage as adoption increases, says
the companys vice president of talent acquisition and infrastructure.
3. By combining the new data-driven platform with existing solutions and
tools, Red Hats talent acquisition strategists were able to quickly target
a small group of 5 or 6 highly qualified candidates, as opposed to sifting
through 50 or 60.
4. Ask your solution provider to assist with the development of an
engagement plan and change-management plan as you roll out a new
platform across your entire organization. Relying on employees to adopt
a new program without detailed guidance will impede adoption.
5. Today, companies in almost every field are looking at ways to harness
and analyze multiple streams of data. If that concept could be applied to
sourcing candidatestaking data from everywhere a candidate has an
online presencesuch a solution could potentially be more powerful than
any one single source. This is the promise of data-driven sourcing solutions.
18
Questions to Consider
Below is a list of discussion questions that you can ask your team, colleagues,
and business leaders to help you take the next steps:
1. How will different parts of your organization respond to the idea of
using a new tool if the existing process does not appear to be broken?
You may encounter resistance, making internal engagement and changemanagement programs essential.
2. If you are a global organization, will your entire international team be
able to use the solution? Consider rolling out the program in one region
first before attempting wider implementation.
3. Is your team currently using various data and information streams?
Does your organization have an efficient way to manage these multiple
channels? And would such a system be useful to your team?
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