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Simon Lyle

Simon Lyle



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30 November 2021 · 4 min read · Insights
Industry Voices


HOW HR CAN CLOSE THE TALENT GAP 


Published: 30 Nov 2021


With the search for talent more competitive than ever, just what can HR do
differently to stay ahead in 2022?

Crisis situations often accelerate changes which are already taking place. The
COVID pandemic is one such crisis, and its impacts are continuing to be felt
right across the global workplace. Even before it struck, the acquisition and
retention of talent was an issue for many firms.

Now, as the economies of the world pick up speed again, this need to recruit has
become even more serious. Other workplace trends have also added a new dimension
to this challenging environment.

Employees now have different expectations about just how and where they work,
with hybrid work patterns now the norm for many previously full-time,
office-based positions. Many employees now expect to be offered far more
flexibility, and businesses now have to factor this into their job offers. 

So HR now faces a double act of challenges: to still find the talent needed in a
much tighter market, but also having to cope with changing expectations in just
how and where we work.

This is unlikely to be solved any time soon, so just what actions can HR take
right now to stay ahead of these emerging trends? Here are three ways in which
businesses are rising to the challenge of a tighter job market for talent.

 

Look internally

The first place to seek out new talent should be within your own organisation.
There, if you are willing to change the way you look, you will find candidates
who, even if they have slightly different skills, could be redeployed internally
to meet the new challenges you face.

According to research by LinkedIn, internal candidates who have moved role are
three and a half times more likely to be engaged as employees who have not moved
internally. This has the added bonus of bringing into the frame employees who
are not only likely to be more committed, but who also have a far better
organisational understanding of the business, its goals, objectives and culture
than external candidates.

Of course it also requires you to be far better at identifying and understanding
just who within your company has the aspirations required to benefit from an
internal move – and that means developing the programmes to help you identify
them. But given the benefits to you – and the employee – it is well worth the
time investment.

     

Cast your net wider

We know that diversity is a clear goal for many organisations and one which
brings huge potential benefits to any business which actively engages in efforts
to deepen the pool of talent from which it seeks to draw its employees.

McKinsey’s Delivering Through Diversity report makes it clear that firms with
gender equal executive teams outperform those who haven’t in terms of
profitability. Those with executive teams which are ethnically and culturally
diverse are 33% more likely to deliver industry leading profitability. 

It makes perfect sense, therefore, to look for ways to open up opportunities to
the widest possible range of candidates. You might find internal candidates open
to new experiences and who could be upskilled or reskilled to take on new
responsibilities. Equally, you can actively find ways to reach out to those who
are perhaps under-represented in your business.

In the USA, IBM has an extensive programme to address diversity issues. This
includes apprenticeship schemes and a skills academy, together with ‘Executive
Councils’ which meet with a range of groups, including black and minority
ethnic, the LGBT+ community and ex-service personnel, to share career
development insights and learning from its own executives, many of whom are
themselves from diverse backgrounds.   

There is also an opportunity here to allow employees to quickly learn new skills
and work in positions where they might not have previously been considered. Look
at external schemes too like Kickstart which allows you to tap into new pools of
potential talent, where you can give an individual the opportunity for six
months to get a feel for the role and increasing their long-term employability,
while injecting new ideas and points of view into your own organisation.

One bold consideration could be sharing talent or temporarily adopting talent
from outside your own organisation. This gives employees a chance to widen their
skills sets and to bring in talented individuals who might well have some new
ideas to share from their own organisations, exposing your company to new
techniques and shaking up what might otherwise be traditional ways of thinking.

During the pandemic, McDonald’s in Germany took the bold step to allow its
restaurant workers to join the retailer Aldi. Aldi was experiencing a surge in
demand for home delivery, while McDonald’s was having to close its branches, so
both companies benefited, but also both sets of employees gained new skills and
insights which could eventually be brought back to their own companies as the
pandemic receded.

 

Unearth the hidden gems    

There is always a danger that the people hiring for your organisation look to
find people who match their own expectations, and that the recruitment process
reinforces this hidden bias. This makes for a shallow pool in which to seek out
new talent. As well as potentially reinforcing the thought that new talent must
come from outside an organisation, this means that you risk missing out on those
internal candidates with excellent skills which they might one day take
elsewhere.

As Deloitte has shown, in a 2018 report, it can cost six times as much to hire
an external candidate than develop your internal talent. So you need to find
ways to open up the process, which in turn allows you to seek the ‘hidden gems’
which the existing process, consciously or unconsciously, may well be shutting
out of consideration.

Be aware too that all employees, wherever they are based, should be allowed
access to those opportunities. Just because someone works remotely doesn’t mean
they don’t have the same commitment as someone you see every day at the
watercooler. Visibility shouldn’t lead to advantage.

This has been proved by J R Keller, assistant professor of HR Studies at Cornell
University. He studied two ways of hiring: posting jobs on an internal
marketplace, or via a sponsoring manager.

The hypothesis was that the better appointments would come via the sponsored
route. That wasn’t the case. Analysis of 11,000 internal moves over a five-year
period showed that the internal marketplace candidates outperformed the
sponsored ones on every criteria the study measured. So beware the watercooler
moment when looking to appoint internally.   

 

It’s time to re-charge your talent acquisition  

Talent will remain in short supply and the search to find the best will continue
to be difficult. So looking further afield, assessing candidate strengths in new
ways, and opening up the recruitment process to internal candidates and removing
all biases, all are moves which make perfect sense as ways to supercharge your
talent management and acquisition.

Your best new talent may well be right under your nose, but you need to ensure
that the processes you employ can identify and encourage those candidates, not
shut them out, or worse, encourage them to seek new opportunities elsewhere.
Make the right changes, and not only will that talent stay, but it will thrive
and your business will thrive alongside it.

 

To find out more about how you can employ new ways to supercharge your talent
acquisition – click here.

 

Simon Lyle is managing director UK at Randstad RiseSmart

skills
skills gap
talent
talent acquisition
labour shortage
skill shortages



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