Talent acquisition should be viewed of as more than an investment - it’s a revenue generator. People are your number one asset, and without them, your business simply wouldn’t exist.
So how much does your business invest in talent acquisition? Have you ever thought about doubling it? That’s what Google does. It spends twice as much of its people budget on recruiting than the average company. Laszlo Bock, former Senior Vice President of People Operations at Google, said that being able to better select people up front, meant that there was less work to do once they were hired. Bock transformed the internet giant’s talent acquisition function during his ten-year stint with the company, hiring thousands of people and winning numerous awards along the way.
Its investment in talent acquisition certainly pays off! Google (or rather its parent company Alphabet Inc.) has a market cap of more than $803bn (£607bn) and is well on its way to having a trillion dollar market cap, which isn’t surprising when you consider that its revenue surpassed the £110bn mark last year.
The tech giant also frequently tops best place to work polls and currently has the number one spot on Glassdoor’s 2018 Best Places to Work list as voted for by employees.
And it's not just Google that reaps the rewards of investing in talent acquisition. Companies with high-maturity talent acquisition functions exhibit 18 percent higher revenue and 30 percent greater profitability compared to firms with low-maturity talent acquisition performance, according to Deloitte’s Bersin.
Talent acquisition, however, is about much more than finding the right person for the job. It touches all aspects of a business and is about looking to the future and strategically planning ahead so that you have the right employees to meet your goals and hit your targets.
In today’s tight talent market, some businesses simply don’t have the time or resources to make the best investment decisions - but that’s where partnerships come in. A talent acquisition partnership can truly transform a business because it can offer value on the things that many internal talent acquisition teams simply can’t invest in such as technology research & expertise, scalability of resources, and data & analytics.
If you want talent that makes your business better, investing smartly in talent acquisition is vital.
Strategic talent acquisition partnerships bring so much to the table. Let’s use candidate experience as an example as many businesses massively underestimate it. It’s baffling when you consider that it can make or break your business. It’s a candidate-driven market out there so applicants really do hold the upper hand. They can afford to pick and choose and the consequences of a poor candidate experience are about much more than losing a potential candidate. Ultimately it impacts the bottom line. According to the Talent Board 2017 North American Candidate Experience research report, 46 percent of candidates who believe they’ve had a “negative” overall one-star job seeker experience (based on a 1-5 Likert Scale rating) say they will take their alliance, product purchases and relationships elsewhere. There you have it, in black and white. Poor candidate experiences leads to a potential loss of revenue, referral networks will be negatively impacted and talent pools will shrink as a result.
And let’s not forget about the global skills shortage which only highlights the importance of talent acquisition. Human capital is high on the agenda of a lot of employers, it remains the number one priority for more than 80 percent of global executives. However, an alarming number of CEOs in Europe and North America are "extremely concerned" about their ability to fill key tech, sales and engineering roles – as a result of the global skills shortage. The market is very much candidate-driven and the ageing population and declining birth rate, means it’s going to continue to be more so over the coming years. Employers have to work a lot harder to find and attract talent. This is where partnerships come in.
Talent acquisition partnerships benefit all businesses, even those that already have in-house functions because they provide in-house teams with the bandwidth to successfully execute their strategies. External partners also help internal teams secure executive buy-in because they can share data and real life success stories that internal teams may not have. The whole point of a partnership is to work together and pool resources and skills to get the best possible outcome.
Don’t let your business fall behind. Act now to ensure you have a strong workforce, both now and in the future.