What is the secret of any successful company? We all know, It’s the people, and that is why talent acquisition is important.
Finding the right talent mix is critical to the success of any organization. On the other hand, effective talent acquisition helps organizations build a solid and diverse workforce. So, one that is capable of driving business growth and success. After all, when you focus on building a team with the right skills and attitude, they tend to take care of your company’s growth. It can also contribute to a positive employer brand and reputation, attracting top talent in the future.
In this article, we’ll explain all about talent acquisition. Also, this guide offers practical guidance on how to set up as well as manage your talent acquisition function from start to finish. So, we’ll start by understanding the entire talent acquisition process. Secondly, we’ll dive deep into creating an effective talent acquisition strategy. After that, we’ll discuss common pitfalls as well as challenges. Finally, we’ll conclude with a set of talent acquisition best practices for you.
What is Talent Acquisition | A definition
Let’s start with the definition. In detail, talent Acquisition refers to attracting, shortlisting, and hiring the right applicant for an organization. So, to understand this in simple terms, let’s break it down.
Talent + Acquisition.
Talent is the skill and ability of a person in a specific field. On the other hand, acquisition implies gaining or obtaining. Combining the two, talent acquisition is about bringing the right talent into your fold.
Talent acquisition is the key function within an organization. The CHRO entrusts this function with employer branding and selling that brand to potential hires. Quite simply, their task is finding the right person for the job.
But one can’t go about randomly hiring anyone. Talent acquisition is a series of steps. It starts with sourcing, screening, and interviewing all the way up to rolling out job offers, and onboarding. While it may look simple, it certainly isn’t. So, on each and every step of talent acquisition requires a strategy.
Talent acquisition covers the entire hiring cycle. From attracting to onboarding. In a corporate setting, talent acquisition is typically placed under the HR function. Recruiters, sources, HR professionals, and hiring managers, are all involved. Each owns a different phase of this process. Firstly, talent scouts take care of recruitment marketing. They attract applicants. The recruitment Ops team manage the screening and shortlisting. Thereafter, the hiring managers conduct the interviews. Lastly, HR teams roll out the job offer as well as manage employee onboarding.
Role of Recruiters in Talent Acquisition
Recruiters fill vacancies. They play a critical role in talent acquisition. Recruiters work closely with HR professionals and hiring managers. Their goal is to ensure the organization meets its staffing needs. To summarize, they are responsible for identifying, sourcing, as well as attracting candidates.
Let’s discuss the primary responsibilities of recruiters in talent acquisition.
1. Job Posting and Advertising
Recruiters craft the language of a job ad. The task is to market the job and the company. Additionally, recruiters post job ads on various job boards, recruitment channels, and social media. They craft the language of the job post to attract applicants. This activity is at the top of the hiring funnel.
2. Candidate Sourcing
Recruiters buy licences to job sites. This gives them access to candidate data. They use these job sites to scout for candidates who fit the job profile. These could be active or passive candidates. Additionally, they maintain the talent pipeline for current and future job openings.
3. Resume Screening
Recruiters review resumes and cover letters. In some cases, they may even view video resumes and applications. Recruiters determine if the applicant’s qualifications and skills meet the job requirements. Essentially, they match the job requirements with the candidate’s profile. Statistically speaking, it typically takes a recruiter 30 seconds to scan a resume.
The initial rounds of phone screening are taken up by recruiters. TA teams set up an introductory call. They gauge interest and ask basic questions to determine whether applicants fit the job well. A typical telephonic round takes 5 to 10 minutes.
5. Candidate Relationship Management
On average, 60 applicants apply for a single job role. Of these, just 20% get interviewed. What about the rest? Time and effort spent on sourcing cannot go wasted. Hence, recruiters are tasked to maintain relationships with potential candidates. Not just for immediate hiring but for future roles as well. After all, that is how you build an employer brand.
The Talent Acquisition Process and Steps
Now that we understand the basics of talent acquisition, let’s dive deeper to understand the process. One must note that the exact talent acquisition process can vary based on the org size, industry and hiring needs.
1. Job Analysis and Workforce Planning
Workforce Planning involves identifying the organization’s current and future staffing needs and developing a plan to address them. Starting a job posting without analysis would be akin to running like a headless chicken. Is there a budget for this position? What is the number of positions? What kind of skills should the ideal applicant have? Is this a new role or backfilling for an employee who has left? HR Teams need to answer these pertinent questions. Once the job requisition is received, the HR team creates the JD.
2. Talent Sourcing
A good job post and the advert are key to attracting the right talent. Once the job description is created, the talent acquisition team crafts the job post. But talent sourcing is more than just posting a job online. Job boards, social media platforms, and employee referrals are used to distribute this job advert to relevant candidates. Since the goal is to reach a wide audience of candidates, recruiters need to go out and network. In some cases, they need to build, nurture and pitch to candidates in order to increase the chances of finding the best fit for the role. Not to mention in some ways it is quite similar to lead generation in sales.
New-age job boards have made job applications very easy. A candidate can apply for the job with just a click of a button. They may not even have the right skills for it. Thus, organizations need to screen them to determine which candidates meet the required qualifications. This can involve reviewing resumes and cover letters. HR teams also conduct phone screening rounds. The goal is to filter out unqualified applicants to identify the top candidates who fit the role well.
4. Hiring Assessments
Hiring assessments are the crux of the hiring process. A good job post may elicit a large volume of applicants. 2 in 3 candidates say they lie or exaggerate points on their resume. Pre-employment assessments like Xobin act as the unbiased filter to help surface the top ones. Therefore, based on data and not based on a fancy resume. So, organizations may choose to conduct skills tests, personality assessments, or cognitive tests to gain more insight into the candidate’s abilities. Moreover, it could also be a small take-home task. The hiring manager as well as recruiters typically handle this step.
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Take the example of Amazon. A few years ago, recent grads applying for a tech position at Amazon were simply asked to take online tests. This technical test measures their coding skills and cultural fit. If they scored above a benchmark, Amazon automatically generated a job offer. All this with no interviews required! Danielle Monaghan, Director of talent acquisition stated that “There’s no evidence that those who interviewed did better in their jobs than those who didn’t,”.
The next stage is to invite the top candidates for an in-person or video interview. An interview is a structured conversation where the applicant can be asked conceptual, skill-based, behavioural, or situational questions. There can be more than 1 round of interviews. Interviews are the longest part of the talent acquisition process. To simplify the work of interview coordination, organizations use Interview Scheduling software. The goal is to assess the candidate’s skills, experience, and cultural fit. The hiring manager typically handles this.
6. Background Check
Background verification or BGV is the process of verifying that an individual is who they claim to be. Before making an offer to the candidate, the organization must conduct a background check. After all, new employees must not present a risk to the company or the existing employees. This step is crucial to ensure the organization is hiring a trustworthy candidate. BGV checks the accuracy of the information the applicant provides along with their education, employment history, and references. This part is typically outsourced to a service provider.
7. Job Offer
A job offer is an official document provided by the employer that outlines the salary and work terms. After completing the previous steps and determining whether the candidate is a good fit, the organization can offer a job. The offer should include details such as salary, benefits, and start date. The HR head usually signs the offer letter. The prospective employee needs to review the terms of the job offer. They can choose to accept or decline it.
Once the candidate accepts the offer, the organization must onboard the new employee. But here’s the thing. You can’t throw the new joinee into the deep pool and expect them to swim. Onboarding refers to integrating a fresh joined with a company’s work culture while providing them with the tools and training needed to become productive team members. As a result, the goal here is to ensure the employee is comfortable and productive from day one. An HR onboarding specialist typically manages to onboard.
If you look closely, each step has a clear purpose. Skipping a step in the talent acquisition process could risk a bad hire. Each step is handled by different roles in the HR team. Running through the talent acquisition process can take several weeks or even months. But it’s worth the effort essential to hire the best candidate for the job.
Talent Acquisition Metrics | How to measure
Before improving talent acquisition, we must learn to map and measure it.
As they say -“You can’t improve what you don’t measure.”
There are several key metrics that organizations can use to measure their hiring effectiveness. Here are some of the most important ones:
1. Applicant-to-hire ratio
This metric measures the number of applicants screened to make a single hire. A lower ratio indicates that the recruitment process is effective at attracting and screening qualified candidates.
This metric is a measure of the number of days it takes to fill an open position. More specifically it is the number of calendar days between the job requisition and the candidate accepting the offer. A shorter time to fill indicates a more efficient talent acquisition process.
This metric measures the total cost of hiring a new employee. This includes external costs like advertising, staffing agency fees, and other software expenses. Lower cost-per-hire indicates a more cost-effective recruitment process.
This metric measures the value-add and retention rates of new hires. Simply put, it is a cumulation of their job performance, Ramp-up Time, Engagement, and Cultural Fit. Higher quality of hiring indicates that the organization is attracting and hiring the right talent.
HR teams use different channels to source applicants. It could be Job boards, employee referrals, social media, or inbound. This metric measures the effectiveness of each recruitment channel. It helps organizations understand which channels are the most effective at attracting qualified candidates.
6. Offer acceptance rate
This metric measures the percentage of job offers accepted by candidates. A high acceptance rate indicates that the organization has a strong employer brand. It may also suggest that the org offers competitive compensation and benefits packages.
7. Diversity metrics
These metrics measure the diversity of the candidate pool, including gender, race, ethnicity, and other factors. A more diverse candidate pool can lead to a more diverse and inclusive workplace.
By tracking these metrics, organizations can gain insights into their recruitment processes and identify areas for improvement.
Main Challenges of Talent Acquisition
A 2022 Workforce study by iCIMS reported that over 90% of CXOs accepted that their organization would fail to meet business goals without the right talent. Firstly, budgets are getting leaner. Secondly, skilled talent is scarce. Lastly, hiring requirements are getting more specific. This perfect cocktail of challenges makes talent acquisition in a candidate-driven market very hard. Here are some of the challenges in talent acquisition:
1. Talent competition
With the global marketplace becoming increasingly competitive, attracting and retaining top talent is becoming more challenging. Applicants skip interviews. Candidates turn down job offers. Or worse, some don’t turn up at the last minute. Companies compete to hire skilled workers with the right skills and experience. This has led to a shortage of qualified candidates and huge competition.
2. Recruitment costs
The cost of hiring an employee is far more than just paying for their salary. One needs to account for recruiting, training, benefits, and more. When you add everything up, a new hire’s average recruitment cost can be between $3,500 to $5,000. Talent acquisition is expensive, especially for organizations that rely on external recruitment agencies to fill positions. The prices of advertising job vacancies, conducting interviews, and performing background checks can add up quickly. If you are unable to find the right candidate, the process may need to be repeated, adding to the expense.
3. Skill gaps
Rapid technological advancements and changing business needs require employees with specific skill set. So, that may need to be more readily available in the labour market. Therefore, companies may need help finding candidates with the desired skills as well as experience. Also, which can prolong the hiring process and increase costs.
4. Employer branding
In today’s job market, offering competitive salaries and benefits is not enough. Organizations must cultivate a strong employer brand that resonates with potential candidates, highlighting the organization’s mission, values, and work culture. Creating a positive employer brand can be challenging, but attracting and retaining top talent is essential.
5. Diversity and inclusion
Building a diverse and inclusive workforce is an essential priority for many organizations. But attracting a diverse pool of candidates can take time. To execute these diversity programs, organizations may need to hit refresh on their recruitment processes. All procedures need to be sanitized to ensure they are inclusive and free from bias. They may also need to work harder to reach underrepresented groups and build relationships with diverse communities.
6. Talent retention
Attrition rates have soared in the past few years. Employees, especially the top performers are constantly on the lookout for better opportunities. They look for new challenges that excite them. Finding and hiring talented individuals is the first step in talent acquisition. But once hired, organizations need to invest in their growth and development. It’s a task to constantly provide them with professional growth. Failure to do so can result in high turnover rates. Replacing an employee can take a toll on the company – both cost and time.
Tips for Effective Talent Acquisition
1. Develop a clear job description and job posts
Hiring great talent begins with attracting great talent. Getting there requires you to create an effective job description. One that documents the role’s soft skills, hard skills, and qualifications. The job post, on the other hand, must be creative and engaging. Avoid jargon and over-the-top language. Ensure that the job titles are accurate. It’s a no-brainer that applicants are more likely to apply for a job title that makes sense than an esoteric one.
2. Leverage technology
Building an HR Tech Stack is vital to scaling talent acquisition. Technology can help save time, improve the quality of decisions, and reduce costs. It can help you streamline your recruitment process. Secondly, it helps you keep a track of your key recruitment metrics. Consider using recruitment management software that powers CV screening, job posting, assessments, video interviews and applicant tracking. When considering the implementation of such software, it’s crucial to factor in the associated software development costs. By carefully assessing your budget and exploring cost-effective development options, you can ensure that your investment aligns with your organization’s needs and delivers a high-quality HR tech solution.
3. Focus on candidate experience
The candidate experience is the sum of all candidate interactions with an organization. A poor experience can lead to a rant or a poor review on social media. That would be a PR mess! Creating a positive candidate experience reflects well on your HR team. After all, it makes candidates feel valued and respected.
4. Offer competitive compensation and benefits
Who doesn’t like a good salary? Compensation is one of job seekers’ biggest factors when evaluating job opportunities. It’s vital to offer competitive salary and benefits packages that reflect the value that your organization places on its employees. ESOPS, Insurance benefits, child support benefits, and flexible holiday policy are perks that attract applicants.
5. Be transparent and communicative
Communication is key to creating a positive candidate experience. No candidate likes to be ghosted. Be transparent about the recruitment process. Provide regular updates to candidates to keep them informed and engaged. That’s the only way to earn their trust.
6. Emphasize soft skill
Technical skills and tools are continuously changing. But organizations need problem-solvers and collaborators. Assessing soft skills using psychometric tests and behavioural interviews should be an essential part of your hiring process. Teams with agility and empathy are better equipped to adapt quickly as the future of work continues to evolve.
7. Offer flexible work options
More and more workers are seeking flexible work options to improve their work-life balance. Naturally, organizations and HR teams must embrace this demand for remote work and flexible schedules. Consider offering these options to attract and retain top talent.
8. Continuously improve your process
Talent acquisition is an ongoing process. Organizations of all sizes require continuous improvement on this front. You can identify improvement areas by regularly monitoring metrics such as time-to-fill, and cost-per-hire. HR teams must be open to feedback from candidates, hiring managers, and other stakeholders. They must create that feedback look to optimize the recruitment process.
The Best Talent Acquisition Strategies | Explained with Examples
In today’s hyper-competitive job market, companies must be creative in their talent acquisition strategies. Simply because that is the only way to stand out from the crowd.
In this segment, we’ll explore some of the most innovative talent acquisition strategies companies use to find and retain top talent.
1. Seek Employee referrals
Encourage employees to refer their friends as well as colleagues to open positions within the organization. Offer incentives as well as recognition for successful referrals. Interestingly, one research shows that employee referrals are among the most effective ways to find quality hires. Most often, referral hires are more motivated to perform well. Therefore, this lead to higher-quality hires for the company. Additionally, referral programs can help build a strong company culture and boost employee engagement.
For example, companies like Dropbox and HubSpot offer generous referral bonuses to employees who refer successful candidates. These programs incentivize employees to actively help companies build a talented team quickly.
2. Focus on Employer Branding
In today’s job market, candidates want to work for companies that align with their values. They seek a positive workplace culture. Platforms like LinkedIn, Twitter, and Instagram are all great channels for reaching out to candidates. This will build trust as well as showing your brand. So, take a moment to look into your company’s social media handle. So, how many followers does it have on LinkedIn, Instagram, and Twitter? How often has your company’s work been cited in newspapers and magazines? Therefore, it is easy to figure out that a well-known brand will find it much easier to pull and retain talent.
For example, Microsoft has a dedicated Twitter account (MicrosoftLife) that showcases the company culture. It gives potential candidates a behind-the-scenes look at what it’s like to work there. Airbnb created a series of videos called “Airbnb Stories” that offers a glimpse of work at the company.
3. Virtual Recruiting
Why limit your hiring to a single city? Talent can be in any part of the world. As remote work becomes more common, virtual recruiting is becoming an increasingly effective strategy for hiring top talent. By conducting skill tests and virtual interviews, you can connect with candidates from anywhere in the world.
For example, Hotjar has had a 100% remote team from day 1. But nothing can replace a real, live human interaction for building rapport. That’s why the remote team meets twice a year for in-person meetups.
4. Gamify the recruitment process
An innovative talent acquisition strategy is gamification. In detail, gamification isn’t a game but uses game-like elements to engage people. So, who wouldn’t like to be part of a recruitment process that is fun as well as engaging? This approach to recruitment has helped companies attract top talent as well as build a unique brand.
For example, The US Airforce also used the AirMan challenge as part of their recruitment. PwC created a game called “Multipoly” that simulates the experience of working at the company. So, the game challenges players to solve real-world business problems. Also, gives them a taste of what it’s like to work at the firm.
5. Collect Data and Analytics
Talent can come from anywhere. On the other hand, optimizing talent acquisition needs data. So, data-driven hiring involves using data as well as analytics to identify the most promising candidates and predict their likelihood of success. A report by Deloitte shows that 64% of organizations are using data analytics to support their recruitment as well as talent acquisition strategies.
For example, Google uses data to identify the most important attributes for success in different roles. So, it uses those attributes to screen candidates. So, this approach has helped Google make more informed hiring decisions as well as build a highly talented team.
6. Setup Diversity and Inclusion Initiatives
Companies increasingly recognize the importance of diversity as well as inclusion in the workplace. So, by prioritizing diversity and inclusion in your recruitment efforts, you can attract a wider pool of candidates and create a more inclusive workplace culture. Therefore, bring fresh ideas to the table by actively seeking candidates from underrepresented groups. For example, IBM launched the “New Collar Jobs” program to attract candidates without traditional four-year degrees.
7. Build Talent Communities
A talent community or talent pool is a pipeline of passive candidates who are interested in your company. And they need more time to be ready to apply for a job. So, by engaging with these candidates over time, companies can build relationships as well as eventually convert them into hires.
For example, Cisco has a talent community called “Talent Connection” where candidates can join to receive updates. Updates on job opportunities and engage with recruiters.
8. Start Talent Mapping
You need not always look outside for talent. Therefore, companies often hire, train as well as promote internal employees. So, talent mapping involves identifying the skills and experience required for specific roles. Also, then proactively engaging with internal employees with those skills. So, this approach can be handy for hard-to-fill roles. For example, Nike has a talent mapping program where they identify potential candidates for high-level executive roles well in advance of any job openings.
Importance of Talent Acquisition
Talent acquisition is crucial for organizations to have the right people in the correct positions to achieve their business goals. Therefore, here are some of the critical reasons why talent acquisition is essential:
1. Access to top talent
Talent acquisition enables organizations to attract as well as recruit the best candidates with the right skills and experience. It is crucial in highly competitive industries or job markets where top talent is in high demand.
2. Improved retention
Talent acquisition is not only about attracting new talent but also about retaining existing employees. By investing in talent acquisition, organizations can create a positive work environment, offer competitive compensation as well as benefits. As well as provide opportunities for growth and development, all of which can help improve employee retention rates.
3. Cost savings
Effective talent acquisition strategies can help organizations reduce recruitment costs. So, by attracting candidates as well as minimizing turnover it can save organizations money on recruitment. Also, on training, and other related expenses.
4. Increased productivity
Hiring the right people can significantly impact productivity and efficiency. By hiring individuals with the right skills and experience, organizations can increase productivity, reduce errors, and improve overall performance.
A diverse and skilled workforce can help organizations drive innovation and stay ahead of the competition. So, organizations can tap into new ideas and approaches by attracting and retaining top talent. Also, leading to new products, services as well as business models.
6. Employer brand
A strong talent acquisition strategy can also help organizations build a positive employer brand. So, it can improve the organization’s reputation, attract new customers, and help retain existing employees.
Overall, effective talent acquisition requires a thoughtful and strategic approach incorporating a range of tactics. Also, techniques to attract and retain top talent. So, by implementing the best practices, organizations can build a solid and diverse workforce that can help drive business success over the long term.