A new survey has highlighted that 42 per cent of talent leaders think the shortage of specific skills is the biggest challenge within their talent acquisition strategy, which is affecting productivity and profit.
Research into talent leaders in seven European countries has found that 29 per cent of them believe that the retention of new starters is their biggest challenge impacting productivity and 27 per cent believe it is the changing political landscape and new legislation.
The report categorised respondents as High, Medium or Low Impact based on the effectiveness of their talent acquisition functions across 12 dimensions. High Impact talent acquisition functions had articulated strategies that shape business decisions. Low Impact talent acquisition functions were characterised by having immature talent acquisition processes and ineffective measurement.
It found that 31 per cent of companies with High Impact talent acquisition functions report operating at maximum productivity, compared with only 4 per cent of companies with Low Impact talent acquisition functions.
The report also linked an organisation’s talent acquisition functions effectiveness to profit. 68 per cent of companies with High Impact talent acquisition functions report an increase in profits last year compared with only 31 per cent of companies with Low Impact talent acquisition functions.
When questioned on the implementation of specific recruitment tactics, talent leaders highlighted their weakest areas were video interviewing, telephone interviewing and keeping candidates warm between selection and start date.
Meanwhile, 37 per cent of respondents who work with an RPO provider to support their talent acquisition process have a more significant impact on business outcomes than exclusively in-house teams. RPO partnerships outperformed at: innovating to meet the demands of the business; delivering quality hires consistently; and demonstrating agility to meet changing demands.
Seb O’Connell, Cielo’s Managing Director of Europe and APAC, commented: ‘Whilst it is understood that Talent Acquisition is not the only influence on the profitability of an organisation, the difference in profitability between the Low Impact and the High Impact functions is so significant that it has to be considered as a core contributing element. The research proves organisations that appropriately invest in their talent acquisition function see the most value.’