From speaking with our networks, it is clear that many organisations have high hopes for 2021 and are starting to plan accordingly. As a result, as we continue through the new year, the labour market is expected to become far more saturated with job vacancies as industries reopen, making it more competitive than ever to attract the best talent. Those without effective talent pipelines are far more likely to miss out.
What is talent pipelining?
Talent pipelining is the process of building long-term professional relationships with the passive talent pool for future opportunities. This means employers get to know the talent landscape, the actual people, regardless of whether or not they are looking to make a career change immediately. This ongoing nurturing of talent saves time in actively sourcing and narrowing down suitable candidates when a vacancy occurs. Therefore, by transforming short-term reactive recruiting, into long-term proactive recruiting, companies will be two steps ahead in the hiring process.
The benefits of talent pipelining:
Talent pipelining enables companies to combat industry skill shortages as well as providing an advantage over competitors.
A study by New Street Consulting Group (NSCG), analysed board evaluations from the annual reports of all FTSE 100 companies. Their results have revealed 29% of firms openly admitted to having a skills gap on their boards. A further 68% have admitted to having problems with succession planning.[i] Like with any threat, strategically planning ahead can help to mitigate risk – the workforce is no different! Companies that choose to invest in this area will certainly have an advantage in their market.
Colin Mercer, director at NSCG, warned that “in today's competitive environment a business can't afford to be rudderless” and failing to have a pipeline of talent leaves companies vulnerable. He continued, stating that effective talent programmes and succession plans are “the hallmarks of strong businesses”.
Talent pipelining has always been a useful hiring tool as the passive market is always far larger than the active job seekers market. However, the climate created by COVID-19 has magnified its importance. The increased number of redundancies and unemployment has created a larger pool of talent readily available. Now is the best time to identify, and build relationships with, skilled candidates for your companies future needs.
How can companies implement talent pipelining?
The most common way is by dedicating a recruitment team who are devoted to the ongoing nurturing of talent. This will create a group of potential candidates who are qualified and prepared to step up and fill relevant roles within the organisation as soon as they fall vacant. This could be set up internally or outsourced externally to a recruitment agency – a service we’re proud to offer at ENG.
Another pipelining strategy can be implemented by HR teams. People professionals should ensure that effective upskilling and development pathways are available for employees already in the organisation. This is a practical way to avoid a skill shortage – particularly at a senior level.
[i] https://www.peoplemanagement.co.uk/news/articles/ftse-100-boards-exposed-by-lack-of-future-talent