A crucial strategy: Why is talent acquisition important?

Today, talent acquisition is more important than ever. To be successful, an organisation needs people with the right skills for its goals and needs. But technological progress is as fast-moving as ever. From the artificial intelligence (AI) boom to the increasing use of data across various functions—important new technologies are emerging all the time, and with them, new in-demand skills. So, to keep up with digital transformation, companies increasingly often require people with relevant new skillsets. This requires constantly upskilling staff and bringing in new talent. On top of that, the specialists who are key to success are often in short supply, so the competition for top talent is intense.

At the same time, digital transformation is key to building effective, forward-looking talent strategies. Technologies, including AI, can enable talent acquisition managers to make skills-based decisions swiftly and help accelerate organisational growth. Despite the highly competitive labour market and skill shortages, the right talent acquisition software and AI recruitment tools can help organisations attract top talent and simplify the hiring processes.

Talent acquisition is one of the forces that help companies keep pace with both digital transformation and their competitors. By expertly curating the workforce of an organisation, talent acquisition managers help ensure that the company always has the right talent to be successful.

Talent acquisition vs. recruitment

So, what exactly is talent acquisition, and what does it involve? To fully define talent acquisition, there is another important question we need to answer: what is the difference between talent acquisition, human resources (HR), and recruitment?

“Human resources (HR)” is an umbrella term that can refer to the employees comprising an organisation’s workforce, the departments that deal with all issues related to employment, and the actual practices used in human capital management (HCM).

HCM refers to the activities and applications used for recruiting, managing, and developing an organisation’s human capital—also called its workforce. People are among the most valuable assets companies possess, so it is easy to see why human capital management is a crucial foundation of an organisation’s business plan and success. And one of the essential components of an HCM strategy is talent acquisition.

In the general scheme of HCM, the role of talent acquisition is to help identify top talent, source candidates for both short- and long-term business objectives, onboard, and retain employees. So, since it involves hiring, is talent acquisition the same as recruitment? Not quite. The main difference lies in the scope of responsibilities, so let’s break it down.

What does recruitment do?

Simply put, recruitment is concerned with hiring the right person for each job vacancy. A comprehensive recruitment strategy can guide how recruiters create compelling job descriptions, how they identify promising talent pools, and how top candidates are selected. But it is not always recruiters who devise the recruitment strategy; in fact, quite often designing the strategy is not their responsibility. Ultimately, a recruiter's main focus is to fill vacant positions.

What does talent acquisition do?

It is important to note that there are differences in how companies approach human resource management; the exact distribution of responsibilities between different HR roles can vary. But typically, a talent acquisition manager’s remit is broader than a recruiter’s, and they are involved in recruitment in a more strategic capacity. What does it mean? It is their responsibility to plan long-term recruitment strategies and introduce relevant HCM software and processes, equipping their teams with the tools to enhance talent sourcing, identify the best candidates, and onboard new hires effectively. In other words, a recruiter deals more with immediate hiring tasks to address specific needs, while talent acquisition is more forward-thinking.

For a talent acquisition manager, the ideal workforce can handle the tasks at hand whilst also being versatile and dynamic enough to grow and adapt to future challenges. Talent acquisition managers need to look holistically at the type of skills and capabilities their organisation needs and come up with a strategic, skills-based workforce plan. What does this mean? It isn’t enough to assess a candidate’s current skill set—how well they can do the job they’ve applied for. It is important to consider how their career path aligns with the organisation’s needs in the long term. Could this individual contributor develop into a manager over time? Would they be able to learn as they work and continually upskill to meet the evolving needs of the organisation?

Metrics used in talent acquisition

Candidate Net Promoter Score (cNPS) and employee NPS (eNPS) are two metrics that measure how satisfied applicants are with their candidate experience and how content and loyal the employees are. These scores help predict how likely they are to recommend the company as an employer—and to remain.

Employee retention rate is the percentage of employees an organisation retains (meaning “keeps”) over a particular period of time. Essentially, it shows how well a company can retain its top talent.

Employee turnover, attrition, and churn refer to the number of employees who leave the company within a specific timeframe (for example, a year). What’s the difference?

• Turnover is the percentage of the total workforce that leaves a position for which someone else will need to be hired
• Attrition is similar, but counts only voluntary departures from positions which will not need to be filled again
• Churn is the combination of turnover and attrition, counting the total number of departures, for any reason

Unlike attrition, high staff turnover may indicate issues with recruitment, eNPS, or incentivising employees. High churn does not always mean the company is performing poorly at retention, but it is likely to reduce productivity.

First-year turnover refers to the percentage of new employees who leave the company within a year of being hired. This metric helps identify issues with recruitment efficiency and gaps in induction.

Recruiter efficiency is an assessment of how optimised the recruitment process is, based on time, cost, and candidate experience.

Time to fill measures how quickly a company fills open positions, from when the job requisition is approved to when a candidate accepts the offer. This metric is good for assessing recruitment efficiency and strategy.

Time to hire measures how quickly the company can recruit an applicant, from when a candidate applies for a role to when they accept the offer, which is critical for measuring recruitment efficiency and candidate experience.

Time to productivity (TTP) measures how long it takes for a new starter to achieve standard productivity from their start date, which makes it useful for assessing how well onboarding works.

How does the talent acquisition process work?

Generally, a talent acquisition process includes the stages described below. However, depending on how a company’s human resources management is organised, the process may look a little different or be spread across multiple roles.

Procurement and strategy

• Identify skills gaps in the current workforce and areas where high-volume recruitment may be required, particularly in expanding organisations that may need rapid workforce scaling
• Anticipate forthcoming talent needs based on business objectives and wider trends
• Work with internal stakeholders from across the organisation to develop an efficient strategy that sets them up for success
• Select and introduce tools such as talent acquisition software and AI recruitment features
• Build talent pools, networks, and a strong presence in recruitment spaces, including on social networks and job boards
• Establish and maintain a good reputation as an employer
• Define and cultivate a company culture that promotes productivity and attracts top talent, especially for roles that are difficult to fill

Things to consider:

What roles will the company need to fill in the foreseeable future, and how can talent for them be sourced?

Which recruitment processes can be optimised using talent acquisition software?

Where do candidates look for jobs, and does your company have a strong presence in those areas?

Attracting applicants and candidate leads

• Create and post engaging, unbiased job descriptions that align with recruitment objectives and attract candidates
• If necessary, translate or adapt job descriptions according to local regulations and market trends
• Maintain an engaging careers website that showcases the employer brand and communicates the company culture and values
• Offer the right incentives to attract talent in the most cost-effective way
• Build a talent pipeline of candidates
• Place the job advert before the right pool of candidates to improve the quality and relevance of applications

Things to consider:

Which sites do candidates use to research a prospective employer, and is your organisation presented positively there?

When hiring deskless workers, how can you support them on their journey?

How do you ensure that your job descriptions are fair and inclusive, and can your talent acquisition software help eliminate biased language?

What circumstances might the top talent find themselves in, and what unique value can you offer them? For a dynamic young professional, mobility or relocation benefits could be vital. An experienced professional who has a family may prioritise companies that uphold work-life balance and support remote working with a robust digital workplace.

Screening and shortlisting applicants

• Review CVs, highlighting relevant skills and experience
• Screen candidates, verify provided information, and assess portfolios
• Compare applicants side by side, identify the best-matched candidates based on their skills, background, and experience

Things to consider:

How can you automate or accelerate screening processes and make it easier to identify candidates who have the right skills to excel and develop in the role?

Can HR software and AI help you make data-driven decisions free from bias?

Have the previous steps produced high-quality leads on promising candidates, or do you need to reassess your approach?

Assessing and selecting candidates

• Prepare questions based on the job description and the candidate’s CV, then conduct interviews
• Facilitate interviews with stakeholders, such as hiring managers
• Carry out due diligence, including background checks if necessary
• Assess candidates for cultural fit and suitability for the role
• Assess the applicant’s career trajectory and whether the position aligns with their long-term goals

Things to consider:

What is the best and most time-efficient way to ensure that a candidate possesses the skills required for the role?

How can you balance elements of candidate assessment, such as test assignments and multiple interviews, with the need to provide a good candidate experience?

Would the candidate find room to develop within your company? Overqualified new recruits might leave too soon, forcing you to go through the recruitment process again.

Could the candidate eventually become an asset in a different role? Every new recruitment process is an investment, so high staff turnover can be costly and detrimental to productivity and reputation.

Making an offer

• Ensure that the candidate fully understands the scope of work, requirements, and conditions of the role before they are hired
• Negotiate the finer details of the offer
• Prepare recruitment documentation, ensuring it is compliant with local labour regulations
• Provide or obtain legal or immigration support if necessary

Things to consider:

Which tools can help optimise the most resource-intensive processes at this stage?

In a global company, which stages of the recruitment process and elements of the offer may need to be localised?

Onboarding

• Set up new starters for success with adequate training and introductions
• Optimise onboarding procedures to accelerate time to productivity
• Provide new starters with the tools and information they require, such as equipment, identification, and knowledge of the facilities if applicable
• Undertake all required training, such as security, workplace health and safety, and compliance
• Connect new starters with relevant contacts, such as their colleagues and HR

Things to consider:

What resources can you provide to new starters to help them get started, and, in a global company, which parts of the induction process need to be localised?

Does your talent acquisition software integrate well with other HR systems already in place?

Do the recruitment and onboarding processes amount to a good candidate experience?

Beyond recruitment

Talent acquisition managers need to think beyond filling the position. It’s important to learn more about each new hire’s experience as a candidate. This insight can help talent acquisition managers improve the recruitment process with every new candidate. This is essential, given the fierce competition for talent, and even more so when dealing with roles where the talent pool is small.

Another practice, which is especially important in the age of AI, is upskilling your workforce. When employees have the tools to learn new skills, the entire workforce can become a valuable talent pool from which to recruit. Nurturing existing talent is not easy, but employees themselves can be great allies in upskilling initiatives because many of them also want space to grow. Investing in upskilling can help foster employee loyalty, enhance internal mobility, and make future recruitment easier and more cost-effective.

How to develop an effective talent acquisition strategy: Best practices

Recruitment can be demanding and fast-paced, making it more difficult to find time to consider the bigger picture and strategy. However, a robust talent acquisition strategy is worth the effort because it can save time in the long run and ease the daily pressure. So, here are some best practices worth incorporating into a talent acquisition strategy.

Assess the organisation’s business plans and strategy

To anticipate a company’s talent needs, it is important to understand the direction in which the company is heading and the challenges that may arise along this path.

How you can do it:

• Keep up to date with strategic updates even when they do not directly affect your day-to-day work
• Communicate with business leaders from other departments
• Work with colleagues in HR, such as the chief human resources officer (CHRO, also sometimes called director of HR), to understand and adjust the talent acquisition strategy

Proactively gather and analyse feedback

This is especially true for heads of talent acquisition and other leadership positions: your staff have insights that could help you optimise day-to-day processes and make HR work easier.

However, people will not always think to share their observations: to colleagues in non-strategic roles, some things might appear unimportant or seem too trivial to trouble leadership with. This is one of the reasons why fostering openness and a healthy company culture is important.

How you can do it:

• Conduct anonymous surveys
• Hold office hours or regular round tables
• Set up internal communication channels where colleagues can raise issues and share insights
• Establish and promote a culture of openness, attentive listening, and approachability

Understand and uphold the company brand and reputation

Another helpful practice is to infuse recruitment materials and candidate experiences with company culture and brand values. This will help candidates understand what they are signing up for so they can make better choices—and you can get better leads and less turnover.

Keep track of how people perceive the company as an employer. If you monitor feedback from current and former employees, you can identify issues in human resource management, which is important for eNPS. A poor reputation as an employer can damage the company’s overall image and undermine recruitment efforts.

How you can do it:

• Monitor recruitment networks and social media, such as Glassdoor and LinkedIn
• If possible, stay in contact with the PR department and request to be kept informed of any issues that may cast doubt on your company’s reputation as an employer
• Showcase your employer brand on the careers website, highlighting culture and values
• Provide a channel for current and former employees to raise their concerns directly with HR

Think outside the box

Recruiting a full-time employee is not the only way to meet your company’s talent requirements. For a temporary task, engaging agency workers may suffice—and save resources. Companies may also lose top candidates to external service providers who specialise in a particular field. For example, sometimes, if you cannot compete for talent with an award-winning creative marketing agency, you can simply hire the agency.

If your talent acquisition software or other HCM technology supports engaging contingent workers and service providers, an external workforce can prove useful, allowing you to:

• Quickly add the talent and resources you need to remain competitive
• Increase workforce capacity as needed
• Optimise costs through proactive control over every aspect of engaging external workers

Learn more about talent acquisition

• Follow authoritative sources, such as Forbes, TechTarget, and Gartner

• Read more on related topics:

  • What is an applicant tracking system (ATS)?
  • The hybrid workforce: Overcoming recruitment and induction challenges
  • Recruitment shouldn’t feel as unpleasant as dismissal

Tips for effective talent recruitment

Here are five ways to help make your talent acquisition strategy more effective:

• Use digital tools to optimise recruitment performance across tasks—for example, talent acquisition software and other instruments for human resource management
• Use analytics to track your performance through the metrics and talent acquisition KPIs
• Use data and insights from your HR analytics software to identify issues early on and find areas for improvement
• Use benchmarking to understand your performance in context
• Use new tools, such as AI recruitment, when they become available, so as not to fall behind your competitors adopting the latest technologies

AI in talent acquisition: How to use AI for recruitment and sourcing?

With nearly every field finding applications for AI, recruitment is no exception. While the exact features depend on the AI and the talent acquisition software you’re using, AI can help HR teams to optimise recruitment performance, simplify complex tasks, and increase recruiter efficiency across all stages of the hiring process. The benefits of AI for talent acquisition include:

• Stronger collaboration: AI can make it easier to collaborate across departments and systems, thanks to data-driven people insights
• Automation: AI can help personalise employee and candidate experiences at scale, improving eNPS and cNPS
• Productivity: You can create and enhance job descriptions and other HR materials much more quickly with the help of AI-assisted content generation
• Agility: Data insights can help you make skills-based, equitable, and unbiased hiring decisions quickly and confidently, thanks to features such as AI-assisted applicant screening
• Improvement: Talent intelligence solutions can offer bespoke tips for learning and development based on each employee’s skills to help build a workforce ready for the future

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