A recent report from research conducted by HireRight and quoted by Corporate Research Forum highlighted that 52% of organisations find that retaining and developing talent is their biggest concern. The report states that there is a real struggle in many organisations to move beyond the short term focus on recruitment - filling today's vacancies tomorrow to a true resourcing model. 65% of organisations say that they do have a strategic resourcing model but when this was probed more deeply it was in name only and in reality the strategy was informal and rarely could it be connected back to the business strategy.
One of the more frequent quotes I use is "more of the same gets you more of the same", perhaps this is applicable on this topic. 15% of organisations rarely or never review their recruitment methods, a scary thought!
The cost penalty of repeatedly filling vacancies in a short term model is huge, hiring, training and then losing talent is a not cheap but is that because the focus (often driven by procurement) is on the cost of a hire but does not look at the full employee life cycle value i.e. a high performing employee that stays. Investing in a understanding high performance and developing the right selection methodology is not cheap but when executed well can deliver significant costs savings and ROI.
The shift to resourcing away from pure recruitment is a key challenge as talent shortages are rife and candidates get more savvy.
"Recruitment is about selling a job to someone who is willing and able to do it. Resourcing is about looking at the long-term needs of the organisation. It’s a far more holistic approach,” Tomas Chamorro-Premuzic Professor of Business Psychology at University College London Of the 231 heads of resourcing, heads of talent acquisition, and senior HR generalists surveyed for the research, 23% said that they do more ‘planned’ than ‘reactive’ external recruitment, 30% said their activity is evenly balanced between reactive and planned, and 45% admitted they do more reactive recruitment. “One of the most important aspects is identifying potential, and whether someone has the right skills for the organisation. But a lot of companies don’t have a good grasp on effective performance data.”