Hiring Insights Blog
It’s no secret that because candidates are in control of today’s talent acquisition landscape, companies are competing to capture the best, reigniting a “war for talent”. However, new research predicts that companies will be waging this war for longer than anticipated, as a result of forthcoming talent shortages.
By 2020, around the world there will be a shortage of approximately 40 million high-skilled workers, and a surplus of approximately 95 million low-skilled workers. Particularly affected will be companies in the legal, energy, and transportation industries.
In fact, 92 percent of executives believe there is a serious gap in workforce skills, and nearly 50 percent are struggling to fill jobs. Additionally, 80 percent of hiring managers and 84 percent of recruiters agree that hiring the right people has a direct impact on a company’s ability to achieve its strategic goals, and believe that talent acquisition is key to overall success and profitability. In fact, when talent can’t be found, lost profit and revenue can be as high as $23,000 per unfilled position. It doesn’t help that today’s professionals change jobs more frequently. The Labor Department reports that millennials, who will comprise half of the U.S. workforce by 2020, will hold six jobs by the age of 26, more than any other generation.
This results in a need for companies to develop robust talent pipelines to nurture both active and passive high-skill candidates.
How to cultivate a talent pipeline for your company:
Assess Strengths and Weaknesses
o Identify talent gaps in your organization, as well as assess other key metrics
Look Within for Internal Talent
o Determine if your organization already has employees that could rise to fill critical positions. Internal hires may possess the industry experience and insight your organization needs to stay competitive
Pursue Passive Talent
o Passive candidates make up a significant portion of any talent pipeline. These candidates are willing to entertain a job offer but aren’t actively seeking a new position—and they’re valuable.
Utilize Social Media
o Recruiting on social media yields results. In fact, 73 percent of companies have successfully hired a candidate with social media.
Engage and Interact
o Engaging candidates on an ongoing basis is critical to sustaining a robust talent pipeline
Make it Mobile
o Job seekers are increasingly using mobile applications to find career opportunities and apply for jobs: in fact, the usage of mobile devices among job seekers has increased 60 percent since 2014, yet only 9 percent of businesses have implemented a mobile-friendly career portal.
Invest in Interns
o Interns can be one of an organization’s most secure sources of entry-level new hires, and are therefore an important part of your talent pipeline— not to mention, approximately 84 percent of employers said hiring interns was a positive experience.
Reference the Referrals
o Studies find that one of the best ways to hire top talent is through employee referrals, and 43 percent of companies say their best candidates come from employee referrals. Launching an incentivized employee referral program motivates employees to recommend their most-skilled contacts to your company.
In light of future shortages of highly-skilled workers, companies must build robust talent pipelines to more strategically source talent for tomorrow’s workforce.