Innovations in technology help employers prepare for a changing market for talent.
By Debbie Bolla
An uncertain economy during an election year is having an impact on the hiring market. The Conference Board’s Measure of CEO Confidence™ finds that 51% of CEOs say political uncertainty is the biggest challenge affecting business ahead of the election. Successful HR and TA leaders are pivoting strategies to accommodate uneven growth and stalled decision-making.
“Typically, before an election, things slow down,” reports Thomas Leeper, vice president of client solutions for Sevenstep. “But when hiring activity eventually accelerates, companies that are best prepared will have a lead in competing for workers. Experience has shown us that talent data, and the ability to gain visibility into future demands and market conditions, is one of the primary ingredients to a successful strategy.”
The Conference Board’s report finds that 40% of CEOs expected to expand their workforce over the next 12 months, an increase from 33% reported in the second quarter. “Organizations should position themselves for their hiring needs today and for a market that will accelerate over time,” says Leeper.
So, how can employers apply data to gain a head start in competing for talent? Leeper recommends the following strategies.
- Leverage analytics. Data and technology can help organizations build proactive talent acquisition strategies. “The labor data to guide an effective strategy is out there,” explains Leeper. “Make sure you have access to it. Predictive analytics tools can handle that data and give you the intelligence to make decisions.”
For example, benchmark and external market data can help you stay ahead of salary trends, outlining what’s expected from candidates in certain regions to drive hiring and compensation strategies. In addition, Leeper recommends analyzing internal data to understand company-wide talent trends like turnover risk.
Leeper notes that not every technology can provide predictive analytics or the level of detail needed for effective strategies. “Many companies still struggle with the technology, and our clients have come to trust us as partners with the right solution. Our proprietary Sevayo ® Insights data integration and analytics platform gives them the visibility they need.” The technology can identify historical patterns to see when high-performing employees may likely leave. This knowledge goes a long way when anticipating future hiring needs.
- Build a data repository. Access to data and the technologies to attract talent have increased immensely over the last decade, but their value was historically limited by struggles to integrate data into a common environment for analysis.
Leeper explains that Sevayo® Insights is breaking through past technology limitations by drawing those data sources into a single integrated data repository that enables organizations to draw out specific answers to their critical questions. “For example, when a new requisition opens up, we can conduct historical tracking. Our platform shows how long it took to fill the position and how many applicants there were. It also collects marketplace data so organizations can understand the competition,” Leeper says.
- Embrace workforce planning. The great skills gap is here today. According to McKinsey and Company, 87% of global companies are experiencing a skills gap or anticipate one within a few years. Leeper says predictive analytics tools can reveal where shortages may occur so HR leaders can proactively build talent development and training programs. Upskilling employees now before the gaps grow will create a competitive advantage.
Another consideration is retirement, says Leeper. Bloomberg reported earlier this year that the U.S. has approximately 2.7 million more retirees than predicted. Tenured employees leave more than just an open role — they take with them essential knowledge and support. Having ongoing conversations with potential retirees will help TA plan for the future through upskilling or additional hiring.
- Utilize cost optimization tools. Leveraging the right technology allows TA leaders to analyze recruiting challenges, understand where the best candidates are from, and outline where the lowest costs are. In addition to planning for current workforce needs, such visibility into workforce supply and cost is critical for expansion.
“If you know you’re going to move into new locations, a predictive tool can help you figure out what roles you will need and where the hard-to-fill roles will be and suggest adjustments,” says Leeper. “For example, a client came to us to ask about expansion. We provided them with an analysis of four locations in this region and showed them that they could save $1 million a year by hiring in one city versus the other.”
The ability to apply data separates successful employers from those who struggle with talent acquisition. “Now is a time of opportunity,” Leeper notes. “By working with a trusted talent partner to put data to use, employers can gain a head start when the market for talent accelerates.”
