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2013
Strategic Talent
Acquisition Report
An analysis of the on-going transformation of resourcing
strategy and practice in the UK
Produced by:
The Write Research Company &
The Forum for In-House Recruitment Managers
Strategic Talent Acquisition Report 2013
Page2
Foreword
Hello and welcome to the inaugural Strategic Talent Acquisition Report (STAR).
Can we begin by extending our sincere gratitude to all the Resourcing professionals
who gave their time to provide the data for this Report.
This is the first in what we plan to be a series of annual reports which will try and
make some sense of the on-going ‘transformation’ of resourcing strategy and
practice in the UK. STAR is a collaborative initiative undertaken by The Write
Research Company and The Forum For In-House Recruitment Managers (The
FIRM).
From conversations in summer 2012 we felt that while there was an abundance of
really excellent published research, in general terms most of it was either overly US
centric, completed by professionals with a wider HR remit or primarily focussed on
tactical recruiting activities. So STAR was created to begin to fill this gap in our
knowledge.
It is not our intention to provide definitive answers or prescriptive solutions. Our
aim is simply to share empirical data and informed commentary that we trust you
will find interesting, stimulating and worthy of further debate.
From the outset we were interested in two-key themes:
i. Has the recession actually changed the role of resourcing, and if so, how?
ii. What impact has any change had for the career expectations of
Resourcing professionals?
Underlying these headline issues were a number of assumptions and perceptions
that we wanted to challenge and corroborate:
i. Is recruitment really seen as ‘the poor relation’ within HR and is this
changing?
ii. In reality, is there a move from reactive hiring to proactive, strategic talent
acquisition aligned with workforce plans?
iii. Do Talent pools (or banks / pipelines / networks / communities etc.)
actually work and what role will they have in the future?
Andy Dolby, Chief Executive
The Write Research Company
Emma Mirrington
The FIRM
Strategic Talent Acquisition Report 2013
Page3
What’s in a name?
Choosing a name for the Report became a hotly debated subject. From
‘recruitment’, ‘resourcing’ and ‘hiring’ to ‘talent acquisition’ ‘staffing’, ‘sourcing’,
‘scouting’ and ‘attraction’ there are a myriad of ways to describe all or part of the
process of finding, selecting and employing new people for our organisations.
This range of options was confirmed when we asked internal Recruiters:
“What would be the best ‘label’ to describe the act of finding and engaging new
talent”?
Source: The FIRM Conference September 2012
The results confirmed that there is no single word or phrase that is universally
applied to engaging new talent; however ‘Talent Acquisition’ has become the
preferred descriptor.
Rather than attempting to incorporate all of these various role titles, for simplicity
we will use the terms ‘Recruiters’ or ‘Resourcing professionals’ interchangeably
throughout in the Report to represent everybody involved in talent acquisition
activities.
44% Talent Acquisition
27% Resourcing
25% Recruitment
Strategic Talent Acquisition Report 2013
Page4
Data sources
Information contained within STAR 2013 has been obtained from two primary
sources:
The FIRM Conference September 2012
As part of a one-day FIRM Conference, 101 senior in-house Resourcing
professionals attended a 45 minute seminar at Centre Point, London. Delegates
were broadly representative of The FIRM membership with a diverse cross-section
of employers represented from retail and financial services to technology, business
services, transportation and manufacturing. Each delegate was provided with a
voting pad and asked a sequence of 12 questions.
Online Questionnaire September/October/November 2012
A request to complete 33 questions online was distributed to all members of The
FIRM with additional invitations sent to clients and contacts of Write Research.
Where possible, circulation was restricted to those individuals who were primarily
involved in resourcing related activities (as opposed to generalist HR, L&D etc.). In
all, 264 questionnaires were fully completed and returned for analysis.
Strategic Talent Acquisition Report 2013
Page5
Executive
commentary
Strategic Talent Acquisition Report 2013
Page6
The Report sends out a very simple message to those of us involved in resourcing -
now is the time to ‘step up’. The transition from ‘recruitment’ to ‘talent
acquisition’ appears to be more than just a change of name. The recession has had
a profound impact on senior management attitudes to the importance of new
talent. ‘People are our greatest asset’ is now a clarion call to find high-performers
for critical roles who can drive organisational change and deliver corporate success.
Despite the high levels of unemployment this remains a challenge. The CIPD
(2012), Resourcing and Talent Planning shows 82% of organisations are reporting
‘having experienced difficulties in filling at least some vacancies’. This is not just a
UK phenomenon. The highly respected Bersin by Deloitte (2013), Predictions for
2013, discusses a ‘Talent Paradox’, where despite high levels of unemployment a
genuine skills shortage is holding back growth in the USA.
What is less evident is whether Resourcing professionals believe they are currently
equipped to meet this challenge.
While there is a greater emphasis on forward planning, Resourcing professionals
feel they have yet to make a genuine contribution to strategic decision making. In
fact, many report that they currently work within a global resourcing framework
which allows them little if any local flexibility.
However ‘being strategic’ means much more than just being better prepared. The
Aberdeen Group (2012), Strategic Talent Acquisition; Are you prepared to hire the
best? describes the organisations with ‘best-in-class’ performance as sharing the
following characteristics:
i. Linking talent acquisition initiatives to organisational profitability through
validated data
ii. Using social media to engage candidates and build talent communities
iii. Measuring Quality of Hire based on organisational fit and performance
iv. Integrating talent acquisition practices with performance management
STAR shows that in the UK we are still focussed on measuring resourcing
performance against tactical efficiency metrics, such as cost per hire and time to
hire, with little or no correlation to organisational effectiveness. It is therefore
perhaps not surprising that the daily focus remains on delivering efficiencies rather
than achieving strategic organisational goals.
It’s time to step up.
Make the paradigm shift from ‘forward planning’ to ‘strategic
talent acquisition’.
Strategic Talent Acquisition Report 2013
Page7
STAR confirms that the current focus is indeed on building talent pipelines – as well
as improving employer branding. However, it provides little evidence that the
creation of candidate pools is delivering real value as a source of future hires.
The key issue seems to be a continuing difficulty with the accuracy of workforce
planning and questions about how to develop pipelines in areas where there will
actually be a need to hire in the future. Additionally, a clearer understanding of the
size, structure and characteristics of the external market is essential.
While there are multiple influencing-factors that seem to be restricting Resourcing
professionals from operating at a more strategic level, one of the key challenges is
how to escape the day-to-day priority of undertaking tactical hiring activities.
In reality, this is of course profoundly difficult to achieve and the Report suggests it
will only get harder during this year, as:
- Hiring levels will stay roughly the same, or slightly increase.
- Internal teams will be expected to manage more of the process with
less external support.
- There will not be an increase in some internal team sizes.
The demands upon internal resources are further compounded by the
unpredictability of recruitment activity. With teams being sized at ‘business as
usual’ levels the peaks in activity are creating rising levels of stress and pressure.
Traditionally these peaks would have been managed by passing vacancies to
agencies but today this is less of an option when performance KPIs restrict the
volume of work that can be given to intermediaries.
Only build talent pipelines that are aligned to accurate
workforce plans and informed by an understanding of the
external market.
You have to make time in the day for strategic initiatives if you
really want to make a difference.
Keep exploring alternative solutions for dealing with peaks in
hiring activity.
Strategic Talent Acquisition Report 2013
Page8
The Report makes it clear that time management is not the only challenge. It is
evident that Resourcing professionals are also not confident in the technical
competence of their teams beyond tactical recruiting activities.
Importantly there is a direct correlation between the areas that have been
identified as priorities and the skills in the greatest need of development within
internal teams.
Key areas for development are:
- Strategic resource planning
- Employer branding
- Building talent networks
- Executive selection.
As an in-house Resourcing professional, there is therefore a real opportunity to
broaden your skill-base and acquire new areas of expertise.
The Report reinforces the view that Resourcing professionals have been a relatively
transient community, with internal teams populated largely by ex-Agency
Recruiters looking for a stepping stone to a wider role in HR. The good news is that
this appears to be changing with talented people now looking to forge long term
careers in talent acquisition – providing that genuine pathways are created.
Start building the capability of internal teams NOW.
Create credible career pathways for your team.
Strategic Talent Acquisition Report 2013
Page9
Key
Findings
Strategic Talent Acquisition Report 2013
Page10
Historically it could be said that HR, and
recruitment in particular, were seen as the ‘poor
relations’ among the central enabling functions.
STAR strongly suggests that those days are now
behind us, with the recession proving to be a
pivotal moment.
Senior managers are now advocates of people-
centric strategies that place the appointment of
transformational individuals to critical roles as a
central tenet of organisational success. Economic
pressures and corporate caution may continue to
focus the talent debate on internal mobility and
the development of existing employees however
the identification of best in class individuals from
the external market is of increasing importance.
Of course, we have to be careful about these
conclusions. These are the views of Recruiters and
not the senior management team; however the
results are consistent with other data sources and
the anecdotal evidence provided by senior
Resourcing professionals.
In fact, a recent report (The Boston Consulting
Group (2012), From Capability to Profitability)
indicates that of 22 HR Topics, ‘delivering on
recruiting’ has the biggest impact on organisational
revenue growth and the second highest on profit
margin. In addition, improving employer branding
ranked 4
th
for both revenue and profit.
Since the start of the recession talent acquisition has
increasingly gained a presence and credibility where it is now
seen as valuable contributor to organisational success.
50% of professionals believe that senior
directors now see recruitment as of
‘above average importance’.
25% state that ‘participating in the wider
business planning process’ is a key
component of their working day.
15% feel that recruitment is seen as
a ‘source of competitive edge and a
core transformational force driving
organisational effectiveness’.
65% believe recruitment is viewed
more importantly by senior
managers than before the recession.
22% feel there has been a
significant change.
Strategic Talent Acquisition Report 2013
Page11
STAR confirms that there has been a
transformation in talent acquisition practice. 90%
of the organisations in the survey now have a
formal recruitment strategy and policy.
In 67% of all cases, this strategy is defined centrally
and then implemented globally. The majority
(46%) develop a core policy which is then flexed to
reflect local business unit needs or circumstances
however, in more than one in five instances, this
deployment is the same across all business units
and geographies. Nearly a quarter take an
alternative approach; developing policy
independently within each local business unit.
Interestingly, delegates at The FIRM Conference
had a virtually unanimous view of how strategy
should be developed. 99% indicated that if it were
up to them, there would be a global model or
single framework with either minor local variations
or a small element flexibility to reflect the
particular needs of different business units.
This would seem to imply that more than half of
Resourcing professionals operate within a
framework that has not been developed and
implemented in what they believe to be the best
way.
Virtually all organisations have a structured approach to
developing a resourcing strategy, with most created centrally.
Less than half implement strategy in the way Resourcing
professionals would prefer.
46% have centrally
developed strategies that are
deployed flexibly to reflect
local conditions.
90% of organisations now
have a structured
approach to developing a
resourcing strategy.
23% have strategies that are developed
independently within each local operating
business or geography.
21% operate centrally
developed strategies that are
implemented uniformly across
the world.
Strategic Talent Acquisition Report 2013
Page12Senior Resourcing professionals clearly aspire to act
more strategically and want to place operational
activities within a broader organisational context.
Over half indicated that ‘developing and
implementing strategic resourcing plans’ was one
of the top three activities they are involved in on a
daily basis. However, the data indicates that
‘implementing’ plans is taking precedent over
‘developing’, with 46% also stating that ‘direct
sourcing for roles’ featured in the top three
activities and 42% indicated that ‘consulting and
advising hiring managers’ was a priority.
There is a correlation here between size of
organisation and how time is spent. Within smaller
organisations (of 1,000 employees or less) 42% of
Resourcing professionals spend a large element of
the day actively managing candidates through the
process. This compares to only 9% of professionals
within organisations of between 10,001-50,000
employees. Conversely, only 29% of people in
smaller organisations are involved in strategic
planning on a daily basis, compared to 60% in the
larger companies.
Irrespective of the company size, 78% of all
Resourcing professionals still have to spend some
element of the day actively ‘recruiting’ for 6 or
more open roles. This would be in addition to the
number of roles being managed by the team for
which they are accountable.
While Resourcing professionals have aspirations to make a
strategic contribution, most have to strive to balance this with
the pressure of delivering operational ‘recruiting’ activity.
52% indicate that developing and
implementing strategic resourcing
plans and initiatives is a top 3 priority
on a day-to-day basis.
46% indicate that direct sourcing
for roles is a top 3 priority on a
day-to-day basis.
42% spend a significant portion of
each day consulting and advising
hiring managers.
44% are managing 6-20 open
roles at any time.
79% are personally
managing more than 6
open roles at any time.
Strategic Talent Acquisition Report 2013
Page13
The performance of Resourcing teams continues to
be measured against tactical hiring metrics, such as
time to hire (73%), cost per hire (74%) and hiring
manager satisfaction (59%). While sourcing
channel mix (56%), candidate satisfaction (47%)
and Agency usage (62%) are increasingly monitored
there is limited analysis of quality or effectiveness.
Of these indicators, 3/6 month attrition (37%) is
most often measured, followed by quality (29%),
new hire performance in post (27%) and critical
role succession coverage (23%).
Organisations with higher levels of recruitment are
significantly more likely to measure candidate
satisfaction than other employers. There also
appears to be strong statistical link between those
organisations interested in candidate satisfaction
and those who are being most proactive around
building talent pipelines. Additionally,
organisations capturing data on new hire quality
are far more likely to see ‘enhancing the employer
brand’ as a priority.
Self-evidently, Resourcing professionals must be
torn between the demands to think and act more
strategically while their performance is assessed on
short-term metrics which in the majority of cases
do not effectively measure value.
Operational resourcing activities continue to be measured by
tactical metrics rather than quality, value or contribution to
organisational effectiveness.
74% of organisations
measure cost per hire.
73% of organisations
measure time to hire.
Only 27% of organisations
measure new hire performance
in post.
37% measure 3/6 month
attrition rates.
Only 29% of
organisations measure
quality of hire.
Strategic Talent Acquisition Report 2013
Page14
The data reflects the widely held sentiment among
Resourcing professionals which can be summarised
as ‘I don’t really know what will happen to hiring
levels in the next 12 months’. Generally however,
the private sector is feeling positive about a net
increase in hiring activity.
This would seem to be supported by the CIPD
Labour Market Outlook Report (LMO), Winter 2012,
where the same pattern is represented. Most
organisations are expecting to maintain staff levels
in early 2013, slightly fewer expecting to increase
staffing levels and fewer again expecting to
decrease staffing levels. The number of
organisations intending to hire has steadily
improved since summer 2012. How this plays out
remains to be seen. The LMO Report showed very
positive signs of recruitment growth in autumn
2010, spring 2011 and again in 2012, which was not
sustained in the following quarter.
This level of unpredictability is creating very real
challenges to heads of resourcing with respect to
both ‘team sizing’ and ‘budget’ setting. Without a
strong sense of future hiring numbers it is very
difficult to correctly decide upon the appropriate
size of the internal team, how that team should be
aligned to the business and the size of budget
required to deliver cost effective results.
Such uncertainty would be a cause for concern in
any circumstances; STAR reveals that the situation
is amplified by a range of other influencing factors.
Most Resourcing professionals believe permanent
recruitment activity will be similar over the next 12 months
however a significant proportion think levels could rise.
36% of organisations
expect permanent
hiring to increase. 12% of expect a
significant increase.
22% think activity levels
will decline.
43% expect permanent
hiring to remain roughly
the same.
Strategic Talent Acquisition Report 2013
Page15
The survey provides unambiguous evidence that
resourcing is now, and will increasingly become, an
in-house activity. Over 81% of the organisations in
the survey manage recruitment internally with just
the support of external recruitment consultancies
or marketing agencies. While 19% do outsource an
element of the recruitment process or an area of
activity (graduate, volume recruitment etc.) to a
third party, complete outsourcing of all activities
remains a minority activity (2%).
In the future, over 55% of respondents expect an
increasingly larger proportion of their activity to be
managed internally with only 8% expecting to
outsource more.
This would seem to indicate relative job security
and increased opportunities for most in-house
Recruiters with one in three organisations
expecting to grow team size and only 12%
predicting a reduction.
On a note of caution, 54% of organisations do not
expect team size to grow. Of these, a number also
expect to be managing more of the activity in-
house, and some are among the 36% that expect
hiring levels to increase. There will therefore be
increased pressure on internal Resourcing
professionals to deliver more, on tighter budgets
and with less external support.
Overwhelmingly organisations manage resourcing internally
and they expect this trend to continue. However, they do not
all believe that this will necessarily result in an expansion of
their team.
81% of organisations manage
recruitment either entirely
internally or with just the
assistance of intermediaries.
19% have some of their
recruitment activity
outsourced.
Only 2% are entirely outsourced
in an RPO relationship.
55% expect to manage an
increasingly larger proportion
of their recruitment
internally.
Only 8% are likely to outsource
more activities to 3
rd
parties.
54% do not expect any
change to the internal
team size.
34% expect the size of
their team to grow over
the next 12 months.
Strategic Talent Acquisition Report 2013
Page16At the same time that in-house Recruiters are being
challenged to manage more activity they also
recognise the need to deliver on longer-term
initiatives that will make a sustainable difference to
the effectiveness of talent acquisition. However
there appears to be a mismatch between the top
priorities and internal areas of expertise.
For most, building a proactive talent pipeline (56%)
is one of the top 3 objectives, however only 19% of
professionals rank their internal team as experts in
this area and in 30% of cases they are felt to be
novices. This is replicated in the next highest
ranking priority – enhancing employer brand (41%).
Here, only 17% of respondents believe the internal
team can be called expert while 31% are novices.
Other important activities, such as improving
candidate experience (36%), extending direct
sourcing (24%) and cost reduction (19%) are seen
as stronger areas for internal teams.
Areas not currently seen to be a top priority for
Resourcing professionals include implementing
social media strategies (15%), reducing time to hire
(13%), relaunching employee referral programmes
(9%), improving assessment tools (9%) and
developing international recruitment programmes
(9%).
Interestingly only 5% see introducing CRM
functionality as a priority – which could be seen as
a pre-requisite for effectively building talent
pipelines.
While Resourcing professionals are clear about delivering
forward-looking initiatives, it appears they are not confident
that they currently have the skills within the internal team to
achieve them.
56% place ‘building talent
pipelines and communities’ as
one of their top 3 priorities.
Only 19% believe their team are
‘experts’ at building talent
pipelines.
41% see ‘enhancing their
employer brand’ as a
priority.
Only 17% see their team as
‘experts’ in employer
branding.
36% rank ‘improving
candidate experience’ as a
top 3 priority.
Strategic Talent Acquisition Report 2013
Page17
’
Resourcing professionals are very committed to
building pipelines as a core component of future
talent acquisition strategies. As we have seen, it
was chosen as a top-3 priority more often than any
other goal.
However it is evidently a new activity for UK
Resourcing professionals, with only 15% of
organisations believing they make above average
use of internal pipelines to identify candidates and
only 4% see pipelines as the primary channel for
identifying candidates before other types of
attraction or sourcing activity is commissioned.
Strikingly, 55% of organisations make below
average or no use of pipelines to source
candidates.
In addition it can be reasonably inferred that
organisations are relying upon the recycling of
speculative enquiries or candidates for other roles
to build pipelines as only 5% undertake activities to
proactively build pipelines - 74% rank themselves
as average or below average in this respect.
With so few organisations seeming to have
perfected this activity and in the absence of a
substantial body of UK case studies it is perhaps
surprising that it is such a strong top priority for
2013.
Building talent pipelines may be the top priority however
most organisations have yet to undertake any structured
development activity and even fewer use them as a significant
source of candidates for new vacancies as they arise.
74% of organisations would rank
themselves as ‘average’ or ‘below
average’ with regards to proactively
building searchable networks of
potential candidates.
Only 5% undertake any activity to
proactively source or attract
candidates to build a talent network.
55% ‘rarely’ use or make ‘below
average’ use of internal talent pipelines
to identify candidates for new vacancies
as they arise.
Only 15% believe they make ‘above
average’ use of internal talent pipelines
to identify candidates for new vacancies
as they arise.
Less than 4% see pipelines as the primary channel for
identifying candidates in advance of commissioning
external sourcing/attraction activity.
Strategic Talent Acquisition Report 2013
Page18When asked at the FIRM conference what a
Resourcing function would need to do in order to
become a ‘true strategic partner to the business’
virtually half of the delegates (49.44%) felt it was
‘developing an effective workforce planning
process’. This compares to 32% of respondents to
the online survey who ranked this as a top 3
priority.
STAR reveals that only 4% of respondents consider
workforce planning to be currently well developed
within their organisation - where there is a high
correlation between forecast requirements and
actual hiring activity. In 13% of organisations
workforce planning doesn’t happen at all and in
37% of cases it was rated as ‘below average’.
This is combined with 39% of organisations who
feel they only have a basic knowledge of the
external market and 6% who feel they have a very
limited external perspective. Only 9% believe they
have a deep insight, while 47% believe they have a
‘reasonable’ understanding.
This apparent lack of intelligence with respect to
either the future talent requirements of the
organisation or the characteristics of the external
market is likely to be a major barrier to resourcing
becoming a strategic activity. It is also calls into
question the potential value of building pipelines as
there is a high risk that they might not be aligned
with future hiring needs and may not contain the
highest-performing professionals.
While viewed as of significant importance, workforce planning
continues to be poorly developed and implemented in most
organisations and is combined with a lack of a structured
process to understand the external talent market.
Only 4% of organisations consider
workforce planning to be well developed
with a high correlation between forecast
requirements and actual hiring activity.
In 13% of organisations
no workforce planning
happens at all.
In 37% of organisations
workforce planning was rated
as below average.
47% have a reasonable
understanding of external
talent markets based on ad
hoc research and information
gathering.
9% have a deep insight of the
external market gained through
structured research.
39% feel they only have a basic
knowledge of the external market.
Strategic Talent Acquisition Report 2013
Page19
On a cost per hire basis, senior and Executive
recruitment is of course disproportionately more
expensive than any other form of talent acquisition
activity. The CIPD (2012), Resourcing and Talent
Planning survey suggests a median cost for senior
managers/directors of £8,000 – in reality external
hiring will be very considerably more than this.
One in three organisations have already migrated a
significant proportion of this expensive activity
away from Consultancies. However given that 55%
of organisations expect to manage more of their
recruitment internally it is perhaps curious that
only 28% of organisations are looking to
increasingly manage Executive hiring in-house.
This is the one of the few areas where there is a
disconnect between the data from the online
survey and the delegates at the FIRM conference,
where 89% indicated that they would prefer to
undertake this activity using specialist Internal
Executive Recruiters supported either by internal
Researchers or an external Research Consultancy.
This could reflect a desire by Resourcing
professionals to manage Executive recruitment
internally, but that other factors are stopping this
from happening. This could be pressure from
Board Directors to stick with tried and tested
approaches. Most likely however is a belief that
this skill set does not currently exist within internal
teams as only 18% ranked Recruitment as an area
of expertise (placing it 7
th
from a list of 10
activities).
Executive recruitment continues to maintain a ‘mystique’ with
organisations less likely to change the way they manage these
appointments than other hiring activity.
63% do not expect to make any
change to their current approach
to Executive recruitment.
24% will remain largely with
Executive Search firms.
32% will continue to manage
Executive recruitment
internally.
7% will carry on working in
partnership with specialist
Research Consultancies.
28% are looking to manage more
Executive appointments internally.
Only 4% anticipate a larger role
for external Executive Search
firms.
Only 18% rank their team as
‘experts’ in Executive selection.
Strategic Talent Acquisition Report 2013
Page20
Resourcing teams are full of very good, 360-degree
Recruiters. 90% have 5 or more years’ experience
and 60% have been involved for over 10 years. As
the survey reveals, they are expert at screening and
interviewing (63%), direct sourcing (49%) and
advising hiring managers (48%).
However, only 4% of team members have
experience of any activity that isn’t either
recruitment or HR related. 60% come from
Agencies, 16% from a wider HR role, 9% from
Executive Search or RPO and 11% started their
working life in an in-house recruiting role or direct
from a graduate scheme.
In the old world, when the need was for a
transactional ‘recruitment function’, this would be
fine. STAR suggests this may no longer be enough.
If the business leaders are genuinely interested in
talent acquisition as a strategic activity, then
Resourcing functions either need people with a
broader commercial perspective, or career-
recruiters need to rapidly develop a wider business
understanding and organisational awareness.
The majority of in-house Recruiters began their career in a
Recruitment Agency environment and have limited
experience in non-recruitment related activities.
60% of in-house Recruiters began
their career in an Agency.
16% started in a wider HR role.
Only 4% have moved into Resourcing from
a different functional area.
60% have in excess of
10 years’ recruitment
experience.
90% have been involved
in recruitment for 5 years
or more.
Strategic Talent Acquisition Report 2013
Page21
It is generally believed that ‘people come into
recruitment as a stepping stone to a wider HR role’.
This does seem to have been true, with 1 in 3
changing roles each year. This nomadic
predilection does not appear to be diminishing,
with 15% more people than average currently
looking to change job.
However there are encouraging signs, with 50%
looking to stay within resourcing. This suggests that
there is a solid bedrock of career-committed
professionals from which sustainable talent
acquisition teams can now be built. There also
appears to be an increasing understanding of
career management techniques, with 20% hoping
to progress by acquiring a wider portfolio of talent
acquisition techniques – as opposed to a vertical
step up the hierarchy.
There is also a hint of a more fundamental change,
with 24% interested in a wider ‘talent
management’ role. This quest for a broader remit
is strongly supported by Bersin’s Predictions for
2013 that forecasts a ‘new HR organisation’ where
HR becomes an integrated ‘talent business
operations’ function’. It is evident that to sustain
the transformation of talent acquisition,
organisations need to do much more to engage and
retain talent. Specifically, clearer development
programmes for Recruiters are essential.
Resourcing professionals change job on a regular basis, with a
higher than average number looking to move. The majority
hope to stay within the profession and most would like to
show loyalty to their current employer.
91% of Resourcing
professionals have been in
their current role for 5
years or less.
28% have been in post for less
than a year.
36% are actively or semi-
actively looking for their next
career move.
50% are looking for vertical promotion or
to extend their role to gain wider talent
acquisition responsibilities.24% want a wider talent
management/development
role.
50% feel that ‘limited opportunities for
career progression and the lack of
clarity about potential career pathways’
are the key challenges to achieving their
long term career prospects.
53% do not intend to take any
action to start looking for a career
move to a new employer in the
next 6 months.
Strategic Talent Acquisition Report 2013
Page22
About us
The Write Research Company
An international talent research and insight consultancy, The Write Research
Company helps organisations make better-informed people decisions. Gathering
and interpreting talent intelligence from across the globe, we provide strategic and
tactical support in the following areas:
 Talent Edge – Bridging the gap between workforce planning and strategic
talent acquisition to deliver sustained, measureable improvement to
organisational effectiveness.
 Talent Research - Identifying and engaging high-performing individuals for
critical executive, senior management, specialist or professionals roles.
 Talent Intelligence - Mapping and in-depth analysis to profile competitor
strategies, reward benchmarking, perception audits and market assessments.
 Talent Sourcing – On-going talent acquisition activity to build talent pipelines
to meet immediate and long-term hiring needs.
w w w . w r i t e r e s e a r c h c o m p a n y . c o m
C o n t a c t : a n d y . d o l b y @ w r i t e r e s e a r c h c o m p a n y . c o m
The Forum For In-House Recruitment Managers
Run by in-house recruiters for in-house recruiters The FIRM was founded as a
LinkedIn Group in 2007. Now with over 5,800 members in 56 countries, we are a
supportive and collaborative community of corporate recruitment professionals
that provides both an online and offline hub for members to network, request help,
share knowledge and give advice on all aspects of recruitment and Talent
Management.
We aim to support, develop and inspire our members as well as working to ensure
integrity and best practice throughout the in-house resourcing and talent
community. Through doing this we aspire to raise the standard of service our
members provide to their internal customers and receive from external suppliers.
The group is solely for In-house Recruitment professionals and is not open to third
party suppliers thereby providing our members with a niche and specialised group
of like-minded people within the world of in-house recruitment with whom they
network in a safe and closed environment.
w w w . t h e f i r m - n e t w o r k . c o m
C o n t a c t : e m m a @ t h e f i r m - n e t w o r k . c o m
Strategic Talent Acquisition Report 2013
Page23
Join the
discussion…
If you’d like to share your thoughts and views on any of the subjects covered in the
Strategic Talent Acquisition Report please join the discussion at The Forum For In-
house Recruitment Managers on LinkedIn.
See the
detail…
If you’d like to see the detailed statistics which underpin the Report, please
contact:
a n d y . d o l b y @ w r i t e r e s e a r c h c o m p a n y . c o m
Strategic Talent Acquisition Report 2013
Page24
w w w . w r i t e r e s e a r c h c o m p a n y . c o m w w w . t h e f i r m - n e t w o r k . c o m

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Strategic Talent Acquisition Report (STAR 2013)

  • 1. w w w . w r i t e r e s e a r c h c o m p a n y . c o m w w w . t h e f i r m - n e t w o r k . c o m 2013 Strategic Talent Acquisition Report An analysis of the on-going transformation of resourcing strategy and practice in the UK Produced by: The Write Research Company & The Forum for In-House Recruitment Managers
  • 2. Strategic Talent Acquisition Report 2013 Page2 Foreword Hello and welcome to the inaugural Strategic Talent Acquisition Report (STAR). Can we begin by extending our sincere gratitude to all the Resourcing professionals who gave their time to provide the data for this Report. This is the first in what we plan to be a series of annual reports which will try and make some sense of the on-going ‘transformation’ of resourcing strategy and practice in the UK. STAR is a collaborative initiative undertaken by The Write Research Company and The Forum For In-House Recruitment Managers (The FIRM). From conversations in summer 2012 we felt that while there was an abundance of really excellent published research, in general terms most of it was either overly US centric, completed by professionals with a wider HR remit or primarily focussed on tactical recruiting activities. So STAR was created to begin to fill this gap in our knowledge. It is not our intention to provide definitive answers or prescriptive solutions. Our aim is simply to share empirical data and informed commentary that we trust you will find interesting, stimulating and worthy of further debate. From the outset we were interested in two-key themes: i. Has the recession actually changed the role of resourcing, and if so, how? ii. What impact has any change had for the career expectations of Resourcing professionals? Underlying these headline issues were a number of assumptions and perceptions that we wanted to challenge and corroborate: i. Is recruitment really seen as ‘the poor relation’ within HR and is this changing? ii. In reality, is there a move from reactive hiring to proactive, strategic talent acquisition aligned with workforce plans? iii. Do Talent pools (or banks / pipelines / networks / communities etc.) actually work and what role will they have in the future? Andy Dolby, Chief Executive The Write Research Company Emma Mirrington The FIRM
  • 3. Strategic Talent Acquisition Report 2013 Page3 What’s in a name? Choosing a name for the Report became a hotly debated subject. From ‘recruitment’, ‘resourcing’ and ‘hiring’ to ‘talent acquisition’ ‘staffing’, ‘sourcing’, ‘scouting’ and ‘attraction’ there are a myriad of ways to describe all or part of the process of finding, selecting and employing new people for our organisations. This range of options was confirmed when we asked internal Recruiters: “What would be the best ‘label’ to describe the act of finding and engaging new talent”? Source: The FIRM Conference September 2012 The results confirmed that there is no single word or phrase that is universally applied to engaging new talent; however ‘Talent Acquisition’ has become the preferred descriptor. Rather than attempting to incorporate all of these various role titles, for simplicity we will use the terms ‘Recruiters’ or ‘Resourcing professionals’ interchangeably throughout in the Report to represent everybody involved in talent acquisition activities. 44% Talent Acquisition 27% Resourcing 25% Recruitment
  • 4. Strategic Talent Acquisition Report 2013 Page4 Data sources Information contained within STAR 2013 has been obtained from two primary sources: The FIRM Conference September 2012 As part of a one-day FIRM Conference, 101 senior in-house Resourcing professionals attended a 45 minute seminar at Centre Point, London. Delegates were broadly representative of The FIRM membership with a diverse cross-section of employers represented from retail and financial services to technology, business services, transportation and manufacturing. Each delegate was provided with a voting pad and asked a sequence of 12 questions. Online Questionnaire September/October/November 2012 A request to complete 33 questions online was distributed to all members of The FIRM with additional invitations sent to clients and contacts of Write Research. Where possible, circulation was restricted to those individuals who were primarily involved in resourcing related activities (as opposed to generalist HR, L&D etc.). In all, 264 questionnaires were fully completed and returned for analysis.
  • 5. Strategic Talent Acquisition Report 2013 Page5 Executive commentary
  • 6. Strategic Talent Acquisition Report 2013 Page6 The Report sends out a very simple message to those of us involved in resourcing - now is the time to ‘step up’. The transition from ‘recruitment’ to ‘talent acquisition’ appears to be more than just a change of name. The recession has had a profound impact on senior management attitudes to the importance of new talent. ‘People are our greatest asset’ is now a clarion call to find high-performers for critical roles who can drive organisational change and deliver corporate success. Despite the high levels of unemployment this remains a challenge. The CIPD (2012), Resourcing and Talent Planning shows 82% of organisations are reporting ‘having experienced difficulties in filling at least some vacancies’. This is not just a UK phenomenon. The highly respected Bersin by Deloitte (2013), Predictions for 2013, discusses a ‘Talent Paradox’, where despite high levels of unemployment a genuine skills shortage is holding back growth in the USA. What is less evident is whether Resourcing professionals believe they are currently equipped to meet this challenge. While there is a greater emphasis on forward planning, Resourcing professionals feel they have yet to make a genuine contribution to strategic decision making. In fact, many report that they currently work within a global resourcing framework which allows them little if any local flexibility. However ‘being strategic’ means much more than just being better prepared. The Aberdeen Group (2012), Strategic Talent Acquisition; Are you prepared to hire the best? describes the organisations with ‘best-in-class’ performance as sharing the following characteristics: i. Linking talent acquisition initiatives to organisational profitability through validated data ii. Using social media to engage candidates and build talent communities iii. Measuring Quality of Hire based on organisational fit and performance iv. Integrating talent acquisition practices with performance management STAR shows that in the UK we are still focussed on measuring resourcing performance against tactical efficiency metrics, such as cost per hire and time to hire, with little or no correlation to organisational effectiveness. It is therefore perhaps not surprising that the daily focus remains on delivering efficiencies rather than achieving strategic organisational goals. It’s time to step up. Make the paradigm shift from ‘forward planning’ to ‘strategic talent acquisition’.
  • 7. Strategic Talent Acquisition Report 2013 Page7 STAR confirms that the current focus is indeed on building talent pipelines – as well as improving employer branding. However, it provides little evidence that the creation of candidate pools is delivering real value as a source of future hires. The key issue seems to be a continuing difficulty with the accuracy of workforce planning and questions about how to develop pipelines in areas where there will actually be a need to hire in the future. Additionally, a clearer understanding of the size, structure and characteristics of the external market is essential. While there are multiple influencing-factors that seem to be restricting Resourcing professionals from operating at a more strategic level, one of the key challenges is how to escape the day-to-day priority of undertaking tactical hiring activities. In reality, this is of course profoundly difficult to achieve and the Report suggests it will only get harder during this year, as: - Hiring levels will stay roughly the same, or slightly increase. - Internal teams will be expected to manage more of the process with less external support. - There will not be an increase in some internal team sizes. The demands upon internal resources are further compounded by the unpredictability of recruitment activity. With teams being sized at ‘business as usual’ levels the peaks in activity are creating rising levels of stress and pressure. Traditionally these peaks would have been managed by passing vacancies to agencies but today this is less of an option when performance KPIs restrict the volume of work that can be given to intermediaries. Only build talent pipelines that are aligned to accurate workforce plans and informed by an understanding of the external market. You have to make time in the day for strategic initiatives if you really want to make a difference. Keep exploring alternative solutions for dealing with peaks in hiring activity.
  • 8. Strategic Talent Acquisition Report 2013 Page8 The Report makes it clear that time management is not the only challenge. It is evident that Resourcing professionals are also not confident in the technical competence of their teams beyond tactical recruiting activities. Importantly there is a direct correlation between the areas that have been identified as priorities and the skills in the greatest need of development within internal teams. Key areas for development are: - Strategic resource planning - Employer branding - Building talent networks - Executive selection. As an in-house Resourcing professional, there is therefore a real opportunity to broaden your skill-base and acquire new areas of expertise. The Report reinforces the view that Resourcing professionals have been a relatively transient community, with internal teams populated largely by ex-Agency Recruiters looking for a stepping stone to a wider role in HR. The good news is that this appears to be changing with talented people now looking to forge long term careers in talent acquisition – providing that genuine pathways are created. Start building the capability of internal teams NOW. Create credible career pathways for your team.
  • 9. Strategic Talent Acquisition Report 2013 Page9 Key Findings
  • 10. Strategic Talent Acquisition Report 2013 Page10 Historically it could be said that HR, and recruitment in particular, were seen as the ‘poor relations’ among the central enabling functions. STAR strongly suggests that those days are now behind us, with the recession proving to be a pivotal moment. Senior managers are now advocates of people- centric strategies that place the appointment of transformational individuals to critical roles as a central tenet of organisational success. Economic pressures and corporate caution may continue to focus the talent debate on internal mobility and the development of existing employees however the identification of best in class individuals from the external market is of increasing importance. Of course, we have to be careful about these conclusions. These are the views of Recruiters and not the senior management team; however the results are consistent with other data sources and the anecdotal evidence provided by senior Resourcing professionals. In fact, a recent report (The Boston Consulting Group (2012), From Capability to Profitability) indicates that of 22 HR Topics, ‘delivering on recruiting’ has the biggest impact on organisational revenue growth and the second highest on profit margin. In addition, improving employer branding ranked 4 th for both revenue and profit. Since the start of the recession talent acquisition has increasingly gained a presence and credibility where it is now seen as valuable contributor to organisational success. 50% of professionals believe that senior directors now see recruitment as of ‘above average importance’. 25% state that ‘participating in the wider business planning process’ is a key component of their working day. 15% feel that recruitment is seen as a ‘source of competitive edge and a core transformational force driving organisational effectiveness’. 65% believe recruitment is viewed more importantly by senior managers than before the recession. 22% feel there has been a significant change.
  • 11. Strategic Talent Acquisition Report 2013 Page11 STAR confirms that there has been a transformation in talent acquisition practice. 90% of the organisations in the survey now have a formal recruitment strategy and policy. In 67% of all cases, this strategy is defined centrally and then implemented globally. The majority (46%) develop a core policy which is then flexed to reflect local business unit needs or circumstances however, in more than one in five instances, this deployment is the same across all business units and geographies. Nearly a quarter take an alternative approach; developing policy independently within each local business unit. Interestingly, delegates at The FIRM Conference had a virtually unanimous view of how strategy should be developed. 99% indicated that if it were up to them, there would be a global model or single framework with either minor local variations or a small element flexibility to reflect the particular needs of different business units. This would seem to imply that more than half of Resourcing professionals operate within a framework that has not been developed and implemented in what they believe to be the best way. Virtually all organisations have a structured approach to developing a resourcing strategy, with most created centrally. Less than half implement strategy in the way Resourcing professionals would prefer. 46% have centrally developed strategies that are deployed flexibly to reflect local conditions. 90% of organisations now have a structured approach to developing a resourcing strategy. 23% have strategies that are developed independently within each local operating business or geography. 21% operate centrally developed strategies that are implemented uniformly across the world.
  • 12. Strategic Talent Acquisition Report 2013 Page12Senior Resourcing professionals clearly aspire to act more strategically and want to place operational activities within a broader organisational context. Over half indicated that ‘developing and implementing strategic resourcing plans’ was one of the top three activities they are involved in on a daily basis. However, the data indicates that ‘implementing’ plans is taking precedent over ‘developing’, with 46% also stating that ‘direct sourcing for roles’ featured in the top three activities and 42% indicated that ‘consulting and advising hiring managers’ was a priority. There is a correlation here between size of organisation and how time is spent. Within smaller organisations (of 1,000 employees or less) 42% of Resourcing professionals spend a large element of the day actively managing candidates through the process. This compares to only 9% of professionals within organisations of between 10,001-50,000 employees. Conversely, only 29% of people in smaller organisations are involved in strategic planning on a daily basis, compared to 60% in the larger companies. Irrespective of the company size, 78% of all Resourcing professionals still have to spend some element of the day actively ‘recruiting’ for 6 or more open roles. This would be in addition to the number of roles being managed by the team for which they are accountable. While Resourcing professionals have aspirations to make a strategic contribution, most have to strive to balance this with the pressure of delivering operational ‘recruiting’ activity. 52% indicate that developing and implementing strategic resourcing plans and initiatives is a top 3 priority on a day-to-day basis. 46% indicate that direct sourcing for roles is a top 3 priority on a day-to-day basis. 42% spend a significant portion of each day consulting and advising hiring managers. 44% are managing 6-20 open roles at any time. 79% are personally managing more than 6 open roles at any time.
  • 13. Strategic Talent Acquisition Report 2013 Page13 The performance of Resourcing teams continues to be measured against tactical hiring metrics, such as time to hire (73%), cost per hire (74%) and hiring manager satisfaction (59%). While sourcing channel mix (56%), candidate satisfaction (47%) and Agency usage (62%) are increasingly monitored there is limited analysis of quality or effectiveness. Of these indicators, 3/6 month attrition (37%) is most often measured, followed by quality (29%), new hire performance in post (27%) and critical role succession coverage (23%). Organisations with higher levels of recruitment are significantly more likely to measure candidate satisfaction than other employers. There also appears to be strong statistical link between those organisations interested in candidate satisfaction and those who are being most proactive around building talent pipelines. Additionally, organisations capturing data on new hire quality are far more likely to see ‘enhancing the employer brand’ as a priority. Self-evidently, Resourcing professionals must be torn between the demands to think and act more strategically while their performance is assessed on short-term metrics which in the majority of cases do not effectively measure value. Operational resourcing activities continue to be measured by tactical metrics rather than quality, value or contribution to organisational effectiveness. 74% of organisations measure cost per hire. 73% of organisations measure time to hire. Only 27% of organisations measure new hire performance in post. 37% measure 3/6 month attrition rates. Only 29% of organisations measure quality of hire.
  • 14. Strategic Talent Acquisition Report 2013 Page14 The data reflects the widely held sentiment among Resourcing professionals which can be summarised as ‘I don’t really know what will happen to hiring levels in the next 12 months’. Generally however, the private sector is feeling positive about a net increase in hiring activity. This would seem to be supported by the CIPD Labour Market Outlook Report (LMO), Winter 2012, where the same pattern is represented. Most organisations are expecting to maintain staff levels in early 2013, slightly fewer expecting to increase staffing levels and fewer again expecting to decrease staffing levels. The number of organisations intending to hire has steadily improved since summer 2012. How this plays out remains to be seen. The LMO Report showed very positive signs of recruitment growth in autumn 2010, spring 2011 and again in 2012, which was not sustained in the following quarter. This level of unpredictability is creating very real challenges to heads of resourcing with respect to both ‘team sizing’ and ‘budget’ setting. Without a strong sense of future hiring numbers it is very difficult to correctly decide upon the appropriate size of the internal team, how that team should be aligned to the business and the size of budget required to deliver cost effective results. Such uncertainty would be a cause for concern in any circumstances; STAR reveals that the situation is amplified by a range of other influencing factors. Most Resourcing professionals believe permanent recruitment activity will be similar over the next 12 months however a significant proportion think levels could rise. 36% of organisations expect permanent hiring to increase. 12% of expect a significant increase. 22% think activity levels will decline. 43% expect permanent hiring to remain roughly the same.
  • 15. Strategic Talent Acquisition Report 2013 Page15 The survey provides unambiguous evidence that resourcing is now, and will increasingly become, an in-house activity. Over 81% of the organisations in the survey manage recruitment internally with just the support of external recruitment consultancies or marketing agencies. While 19% do outsource an element of the recruitment process or an area of activity (graduate, volume recruitment etc.) to a third party, complete outsourcing of all activities remains a minority activity (2%). In the future, over 55% of respondents expect an increasingly larger proportion of their activity to be managed internally with only 8% expecting to outsource more. This would seem to indicate relative job security and increased opportunities for most in-house Recruiters with one in three organisations expecting to grow team size and only 12% predicting a reduction. On a note of caution, 54% of organisations do not expect team size to grow. Of these, a number also expect to be managing more of the activity in- house, and some are among the 36% that expect hiring levels to increase. There will therefore be increased pressure on internal Resourcing professionals to deliver more, on tighter budgets and with less external support. Overwhelmingly organisations manage resourcing internally and they expect this trend to continue. However, they do not all believe that this will necessarily result in an expansion of their team. 81% of organisations manage recruitment either entirely internally or with just the assistance of intermediaries. 19% have some of their recruitment activity outsourced. Only 2% are entirely outsourced in an RPO relationship. 55% expect to manage an increasingly larger proportion of their recruitment internally. Only 8% are likely to outsource more activities to 3 rd parties. 54% do not expect any change to the internal team size. 34% expect the size of their team to grow over the next 12 months.
  • 16. Strategic Talent Acquisition Report 2013 Page16At the same time that in-house Recruiters are being challenged to manage more activity they also recognise the need to deliver on longer-term initiatives that will make a sustainable difference to the effectiveness of talent acquisition. However there appears to be a mismatch between the top priorities and internal areas of expertise. For most, building a proactive talent pipeline (56%) is one of the top 3 objectives, however only 19% of professionals rank their internal team as experts in this area and in 30% of cases they are felt to be novices. This is replicated in the next highest ranking priority – enhancing employer brand (41%). Here, only 17% of respondents believe the internal team can be called expert while 31% are novices. Other important activities, such as improving candidate experience (36%), extending direct sourcing (24%) and cost reduction (19%) are seen as stronger areas for internal teams. Areas not currently seen to be a top priority for Resourcing professionals include implementing social media strategies (15%), reducing time to hire (13%), relaunching employee referral programmes (9%), improving assessment tools (9%) and developing international recruitment programmes (9%). Interestingly only 5% see introducing CRM functionality as a priority – which could be seen as a pre-requisite for effectively building talent pipelines. While Resourcing professionals are clear about delivering forward-looking initiatives, it appears they are not confident that they currently have the skills within the internal team to achieve them. 56% place ‘building talent pipelines and communities’ as one of their top 3 priorities. Only 19% believe their team are ‘experts’ at building talent pipelines. 41% see ‘enhancing their employer brand’ as a priority. Only 17% see their team as ‘experts’ in employer branding. 36% rank ‘improving candidate experience’ as a top 3 priority.
  • 17. Strategic Talent Acquisition Report 2013 Page17 ’ Resourcing professionals are very committed to building pipelines as a core component of future talent acquisition strategies. As we have seen, it was chosen as a top-3 priority more often than any other goal. However it is evidently a new activity for UK Resourcing professionals, with only 15% of organisations believing they make above average use of internal pipelines to identify candidates and only 4% see pipelines as the primary channel for identifying candidates before other types of attraction or sourcing activity is commissioned. Strikingly, 55% of organisations make below average or no use of pipelines to source candidates. In addition it can be reasonably inferred that organisations are relying upon the recycling of speculative enquiries or candidates for other roles to build pipelines as only 5% undertake activities to proactively build pipelines - 74% rank themselves as average or below average in this respect. With so few organisations seeming to have perfected this activity and in the absence of a substantial body of UK case studies it is perhaps surprising that it is such a strong top priority for 2013. Building talent pipelines may be the top priority however most organisations have yet to undertake any structured development activity and even fewer use them as a significant source of candidates for new vacancies as they arise. 74% of organisations would rank themselves as ‘average’ or ‘below average’ with regards to proactively building searchable networks of potential candidates. Only 5% undertake any activity to proactively source or attract candidates to build a talent network. 55% ‘rarely’ use or make ‘below average’ use of internal talent pipelines to identify candidates for new vacancies as they arise. Only 15% believe they make ‘above average’ use of internal talent pipelines to identify candidates for new vacancies as they arise. Less than 4% see pipelines as the primary channel for identifying candidates in advance of commissioning external sourcing/attraction activity.
  • 18. Strategic Talent Acquisition Report 2013 Page18When asked at the FIRM conference what a Resourcing function would need to do in order to become a ‘true strategic partner to the business’ virtually half of the delegates (49.44%) felt it was ‘developing an effective workforce planning process’. This compares to 32% of respondents to the online survey who ranked this as a top 3 priority. STAR reveals that only 4% of respondents consider workforce planning to be currently well developed within their organisation - where there is a high correlation between forecast requirements and actual hiring activity. In 13% of organisations workforce planning doesn’t happen at all and in 37% of cases it was rated as ‘below average’. This is combined with 39% of organisations who feel they only have a basic knowledge of the external market and 6% who feel they have a very limited external perspective. Only 9% believe they have a deep insight, while 47% believe they have a ‘reasonable’ understanding. This apparent lack of intelligence with respect to either the future talent requirements of the organisation or the characteristics of the external market is likely to be a major barrier to resourcing becoming a strategic activity. It is also calls into question the potential value of building pipelines as there is a high risk that they might not be aligned with future hiring needs and may not contain the highest-performing professionals. While viewed as of significant importance, workforce planning continues to be poorly developed and implemented in most organisations and is combined with a lack of a structured process to understand the external talent market. Only 4% of organisations consider workforce planning to be well developed with a high correlation between forecast requirements and actual hiring activity. In 13% of organisations no workforce planning happens at all. In 37% of organisations workforce planning was rated as below average. 47% have a reasonable understanding of external talent markets based on ad hoc research and information gathering. 9% have a deep insight of the external market gained through structured research. 39% feel they only have a basic knowledge of the external market.
  • 19. Strategic Talent Acquisition Report 2013 Page19 On a cost per hire basis, senior and Executive recruitment is of course disproportionately more expensive than any other form of talent acquisition activity. The CIPD (2012), Resourcing and Talent Planning survey suggests a median cost for senior managers/directors of £8,000 – in reality external hiring will be very considerably more than this. One in three organisations have already migrated a significant proportion of this expensive activity away from Consultancies. However given that 55% of organisations expect to manage more of their recruitment internally it is perhaps curious that only 28% of organisations are looking to increasingly manage Executive hiring in-house. This is the one of the few areas where there is a disconnect between the data from the online survey and the delegates at the FIRM conference, where 89% indicated that they would prefer to undertake this activity using specialist Internal Executive Recruiters supported either by internal Researchers or an external Research Consultancy. This could reflect a desire by Resourcing professionals to manage Executive recruitment internally, but that other factors are stopping this from happening. This could be pressure from Board Directors to stick with tried and tested approaches. Most likely however is a belief that this skill set does not currently exist within internal teams as only 18% ranked Recruitment as an area of expertise (placing it 7 th from a list of 10 activities). Executive recruitment continues to maintain a ‘mystique’ with organisations less likely to change the way they manage these appointments than other hiring activity. 63% do not expect to make any change to their current approach to Executive recruitment. 24% will remain largely with Executive Search firms. 32% will continue to manage Executive recruitment internally. 7% will carry on working in partnership with specialist Research Consultancies. 28% are looking to manage more Executive appointments internally. Only 4% anticipate a larger role for external Executive Search firms. Only 18% rank their team as ‘experts’ in Executive selection.
  • 20. Strategic Talent Acquisition Report 2013 Page20 Resourcing teams are full of very good, 360-degree Recruiters. 90% have 5 or more years’ experience and 60% have been involved for over 10 years. As the survey reveals, they are expert at screening and interviewing (63%), direct sourcing (49%) and advising hiring managers (48%). However, only 4% of team members have experience of any activity that isn’t either recruitment or HR related. 60% come from Agencies, 16% from a wider HR role, 9% from Executive Search or RPO and 11% started their working life in an in-house recruiting role or direct from a graduate scheme. In the old world, when the need was for a transactional ‘recruitment function’, this would be fine. STAR suggests this may no longer be enough. If the business leaders are genuinely interested in talent acquisition as a strategic activity, then Resourcing functions either need people with a broader commercial perspective, or career- recruiters need to rapidly develop a wider business understanding and organisational awareness. The majority of in-house Recruiters began their career in a Recruitment Agency environment and have limited experience in non-recruitment related activities. 60% of in-house Recruiters began their career in an Agency. 16% started in a wider HR role. Only 4% have moved into Resourcing from a different functional area. 60% have in excess of 10 years’ recruitment experience. 90% have been involved in recruitment for 5 years or more.
  • 21. Strategic Talent Acquisition Report 2013 Page21 It is generally believed that ‘people come into recruitment as a stepping stone to a wider HR role’. This does seem to have been true, with 1 in 3 changing roles each year. This nomadic predilection does not appear to be diminishing, with 15% more people than average currently looking to change job. However there are encouraging signs, with 50% looking to stay within resourcing. This suggests that there is a solid bedrock of career-committed professionals from which sustainable talent acquisition teams can now be built. There also appears to be an increasing understanding of career management techniques, with 20% hoping to progress by acquiring a wider portfolio of talent acquisition techniques – as opposed to a vertical step up the hierarchy. There is also a hint of a more fundamental change, with 24% interested in a wider ‘talent management’ role. This quest for a broader remit is strongly supported by Bersin’s Predictions for 2013 that forecasts a ‘new HR organisation’ where HR becomes an integrated ‘talent business operations’ function’. It is evident that to sustain the transformation of talent acquisition, organisations need to do much more to engage and retain talent. Specifically, clearer development programmes for Recruiters are essential. Resourcing professionals change job on a regular basis, with a higher than average number looking to move. The majority hope to stay within the profession and most would like to show loyalty to their current employer. 91% of Resourcing professionals have been in their current role for 5 years or less. 28% have been in post for less than a year. 36% are actively or semi- actively looking for their next career move. 50% are looking for vertical promotion or to extend their role to gain wider talent acquisition responsibilities.24% want a wider talent management/development role. 50% feel that ‘limited opportunities for career progression and the lack of clarity about potential career pathways’ are the key challenges to achieving their long term career prospects. 53% do not intend to take any action to start looking for a career move to a new employer in the next 6 months.
  • 22. Strategic Talent Acquisition Report 2013 Page22 About us The Write Research Company An international talent research and insight consultancy, The Write Research Company helps organisations make better-informed people decisions. Gathering and interpreting talent intelligence from across the globe, we provide strategic and tactical support in the following areas:  Talent Edge – Bridging the gap between workforce planning and strategic talent acquisition to deliver sustained, measureable improvement to organisational effectiveness.  Talent Research - Identifying and engaging high-performing individuals for critical executive, senior management, specialist or professionals roles.  Talent Intelligence - Mapping and in-depth analysis to profile competitor strategies, reward benchmarking, perception audits and market assessments.  Talent Sourcing – On-going talent acquisition activity to build talent pipelines to meet immediate and long-term hiring needs. w w w . w r i t e r e s e a r c h c o m p a n y . c o m C o n t a c t : a n d y . d o l b y @ w r i t e r e s e a r c h c o m p a n y . c o m The Forum For In-House Recruitment Managers Run by in-house recruiters for in-house recruiters The FIRM was founded as a LinkedIn Group in 2007. Now with over 5,800 members in 56 countries, we are a supportive and collaborative community of corporate recruitment professionals that provides both an online and offline hub for members to network, request help, share knowledge and give advice on all aspects of recruitment and Talent Management. We aim to support, develop and inspire our members as well as working to ensure integrity and best practice throughout the in-house resourcing and talent community. Through doing this we aspire to raise the standard of service our members provide to their internal customers and receive from external suppliers. The group is solely for In-house Recruitment professionals and is not open to third party suppliers thereby providing our members with a niche and specialised group of like-minded people within the world of in-house recruitment with whom they network in a safe and closed environment. w w w . t h e f i r m - n e t w o r k . c o m C o n t a c t : e m m a @ t h e f i r m - n e t w o r k . c o m
  • 23. Strategic Talent Acquisition Report 2013 Page23 Join the discussion… If you’d like to share your thoughts and views on any of the subjects covered in the Strategic Talent Acquisition Report please join the discussion at The Forum For In- house Recruitment Managers on LinkedIn. See the detail… If you’d like to see the detailed statistics which underpin the Report, please contact: a n d y . d o l b y @ w r i t e r e s e a r c h c o m p a n y . c o m
  • 24. Strategic Talent Acquisition Report 2013 Page24 w w w . w r i t e r e s e a r c h c o m p a n y . c o m w w w . t h e f i r m - n e t w o r k . c o m