Aberdeen: 3 Ways to Improve Your Talent Pipeline with Technology
By: Research Associate and Content Manager, Sheridan LePlatt
Over half of all organizations today are increasingly struggling with turnover, time-to-hire, and cost-of-hire.
Advances in technology are bringing real change to how organizations manage their workforces by enabling dispersion and integration.
To realize technological benefits in recruiting and pipeline management initiatives, one approach would be to work from the inside out – focus on expectations, experiences, and efficiencies.
Talent is the lifeblood of every company. Whether it’s a startup, SMB, or enterprise, there would be no systems or processes in place without the people to drive them. Considering the value of talent, it’s crucial for HR leaders to get it right when it comes to turnover, time-to-hire, and cost-of-hire. However, according to Aberdeen data, over half of all organizations today are increasingly struggling in these key areas. Adding to this complexity, disparate datasets are multiplying, recruiting channels are expanding, contingent workforces are on the rise, and skill requirements are often too specific when compared to competitor positions – companies today are looking for the proverbial needle in a haystack. Data-driven Best-in-Class (BIC) organizations are differentiating themselves by investing in and leveraging cloud-based HR systems to competitively position and outperform others.
Advances in Technology Bring Real Change to How Organizations Manage Their Workforces
From standalone human resource (HR) applications to complete unified human capital management (HCM) suites, information technology is enabling dispersion and integration. It’s fostering speed and agility and driving efficiency and effectiveness. It’s helping small, medium, and large businesses alike navigate the changing talent landscape. Nowhere is this more evident than in talent acquisition and pipeline management.
Recruiters, like many others, are under stress and burned out. Not only are organizations struggling to compete for talent (full-time, part-time, and contingent workers), they’re facing growing voids in their ability to source and select. Recruiters are not exempt from the “Great Resignation.” According to the Wall Street Journal, open recruiting roles more than doubled during 2021. Technology can help alleviate many of the precursors of burnout for not only today’s talent acquisition professionals but also for their hiring manager counterparts.
Across the globe, workplace relationships are suffering. The growing strain of limited staff, missed deadlines, and operational impacts are dividing productive recruiter-hiring manager relationships. Expectations regarding swift hiring of high-quality talent are being shattered by a highly competitive labor market, candidate preferences, and the rising costs of TA efforts.
Thoughts of pre-pandemic normalcy continue to fade as many remote and hybrid workers evaluate newfound improvements in their flexibility, personal productivity, and wellbeing. In fact, Gallup recently reported roughly one-in-three (31%) remote workers would be extremely likely to pursue other opportunities should they lose the option of working from home. The constant churn is likely to continue well beyond post-pandemic operations.
Today, most organizations (17%) report having a workforce consisting of 11–20% contingent workers (e.g., temp, contract, freelance) whereas many Best-in-Class firms are reporting a 31–40% contingent workforce. The swirling mix of labor categories coupled with hybrid location practices are impeding accurate forecasts and slowing decision-making. Without a single system of truth, managers find themselves throwing good money after bad as they attempt to create stability in a sea of uncertainty.
To realize technological benefits in your recruiting and pipeline management initiatives, one approach would be to work from the inside out – focus on expectations, experiences, and efficiencies.
1. Integrate & Align [Expectations]
Manual systems and miscommunicated plans negatively impact productivity. Integrating systems and aligning expectations is an actionable first step in achieving pipeline excellence. With an average predicted increase of 54% in disruption to industry, jobs, and skills, most organizations are forecasting financials, headcount, and required skills monthly to better align to future needs.
To offset escalating time to requisition new headcount, nearly half of recently surveyed HR leaders (43%) indicate use of technology to align costs to strategy – to ensure a single system of truth drives the dynamic capabilities required to achieve sustained success. Modern platforms with self-service functionality enable greater partnership between business unit leaders, finance teams, and HR by supporting real-time budget and hiring insights.
Level the playing field and ensure internal stakeholders are well equipped for success in evolving conditions.
2. Mind the Gaps [Experiences]
Nearly one-in-four (24%) HR leaders identified an inability to fill emerging skill gaps as the leading talent management issue facing their organization. Integration extends far beyond financial data. Forward-thinking HR leaders are linking people, capabilities, and experiences to mind the gaps in their workforce planning initiatives. To that end, four out of five (80%) Best-in-Class companies and more than half of All Others (54%) are increasing their capability and competency management budgets in 2022.
Not all processes are created equal. Definitions of ‘quality’ and ‘readiness’ of talent are open to interpretation. Technology assists in creating less subjective views of potential and performance, resulting in more meaningful workplace conversations. Putting triangulated data in the hands of recruiters and managers mitigates widening gaps of subjective need. Integrating HRIS data (e.g., performance management, learning and development) and ATS data (e.g., job descriptions, candidate profiles) into pipeline strategies increases transparency in hiring and helps create seamless experiences for all stakeholders.
With 60% of employees expected to master new skills as their jobs evolve, providing a reliable roadmap will strengthen understanding of expectations [and performance], resulting in a more engaged workforce.
3. Focus on the Vital Few [Efficiencies]
With shrinking headcount and deflated engagement levels, managers’ abilities to justify, identify, and develop talent are under scrutiny. Managers are crafting unrealistic job descriptions in hopes of finding a unicorn in a field of horses. They’re wanting more…and expecting more from today’s candidates.
More is not necessarily better (generally speaking, of course).
Technology can assist in tempering myopic views of need and create a more agile platform to manage shifting requirements. Most solutions offer the ability to use stock competency frameworks or create custom models intended to differentiate performance. Most solutions provide for corporate skill inventories and succession planning. With advances in artificial intelligence (AI) and machine learning, most solutions can adapt to shifting winds of change – but they’re still dependent on human input and prioritization.
In additional to cultural fit and learning agility, managers should seek candidates that poses the top 3–5 competencies required for the job – not a laundry list of 15–20 nice to have areas of knowledge, skills, and/or abilities. Don’t cast a bigger net. Cast a stronger net. Let technology work for you.
Best-in-Class organizations are 2x-more likely to incorporate or increase the use of AI throughout the recruiting process. They’re simplifying. They’re using technology to sift through hundreds of internal and external candidates to identify those with the greatest chance of success. They’re using integrated assessments to test skill levels. They’re using automation to streamline scheduling. They’re using hiring analytics to increase the odds of landing a Top-3 candidate.
AI helps to find ‘qualified’ candidates, faster. Hiring analytics helps to ensure landing the ‘right’ candidate, repeatedly.
Design a Future-Proof Pipeline Management System
Managing all the moving pieces that come with pipeline management is no small feat, but with the help of the right technology, HR leaders can transform split perspectives and complex datasets into concise action.
Keep in mind, as advanced as any technology might seem, it’s just one component of a larger talent strategy. When used the right way, in tandem with the right people and processes, technology can help with reducing turnover, time-to-hire, and cost-of-hire.
All things considered, implementing a systematic approach to managing the talent pipeline while using the right technology is a safe bet for HR leaders focused on future-proofing their organization.