Cielo, the world’s leading strategic Recruitment Process Outsourcing (RPO) partner, recently surveyed more than 400 Talent Leaders from seven countries across Europe to explore how Talent Acquisition strategies impact productivity and profitability.
The results were clear: Investing in Talent Acquisition can help increase profits by up to 20%, something no business can afford to ignore, especially in a climate where productivity growth has been stubbornly slow.
The report placed respondents in three categories: High Impact talent acquisition functions had articulated strategies that shape business decisions. Low Impact talent acquisition functions were characterised by having immature talent acquisition processes and ineffective measurement. Medium Impact talent acquisition functions were somewhere in the middle.
Overall, 31% of High Impact companies reported operating at maximum productivity, compared with only 4% of Low Impact companies. In relating this to the bottom line, 68% of High Impact companies reported an increase in profits compared with only 31% of Low Impact companies. The average profit margins of the 122 Low Impact organisations was 18.75%, while High Impact organisations had average profit margins of 41.94%.
From the report, we have identified five actions that can help a talent acquisition team contribute to productivity and profit:
1. Know your data: Data – both quantitative and qualitative – can provide a very useful insight into your talent acquisition strategy. You may have access to complex data from your recruitment technologies (ATS or CRM), or more simple and digestible data collated from social media and feedback sessions from hiring managers and candidates. Either way, data enables you to prioritise key projects and create a strong, all-encompassing talent acquisition strategy for your organisation.
2. Simplify your recruitment process: We advise clients to take themselves through their recruitment process in the hopes of highlighting areas where candidates are lost. This means asking how they felt at each step, and are there areas of concern? At a recent Cielo Think Tank, 72.3% of respondents said this step alone has improved quality of hire.
3. Stay consistent: To secure top talent, the process must be consistent and engaging throughout. Face-to-face interviews were often highlighted as a weak spot, so invest in hiring manager training to help make this a great experience for everyone involved.
4. Show your worth: With 42% of organisations citing skills gaps as a core issue, it is essential that all is done to help attract talent into the business. An engaging and fully validated Employee Value Proposition, which showcases reasons why candidates should want to work for you, is crucial to achieving this. With new start-ups constantly appearing and technology evolving quickly, organisations need to differentiate themselves.
5. Pick your partners: The 37% of respondents who use an RPO to support all or part of their talent acquisition process consistently outperformed their peers. It was also noted that the organisations surveyed with in-house teams struggled with simple day-to-day tasks – all elements that an RPO provider can help with.
Click button to read the full report: “European Talent Acquisition Trends: Productivity, Profitability & Personal Impact.”