How to build a pipeline of top talent

Why there’s a fight for talent
Talent is what keeps companies competitive, successful and sustainable. Yet, the fight to find, attract and retain the brightest and the best employees has never been so tough. Easy find to more jobs Employment Agency UK
A recent survey revealed that in 2011 one in 6 UK employers has had trouble recruiting for critical positions, compared to one in 11 last year, (Source: Manpower) with the predictable impact on profits and performance.

The competition for talent
Right now, more than half of employers surveyed (52%) believe that competition for talent is even greater, compared to 41% and 20% in 2010 and 2009 respectively (Source: Chartered Institute of Personnel and Development (CIPD) Resourcing and Talent Planning Survey).
It may seem surprising that this pressure exists in a market with growing numbers of potential employers. But tougher economic conditions are actually part of reason for the fight to find talent.

Two important reasons why the recession is adding to the talent crisis:

Current risks and uncertainty in the market are a big part of the highest caliber candidates are choosing to stay put instead of pursuing new opportunities, as revealed by recent research:

1) Lack of upward mobility
“One clear contributing factor to the talent shortage issue is that those who are in work are reluctant to leave in a volatile market. The median turnover rate has remained consistently low throughout the recession and beyond (2011: 12.5%; 2010: 13.5%; 2009: 15.7%; 2008: 17.3%), with figures this year indicating slightly less will to leave than even at the height of the recession.” (Source: Chartered Institute of Personnel and Development Resourcing and Talent Planning Survey).

2) More choice, less clarity
Difficult economic times have also led to an increase of candidates into the jobs market - making it tougher and more time consuming to differentiate between the average and the exceptional candidate. In fact, three quarters (73%) of organisations have highlighted an increase in the number of unsuitable candidates for job vacancies, due to the high volume of application numbers because of high levels of unemployment (Source: Chartered Institute of Personnel and Development Resourcing and Talent Planning Survey).
It is all these conditions that make the fight to attract, retain and develop talent so important.

The four cornerstones of exceptional talent
While it is clear that there is currently a talent crisis amongst employers, what isn’t quite so clear is what actually makes up talent or the ideal employee. So what are the defining characteristics that make it easier to identify and attract the people who can actively help an organization to keep growing?

A skill set for growth
Talent obviously starts with having the right skills. But this isn’t simply about finding someone with the right skill set for a company. It is also about finding someone with the appropriate skills for a company’s future development and growth. With more challenging economic conditions all round, having a broad enough skill set is a key part of talent.

The willingness to apply experience
True employee talent doesn’t only show itself though previous employment - but how this experience has been utilized along the way. In other words, how has a candidate built on their experience in their previous roles and what have they taken away from these roles? This is not only about matching a person’s experience to a current vacancy, but about identifying the breadth of experience and insight they can bring to an organization.

The ability to develop
Just as valuable as where a candidate has been (experience) is where they are going - or their ability to learn and develop. True talent lies in the ability to continue adapting and growing, rather than in a high level of capability that cannot evolve.

A cultural match
Talent is subjective - i.e. it depends on its context. It’s not a case of ticking boxes, but looking at how an individual will fit within the culture and style of an organization. An exceptional candidate in an exceptional organization is not necessarily a perfect match. How will they work within a company? Will their working style match the style of their employer? Aside from the experience, skills and the ability to develop, there is a need for talent that can reflect the ethos and values of an organization.

Where is the talent?
With 43% of US companies citing a skills shortage as their top business concern behind competitive pressure and growth, (Ken Blanchard Companies Survey), finding the right talent at the right time is more important than ever. But how can organizations effectively find and attract the high caliber candidates their companies need?

The right mix for finding talent
Where are the really talented candidates and how do you track them down? By addressing the two types of potential candidates.

The active market
The active job market is made up of people actively looking for a new job or role. These are the candidates who may be undertaking the more traditional forms of job search to find their new job - responding to job adverts, posting their CVs on relevant jobs boards, checking industry publications and other methods. You can easily find Best and Better jobs IT Jobs Board UK.

But here’s something every recruiter needs to know:
Recent statistics from the Office for National Statistics revealed that only 10% of relevant and experienced candidates for a role are actively looking for a job.

The passive market
With just 10% of relevant candidates actively looking for a role, 90% of relevant candidates and within that, the core talent, are hidden away within the passive job market. This is of course the part of the job market that is made up of people with the appropriate skills and experience, but who are not currently seeking a new role.

Recent developments in the internet and social media have led to radical changes in opportunities for reaching and attracting talent. Aside from the individual head hunting approach of approaching individuals, there are now new ways to connect with a passive audience of candidates and draw out the talent that is hidden away.

The four pitfalls of finding and retaining top talent
Talent is an essential part of maintaining a successful organization, yet right now, more than half of employers (52%) believe that competition for talent is even greater, compared to 41% and 20% in 2010 and 2009 respectively (Source: Chartered Institute of Personnel and Development Resourcing and Talent Planning Survey). So what are the top four pitfalls to avoid to overcome the competition for talent?

1) Designing a job role with the wrong specification

Acting quickly to respond to market changes often means that organizations overlook important details when seeking out new talent. The spec may cover core competency and skills, but overlook behavior. This means that an organization can end up with a candidate that looks great on paper, but does not match its values and culture of the organization, leaving it with the potential risk of employee attrition and other problems.

The solution? Design the role around the core competency, behavior and skills.

2) Limiting candidate search to one approach

With just 10% of relevant candidates actively looking for a role, 90% of relevant candidates and within that, the talent, are within the passive job market (Source: Office of National Statistics). Yet many employers are reducing their opportunities to win real talent by limiting their recruitment approaches to just one or two familiar techniques. You could be focusing on placing an advert in an industry publication, but overlook the ideal candidate in the person standing next to you.

The active market - these are the people who are actively seeking a new job.

The passive market - these are the people who aren’t looking for a new job, but who may, as the statistic above strongly suggests, be the candidate you need.

The solution? Build up and amplify your reach by using a range of approaches.

Combine the active approaches with the multi-channel way of connecting with ‘passive’ talent – the people who aren’t looking for a new job, but have the talent you need. The growth of the internet and the social media with forums like LinkedIn has significantly broadened the opportunity to build a more sustainable talent pipeline.

3) Using a flawed selection process

Not long ago, a research survey showed that poor recruitment and promotion decisions lead to lower morale (68%), reduced productivity (66%) lost customers (54%), higher training costs (51%) and higher recruiting costs (44%) (Right Management Survey 2006). Attrition through losing staff is also a significant drain on an organization’s costs. The Aon Hewitt: 2011 Talent Survey has revealed that just 28% of organizations believe that they are very or extremely effective at hiring quality employees. So why does selection still continue to be one of the biggest pitfalls in creating a pipeline of talent?

Common mistakes in selecting staff are:
● Failing to prove or verify what is stated by the candidate in the application process.
● Failing to evaluate the necessary skills
● An inconsistent selection process.

The solution? Use a 360 degree approach to assess potential talent and cover all the important aspects consistently and thoroughly.

4) Overlooking the value of development

In a recent survey of more than 7,500 employees by Aon Consulting, nearly half (47%) of the 1,000 UK respondents were planning on looking for a new job before the end of the year.

Poor staff development is a major cause of staff attrition. Finding talent is just the start. For a truly long-lasting pipeline, in-house talent needs to be supported by ongoing development. Otherwise, it can create a significant drain for an organization.

The solution? Use a consistent approach to track competency and invest in high quality development and training.

Five things every employer should know about recruiting talent

What are the essentials for creating a long-lasting team of talent within an organization?

More candidates don’t mean more talent...
...the growing candidate market is actually making it tougher for employers to identify and attract the talent they need. This is what makes a more focused approach to building and nurturing talent so important.

90% of the talented candidates aren’t looking for a job...
...But they are open to the right opportunity - if you can reach them. Just 10% of the market is active looking, the rest is passive. Employers can benefit from adopting a mix of traditional and new ways to reach out to potential candidates

Talent isn’t about skills...
...or rather, it isn’t about skills alone. Effectively selecting - and retaining - talent demands a selection process that covers competency and behavior as well as skills. This approach is much more likely to lead to a profitable and long-lasting match between individual and organization.

Many employers feel unsure about selecting talent...
...so it’s essential to apply a 360 degree approach to selecting the best candidate for the job and avoid common errors like inconsistent selection processes and failing to verify what the candidates says they can do.

Finding the ideal candidate is just the beginning...
...because without effective training and development, the next move for that talented new employee could be out and off to a competitor. Training and development can be an afterthought - or it can be a key part of building and boosting a company’s performance through talent.