Thought Leadership

The TalentForecastPart 2: Improving talent acquisitionthrough alignment, strategy,technology, and partnerships.

A global study to uncover what today’s talent acquisition leaders can tell us abouttomorrow’s workplace.

1

Any good talent strategy is intrinsically intertwinedwith a company’s business strategy.

The types of employees and leaders needed of coursevaries depending on that strategy, such as M&A,organic growth, geographic expansion, or the creationof new goods or services.

Unfortunately, too often, recruiting is viewed as atransactional activity that is not mapped to the overallstrategy, objectives and goals of the organization.Company leaders might increasingly expect theirtalent function to play a bigger role in the growth oftheir organizations, but if the business and talentstrategies aren’t aligned, this could prove futile.

It’s critical for organizational and talent managementleaders to step back and analyze the types of talentthey need, what talent they have, and how to fill thegaps. Many would say that’s easier said than done.However, according to new research by Korn Ferry,many talent acquisition professionals would havegreater success by making use of key planning andexecution tools that can help them achieve their goals.

The good news is that there are now sophisticatedsoftware tools and third-party recruitment processoutsourcing (RPO) providers that can improve talent

acquisition performance and assist talent acquirers informing stronger relationships with top leaders in theirorganizations. While many organizations are usingthese tools and resources, the adoption level is spotty,at best, and represents a missed opportunity.

To explore these issues, Korn Ferry commissioned aglobal survey on talent acquisition (TA). The surveyrevealed that talent acquisition professionals are oftenoperating on a bit of an island, disconnected from thebusiness units they serve and failing to leverage toolsthat would enhance their performance and help themto partner more effectively with their organization’ssenior leaders.

To address these issues, organizations should aligntalent acquisition with their business units and developa long-term talent acquisition plan that is integratedwith the organization’s goals and strategies. For theirpart, talent acquisition professionals should employtools and resources to improve their effectiveness andto become more valued partners to their businesscolleagues.

Byrne MulrooneyCEO, Korn Ferry RPO, Professional Search & Products

Thought Leadership

2

A lack of strategic planning.

Talent acquisition teams are frequently without astrategic workforce plan, and those that do, rarelyhave a plan that extends beyond more than one year.

Twenty-nine percent of survey respondents reportthey have no workforce plan at all. Forty percent saidthey have a plan that extends for 12 months and 17%report they have a plan for the next six months.

“Globally, many talent acquisition people do not have aseat at the table when it comes to the businessstrategy. They don’t know what the organization isplanning in any detailed manner. Therefore, theybecome reactive and transactional,” said StephanieEdwards, vice president, Korn Ferry RPO, ANZ.

In many organizations, the estimates of the numberand types of people to be hired in the coming year arebased largely on the number of hires and skills in theprevious year, with some adjustment for theanticipated growth of the business. Little thought isgiven to strategic needs and initiatives or how thecompany needs to evolve their skills base to innovate.

The practice of basing new-hire projections on theprevious year’s totals becomes vastly more evidentwhen other types of financial or business projectionsare considered. An investment manager who projectedthe stock market based on last year’s performance ora sales manager who used last year’s totals as the solebarometer for the next year would be considered lessthan competent, to say the least.

The disconnect between strategy and headcountrequirements tends to be more pronounced fornonrevenue creating positions. When headcountconnects more directly to revenue, such as inmanufacturing where the number of workers directlyimpacts production levels, organizations usually takemore care in projecting their needs for new hires.

The absence of a long-term talent acquisition plan inmost organizations is symptomatic of the separationbetween the talent acquisition team and the businessleaders who develop and implement strategy. Nearlytwo thirds say recruitment teams are only somewhator not aligned with business objectives over the next 1to 3 years.

Key findings.

Nearly one-third of talentacquisition teams do not have astrategic workforce plan.Only 39% report that theirrecruitment team is aligned toorganization's businessobjectives for the next 1 to 3years.Less than 50% are takingadvantage of recruitmenttechnologies such as applicanttracking systems, videointerviewing, or onlineassessment tools.Organizations that userecruitment processoutsourcing providers usethem largely for sourcing andscreening candidates; less than50% utilize RPOs for employerbranding or compiling metricsfor reporting and decisionmaking.

Do you have a strategic workforce plan?

Yes, we have a plan for the next five years or more

Yes, we have a plan for the next six months

We don’t have a formal workforce plan

Yes, we have a plan for next year

14%

40%

29%

17%

Thought Leadership

3

The consequences of this disconnect can beparticularly harmful when an organization embarks ona major new strategy or enters a new market.

For example, if an organization determines that it willexpand into China 18 months from now and the talentacquisition team has a full understanding of the

strategy and objectives, they can determine the talentneeds, assess the market, and build a strategy foridentifying and recruiting candidates well in advanceof the opening of the new office. If talent acquisitionstaff is informed later in the process, they will have toscramble to fill the positions.

“Having a seat at the table is very important. A talentprofessional can work with business leaders to specifyexactly the skills and competencies needed to executethe strategy. That’s immeasurably better than someonetelling the talent professional, ‘We’re going to China inthree months and we’ll need to hire 300 people there.”said Jan Mueller, global vice president, marqueeaccounts, Korn Ferry RPO.

Is your current recruitment team is aligned tomeet business objectives over the next 1-3 years?

Somewhat

Yes

No18%

39%

43%

4

one third

of talent acquisition teams say they do not have a strategic workforce plan.

Nearly

Thought Leadership

4

Becoming a better partner with thebusiness.

To forge better links between top leaders and hiringmanagers, talent acquisition professionals need todevelop an in-depth understanding of the underlyingbusiness and to provide a broader range of services totheir organizations than simply screening and selectingcandidates.

“Being a student of the business. Immersing oneself in theexternal market. Staying out in front. Understandingwhat’s changing, what’s evolving, and what’s comingdown the pipe—that’s how a talent professional can gaincredibility with a hiring manager,” said Bill Gilbert,operating executive, Korn Ferry Professional Search.

Specifically, talent professionals should be able to providehiring managers with data on the size of a talent pool,compensation levels, and a competitive analysis of otherorganizations targeting the same talent pool. Moreover,the talent professional should work with the hiringmanager to define and communicate the competitiveadvantage of the organization to the targeted talent pooland to individual candidates.

For example, a particular organization may be strong oneither culture, vision, or employee development. Toattract candidates who will be drawn to the organization,the talent professional should amplify the organizationsstrengths to the external marketplace.

When asked what they would do if they could spendmore time with their recruitment teams, the largestpercentage of talent acquisition managers chose buildinga stronger partnership between their teams and thebusiness/hiring managers as their number one response.

To provide value and gain the trust of the organization’stop leaders, it’s important that talent professionalsmanage and present their function in a business-likemanner. “Having clear structures, processes, targets, andmeasurements allows you to have a conversation amongequals. If leadership has an objective they want toachieve, the talent professional should have a frameworkfor making that happen and reporting on progress in aclear manner.” said Mueller.

Ultimately, by partnering with hiring managers and topleaders, talent acquisition professionals will be in a muchmore informed position to forecast talent needs and todevise long-term branding and outreach strategies tospecific talent pools.

If you could spend time with your recruitmentteam, what would you focus on?

Being a stronger partner with the business/Hiring Manager

Strategic sourcing capabilitiesCommunicating employee value propositionFocus on candidate careFocus on compliance

21%

29%

39%

31%

8%

Thought Leadership

5

Underutilizing technology.

Many talent acquisition professionals are not fullyutilizing available technology to engage and assesscandidates and to use information gathered in thehiring process for on-boarding and developmentpurposes.

Only 48% of survey respondents said they useapplicant tracking systems for recruitment purposes, asurprisingly low number given that ATS is needed forregulatory compliance in some countries.

While nearly half of respondents said they used anATS, many of them are doing it only for compliancepurposes, not as a way to help manage business.That’s a missed opportunity because an ATS collectskey metrics that can help a talent acquisitionprofessional to become more strategic and develop adialogue with a specific talent pools.

“Some organizations are using a client relationshipmanagement system on top of their ATS. Thisbecomes a starting point for developing a talentdatabase that you can continually update and utilizefor communication purposes.” Neil Griffiths, vicepresident, global brand, marketing andcommunications, Korn Ferry RPO, Professional Search& Products.

Talent acquisition professionals who are not availingthemselves of software tools and dashboard analyticsto track activity and performance are missing out onan opportunity to raise their level of performance andto work more effectively with their businesscolleagues.

“To help simplify and make the most out of data, someorganizations are moving to integrated platforms forall of their HR needs - from profile design, sourcing,tracking, interviewing, assessment, on-boarding,employee development and benefits. These smarterplatforms shift the HR function from a metricsgatherer to an intelligence provider. The technologiesassist with improving efficiency, sourcing and trackingideal talent, reducing time-to-hire and streamlining theon-boarding processes. This single platform willprovide a centralized, holistic view of the all aspects oftalent acquisition and management.” added Griffiths.

The mobile recruitment revolution.

Twenty-eight percent of survey respondents indicatedthey are using mobile technology to recruit. While thatpercentage is likely to increase in coming years, it lagsthe trend today, where many job seekers are usingmobile devices for job-searching. In certain countries,such as China, it is the sole means of accessing theinternet for the vast majority of people. Forty-eightpercent of talent acquisition professionals in China areutilizing mobile technology to recruit, compared with33% in the broader APAC region. In a growing numberof countries, mobile recruitment is a necessity. “Youngpeople are searching for positions using their phonesand they expect to be able to apply via theirsmartphones, as well,” Edwards said.

Missed opportunity: using assessments fordevelopment.

Forty-six percent of respondents are using onlineassessment tools in recruiting. Some are also using thedata collected from assessments to assist in on-boarding and employee development.

Online assessment tools are used to measure a varietyof factors that determine whether a candidate is likelyto succeed in an organization, including: technicalskills, interpersonal abilities, motivation, behavioraldrivers, and ethics.

While traditionally assessments have beenadministered to candidates under active consideration,some organizations make assessment tools freelyavailable on their websites so that people candetermine if they wish to formally apply for a position.

A sophisticated front-end tool that allows a candidateto preview a position and self-test their suitability candramatically save time and expense. Weaker

When you think aboutrecruitment technologies,what tools do you use?

48% Applicant TrackingSystems46% Video interviewing46% Online assessment tool45% Job posting aggregator31% Talent communities28% Mobile recruitment tools25% Interview scheduling tools23% Analytics tool anddashboard13% Electronic referencechecker4% Others

Thought Leadership

6

candidates will self-filter out of the process based onthe assessments. The organizations will also havevaluable data on those who choose to continue theprocess—which will aid in screening and selectingcandidates to interview.

More than one-third of survey respondents say theyuse the assessment information after a candidate ishired to help onboard the new employee; while 54%report they use the data to create an employeedevelopmental plan.

Utilizing data from online assessments to onboard andcreate developmental plans may be particularlyvaluable in fostering organizational commitmentamong millennial workers.

Millennials typically want an opportunity to advance inan organization fairly quickly, otherwise they will lookfor another employer. Three-quarters of respondentsto a Korn Ferry global survey on millennial work forcetrends reported that millennials require more feedbackthan other generations. Moreover, 28% of respondentssaid that “the ability to make an impact on thebusiness” matters most to millennials, the single largestfactor cited in the survey.

“Given the unique motivations of millennial workers,providing them with a development plan via theirassessment as they transition into employment is agreat way to demonstrate the organization wantsthem to succeed,” said Griffiths.

The untapped promise of RPOs.

Recruitment process outsourcing (RPO) providershave become a significant part of the HR servicesmarketplace in recent years. Organizationsdiscovered that talent was harder to find in the post-recession economy and RPOs provided an efficientmeans to help fill specific roles and job categories.

The Everest Group, a consulting and research firm,reported that the global RPO market grew by 17% in2015 from the prior year, with the majority of thegrowth attributed to new deal activity betweenemployers and RPOs.

Survey respondents report they are using RPOs largelyto recruit and screen candidates. Relatively feworganizations are availing themselves of other servicesthat RPOs offer, such as employer branding, buildingtalent communities, or creating metrics for reportingand decision making.

If your organization uses assessment tools, arethe assessment findings used for developmentpurposes or on-boarding plans for those hired?

Assessment findings used for development purposes

Assessment findings used for on-boarding plans

We don't use assessments for development or on-boarding

26%

54%

35%

What key services do youreceive from your RPOprovider?

88% Sourcing74% Screening46% Interviewing41% Assessing candidatesagainst best in class profiles21% Advertisement creationand placement18% Talent pools/communities17% Offer manangement14% Metrics for reporting anddecision making13% Employer branding12% Requisition managment11% Flexibility and scalability8% Recruitment technologyconsulting7% Talent acquisition strategyconsulting4% Internal mobility

Thought Leadership

7

"RPOs can be particularly valuable in bringing technology and innovation to bear on the recruitment process.However, many organizations are using them strictly as 'tactical recruiting machines,' so they are missing out onmost of the value they could get," said Mueller.

RPO firms can provide quantitative information about the target talent pool, compensation, and social channelbehaviors. At the back end, they can produce data on conversion rates, time-to-hire, qualified candidates per hire,and interviews per hire—all of which is helpful in developing a more professional talent acquisition process.Increasingly, RPO firms are seeking to evolve from a talent sourcing resource to a strategic partner toorganizations.

Employer branding is another area where RPOs can offer organizations a different perspective and an expertise inreaching out to disparate talent pools.

For example, many traditional organizations in manufacturing, retail, or services find it challenging to recruit toptalent in technology because the best people in those areas often want to work for high-tech companies.

Internally, these organizations usually don’t have the expertise to brand themselves in the technology talentmarket. An RPO can help organizations to define and manage that messaging.

9

| The talent forecast - Part 2 |

Organizations that use Recruitment Process Outsourcing (RPO) providers use them largely for sourcing and screening candidates.

...utilize RPOs for employer branding or compiling metrics for reporting and decision making.

Less than... 50%

Thought Leadership

8

Conclusion

The need to identify, recruit, and develop top talent is vital for organizations to compete in today’s sophisticatedand rapidly evolving global economy.

Talent acquisition professionals are on the front lines in the war for talent. To better serve their organizations, talentacquisition professionals should take it upon themselves to build stronger partnerships with hiring managers andstrategic business leaders. They should embrace tools, technologies, and services that raise the level of theirperformance and provide their business colleagues with better information on talent pools and talent trends.

The stakes are high. Like so many other things in today’s economy, talent acquisition is changing. The future willbelong to talent professionals who stay ahead of the curve, work in a more strategic manner, and win the trust andconfidence of their colleagues.

For their part, Talent acquisition professionals should employ tools and resources to improve their effectiveness and to become more valued partners to their business colleagues.

Employ tools & resources to improve effectiveness.

And become more valued partners.

Thought Leadership

9 © Korn Ferry 2018. All Rights Reserved.

About Korn Ferry

Korn Ferry is a global organizationalconsulting firm. We help clients synchronizestrategy and talent to drive superiorperformance. We work with organizations todesign their structures, roles, andresponsibilities. We help them hire the rightpeople to bring their strategy to life. And weadvise them on how to reward, develop, andmotivate their people.

Contributors References

Everest Group, 2016, Recruitment Process Outsourcing(RPO) Annual Report 2016, Dallas, TX

Methodology

From mid-August until the end of September 2016,Korn Ferry ran an online survey to uncover the issuesand trends influencing the talent acquisition leaderrole. The survey was designed for talent acquisitionand human resources leaders across all geographies(NA, APAC, EMEA and LATAM) and conducted in themost appropriate language for each market. More than1100 respondents spanning VP/SVP/EVP, C-suite,director, manager and individual contributor levelscompleted the survey. Six major markets: technology,industrial, life sciences and pharmaceutical, financial,professional services and consumer were represented.

Byrne MulrooneyCEO, Korn Ferry RPO,Professional Search &Products

Jan MuellerGlobal Vice President,Marquee Accounts, KornFerry RPO.

Bill GilbertOperating Executive, KornFerry Professional Search

Stephanie EdwardsVice President, Korn FerryRPO, ANZ.

Neil GriffithsVice President, GlobalBrand, Marketing andCommunications, KornFerry RPO, ProfessionalSearch & Products.