hiring to win: secrets to sourcing and selecting top talent
DESCRIPTION
Savvy organizations know top talent is a critical driver of their ability to succeed. But at the same time, more and more top performing companies are concerned about talent shortages. They realize their ability to locate and land top talent will be a competitive differentiator in the years to come. What is your plan to win this war for talent?Join Mollie Lombardi, research director for Aberdeen's human capital management practice, as she reveals findings from her 2011 study of talent acquisition strategies to help your company source, select and put to work the top talent that will power organizational results.TRANSCRIPT
Speaker: Mollie Lombardi Research Director, Human Capital Management Aberdeen Group
Moderator: Vijay Ramakrishnan Director of Product Marketing Taleo
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Hiring to Win: Secrets to Sourcing and Selecting Top Talent
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Vijay Ramakrishnan Director of Product Marketing Taleo
Hiring to Win: Secrets to Sourcing and Selecting Top Talent
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Mollie Lombardi Research Director, Human Capital Management Aberdeen Group
Hiring to Win: Secrets to Sourcing and Selecting Top Talent
© AberdeenGroup 2011
Hiring to Win
Secrets to Sourcing and Selecting Top
Talent
Mollie Lombardi Research Director,
Human Capital Management August 30, 2011
© AberdeenGroup 2011 8
Mollie Lombardi Research Director Aberdeen Group
q Mollie is a researcher, speaker, writer and senior analyst in the human capital management field, with a primary focus on how organizations enable business success by unleashing the potential and productivity of their workforce. She has surveyed and interviewed thousands of end-users to better understand the key challenges facing today’s HR and talent management leaders, as well as uncover the Best-in-Class strategies, capabilities, tools and technologies they are using to address those challenges.
© AberdeenGroup 2011 9
Our Agenda
q Introduction & Overview q Map the Needs q It Takes a Village q Manage Risk by Building
Talent Pools q Integrate Data to Fine Tune
the Hiring Engine q Wrap-up and Q&A
© AberdeenGroup 2011 10
Drawn from our World Class Assessments Research
q Publishing September 2011
q Studied 506 organizations and their Talent Acquisition strategies
q Covering a wide variety of industries and geographies
© AberdeenGroup 2011 11
Dom
ain
Exp
ertis
e
11
Supply Chain Management
Global Supply Management
Product Innovation
and Engineering
Manufacturing
Enterprise Applications
Customer Management
Retail and Banking
Service Management
IT Infrastructure
Human Capital Management
Communications
Business Intelligence
GRC/Financial Management
IT Security
© AberdeenGroup 2011 12
© AberdeenGroup 2011 13
© AberdeenGroup 2011 14
Aberdeen Maturity Class Framework
Selected Performance Criteria (KPI)
First Year Retention
Time to Productivity
Change in hiring mgr satisfaction
Total Respondents:
- Top 20%
- Middle 50%
- Bottom 30% Respondents are scored individually across KPI
Best-in-Class
Industry Average
Laggard
© AberdeenGroup 2011 15
Aberdeen Maturity Class Framework
q What you need to do to become Best-in-Class
q What processes you should have in place
q What you need to measure
q Organizational changes you might want to make
q Data / Knowledge management considerations
q Technologies you should evaluate
Best-in-Class
Industry Average
Laggard
P A C
E
© AberdeenGroup 2011 16
Key Themes
q Map the Needs q It Takes a Village q Manage Risk by Building Talent Pools q Integrate Data to Fine Tune the Hiring Engine
© AberdeenGroup 2011 17
Map the Needs
© AberdeenGroup 2011 18
POLL
q What are the top pressures driving your current talent acquisition strategy?
q Shortages of required skills available in the labor pool
q Pressure to meet the company’s growth objectives
q Retirement of baby boomers, and accompanying leadership voids
q Inability to retain new hires q Increasing competition in the marketplace for top
talent
© AberdeenGroup 2011 19
Pressures Driving Talent Acquisition Efforts
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
52%
49% 49%
%
20%
40%
60%
Increasing competitionin the marketplace for
top talent
Shortages of requiredskills available in the
labor pool
Pressure to meet thecompany’s growth
objectives
perc
enta
ge o
f res
pond
ents
, n=5
06
All Respondents
© AberdeenGroup 2011 20
Talent Acquisition Strategies
35%
22%18%
41%
35% 34%31%
43%
33% 31%
22%
41%
%
25%
50%
Strengthen abilityto identify talent
most likely tosucceed
Proactively buildcandidatepipeline
Create a bettercandidate
experience
Building a talentacquisition
culture
perc
enta
ge o
f res
pond
ents
, n=5
06
Best-in-Class
Industry Average
Laggard
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
© AberdeenGroup 2011 21
of Best-in-Class organizations have defined core competencies (skills, knowledge, and attributes) at the start of the hiring process
79%
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
© AberdeenGroup 2011 22
Where do Competencies Come From?
q Existing high-performers q Company Values q Forward Looking Strategy
© AberdeenGroup 2011 23
Goals for the Use of Assessments
70%
48% 46%
0%
25%
50%
75%
Improve businessresults through better
quality candidates
Deliver leaders to driveinnovation and growth
Improve organizationalfit among new hires
perc
enta
ge o
f res
pond
ents
, n=5
16
All Respondents
Source: Aberdeen Group, Assessments 2011, April 2011
© AberdeenGroup 2011 24
Importance of Assessment Data for Critical Decisions
3.3
2.9 2.9
4.2 4.1
3.6
3.4
4.0
3.7
3.23.3
3.8
2.5
3.0
3.5
4.0
4.5
Who to hire Who is deemedhigh-potential
Who to interview Who is promoted
perc
enta
ge o
f res
pond
ents
, n=5
16
Best-in-Class
Industry Average
Laggard
Source: Aberdeen Group, Assessments 2011, April 2011
© AberdeenGroup 2011 25
It Takes a Village
© AberdeenGroup 2011 26
Most Effective Sources for Candidates
4.2
3.33.1
3.0
2.5
3.0
3.5
4.0
4.5
Employeereferrals and
networks
An easy-to-useand engaging
company careerportal
Online job boards Social networkingsites
perc
enta
ge o
f res
pond
ents
, n=5
06
Best-in-Class
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
© AberdeenGroup 2011 27
“Hiring may slow or stop, but talent acquisition never does”
~ Lou Manzi, Former Vice President, Global Talent Solutions, GlaxoSmithKlein
© AberdeenGroup 2011 28
Nature of Talent Acquisition Strategy
42% 44%
33%
48%50%
36%
%
20%
40%
60%
Continuous - Identifying andcultivating relationships with top
prospects is always a priority
Reactive - focused on immediatehiring needs
perc
enta
ge o
f res
pond
ents
, n=5
06
Best-in-Class Industry Average Laggard
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
© AberdeenGroup 2011 29
More likely to cite “building a corporate culture where everyone views talent
acquisition as part of their job” as a top strategy
72%
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
Best-in-Class organizations are
© AberdeenGroup 2011 30
What’s in a Brand?
© AberdeenGroup 2011 31
Supporting Capabilities
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
65% 65%
54% 50%
81% 79% 77%72%
0%
25%
50%
75%
100%
Hiring managershave visibility intocandidate status
Corecompetencies
are defined
Clearaccountability for
onboardingprocess
Critical job rolesidentified
perc
enta
ge o
f res
pond
ents
, n=5
06 Best-in-Class All Others
© AberdeenGroup 2011 32
Leadership Involvement in Onboarding
69%
29%23%
41%
52%
83%
29%35%
74%
0%
25%
50%
75%
100%
Hiring manager Senior-rankingorganizational executive
Buddy / mentor
perc
enta
ge o
f res
pond
ents
, n=2
82
Best-in-Class
Industry Average
Laggard
Source: Aberdeen Group, Onboarding 2011, March 2011
© AberdeenGroup 2011 33
Manage Risk by Building Talent Pools
© AberdeenGroup 2011 34
more likely to have critical job roles (i.e. the roles that have the greatest impact on
revenue / profit) identified
44%
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
Best-in-Class organizations are
© AberdeenGroup 2011 35
Impact of Identifying Critical Roles
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
39%
33%
26%
51%
44%
38%
0%
20%
40%
60%
Organizational goalsachieved
New hires meeting timeto performance goals
New hires highly engaged
perc
enta
ge o
f res
pond
ents
, n=5
06
Have Identif ied critical job roles
Have not identif ied critical job roles
© AberdeenGroup 2011 36
Managing Candidate Relationships
q 82% of organizations have a process to communicate with and nurture prospective employees
but…
q Only 36% of the Best-in-Class (and 27% of all others) indicate they have a formal candidate relationship management process - one that defines who communicates what and when
Source: Aberdeen Group, Talent Acquisition Strategies 2010, August 2011
© AberdeenGroup 2011 37
Top Candidate Relationship Management Activities q Maintaining an engaging and informative
company career portal q Recruiters and hiring managers actively
communicate with candidates via phone calls or personal emails
q Utilizing software (such as candidate relationship management or an applicant tracking system) to regularly track all candidate communications
Source: Aberdeen Group, Talent Acquisition Strategies 2010, August 2011
© AberdeenGroup 2011 38
What About Social?
41 +
28
© AberdeenGroup 2011 39
Social Talent Acquisition Strategies
80%
67%61%
22%
%
20%
40%
60%
80%
Organizationmaintains a
company profileon social
networking sites
Recruiters trainedon use of socialnetworking tools
Social networkingis a critical part of
recruitmentstrategy
Success metricsdefined for use ofsocial networking
tools
perc
enta
ge o
f res
pond
ents
, n=5
06 All Respondents
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
© AberdeenGroup 2011 40
Integrate Data to Fine Tune the Hiring Engine
© AberdeenGroup 2011 41
Most Valuable Measures of Talent Acquisition Success
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
Most Important Metric (Scale of 1 - 5: "1" is least valuable and "5" is most valuable)
Best-in-Class Rating
Quality of hire 4.18 Customer satisfaction 4.07 Ongoing employee performance (i.e. long-term performance following the employee's first review) 4.07 Hiring manager satisfaction 4.06 Employee engagement 4.04 Achievement of organizational objectives (MBO's or KPI's) 4.03
© AberdeenGroup 2011 42
POLL
q What is the most significant barrier your organization faces in linking source of hire to Employee Performance?
q Candidate data and post-hire data not linked q Performance measures are not aligned to hiring
criteria q Candidate source data is not tracked q Employee performance measures are not clearly
defined
© AberdeenGroup 2011 43
Barriers in Linking Source of Hire to Employee Performance
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
60%
37%31% 31%
59%
29%23% 23%
%
20%
40%
60%
Candidate dataand post-hire
employee dataare not integrated
Employeeperformance
measures are notaligned to hiring
criteria
Candidate sourcedata is not
tracked
Employeeperformance
measures are notclearly defined
perc
enta
ge o
f res
pond
ents
, n=5
06
Best-in-Class All Others
© AberdeenGroup 2011 44
The Talent Lifecycle
Recruitment Onboarding Performance Management
Succession Planning
Assign early
Competencies
Learning
Source: Aberdeen Group
© AberdeenGroup 2011 45
The Results
© AberdeenGroup 2011 46
Performance on Key Metrics
38%
26% 25%
77%
64%57%
0%
20%
40%
60%
80%
Percentage oforganizational KPI's or
MBO's achieved
Percentage of new hiresrating themselves as
"highly engaged"
Employees receivingratings of "exceeds"
performanceexpectations
perc
enta
ge o
f res
pond
ents
, n=5
06
Best-in-Class All Others
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
© AberdeenGroup 2011 47
Performance Improvement on Key Metrics
2% 2%
0% -1%
11% 10%
-7%-9%-10%
-5%
0%
5%
10%
15%
Customersatisfaction
Customerretention Time to hire Cost per hire
perc
enta
ge o
f res
pond
ents
, n=5
06
Best-in-Class All Others
2% 2%
0% -1%
11% 10%
-7%-9%-10%
-5%
0%
5%
10%
15%
Customersatisfaction
Customerretention Time to hire Cost per hire
perc
enta
ge o
f res
pond
ents
, n=5
06
Best-in-Class All Others
Source: Aberdeen Group, The Talent Acquisition Lifecycle, September 2011
© AberdeenGroup 2011 48
Key Themes
q Map the Needs q It Takes a Village q Manage Risk by Building Talent Pools q Integrate Data to Fine Tune the Hiring Engine
© AberdeenGroup 2011 49
Thanks for your interest in our research!
q Mollie Lombardi
Research Director [email protected] 617-854-5216
© AberdeenGroup 2011 50
Questions?
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Mollie Lombardi Research Director, Human Capital Management Aberdeen Group [email protected] (p) 617-854-5216
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