Paris, on June 17th, 2019 - How important is the growing challenge of recruiting talent for organizations today? Many HR experts say it has reached crisis stage. In fact, the worldwide economy will be short 85 million workers over the next decade-plus according to respected consulting firm, Korn Ferry. This represents a staggering loss of 10 397 billion CAD in profit.
As the recent “Strategizing for a Smarter Workforce” study shows, putting leading edge technology, innovative solutions and best practices to better recruit top talent, to help them grow and to increase their skillsets is no longer an option for companies. The study was commissioned by Cegid, the provider of software solutions and partner for the digital and organizational transformation of companies along with Aberdeen, the renowned analytics firm.
The HR departments of companies both large and small use popular technology and software today to recruit and onboard new hires. These companies are lacking, however, in their use of comprehensive, high quality data that can help them identify the best applicant matches for specific positions. Even larger organizations are behind the curve when it comes to using state-of-the-art talent solutions that allow them to consider every skill necessary for a given job.
Management challenges after the hire
Today’s HR challenges do not end with the recruitment and hiring of talent to fill open positions. It is more important than ever to manage and monitor the career path of talented employees in order to help create and direct the employee’s progress as their career progresses. This is because most current performance-management systems only consider a retroactive analysis of data. This means these antiquated systems can only identify strengths and weaknesses after an impact has already been made on the employing business. Over half of businesses polled in the Cegid/Aberdeen study admitted to using performance evaluations made retroactively. Of this group, 30% did not have the proper data to draw from and another 30% simply did not know which tools were available to make such management happen proactively.
Another finding of the recent study showed a detrimental lack of interaction between the companies and their employees for the purpose of learning why some talent stays in their position while others leave to pursue different career paths with another employer.
Assessment leads to development of skills, growth and even attracting new hires
The process of assessment began in France four decades ago and has since become an important HR tool in businesses worldwide. The process is used today to enable companies to identify the future skills of a candidate in terms of their growth potential. Through the use of strategic simulations, assessment also helps detect potential risks, weaknesses and even stress levels of a given candidate. Making smarter hires of talented candidates through the use of tools like assessment produces a well-known benefit of actually attracting other talent and increasing the overall value of a firm’s brand as a desired employer. The recent Cegid/Aberdeen study found that over half of businesses said the process of assessment has enabled them to meet candidates who have surpassed expectations in terms of skills or performance.
To accelerate performance, manage talent
Nearly three-quarters of high-performing companies (in terms of talent management) polled said that the number of top talents hired increased dramatically over the past three years. In addition to using best practices assessment methods, these companies also have extensive employee recognition and rewards policies including compensation, special monetary incentives and other ways to recognize exceptional individual performance. While many firms wait anywhere from one to five years after hiring an employee before applying such incentives and recognition programs, the study found that top-performing companies put these programs into effect within the first year of employment.
Another positive outcome of such high-performance talent management can be found in the retention of talent, with typical employee longevity being five to nine years compared with between three to five years for other businesses.
A growing amount of research like the recent Cegid/Aberdeen study clearly show the relationship between using advanced talent solutions to more precisely attract and develop talent with the improved financial/commercial performance of any given business. It is becoming increasingly clear to savvy HR Managers that using better tools and solutions to dramatically improve the personalized management of the employee experience – from recruitment to career path development and long-term retention – is one of the most critical success factors in today’s global economy.
About the methodology of the study:
This study was carried out using a panel of approximately 275 HR and IT professionals employed in businesses from all sectors (industry, IT, retail, healthcare, automobiles, etc.) in addition to the public sector: 197 polled in Europe (81 percent in France) and 77 professionals in Canada.