TLNT Research BountyJobs Strategic Talent Acquisition PDF
TLNT Research BountyJobs Strategic Talent Acquisition PDF
TLNT Research BountyJobs Strategic Talent Acquisition PDF
Sponsored by
Talent Acquisition’s
Evolution to Strategic
Business Partner
TABLE OF CONTENTS
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EXECUTIVE SUMMARY
To be sure, in some organizations — and not necessarily the largest — talent acquisition
is exerting an influence over business decisions. But by and large, at the majority of
organizations, senior management doesn’t regularly meet with TA to discuss how
recruiting can help meet business goals. And this despite meeting with TA as often as
every month or more.
Key Findings
XXOnly 28% of organizations regularly XXBudgets have a role in constraining
consult their TA teams about important whatever ambitions TA may have to
decisions. 39% rarely, if ever, do. play a more strategic role. For 36% of
XXTA has little ability to influence business organizations, their TA budget has either
strategy or goals. Only a third of all been cut or is unchanged over the last
respondents agree that business strategy four years. For 17%, the increase has
or goals are adjusted as a result of been under 6%, not even keeping pace
recruiting’s input. 41% disagree they with inflation.
exert any influence at all. XXThe most common metric by which
XX56% of respondents report their TA recruiters are evaluated is their time to
leaders and teams meet with senior fill. Only one clearly strategic measure
leaders of the business at least monthly. — quality of hire — is among the top five
Yet, not even half say that makes their performance metrics.
leaders "very informed" about talent
acquisition initiatives.
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INTRODUCTION
New research from TLNT shows business leaders are at least as responsible as the
recruiting function itself. According to the findings of a broad survey of HR and talent
acquisition professionals, half of business and talent leaders are meeting at least once
a month, yet talent acquisition is not playing enough of a role in influencing business
decisions.
Only a third
of companies
state that business goals
are adjusted based on
Just slightly more than input from talent acquisition. Only 38% of companies
1 in 4 companies state that business leaders
report that business leaders are regularly meeting with
communicate with TA before talent acquisition to discuss
making important decisions. overall business goals.
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What’s particularly striking about the findings of the TLNT survey is that the size of a
company doesn’t much matter. Recruiters at the largest companies — those with more
than 50,000 workers — have no more influence over business decisions than do their
counterparts at smaller companies.
Talent acquisition has hit an inflection point. In order to transform from a cost-center
model to a strategic business priority, companies need to rethink their approach
to people, process and technology. While many research reports have covered the
importance of strategic talent acquisition, this new research tells us that the evolution of
recruiting from administrative function to strategic asset is still in its infancy. This report
found that companies feel pressure to be more strategic and that talent acquisition is
meeting more frequently with business leaders, but these meetings are not driving real
?
change in the overall business direction.
This report details the current status of talent acquisition as a business strategy, and
explains why change needs to happen and the steps that organizations need to take to
make that change.
This research, based on data collected by TLNT and Aptitude Research in 2019, covers:
• An overview of the current state of talent acquisition: This section helps answer
what is driving strategic talent acquisition today.
• A closer look at building a case for strategic talent acquisition: This section helps
answer why companies struggle with strategic talent acquisition and why they need
to build a case for it.
• A guide for strategic talent acquisition: This section provides a guide for helping
companies transform their talent acquisition function in a strategic part of the
business through a better approach to people, process and technology.
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STRATEGIC TALENT ACQUISITION
Tactical Strategic
While recruitment is maturing, the increasing pressure to align with business goals
has made talent acquisition more complex. We found in our study that while 57% of
the respondents have worked in talent acquisition for over 10 years, many remain
disconnected from business priorities.
It would be easy to blame recruiter resistance, yet that’s not what we found. Talent
acquisition teams tell us that though they meet regularly with senior leaders of the
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business — as often as monthly for 56% — only a third report having any influence over
business strategy or goals; 41% tell us nothing changes despite providing input.
This is as true for smaller businesses as it is for the largest employers. 42% of HR and
TA professionals at companies with 1,000 to 10,000 employees say senior management
rarely or never asks for their input. That’s the same percentage at companies with more
than 10,000 workers.
However, the impact of this falls more heavily on smaller employers where TA arguably
has a more profound effect. Our survey found 62% of smaller employers have TA teams
of fewer than 10 people; 59% of the large employers have more than 50.
With fewer resources, smaller TA teams can’t respond as quickly to new hiring initiatives
or the loss of key personnel. They are more reactive than proactive in recruiting. Only a
third reach out to talent in advance of need on any regular basis. 45% proactively recruit
only once or twice a year at most.
Without being regularly consulted, important business decisions are made in a talent
vacuum. Where they affect talent acquisition, the consequences can be delayed or even
failed projects, reduced production and revenue hits. These are serious regardless of
employer size, but for smaller organizations, they can be dire.
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Key Pressures Driving Strategic Talent Acquisition
Companies face both internal and external pressure to transform talent acquisition today.
Transparency is a reality for this new era of talent acquisition; social media
introduces a level of openness that was not part of recruitment 10 years ago.
Companies are expected to be transparent about their employer brand, financial
performance and engagement levels. Recruiters are expected to be transparent
about the candidate experience, career development and company culture.
Transparency:
And, candidates are expected to be transparent about their experiences and
career aspirations. Social media and job sites like Glassdoor help to foster this
transparency. As companies face a shortage of talent in today’s market, being
transparent with candidates will help build relationships and attract candidates for
current and future needs.
The unemployment rate is under 4% and the number of American workers in the
labor force has shrunk, leaving companies struggling to fill positions. For example,
Shortage Aptitude Research found over 60% of companies in all industries are competing for
of Talent: engineer talent and cited that as the hardest to fill roles. The competition for talent
has never been greater and talent acquisition leaders need a clear strategy for
attracting and recruiting talent.
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Despite these pressures for more strategic talent acquisition, companies still lag behind
when executing a more business-driven approach. According to the TLNT research, half
of business and talent leaders are meeting at least once a month, yet talent acquisition is
not playing enough of a role in business decisions.
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BUILDING A CASE FOR
STRATEGIC TALENT ACQUISITION
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Budget Changes
One important reason for talent acquisition’s slow strategic evolution is that for over
half the companies in the TLNT survey, budgets have barely improved over the past few
years. In fact, one in five respondents tell us their budget hasn’t increased since 2015;
15% say it’s gone down (Figure 3).
In order for talent acquisition to build a case for being more influential with the business,
understanding how these budgets are being used and what value the spending brings is a
critical first step. In many cases, talent acquisition is investing in services and technology
that do not deliver results. According to Aptitude Research, over 50% of companies are
using more than 2 ATS providers and over 60% are using more than 3 primary sourcing
tools. By clearly defining what solutions and services deliver value can help talent
acquisition build a case for a more strategic partnership.
Currently, the metrics that talent acquisition uses to determine success has not changed
much over the years and plays little role in how business leaders think about success.
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Recruiters are still being measured Figure 4: Metrics Used to Evaluate Recruiters
by traditional metrics such as time
to fill and total new hires (Figure 4). 69.6% Time to fill
Talent acquisition needs to think beyond these traditional metrics and consider business
metrics. When building a business case for strategic talent acquisition, companies
will need to look at the value and impact to the entire organization. According to the
TLNT research, talent acquisition plays a critical role in helping organizations improve
the following metrics: revenue growth, employee retention, and brand awareness and
reputation (Figure 5). These are metrics that matter to the business. These metrics
require talent acquisition to leverage data that it collects throughout the process to help
inform decisions.
Talent acquisition needs to consider these metrics when investing in a team, building out
processes and investing in technology.
Figure 5: Business Metrics Impacted by Talent Acquisition (% saying TA plays a “critical role”)
Measuring business success and changing the conversation around traditional metrics is
not something that can happen overnight. Changing the measures on which recruiters
are evaluated to emphasize more strategic objectives such as retention, target firm hiring
and pipeline and hiring quality is a key first step. Companies need a solid framework
for strategic talent acquisition where people, process and technology are more closely
aligned to business needs.
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What does it mean to be strategic?
What It
There are different levels to being strategic. First, we
as talent acquisition are going to help the business
execute against their goals. For example, what does
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minute, this person does know what they’re talking about
and I’ll give them more information.” When your
Then you have to be able to execute against what you say
business
your plan is. You have to get the buy-in from whomever partners value
you’re supporting in that client group. You have to bring your opinion
them along and show them what you’re trying to do.
about business
You also need to really understand the business. How do
decisions,
I understand what these people do when it’s something I
have never done myself? You can ask for explanations. You you’re strategic.
can also ask them to show you what they do.
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A GUIDE FOR STRATEGIC TALENT ACQUISITION:
PEOPLE, PROCESS, AND TECHNOLOGY
People
As talent acquisition becomes more complex so does the role of the
recruiter and the talent acquisition function. Recruiters must juggle
multiple hats in order to be successful. No longer focused solely on
relationship-building or administrative tasks, the modern recruiting function requires
a new set of skills and competencies that often seem contradictory.
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Talent acquisition professionals have to be able to build long-term relationships with
business leaders, adjusting their recruiting efforts to support operating goals and
initiatives while advising senior management on talent availability, workforce trends and
developments. In addition, recruiting leaders must interpret data, sell and market their
employer brand, and consider a more flexible workforce, which are all responsibilities
that did not exist a decade ago.
While this presents new opportunities for talent acquisition departments to align with
business goals, it makes the process feel overwhelming. According to the TLNT survey,
44% of all companies report their recruiting resources have increased by more than 10%
since 2015; almost a quarter have seen an increase greater than 25%. However, most of
the increase in recruiting comes from the companies with the largest budget increases.
These resources include recruiters, talent acquisition leaders, operations, and specialists,
all influencing talent acquisition decisions. But, they also need to have ongoing dialogue
and communication with the business. When transforming the talent acquisition
function, it is important to involve these stakeholders in the process through committees
and focus groups.
Process
In order for the process to be successful at aligning with the business,
it needs to be consistent. Organizations are often confused about what
processes and strategies should be included in a modern talent acquisition
model. At the most basic level, talent acquisition is categorized in three main categories:
Attract, Recruit and Hire. These areas are the trifecta of any talent acquisition function
and without any one — it is incredibly difficult for an organization to execute on business
results or a strategic vision for improving efficiencies, identifying quality talent and
providing a consistent candidate experience.
Attract: Engage and communicate with future candidates through various channels.
Recruit: Identify, recruit, screen and select the best fit for your organization.
Hire: Hire, transition and onboard candidates into new employees.
When combined, these processes can deliver more consistent results and the right data
to the business to drive better decisions around talent.
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Attract
With a strong and consistent strategy for attracting, engaging and connecting with talent,
recruiters can build relationships and better understand the audience they are targeting
with recruitment marketing efforts. Organizations can also bring awareness to their
brand in a more authentic way. When individuals feel connected and engaged with an
organization, they are more receptive to messages about the brand and curious about
employment opportunities.
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• Sourcing: Organizations are unable to recruit top talent until they have sourced top
talent. Yet, with competition for talent and a shortage of critical skills, companies
need to think differently about traditional sourcing methods.
Tactical Strategic
Many companies are bringing their sourcing function in-
Requiring in-house recruiters house instead of relying solely on third-party recruiters
to source or using third-party or generalists. By hiring sourcers or including a dedicated
recruiters for all sourcing efforts. sourcing team in the recruitment function, organizations can
have greater control and visibility into the way they source.
Today, sourcing requires unique tools and strategies to be
Using only job boards. successful. Technology and enhancements give organizations
a lot of options for sourcing talent.
Isolating sourcing from recruiting. Sourcing needs to be integrated with recruiting.
Recruit
Recruit involves activities that help identify the right fit and hire the right fit. What sets
successful companies apart from their competitors is their ability to create consistency
in the way they approach each of these processes including screening, assessment,
interviewing and onboarding.
• Assessment: Pre-hire assessments encompass the tools and technology that enable
organizations to evaluate if a candidate has the right skills and behaviors to perform
a job. These assessments are often a combination of subjective and objective tests.
Tactical Strategic
Assessments that are multifaceted insights looking at skill, fit and
Time consuming, manual
potential. More candidate-friendly tests through gamed-based
tests that feel punitive.
assessments and the use of AI.
Using different assessment at different points in the hiring process,
One size fits all approach.
and for different roles, based on the needs of the organization.
One and done “disposable” Carrying over pre-hire assessments into the onboarding process to
test scores. help guide training and teambuilding.
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• Interviewing: Interviewing is a staple of any talent acquisition process and often
the deciding factor for hiring a candidate. Surprisingly, few recruiters and managers
are trained on how to conduct a good interview. Additionally, few organizations
have a standard approach for how interviewing is conducted. When recruiters and
managers have the right tools and best practices, interviewing can be a powerful
process that determines the best fit for the organization.
Tactical Strategic
Standardizing interviews across the organization.
Ad hoc interviews. Leveraging interview guides that use reference call data
from former colleagues.
Going with a “gut feeling.” Including assessments in the interview process.
Leveraging digital interviewing platforms where
Multiple one-on-one interviews.
multiple interviewers can participate.
Tactical Strategic
Stopping communication with a Continuing the dialogue with a candidate in the window
candidate once the offer is accepted. between offer acceptance and first day.
Staying connected and communicating with candidates
Ignoring the candidates that did not
who did not get the job. Providing transparency to
get the job.
everyone that participated.
Waiting to tell a candidate they have
Defining a communication plan for candidates.
been accepted.
• Onboarding: When new hires have a positive onboarding experience, they are
more productive on their first day and they are more likely to stay with their
new employer. Unfortunately, too many companies invest heavily in the connect
and recruit stages, then ignore their candidates once they are onboard. When
onboarding goes well, the benefits directly impact organizational success.
Tactical Strategic
Having onboarding last for one week Onboarding begins with offer acceptance and is integrated
or one month. with development planning and goal setting.
Having managers responsible for Involving peers with team building, mentor programs and
onboarding. the buddy system.
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Technology
As talent acquisition transforms into a strategic function, navigating the
complex technology landscape can be a full-time job. Ten years ago, the
talent acquisition technology market was comprised of multiple providers
offering very clear products in very clear categories such as background screening, job
boards, applicant tracking systems, assessments and onboarding. Today, the market has
exploded with hundreds more providers and new ones entering almost every month.
Additionally, the lines have blurred. Many of these providers offer several solutions in
talent acquisition or have created new categories of technology, making the buyer’s
decision much more complicated. According to Aptitude Research, the top areas of
technology investment in 2019 include automation, recruitment marketing, assessments
and campus recruiting.
The challenge most companies face is that they are either relying solely on their ERP for
talent acquisition or they are using a myriad of disparate solutions without integrating
data or the user experience. This can create issues not only with efficiency but also
cost and compliance. When evaluating technology providers, companies must be more
strategic ensuring that solutions will give them the data they need to make decisions
around talent. They should start by looking at what they need and then begin to
consider partners.
Companies that do improve quality of hire have three common characteristics: They
invest in technology, use data to make hiring decisions and gather ongoing feedback.
The number one strategy for improving quality of hire, according to the Aptitude
Research Hiring Study, is investing in technology providers for over 60% of organizations
across all industries. And the top areas where organizations want to see innovation are:
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Companies need to take a more complete picture of talent acquisition and consider
solutions that extend beyond the application that can also improve quality of hire and
provide data to better inform hiring managers.
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Employees become brand ambassadors organically, but it happens because of the culture
and environment that you’ve established. That starts with what I call the employee
experience. The employee experience includes every touchpoint from the first time they
see your ad to the interview process, then the offer process, through onboarding and
throughout the rest of their tenure in the organization.
All those touchpoints have to be strategically thought out. If all of that is positive — and
believe it or not, some people come back to us and say “Hey, that was just an incredible
onboarding process, training was great” — then I don’t have to do much to get them to
post about their experience. They haven’t had that kind of experience anywhere they’ve
been employed before, so now they feel strongly about the organization and they want
other people to join them.
At the very top level, you need to make sure you’re sharing posts about what it’s like in
your organization. Any time you have a cool thing going on in your branch or with your
team, post it under the hashtags you’ve chosen for your employer brand. Then everyone
starts to see that and like it and share it, and it becomes a community event to brand
the organization.
When you have support from the CEO, but maybe not buy-in from everyone, you have to
have resiliency as you move from tactical to strategic HR. You’re going to face challenges,
maybe some “agree to disagree” conversations. But you have to stay steadfast because
you know you’re doing the right thing for the organization — and because you’ve got
backing from the top.
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CONCLUSION
HR and talent acquisition leaders also must reassess the emphasis they place on
measuring recruiting team performance. If time to fill and number of hires made and
other quantitative metrics are how success is determined, then that’s where recruiting
teams will place their greatest effort. Focusing more on quality of hire, pipeline building,
hiring from competitors and diversity hires will begin moving talent acquisition on the
path to strategic significance.
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RESEARCH METHODOLOGY
From mid-August through early September 2019 TLNT conducted a survey of human
resources and talent acquisition professionals to determine the current state of progress
of the transformation of the recruiting function from operational and administrative to
strategic. The findings in this report come from the survey responses.
The data in this report is original and proprietary to TLNT.com and its parent, ERE Media. Additional data was provided
by Aptitude Research from its independently conducted surveys.
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CONTRIBUTORS
This report was produced by TLNT.com, a news and information site for HR professionals. It
was published by ERE Media, Inc. Madeline Laurano and John Zappe authored the report, with
additional material provided by Casey Kelly-Barton. Jennifer Shick created the graphics and
designed the report. Proofred by Alexandra Lipski.
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