Deconstruct recruiting myths and optimize the talent pool
by Sarah Peiker
With so many out-of-work people, finding qualified candidates should be easier than ever, right? There certainly is no shortage of individuals to choose from. In the financial services sector, workforce reductions have become commonplace. According to the Bureau of Labor Statistics, financial services job losses for the first quarter of 2010 surpassed 58,000.1
However, an influx of people looking for work does not lessen the challenge of recruiting the right candidates with the right skills for the right job, because the size of the talent pool essentially stays the same. In other words, regardless of the number of people applying for jobs, the distribution of average, good and great candidates remains unchanged.
Finding qualified candidates can actually be harder when economic conditions worsen and the number of people out of work increases. For hiring managers, this translates to an increased volume of candidates and mismatched talent to review and screen to find those right-fit candidates.
As economic conditions improve, having a blueprint for growth and thinking differently about talent acquisition strategies will help companies drive their businesses forward. In the financial services sector, organizations that understand how to optimize the talent pool will be able to effectively recruit and retain, driving a sustainable competitive advantage.
With the abundance of talent in the marketplace, why has selecting qualified candidates gotten harder? Common myths around current recruiting efforts include:
Myth #1: The talent pool has grown exponentially in the face of the recession.
There is no denying that historic numbers of people are out of work. Since the collapse of Lehman Brothers in 2008, the financial services industry has shed more than 100,000 jobs. For many people, this served as the impetus to leave the industry and pursue jobs outside their realm of experience.
Changing population demographics and the number of baby boomers exiting the workforce have also impacted the availability of talent. The decline of baby boomers in the global workforce has led some economists to predict labor shortages of 10-15 million in the coming decade.2 Escalating numbers of college graduates are entering the workforce, but they will not possess the same knowledge and skills as aging workers. This requires organizations to invest in training and development to cultivate a workforce with the skills they require.
Myth #2: There is an abundance of people with the exact skill set required for every position.
The truth is there is often a mismatch between the individuals available for work and the specific skills employers seek when recruiting for a position. An advertisement for an open position may net hundreds or even thousands of resumes, but how many of those applicants actually have the skills required for success?
Geographic location may also influence the types of skills available in a particular area. Finding someone with significant global investment experience may be achievable in financial hubs such as New York or London, but improbable in more remote locations without incurring significant relocation costs.
Regardless of relevant skill fit, most human resources executives are swamped by a flood of applicants because the sheer volume of people applying for open positions has dramatically increased. Sorting through a large volume of candidates is taxing to HR departments that have reduced their own resources in response to lower hiring rates. The end result-candidates cannot be effectively screened and onboarded.
Myth #3: It's OK to be picky because talent is plentiful.
Defining workforce needs and where there are skill gaps is critical to successful recruiting. However, the pursuit of perfection is likely to paralyze recruiting efforts, yield fewer candidates and elongate the time to fill open positions. When the definition of required skills is too narrow or restrictive it can significantly limit the qualified talent pool.
Employers may be intent on only hiring candidates whose background and capabilities are an exact match, but to broaden the talent pool they need to be realistic in assessing what is available in the marketplace. What's more, it is not just the skills on a resume that define an ideal candidate, but their soft skills as well.
Organizations should fish where the fish are and consider those candidates with transferrable skills, knowledge and capabilities. Think about how skills from other industries might be able to benefit your practice and meet business needs.
Myth #4: Getting an extremely diverse workforce for every position is easily obtainable.
More organizations are adopting the practice of increasing diversity, but-as with the size of the talent pool-the proportion of diverse candidates does not change in turbulent times. As noted earlier, as baby boomers leave the workforce, knowledge and skills will leave with the retirees and the workforce is expected to steadily decline through 2050.3 These demographic changes can impact the availability of a diverse talent pool.
Some organizations may view diversity as synonymous with minority hires or complying with affirmative action. Instead, they need to encourage an environment of inclusivity and consider how providing culturally appropriate practices will increase recruitment and retention and deliver a competitive advantage. Expanding the pool of diverse candidates requires defining the rationale for having a diverse workforce and considering strategic hires from other industries to build organizational capabilities.
Organizations also need to understand the time it takes to produce a heterogeneous pool of candidates, particularly as demographics shift, and be willing to invest in training. For example, Deutsche Bank recently announced a training initiative in Saudi Arabia to build capabilities in that region and support its diversity initiative.4
Women are also adding a new dimension to the global talent pool. According to research from the Center for Work-Life Policy, in emerging markets such as Brazil, Russia, India, China and the United Arab Emirates, women constitute a pool of highly qualified talent just waiting to be tapped.5 Organizations that look to the female talent pool as they expand into new markets can uncover vast new talent sources, support diversity goals and recruit more effectively.
Optimizing the Talent Pool
Boom or bust, the strategic fundamentals of the overall talent pool change slowly, and that means the challenges of hiring in a buyer's market for talent are every bit as great today as they are during stronger economic times. By leveraging the existing talent pool, nurturing global networks and investing in diversity, organizations can effectively mine new talent sources, build multicultural talent and be well-positioned for market success.
Sarah Peiker has more than 17 years of expertise designing, implementing and delivering recruiting solutions. She joined Manpower Business Solutions in 2008 through the acquisition of CRI, where she led the consulting business and managed large recruitment process outsourcing accounts.
Endnotes
1 Bureau of Labor Statistics, Employment Situation Summary, April 2010: www.bls.gov.
2 Sloan Center on Aging & Work at Boston College, Talent Management Study, October 2009: www.bc.edu/research/agingandwork.
3 Bureau of Labor Statistics, Monthly Labor Review, November 2006: www.bls.gov/mlr/mlrhome.htm.
4 Deutsche Bank, "Deutsche Bank Launches Saudi Talent Pool Initiative," January 2010.
5 Center of Work-Life Policy, The Global Talent Pipeline in Emerging Markets, 2010: www.worklifepolicy.org.
Sidebar
Workforce Strategies You Can Bank On
Appreciating that the fundamentals of the talent pool do not change quickly, even in the face of a global recession, means you can then implement strategies to optimize the talent that is available. To develop a pool of right-fit candidates that meet business requirements:
Know what you need, but be flexible. Define what you need, but be willing to broaden the scope of skills and talents you are looking for based on what is available.
Identify individuals with transferable skills. Think about candidates with comparable skills from other industries or expand your search by sourcing candidates in different geographies.
Hire for innate talents and be willing to invest in training. You may find a candidate with the right attitude, experience and problem-solving skills, but who lacks a certain certification or skill set. Prioritize the characteristics most important to get the job done and areas that can be successfully achieved through training.
Make diversity a reality. To bolster diversity, make sure the organization culture will enable diverse employees to thrive. Identify and create alliances with national minority organizations or trade associations and target recruitment advertising to minority publications.
Build a candidate pipeline. Build bench strength by cultivating relationships with candidates whose skills align with your organization's future needs. This way, when you have an open position you can tap into a readily accessible talent pool.
Gain access to expertise. Consider partnering with a recruitment process outsourcing provider to manage the influx of resumes, improve processes and deliver a better candidate experience. Recruitment process outsourcing is a form of business process outsourcing where an employer elects to outsource all or part of its recruiting.
- Sarah Peiker
