Today’s hiring economy is highly complex, confusing and competitive. Job growth has been dramatic, but at the same time many positions remained unfilled and wages aren’t keeping pace, which continues to cause turnover. On the average, companies receive an excessive number of resumes per every open full-time permanent position. This fact is according to the Candidate Experience Awards survey data from 2013 and 2014 that shows open requisitions for all levels of positions are tracking over 200 resumes each.
This current recruiting and hiring complexity is also underscored by the fact that we’re in a bifurcated job market. On one side you have a global shortage of skilled science, technology, engineering and mathematics professionals plus a shortage of leadership candidates. And on the other side there is a surplus of non-technical individuals that are needed to fill those highly repetitive jobs.
Plus, Millennials now make up most of the workforce and they’ll continue to demand relevant opportunities be marketed to them in mobile-friendly ways. According to a PeopleFluent Millennial survey, over 65 percent of respondents are considering other job opportunities. That said, all generations today are becoming digitally savvy shoppers when it comes to careers and employment brands, researching employers via Glassdoor and LinkedIn while circumventing for referral networks and two-way employer communication.
This is why empowers companies to get outside their own reqs and generate talent pipelines. Being proactive with sourcing and screening doesn’t have to be aspirational – companies can do it with their own applicant databases and HR systems. The advantages of talent pipelines include:
- By building talent pipelines, employers can develop talent pools around job types, skills and competencies to which they can turn to fill key roles without having to restart the processes from the beginning. This saves time and money and can help improve the relationships with hiring managers.
- Talent pipelines can also help improve the candidate experience and employer brand. For instance, informing candidates who weren’t selected that they will be kept in a pool and considered for future positions will not only let them avoid having to reapply, but also create a more positive impression of the company.
- A talent pipeline strategy also can enhance talent mobility. Understanding the talent already in the organization and identifying who can be called upon to fill key gaps is another key advantage. Using employee data stored in the HR system can illuminate the talent already in place and their unique skills and strengths.
In addition, the use of a talent pipelines can also help companies address a pressing challenge in talent acquisition today – the need to create a diverse workforce. A company that hires individuals of all backgrounds is likely to benefit more from the life experiences of their diverse employees. A recent report from McKinsey & Company emphasizes the benefits of developing a diverse workforce; the study found that gender-diverse companies are 15 percent more likely to outperform their competition financially, while ethnically diverse companies are 35 percent more likely.
“The Power of Talent Pipelines – Part 2” will introduce the 5-Step PeopleFluent Pipeline Transformation Model. Stay tuned!
(Also read our latest white paper titled “Talent Pipeline Transformation That Gives You An Unfair Advantage”)
 3 Hunt, V., Layton, D., & Prince, S. “Why Diversity Matters,” McKinsey & Company, January 2015. (http://www.mckinsey. com/insights/organization/why_diversity_matters)