Optimizing the Talent Pool White Paper

8/9/2019 Optimizing the Talent Pool White Paper

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Best Practices or Driving aSuccess ul Talent AcquisitionStrategy in Any Economic Climate

Optimizing the Talent Pool

ManpowerBusinessSolutions


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With so many out-o -work people, nding quali ed candidatesshould be easier than ever, right? There certainly is no shortageo individuals to choose rom. According to a recent global trendreport rom the International Labor O ce (ILO), the number o

jobless people worldwide reached almost 212 million in 2009,and that number is expected to remain high in 2010. 1 In theU.S., the Bureau o Labor Statistics indicates that the nationalunemployment rate continues to remain high.

However, an infux o people in the marketplace does not lessenthe challenge o recruiting the right candidates with the right skills

or the right job. While the number o people available to workhas increased, the size o the talent pool has essentially remainedthe same. That is because regardless o the number o peopleapplying or jobs, the distribution o average, good and great

candidates in the talent pool remains unchanged. To illustrate,a Manpower Business Solutions client in the manu acturingsector had an open position or a senior level executive in thesame location in April 2009 and again in March 2010. In 2009,194 applicants applied within 23 days, o which 11.8 percentwere quali ed. In 2010, 73 applicants were received in 12days, o which 12.3 percent were quali ed. While the numbero applicants varied, the availability o quali ed candidates stayedrelatively the same.

In a good economy it is challenging to nd quali ed candidates,

but it can actually be even harder when economic conditionsworsen and the number o people out o work increases. Forrecruiters and hiring managers, this translates to an increasedvolume o candidates and mismatched talent to review andscreen in order to nd those right t candidates. In somecases, the individuals skills do not match those required orthe jobs, or when the skills are appropriate, the individuals arenot located where the jobs are. 2

212millionthe number of joblesspeople worldwide in 2009.This number is expectedto remain high in 2010.

International Labour O fce


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And it is not just the exponential growth o available workers that is adding to theevergreen challenge o nding quali ed talent. In an uncertain economy, passivecandidates who are currently employed may not consider leaving their currentposition. For one particular Manpower Business Solutions client, the number o quali ed candidates who withdrew rom the interview process a ter being ully

screened nearly doubled rom 2008 to 2009, with candidates citing a decisionto not make a career change at this time as the reason or disengaging romthe recruiting process.

As economic conditions improve, having a blueprint or growth and thinkingdi erently about talent acquisition strategies is what will help companies drive theirbusinesses orward. More than hal the respondents to a McKinsey Global Surveyexpect intensi ying competition or talent and the increasingly global nature o that competition to have a major e ect on their companies over the next severalyears. 3 As organizations expand their global ootprint, the need or a global talentpool and access to quality local talent to acilitate operations across borders andcultures is imperative to success. Organizations that understand how to optimizethe talent pool - both globally and locally - will be able to e ectively recruit andretain, driving a sustainable competitive advantage.

Deconstructing recruiting myths With the abundance o talent in the marketplace, why has selecting quali edcandidates gotten harder? Common myths around current recruitinge orts include:

Myth #1 There is no denying that there are historic numbers o people out o work. The

recession took its toll in the orm o job cuts, urloughs, and wage and bene treductions in just about every industry, and some elds have been hit harderthan others. The construction, manu acturing, retail, real estate and autoindustries have been disproportionately a ected by the recession, contributingto signi cant job loss across those sectors. 4 As expected, hiring in thoseindustries has dropped o and many o those jobs are likely gone or good.For job seekers, this means pursuing other industries or jobs outside theirrealm o experience.

However, the skill sets available rom this population may not necessarilytranslate to a more widespread talent pool or positions in other industries.

Although there is an abundance o talent available, skill sets may not alignwith the needs o industries that are predicted to experience rebound or growthsuch as education, health services, government, and business and pro essionalservices. 5 According to Manpowers annual Talent Shortage Survey, the top vepositions employers are having most trouble lling globally remain unchanged:skilled manual trades people, sales representatives, technicians (technical workersin the areas o production/operations, engineering and maintenance), engineersand management/executives. 6

Although there is an

abundance o talentavailable, skill sets maynot align with the needso industries that arepredicted to experiencerebound or growth...


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Changing population demographics and the number o baby boomers exiting thework orce have also impacted the availability o talent. The U.S. Census Bureau

orecasts that the 65-and-over population will rise rom 38.7 million in 2008 to 88.5million by 2050. 7 Similarly, several industrial nations, including Germany, Japan,

Austria, Spain, Italy, Sweden, and Greece will also experience a contraction o their

working populations. The decline o baby boomers in the global work orce has ledsome economists to predict labor shortages o 10-15 million in the coming decade. 8 Market research rm IDC predicts that in the U.S. by 2016 there will be a threemillion person short all to satis y work orce needs. 9 Escalating numbers o collegegraduates are entering the work orce, but they will not possess the same knowledgeand skills as aging workers. This requires organizations to invest in training anddevelopment to cultivate a work orce with the skills they require.

Take away: I you are looking or a oreman or automotive mechanic, there might be plenty

o candidates available. However, the specialized skills possessed by thisdemographic will not necessarily increase the talent pool or organizationsseeking knowledge workers. For example, a Manpower Business Solutionsclient that is seeking an operations technician received 238 applicants. O those,22 met the minimum quali cations. In contrast, a position requiring more speci cskills netted 34 candidates with only one candidate meeting the minimumrequirements.

Myth #2 There is an abundance o people with the exact skill set required or

every position.

The truth is there is o ten a mismatch between the individuals availableor work and the speci c skills employers seek when recruiting or a speci c

position. An advertisement or an open position may net hundreds or eventhousands o resumes, but how many o those applicants actually have theskills required or success? One Manpower Business Solutions client has 18,683applicants in their applicant tracking system, but only 67 o them have experiencein the relevant eld. Some people might be very talented and impressive, but lackthe right combination o skills required by an employer.

Geographic location may also infuence the types o skills available in aparticular area. Finding someone with signi cant li e sciences experience maybe achievable in a metropolitan area like New York City or North Carolinas

Triangle Park, but improbable in more remote locations without incurringsigni cant relocation costs. Plus, i the industry in which you are recruiting doesnot have high turnover or has not been signi cantly a ected by the economicdownturn, there is a good chance potential candidates are employed elsewhereand not actively looking.

One Manpower BusinessSolutions client has 18,683applicants in their applicanttracking system, but only 67o them have experience inthe relevant eld.


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...it is not just the skills on aresume that de ne an idealcandidate, but their so tskills as well.

Regardless o relevant skill t, most human resources executives are swampedby a food o applicants because the sheer volume o people applying or openpositions has dramatically increased. The number o average per ormers inthe marketplace is also signi cantly higher. Sorting through a large volume o candidates is taxing to HR departments that have reduced their own resources

in response to lower hiring rates. The end result - candidates cannot be e ectivelyscreened and onboarded.

Take away: Just because millions o people are unemployed, it does not mean the skills,education and experience that your company requires are available. With anabundance o candidates applying or each open position, recruiting gets harder,not easier.

Myth #3

Its okay to be picky because talent is plenti ul.

De ning work orce needs and where there are skill gaps is critical to success ulrecruiting. However, the pursuit o per ection is likely to paralyze recruitinge orts, yield ewer candidates and elongate the time to ll open positions.Hiring managers are ocused on nding the person with the right t - matchingroles and responsibilities with requisite skill sets, competencies, and experiencesalong with behaviors and values that align with the organizations mission, visionand values. 10 When the de nition o required skills is too narrow or restrictive itcan signi cantly limit the quali ed talent pool.

Structural unemployment as de ned by economists is a disconnection betweenthe skill sets prevalent in the labor pool and those demanded by employers.Employers may be intent on only hiring candidates whose background andcapabilities are an exact match, but to broaden the talent pool they need to berealistic in assessing what is available in the marketplace. Whats more, it is not

just the skills on a resume that de ne an ideal candidate, but their so t skillsas well. Determining cultural t and ability to learn is not something that can begleaned during initial resume screening.

Instead, sh where the sh are and consider those candidates with trans errableskills, knowledge and capabilities. Since jobs in manu acturing, construction,

and pro essional and business services were hit hardest, there are likely morecandidates rom those industries applying or open positions. Think about howthose types o skills might be able to bene t your organization. For example,someone who worked as a journeyman carpenter has developed supervisoryskills and spent time training new employees. A construction oreman is likelyto have experience with purchasing and materials management, project analysisand planning, and transportation and logistics. Expanding the talent pool requireslooking at the talent that is available and identi ying comparable skills that willmeet business needs.


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Take away: Consider which competencies are required or open positions. Then take intoaccount the other industries and occupations that could be the source o theseportable skills.

Myth #4

Getting an extremely diverse work orce or every position is easily obtainable.

More organizations are adopting the practice o increasing diversity, but aswith the size o the talent pool the proportion o diverse candidates doesnot change in turbulent times. As noted earlier, as baby boomers leave thework orce, knowledge and skills will leave with the retirees and the work orceis expected to steadily decline through 2050. 11 These demographic changescan impact the availability o a diverse talent pool.

Some organizations may view diversity as synonymous with minority hiresor complying with A rmative Action. Instead, they need to encourage anenvironment o inclusivity and consider how providing culturally appropriatepractices will increase recruitment and retention and deliver a competitiveadvantage. Expanding the pool o diverse candidates requires de ning therationale or having a diverse work orce and considering strategic hires romother industries to build organizational capabilities.

Organizations also need to understand the time it takes to produce aheterogeneous pool o candidates, particularly as demographics shi t. Forexample, as in most countries, the eld o engineering in the U.S. has beenpredominantly dominated by men. However, as a result o government andindustry infuence, educational institutions have been encouraged to increasethe numbers o women and minorities pursing careers in engineering. Todaywomen now earn almost hal o the baccalaureate degrees awarded inscience and engineering, more than 40 percent o the masters degrees,and more than one-third o the doctoral degrees, according to a report

rom the NSF. 12

Women in general are adding a new dimension to the global talent pool. According to research rom the Center o Work-Li e Policy, in emergingmarkets such as Brazil, Russia, India, China, and the United Arab Emirateswomen constitute a pool o highly quali ed talent just waiting to be tapped. 13

Organizations that look to the emale talent pool as they expand into newmarkets can uncover vast new talent sources, support diversity goals andrecruit more e ectively.

Expanding the pool o diverse candidates requiresde ning the rationale orhaving a diverse work orceand considering strategichires rom other industriesto build organizationalcapabilities.


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Take away: It takes longer to cultivate a diverse talent pool. Diverse candidate demographicsneed to exist or organizations to be able to tap in and attract and retaincandidates with varied origins, perspectives and li e experiences. Make sureyou understand the business rationale or having a diverse work orce and create

a culture that is inclusive.

Developing strong workforce strategies

Appreciating that the undamentals o the talent pool do not change quickly, evenin the ace o a global recession, means you can then implement strategies tooptimize the talent that is available. To harness the talent that is available aroundthe world and develop a pool o right- t candidates that meet your businessrequirements: Know what you need, but be fexible.

De ne what you need but be willing to broaden the scope o skills and talentsyou are looking or based on what is available. Consider redesigning jobs so theybecome more engaging or the people undertaking them. Identi y individuals with trans erable skills.

Think about candidates with comparable skills rom other industries or expandyour search by sourcing candidates in di erent geographies.

Hire or innate talents and be willing to invest in training. You may nd a candidate with the right attitude, experience, and problem-solvingskills but who is lacking a certain certi cation or skill set. Once you have de nedthe skills and talents required or a position, prioritize the characteristics mostimportant to get the job done and areas that can be success ully achievedthrough training.

Draw rom the in-house talent pool.Identi y internal resources you can grow and nurture. Cross train your work orceso they are able to per orm a broader variety o tasks. Make diversity a reality.

To bolster diversity, make sure the organization culture will enable diverseemployees to thrive. Be willing to invest in training so you can meet diversitygoals. Identi y and create alliances with national minority organizations or tradeassociations and target recruitment advertising to minority publications.

Build a candidate pipeline.Finding quali ed talent is complex and time consuming. Build bench strength bycultivating relationships with candidates whose skills align with your organizations

uture needs. This way, when you have an open position, you can tap into areadily accessible talent pool.


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Gain access to expertise Consider partnering with a recruitment process outsourcing (RPO)provider to manage the infux o resumes, improve processesand deliver a better candidate experience. Recruitment processoutsourcing is a orm o business process outsourcing (BPO) where

an employer elects to outsource all or part o its recruiting unction.RPO enables organizations to tap into expertise and additionalresources to e ciently nd right- t candidates. With experience acrossa broad range o industries, an RPO partner has valuable insight into avariety o comparable skill sets and can alleviate the burden o sortingthrough mismatched candidates to nd those individuals with the righthard and so t skills.

RPO providers can scale up or down to meet fuctuating businessneeds and have insight into the most e ective recruiting strategies,helping organizations optimize the talent pool to meet their hiringneeds. An RPO can conduct market analysis on populationdemographics to deliver insight on diversity opportunities. Withglobal capabilities, more companies are turning to RPO becauseit makes the recruiting process less expensive and more e ectiveand e cient.

Optimizing the Talent Pool Boom or bust, the strategic undamentals o the overall talent poolchange slowly -- and that means the challenges o hiring in a buyersmarket or talent are every bit as great today as they are duringstronger economic times. By leveraging the existing talent pool,nurturing global networks and investing in diversity, organizationscan e ectively mine new talent sources, build multicultural talentand be well-positioned or market success.

E ective recruitment results in hiring the right candidate or the right job and plays a strategic role in a companys ability to develop newproducts and services and expand into new markets. Having the rightresources to identi y new sources o talent, e ciently screen outmismatched candidates and build a strong talent pipeline is criticalto the success o every organizations recruiting e orts. By optimizingthe talent pool, organizations can gain access to skills that supportbusiness goals, build bench strength and recruit e ectively to enhancecompetitive advantage.

About the AuthorSARAH PEIKER has over 17 years recruiting expertise in designing,implementing and delivering recruiting solutions. She joined ManpowerBusiness Solutions in April 2008 through the acquisition o CRI, a pure-playRPO company, where she led the CRI Consulting business and managedlarge RPO accounts. Sarah holds a Bachelors degree rom MichiganState University.

References1 International Labour O ce,

Global Employment Trends report, 20092 Manpower Inc., Con ronting the Talent

Crunch, 20083 The Organizational Challenges o Global

Trends, McKinsey Quarterly, 20074 Bureau o Labor Statistics, U.S. Department

o Labor, The Employment Situation,January 2010

5 Bureau o Labor Statistics, U.S. Departmento Labor, The 30 occupations with thelargest employment growth, 2008-18,December 2009

6 Manpower Inc., 2009 Talent ShortageSurvey, May 2009

7 U.S. Department o Commerce, U.S.Census Bureau, August 2008

8 Sloan Center on Aging & Work at BostonCollege, Talent Management Study,October 2009

9 IDC, IT Training Update: Update Forecastand Training Predictions, April 2007

10 Ernst and Young, Global humanresources risk: rom the danger zoneto the value zone, 2008

11 Monthly Labor Review, November 200612 National Science Foundation, New

Undergraduate Degrees, Masters Degreesand Doctoral Degrees, November 2009

13 Center o Work-Li e Policy, The Global Talent Pipeline in Emerging Markets, 2010

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Optimizing the Talent Pool White Paper