Mr. Chairman and Members of the Committee, I am Jay Wommack, Founder, President and Chief Executive Officer of Vertical Alliance Group, Texarkana, TX.   Thank you for the opportunity to express our views on the important issues relating to "Human Resources Challenges within the Veterans Health Administration."

As the nation's largest integrated health care system, the Veterans Health Administration (VHA), due in large to the efforts of this committee has made impressive strides in improving the quality of care for our nation's Veterans.  VHA has established itself as the "Trendsetter" in health care reform with programs such as the electronic medical records innovation.  You are to be applauded.  

In the way of introduction, I make no claim to being an expert in the Health Service arena; rather, over the past  nine years, I have been involved in the development, evaluation, and evolution of a comprehensive recruiting process for businesses that include health services.  If I were to provide a title for my testimony today it would be “How to convert 40% of the applicants that come through VHA’s door into employees.” 

I recall shortly after college when I applied for my first "real" job, taking an hour or more filling out an application, turning it in and waiting patiently by the mailbox for weeks for a response that never came.  And you can probably recall the excitement of receiving that four-inch thick mail order catalog.  How you thumbed through every page, in my case mostly the toy section, and the anticipation and anxiety as you waited the four to six weeks for delivery--now I order online and it is at my door by the next day.  Paper applications are fast going the way of the Pony Express and the new Sheriff in town is the Internet.  Fundamental changes to the way we perceive and process applications must emerge if we are to meet the demands of tomorrow's career markets.  In today’s world, instant gratification is the norm.  Not only do employers want quality employees, they want them now.   Potential employees want the job of their dreams and they want it now.  Applicants are all too often greeted with outdated processes that might have worked well in the 1960s but fail to meet the demands of our high tech, Internet savvy society.  A dramatic paradigm shift must take place to allow the conversion of new technologies into our recruiting process.  We must consider how we merge today's technology with this paperwork world.  Applicants don’t want to wait for the hiring process to find the job of their dreams while their application is subjected to the confines of an electronic maze, they want immediate, personalized attention.  With just a few changes in how we view and respond to these applicants our process can become more effective and efficient providing a lower cost per hire ratio. 

In 1999 Vertical Alliance Group, Inc. (VAG) began a long and thorough process to find out what works “BEST” in attracting and recruiting employees.  With great efficiencies come great rewards.  Operating on the premise that the Internet provides the most efficient/effective venue to attract and recruit quality employees VAG has created some proven processes that advance recruit productivity.  Current statistics indicate the recruiting closing rate of U.S. businesses to be approximately 2% of all applications received.  A forty percent (40%) closing rate doesn’t constitute the norm, however, these results can and have been attained utilizing the process we developed.  Recruiting, training and retaining quality employees is paramount to the success of any business and directly affect it's bottom-line.  The amount of time, money and effort dedicated to recruiting/replacing staff can be reduced with just a few changes in our attitude and processes about how we recruit and what efforts are being made to retain quality employees. 

Our efforts have produced the following conclusions:

• All levels of management must buy into and participate in the recruiting process. 
• Training of current personnel at all levels is an essential element if we are to change the dynamic of how we respond to leads and become more proactive in streamlining the hiring process.  Conversion of Human Resource personnel from the world of paper processor to high tech “Sales Ambassadors” is essential to provide the immediate gratification demanded by today’s society. 
• We must provide timely follow-up to closure that ensure(s) prompt attention is given each lead. 
• We must improve the “quality” of prospective applications received.  A success rate of 2% of “spammed” or database derived leads cost money and wastes time. 

Training is the essential element to a quality recruiting process.  All levels of management must understand and value the recruiting process and recognize their role not only in recruiting but also the retention of highly qualified personnel.  Understanding the direct response marketing strategy that includes an industry overview, how to rate/rank leads, selling skills, technique to close, selling points, the hiring cycle, are all necessary skills in providing a quality recruiting process.  Knowledge of the current "shelf life" of applications is essential.  In this competitive market, often the first quality response, usually within minutes not hours, days or weeks wins the deal.  Human Resource personnel who are properly trained, highly motivated and who understand the value of this process provide the largest "bang for the buck" in recruiting and maintaining a strong workforce.

Understanding the benefits and limitations of modern technology and the balance between them can also improve your odds in closing the deal.  The "human" element  is still one of vital importance in the process.  First impressions still count.  Potential employees still want a response from a real person, not a computer.   In the words of Walt Disney, "There is no magic in magic, just details."   Timely, polite, professional communication will work magic in the recruiting process.

Massed, unranked or inappropriately filtered leads provide “volume” but lack “quality” and generate large amounts of paperwork generally resulting in minimal success.  Quality leads, appropriately ranked by source first allow Human Resource personnel to come out of the paper processor role and become more proactive in the recruiting process.   Targeted leads focused on essential hiring criteria provide optimal potential for successful closure and lower cost for hire rates.  

In an agency the size of VHA arguments can be made pro and con between centralized and decentralized recruiting processes.  Each has its own unique values and barriers.  Training of all personnel in their respective roles in the recruiting and retention process will provide a more prolific recruiting effort on behalf of the VHA.  

There are a number of issues and complexities that challenge our Human Resource efforts… But the good news is, there are solutions.   Amy Gruver, Call Center Team Leader for Swift Transportation Company, one of the largest trucking companies in America, has stated that the VAG process has resulted in their lowest cost per hire rate.  Small businesses to Fortune 500 companies have effectively implemented and assimilated this process with phenomenal success saving valuable resources. 

Mr. Chairman, this concludes my remarks. I would be happy to answer any questions that you or other members of the subcommittee may have at the appropriate time.