January 22, 2019 – Articles about today’s talent shortage seem to be popping up everywhere, which is not surprising when unemployment in the U.S. is at its lowest since 1969. And with over six million jobs remaining vacant each month, the looming retirement of Baby Boomers will undoubtedly escalate the war for talent and cause employers to rethink their hiring tactics.
“Obviously the talent shortage is real, but an outdated approach to acquiring talent may be a root cause behind the large discrepancy between available jobs and employees to fill them,” so says a new report by J. James O’Malley, managing director at Stanton Chase International.
A recent Wall Street Journal article highlighted the lengths some employers will go to fill open positions. One major retailer offered a full-time sales job on the spot after a single 25-minute interview, a large caterer extended a seasonal position to a candidate after just a phone interview, and a healthcare company filled several entry-level positions using the results of an online assessment and virtual job tryout.
“While these companies have adopted practices to create a more contemporary candidate experience, filling an open position in record time is not the only weapon needed to win the talent war,” said Mr. O’Malley.
He offered an outline of how a more contemporary experience can fuel the candidate pipeline.
Develop a Talent Supply Chain
“Recruitment” and “talent acquisition” are often believed to mean the same thing, but their true meanings are quite different. “Recruitment is an employer’s reactive response to an open position that originates from a linear process as illustrated by the Wall Street Journal scenarios,” said Mr. O’Malley. “Talent acquisition is a proactive approach to addressing future hiring needs. It creates a candidate pipeline through planning and strategy, relationship building, employer branding, and metrics. While recruitment is a part of talent acquisition, it should not be the be-all, end-all to hiring. Building a talent supply chain can help employers hire more top talent and yield much better results.”
Candidate pipelines start with the identification of strong candidates (e.g., employee referrals, finalists for filled positions, individuals from networks, etc.) and a plan for making and maintaining contact (e.g., company newsletters, blog posts, personal emails, etc.). The goal is to grow relationships that will speed up the selection and hiring process when relevant opportunities open.
For 30 years, Mr. O’Malley has developed talent acquisition solutions to ensure that leadership talent aligns with changing business needs. He joined Stanton Chase from TalentRISE in 2018 and has been focusing on senior-level searches for the financial services and professional services practice groups. He has also served small to large commercial, consumer, retail and private banks in addition to credit unions
“I would argue that building a talent pipeline in response to today’s tight market requires companies to create a more contemporary candidate experience,” Mr. O’Malley said. “But contemporary does not mean simply developing a faster hiring process or using automated tools to assess applicants. Instead, I would encourage hiring managers to closely focus on the candidate throughout the hiring process and develop methods that will help identify the best candidates and lead to smarter hiring decisions.”
Components of a Contemporary Candidate Experience
Traditional interviewing methods, such as in-person one-on-ones, phone screening and panels, still have value in today’s environment, but they have been shown to be ineffective in certain areas, the Stanton Chase report said. According to LinkedIn’s ‘Global Recruiting Trends 2018’ report, 63 percent of surveyed recruiters and hiring managers felt they did not successfully assess a candidate’s soft skills, and 57 percent thought they did not help them understand a candidate’s weaknesses.
“How do you create a contemporary candidate experience? Well, you don’t need to recreate the wheel,” said Mr. O’Malley. The key, he said, is to return to some basics while keeping a few success factors in mind:
1. Make the Hiring Process Easy
Evaluate whether time-consuming steps like completing a lengthy application or taking online aptitude tests are essential before a candidate talks to someone about a job. The goal is to limit the number of barriers applicants may encounter:
- Can a candidate apply with a mobile app?
- How flexible are interviews? Are they scheduled after hours or on weekends?
- Are you using video to interview remote candidates?
“Easy isn’t achieved by skipping important steps to speed up the process,” Mr. O’Malley said. “Executive positions and customer-centric roles will still require face-to-face interviews and most likely several of them with various people in the company.”
2. Be Responsive
Leaving candidates in the dark is a sure-fire way to lose the war for talent. “There is nothing more frustrating than losing a great candidate because deciding whether he/she was the best fit for the role took too much time,” said Mr. O’Malley. “Employers should not wait longer than four business days (two business days is optimal) after interviewing to respond to a candidate with your next-step decision. Keep in mind that candidates can become customers in the not so distant future, so being courteous with a timely response is just good business.”
This Recruiter’s Top Five Secrets for Landing Candidates
With the high demand for quality talent rising, candidates are in the driver’s seat in today’s job market. This means that companies, and the recruiters representing them, must move quickly when they find the right hire. Fred Medero, a managing partner at Kincannon & Reed, offers some strategies.
Time-to-fill has long been a means of measuring recruiting effectiveness, but too often it gets overshadowed by cost-per-hire. The report said that measuring time-to-fill “means nothing unless your organization is acting upon the data. Responsiveness should not stop once an offer is accepted but continue through the onboarding period.”
3. Carefully Select Your Interview Team
“Most have probably heard or experienced the scenario where a great candidate drops out from consideration towards the end of the hiring process after being interviewed by a senior leader,” Mr. O’Malley said. “For younger candidates, meeting with an interviewer who has 20-plus years of experience may present a dated or distorted portrait of the company and make it more challenging to visualize working there.”
Be sure those involved in the interview process know how to sell the company and assess candidates for the position. “Interviewers should be briefed on what questions are illegal or inappropriate and be discouraged from talking too much about themselves and their career path,” Mr. O’Malley said. “Interviewers should also be familiar with an applicant’s resume before the meeting and not keep a candidate waiting. With the current talent shortage, employers are selling themselves to candidates as much as candidates are selling themselves to employers.”
4. Focus on Essential Job Requirements
Job postings have turned into extended documents with countless “essential” requirements that few candidates, if any, actually have. “While recruiters use job descriptions to plan their search strategy and assess applicants, candidates use the same job descriptions to evaluate whether they want (or can do) the job,” said Mr. O’Malley. “Lengthy job postings can discourage good candidates from applying if they feel they do not have all the skills and experience listed.”
Seven Tips to Find Great CEO Candidates
When determining a CEO’s suitability, companies should remind themselves that no candidate is perfect. The goal is to understand the trade-offs among the candidates’ strengths and weaknesses, and to ensure that prospects’ are not in areas that are especially critical for company performance.
“Be careful about relying too heavily on resume tracking systems that automatically screen resumes,” he said. “Great resumes are comprised of more than just a few keywords, so it is prudent to take the time to read resumes and obtain a complete snapshot of a candidate’s experience.”
5. Train Good Candidates for Open Positions
Some would argue that the talent shortage is exacerbated by a reluctance by companies to devote the necessary resources to training new employees. Hiring smart people and helping them develop needed skills certainly seems like a more viable solution than conducting an endless search for a few select candidates who possess the perfect mix of skills and experience, said the report.
“Yes, training takes time and costs money, however, so does recruiting,” Mr. O’Malley said. “A strong candidate who lacks specific technical abilities or industry experience may have transferable skills that will shorten their learning curve.”
6. Use Innovative Interviewing Methods
“Interviewing innovations, such as soft-skills assessments, job auditions and meeting in casual environments are growing in popularity and providing critical insights into a candidate’s qualifications,” Mr. O’Malley said, and he offered some data to support his argument:
Fifty-nine percent of those surveyed for the LinkedIn ‘Global Recruiting Trends’ report said soft-skills assessment tools were one of the most useful interviewing innovations by evaluating areas such as teamwork and flexibility that directly relate to overall job performance. Insights can be obtained quickly, scaled easily and are less biased than traditional formats.
Fifty-four percent of respondents thought seeing a candidate in action by letting them perform the role for a trial period was one of the most useful interviewing innovations and leads to a more satisfying candidate experience. “Job auditions not only help the employer evaluate a candidate’s potential success in the role, but also provide a better sense of the ins and outs of a job, which can lead to lower attrition and higher candidate satisfaction,” Mr. O’Malley said.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Andrew W. Mitchell, Managing Editor – Hunt Scanlon Media