Talent Acquisition Explained: Why It Benefits Companies?
What is the best way of hiring the best talent? Understanding what kind of specialists you need is one thing. Knowing what type of business goals you pursue by hiring this talent is the other thing. Both are integral elements of the hiring process.
However, there is more than that.
When it comes to establishing an effective hiring process, you get talent acquisition when all the puzzle pieces are in place.
This article will explain what talent acquisition is and how setting it up benefits the company.
What is talent acquisition?
If you think about it – talent acquisition is just what it says on the tin. The common description goes like this:
- Talent acquisition is a type of recruitment operation that involves an exquisite approach towards identifying, engaging, hiring, and retaining viable specialists.
However, there is more than meets the eye.
In a way, talent acquisition can be interpreted as a much more sophisticated recruitment approach that focuses on enabling the business goals realization through viable tech talent.
Because of that, TA is a multilayered process that involves numerous moving parts that contribute to the whole (directly or indirectly).
Here’s how it goes:
- Talent Planning – the core element of TA strategy.
- Talent Gap Analysis – the business intelligence of recruitment process.
- Employer Branding – this one informs TA strategy presentation and realization.
- Recruitment Pipeline – that’s the trenches where all the action happens.
- Employee Onboarding – to immerse new hires into the company and kickstart their career in the company.
- Use of Data Analytics – for data-driven recruitment, establishing recruitment metrics (such as quality of hire or cost per hire) and overall process quality assessment.
You might ask how it is different from a regular recruitment operation. Let’s explain.
Talent Acquisition vs. Recruitment: What’s the difference?
Understanding the difference between talent acquisition and recruitment can be a bit tricky.
The thing is – both are very similar and are parts of the same process. However, there is a vast difference in the scale, and the goals of both are different.
- Talent Acquisition is a strategic operation with long-term talent planning. It is about meeting the company’s overarching business goals by finding viable talent to make it possible.
- It is a conceptual backbone of the talent strategy and the recruitment operation – it sets the direction.
- Furthermore, TA is a way of neutering a possible impact of hiring bias.
- Because of that, it involves so many indirect elements such as employer branding and talent gap analysis.
In its full force, the TA approach is more common in executive search, where the stakes are much higher, and the goal is to find a surefire candidate that will more or less bring the company to a new level.
- In contrast, recruitment is a tactical operation to fill hiring needs within the existing framework to enable the proceedings at the required level.
- As such, recruitment is a talent acquisition tool.
A regular recruitment approach is applied for most positions within the company (for non-management personnel, low-to-mid level specialists).
How can talent acquisition benefit the company?
Four major ways are setting up a talent acquisition process is beneficial for the company.
1 Cost reduction
It is no secret that maintaining recruitment costs at a reasonable level is quite a challenge. Furthermore, making recruiting cost-effective is an even bigger challenge. The reason why it turns out that way is complex. But in its heart, it is always because of a lack of understanding of what exactly the company needs and how to get it.
Establishing a proper talent acquisition is a viable solution. Here’s why.
- TA’s goal is to have a clear and distinct vision regarding what kind of tech talent the company needs and how to aсquire them.
- In a way, this is the optimization of the hiring process to its most efficient state.
2 Time to hire reduction
Time is one of the most challenging aspects of the recruitment operation. One of the reasons why recruitment metrics are so important is that you need to figure out how to make things go a little bit faster and take significantly less time to get done.
The entire time to hire and time to fill recruitment metrics are dedicated to solving this challenge, but both are mere tools of talent acquisition strategy and recruitment process.
Here’s how talent acquisition strategy reduces recruitment time:
- Sourcing candidates is one of the biggest time-consuming activities of the recruitment process. It takes time to find the right kind of people.
- However, with the talent gap analysis locked and loaded and the talent planning process intact – it turns the sourcing process into an ongoing operation of gradual exploration of the labor market with occasional recruitment operations.
3 Higher quality of hire
Quality of hire is one of those enigmatic concepts that seem to be well-defined and yet constantly misinterpreted. In essence, it is all about the impact of the new hire on the workflow, the way the business goes, the people feel, etc.
But there is one thing for sure – if you want to understand your quality of hire metrics and what “higher quality of hire” means for your company – you need a talent acquisition strategy as a foundation.
Defining quality of hire depends on the business requirements of the business and its expected impact. These are the things that TA conceptualizes.
Without it – all you have to measure the quality of hire is a set of position requirements and general observations. At the same time, this approach shows what is going on the ground level. In contrast, the TA strategy provides context that lets you understand whether the new hire is truly a success.
Talent acquisition has always been a tricky beast—part of the reason is its complexity. You can’t really set it up without extensive preparation on all fronts.
If you need help setting up a fully-fledged talent acquisition pipeline or need to fine-tune the existing one – our consultants can help.