W3: Talent Acquisition in a Full Employment Economy

Mark SimsSenior Manager, Castille Matthew Camilleri

Chief Executive Officer, CastilleGilbert Galea

General Manager, Castille

Talent Acquisition in a full employment economy

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#HrChallenge #CompetitiveAdvantage

TALENT ACQUISITION FOR COMPETITIVE ADVANTAGE

1. Context – Key market conditions - Matthew Camilleri

2. The increasing importance of Employer Branding - Matthew Camilleri

3. New Age TA methodologies - Matthew Camilleri

4. Managing the selection process in a faster market – Mark Sims

5. Legal practicalities of on-boarding hires - Matthew Brincat

6. Alternative Resourcing models in specialist skills – Gilbert Galea

7. Exchanging notes and QA - Matthew Camilleri

CONTEXT - MARKET CONDITIONS: Matthew Camilleri

Key Market Conditions

Global Trending in supply for professionals with specialist skills:

• Not a Local phenomenon.

• World is experiencing structural shortages in specialist areas but in digital skills in particular.

• Speed of Digitalization and Complexity is leaving education systems unable to catch up – likely to be the case for the next 50 years according to many studies.

• This is driving significant changes in work trends from remote interviewing, to remote working to partnerships – all in the name of securing best talent.

• Skills mismatch index has continued to widen across the world according to the HAYS Index 2018, creating widening skills premiums.

• 80% of CEOs worried about the availability of key skills with 50% struggling to find Digital talent.

• Neither is it only a Western Phenomenon - 28% of CEOs globally are extremely concerned about the availability of Digital skills in country, increasing to 49% in SA, 51% in China and 59% in Brazil.

• Nearly 300,000 IT jobs are currently vacant in the United States, costing the country about $20 billion in potential economic opportunities.

• According to De Spiegel there are 40,000 unfilled software engineeringvacancies in Germany.

• UK wages rise as companies struggle to fill vacancies, Unemployment rate close to its lowest level since 1975. Hospitality, Finance and IT workers are the most in-demand.

• Rising vacancies in European countries becoming a major challenge. Despite mixed picture on wage inflation – candidates in areas of skills which are in high demand are receiving multiple job offers and counter offers driving wage inflation.

Key Market Conditions

Mitigating factors:

• Significant increase in female worker participation.

• Skilled migration – there are more global migrants today than ever before –3.3% in 2017 and interestingly these migrants are increasingly well educated. Problem is these high skilled migrants tend to be concentrated in a small number of countries such as the UK, US, Canada and Australia mainly attracted to clusters such as Silicon Valley and the City of London.

• New Working trends driven by such shortages and the widespread availability of mobile bandwidth and social networking sites.

• Growing army of Gig workers – growing from 10% to 15% of the US economy and in the EU such roles having grown 400% more than permanent ones in the last 5 years.

Key Market Conditions

Drivers for the shortages:

• Working Age Population across all countries forecast to decline by millions as the global workforce ages. This trend will accelerate as Baby boomers begin retiring from 2020 and due to low birth rates will not be replaced in market. In Russia the UN forecasts there will be a million fewer people in the labour market in 2017 compared to 2016. Smaller falls estimated in Poland, Germany and Italy.

• Inability of education sectors to respond resulting in a growing skills mismatch across most markets. Driven by the speed at which the world is going digital and complexity.

• Limitations on worker mobility.• Cries that technology is making jobs redundant is overdone, whilst AI will

replace some jobs, others (higher skilled) will be created as a result of these new technologies whilst tech also increases productivity which in turn generates more jobs.

Key Market Conditions

EMPLOYER BRANDING – TRENDINGMatthew Camilleri

Findings show that the strength of the employer’s brand is the most important factor for attracting talent (75%), closely followed by a competitive salary (62%), and learningand development opportunities and job security (both 61%).

Employer Branding

What distinguishes your company culture and employment from your competitors? 1

• Targeting the right talent• Standing out from the crowd• Delivering on your promises• Confronting the facts

The company’s own website and social media accounts need to carefully reflect which values stand at the brand’s heart. Employer branding portals that specifically tailor to niche segments, for example Tech & Finance candidates, might prove to be the differentiating factor between two similar organizations. 2

Employer Branding

While most employees will, in good faith, do their best to promote a good service, this goes beyond and requires of them soft skills related to problem solving, communication and follow-up techniques.

Top 10 marketing priorities by employers3

Key Observation:

• employer branding places 5th with 35.8%.

Trending: Employer Branding

Key Observations:

• 1/3 of employers would advertise a job whereas only 14% of candidates would check ads.

• Very few candidates use social media to search for opportunities, explaining low CR.

• Top tools – Linkedin and networking with colleagues.

• 63% checking employer career sections directly.

Trending: Employer Branding

Are employers choosing the right channels to target candidates? 3

Generational differences among candidates media trends. 3

Trending: Candidate behaviours

Key Points:

• Baby boomers more likely to turn to their network, Gen-X industry publications and Millenials purely digital medias.

Key considerations on opportunities:3

Trending: Employer Branding

Key observation – widest gap in employer/candidate consideration:

• Office location/commute distance

• Ability for remote work/telecommuting

• Benefits

• One to add – Development and in the case of Digital workers –new technologies.

What do candidates care most about – generational differences? 3

Millennials were more likely to focus on building a personal brand in their industry.

Trending: Employer Branding

• 91% of candidates seek out at least one online or offline resource to evaluate an employer’s brand before applying for a job.

• Millennials not only have the ability to find out what the entire interview and hiring process is like for a position they are after, but they can find salary ranges for their location.

• Millennial job seekers are twice as likely than Baby Boomers and 50% more likely than Gen-Xers to perform research beyond a prospective employer’s website.

• Companies should strive to establish a clear, consistent, and honest view of their actual company culture. Videos tend to be the best representation of how a company operates, especially when those videos are testimonials from their employees.

Trending: Employer Branding

• 77% of Millennials say that flexible work hours would make the workplace more productive for people their age.

• As the Millennial generation becomes the majority, we can expect flex time and telecommuting to become a common workplace practice rather than a special privilege.

• By around 2030, the Millennial majority will likely have done away with the 9-to-5 workday entirely.

Trending: Employer Branding

NEW AGE TAMatthew Camilleri

“Fundamental shift required from a reactive recruitment process which is totally ill suited to current market conditions to one which is pro-active and focused on engaging employer brand and talent pipelining.

This necessitates overhaul of strategic focus, planning and execution when it comes to resourcing”.

Castille brand team, 2018.

Reactive Recruitment:4

• Employee gives notice/is terminated/is promoted

• Company posts open position on CRM

• Company conducts interviews for undetermined number of weeks until proper candidate is found

• Candidate then must give notice to now, former employer

• Candidate starts at Company

VS

Successful sports recruitment:4

• Coaches know what positions they may need more depth in, or may be rotating off.

• They keep an eye out for up and coming talent by sending scouts to schools and attending combines.

• Teams and/or schools (depending on the organization) are always finding ways to get their names out there, through commercials, social media, and charitable giving.

Castille Guidance on best practise

Developing specific networks of candidates:

• Build your network based on accuracy, honesty, data and engagement.

• The network challenge – maintenance. Communication and Data.

• Ongoing engagement is key in order to retain a warm line of candidates.

• Talking same language and being able to relate to candidates from a career perspective is crucial at a time when candidates have less time for engagement.

• Ongoing engagement with candidate communities is very effective.

• Using employees as brand ambassadors within these communities is recommended.

Castille Guidance on best practise

MANAGING THE SELECTION PROCESS IN A FASTER MARKETMark Sims

How difficult & frustrating is it to actually find good candidates in today's market?

How often do you find good candidates but fail to hire them? - Even more frustrating!!!

Managing the selection process in a faster market

When was the last time that youstood back and took a helicopterview of your hiring process andasked yourself the question why arewe failing to hire?

• How often is this happening?

• Is there a trend?

• Is there a particular point in your recruitment process where it breaks down?

Managing the selection process in a faster market

One underlying reason we are seeing more and more for a breakdown in the hiring process is pace.

As the market gets tougher, it gets faster. Candidates’ expectations are higher. Speed is key!

Managing the selection process in a faster market

Things to consider:

Speed to Market• Get to your target audience directly and with the energy and pace you expect from

the applicants

Be Ready to Hire Quickly

Steps in the Hiring Process• How simple or complex is your process?• How many steps - are they all necessary• How many stakeholders - are they all necessary

Timelines for each step in the process• Are they run concurrently where possible• Does the order make sense - Tests first or interview?

Managing the selection process in a faster market

Types of Assessment• What adds most value• Are all assessments taken into account - if not why have it?• Are the assessments matched to the level of role• Number of decision makers involved

Communication is key• Communicate regularly throughout the process from start to finish whether selected

or not selected• Understand candidate expectations early in the process• Keep candidates “warm”• Candidates take silence as rejection/lack of interest

Closing the deal• Matching expectations• Speed in negotiations

Managing the selection process in a faster market

Limitations that some clients currently face

• A pipeline/network of candidates looking for an opportunity

• Candidates pre screened and recommended

• Lack of information on the candidate and other potential offers in the pipeline

• Someone independent to help to broker the deal

Managing the selection process in a faster market

LEGAL PRACTICALITIES OF ON-BOARDING HIRES Matthew Brincat

The legal obstacle race leading to employment

The chains of the ex-

employerWhen in limbo

Post engagement

Legal practicalities of on-boarding hires

ALTERNATIVE RESOURCING MODELS IN SPECIALIST SKILLSGilbert Galea

Globally organisations are increasingly looking at alternative and innovative collaboration models with external providers to:

1. Acquire talent that is hard to • Source • Retain• Grow

2. Accelerate productivity through Cloud (93% in 2018)2 and Robotic Process Automation (72% in 2018)2

3. Solve capacity3 issues through hybrid onshore/offshore4 teams

79% of businesses partner with external providers to access talent1

2016 Global Outsourcing Trends 3

An average of 25% of outsourced services in Europe provided through nearshore and offshore locations in 2013 4

Alternative Resourcing Models

Talent shortage has been driving organisations into exploring talent outsourcing options to transform core business activity and create competitive edge in their industry. Gone are the days when the scope for outsourcing was purely to support non-core business!

An average of 38% of outsourced services in the mature European markets represent core business activity4.

88% of organisations in Europe either outsource services as-is or first outsource then transform through the outsourced provider.4

Alternative Resourcing Models

Alternative strategies for talent acquisition

• Manage beyond the enterprise to source directly freelancers / contract-based consultants working on-premise or remotely.

- 86% of businesses reported a significant number of contractors, freelancers and gig workers – between 30% and 40% of their workforce5

- Approx. 40% of businesses expect a rise in these kind of workers by 20205. - 74% of office workers would leave their job for another offering remote working at the same salary.6

• Engage RPOs to outsource part or all of the recruitment process, taking ownership of the design and management of the recruitment processes, assuming responsibility of results. - “Comments from respondents throughout the survey regularly referenced using RPO’s for volume hiring

typically at lower salary and responsibility levels.”7 Other reasons include lower cost per hire, consolidation of suppliers and SLAs.

• Bring in consultancy firms to deliver projects – usually platform-specific talent

Alternative Resourcing Models

Alternative strategies for talent provision

• Partner up with managed talent providers.

Your organisation

Expert Talent Advisory

Continuous filtered Talent

Flow

Bi-directional knowledge distribution

Local partner as escalation

path

Client-abstracted

management of talent

Alternative Resourcing Models

Summary:

• Skills shortages likely to remain the same or worsen in the coming 30-50 years.

• Employer branding is the new age fundamental tool in the war in talent. Trending

driven by generational differences are important.

• Employee driven markets and millennial mind-sets have made traditional reactive

recruitment processes a lot less effective.

• Pragmatic talent resource planning and pipelining is recommended in order to

secure a flow of the right calibre of candidates.

• How Does Your Recruitment Process Look & Feel For The Candidate

• Consider the whole process from A-Z looking at it from the outside in

• Where are your weakest links in the chain?

• What are the “Moments of Truth”

Summary:

• Outsourcing has changed drastically over the last two decades. It is now a catalyst to transform core business through specialist skills.

• When partnering up for talent, organisations need to make sure the relationship caters for business continuity and scalability of that talent.

• If your ambition is to grow and you need great talent to realise and sustain that growth, then you need to think beyond “bums on seats” and open up for more innovative collaborative talent delivery models particularly ones providing hybrid teams made up of on-shore and remote working teams within managed nearshore infrastructures.

Slide 4-20

• https://www.nearshoreamericas.com/it-jobs/

• https://www.ft.com/content/122b2c84-17fc-11e8-9e9c-25c814761640

• http://www.spiegel.de/international/business/labor-market-upswing-1-5-million-jobs-in-germany-remain-unfilled-a-508456.html

• www.ft.com

• 1 https://www.castilleresources.com/blog/2017/11/employer-branding-recruiting-and-retaining-talent

• 2 https://www.castilleresources.com/blog/2017/12/company-culture-and-brand-identity

• 2 https://www.castilleresources.com/blog/2018/07/everyone-is-a-brand-ambassador

• 3 Employer Brand Study – Hinge research University

• 4 https://inbound.hargerhowe.com/blog/proactive-vs.-reactive-strengthen-your-recruitment-strategy

• Hays Skills Index Report - 2017/2018

Slide 30-34

• 1 PWC 21st CEO Survey 2018

• 2 Deloitte Global Outsourcing Survey 2018

• 3 Deloitte Global Outsourcing Survey 2016

• 4 EY Outsourcing Survey 2013

• 5 Deloitte Human Capital Trends 2018 Survey – The rise of the Social Enterprise

• 6 Softchoice 2017 Collaboration Unleashed: Research Study

• 7 Carter Morris 2014 RPO Survey Report

References

#specialisttalent