2017 state of talent acquisition … talent tech labs, our mission is to improve the state of the...

2 0 1 7 S TAT E O F TA L E N T A C Q U I S I T I O N T E C H N O L O G Y

GUIDING TALENT ACQUISITION TECHNOLOGY

INTO THE FUTURE

We all know talent acquisition is changing—fast. But what’s next? Over the last three years, the amount of new technology coming to market has been mind-numbing, and the pace is only accelerating. Compared to just last year, we are seeing more technology providers enter the market, many with compelling point solutions and others with potentially disruptive business models. Meanwhile, mature companies are pouring money into innovation with a newfound intensity.

The truth is, the processes that make up talent acquisition are arduous and inefficient. So, it’s no surprise that innovators are seeking to solve for these inefficiencies.

Meanwhile, talent acquisition executives are confronted with a dynamic landscape of solutions—and challenged to meet the increasing demands their organizations expect them—to “step up” to solving. We also see HR leaders getting better attuned to applying innovation, albeit with some trepidation about the cost effectiveness of options with which they are being presented.

The combination of the highly dynamic talent acquisition technology landscape and the inescapable pressure of critical skills shortages is driving TA execs to urgently identify a viable path forward, as quickly as possible, that will work for their own unique set of challenges.

At Talent Tech Labs, our mission is to improve the state of the art in talent acquisition through innovation. We identify and assess technologies that come to market and seek to inform buyers and builders of new technologies on the landscape on which we all play. We have a common interest in the next technology solutions that can help advance our profession. As part of this mission, we embarked on this survey to gather and analyze the thoughts and insights from almost two hundred senior HR leaders and talent acquisition executives. We are grateful to all of you who contributed your inputs to this survey. Thank you!

In the following pages, we identify the changing economic and political trends that are shaping the wider talent pool and the strategies to acquire it, and we look at the technology solutions that are best adapting to this fast-changing environment.

We explore the challenges to technology adoption and call out the measures of success respondents work towards today. And of course, we highlight the technologies that have been deemed most innovative and those that have underwhelmed early adopters.

The report concludes with our respondents’ predictions for the future direction of our industry, looking ahead to prominent technologies that have room to grow, and the likely role of TA in assuming a prevalent place in the engagement and acquisition of non-employee talent.

These are the issues that excite and inspire us at Talent Tech Labs to pursue our mission: improving the state of the art in talent acquisition.

I hope you find the results as interesting as we did in revealing them.

Sincerely,

Brian Delle DonnePresident, Talent Tech Labs

W E L C O M E T A L E N T T E C H L A B S

T A L E N T T E C H L A B SC O N T E N T

EXECUTIVE SUMMARY Pages 6-7

“As the skills shortage continues to bite, organizations are increasingly seeking new avenues to source and secure new talent… in response talent acquisition leaders are developing creative and more integrated workforce solutions.“

ABOUT THIS REPORT Page 5

80% of respondents are C-level, VP or Director of Talent Acquisition

34% work for organizations that fill 1,000+ roles per year

25% work for organizations that fill 2,500+ roles per year

THE FUTURE OF TALENT ACQUISITION Pages 20-22

45% report sourcing solutions are most likely to see rapid investment and development

26% expect to see growth in talent engagement solutions

79% of talent acquisition leaders expect their role in securing non-employee talent to increase over next 1-2 years

TALENT ACQUISITION LEADERSHIP Pages 10-11

Barriers to Success

46% say hiring manager is too busy

36% say hiring manager training is poor

Top Priority

Aligning talent acquisition with the wider business strategy garnered 4.12 out of 5 (in terms of importance)

POLITICAL, ECONOMIC, ORGANIZATIONAL IMPACTS Pages 8-10

69% say skills shortage is their greatest concern

80% of large organizations say skills shortage is their greatest concern

80% believe shortage of work visas will make talent acquisition more difficult

TALENT ACQUISITION TECHNOLOGY Pages 12-19

Highest Rate of Adoption:

88% Applicant Tracking System (ATS)

66% job advertising

61% social networks and search

9% say Freelancer Management System (FMS) is the least used tool/has the lowest market penetration

33% rated employer branding as the most innovative tool

25% rated referral systems as least effective tool

58% say lack of budget is their main implementation barrier

62% say time-to-hire is the top measurement of success

T A L E N T T E C H L A B S

T T L 2 0 1 7 S T A T E O F T A L E N T A C Q U I S I T I O N T E C H N O L O G Y / / / 5

A B O U T T H I S R E P O R T

Talent Tech Labs’ 2017 State of Talent Acquisition Technology report utilizes data from its proprietary online survey of senior talent acquisition and HR leaders. A total of 189 responses were received globally. The survey was fielded from April 11, 2017 to May 5, 2017.

The respondent pool was senior, with most operating at the C-level, VP or Director job titles. More than a third (35 percent) are directly responsible for delivering talent acquisition in their organization, a further one in ten are C-level or VP of Human Resources, and 25 percent are company owners and strategic decision makers.

CHART 1: Senior survey population provides talent acquisition insight from strategic outlook

CHART 2: A mix of responses from both large corporate and smaller organizations adds perspective

The size of organization, based on the number of roles filled per year, also has an impact on the perspective that HR and talent acquisition leaders bring to their insights. A third (34 percent) of our survey respondents are responsible for teams that fill more than 1,000 roles annually, and one in four (25 percent) work for “large organizations,” which fill 2,500 + roles each year.

0% 10% 20% 30% 40%

Director or Manager of Talent Acquisition

Owner/Partner/Managing Director

Another C-level Executive (not CEO or CHRO)

CHRO/VP, Human Resources

Recruiter

Human Resources (HR) Professional

Brand Manager

Procurement Professional

35%

25%

10%

10%

10%

7%

1%

1%

17%

4%

32%

9%

25%

0 - 50

51 - 250

251 - 500

501 - 1,000

1,001 - 2,500

More than 2,500

I don’t know6%

7%



E X E C U T I V E S U M M A R Y

In the years ahead, the skills shortage will continue to drive the demand for investments in new talent acquisition technology, particularly in the area of sourcing solutions.

Skills shortage dominates talent acquisition challenges

Talent acquisition leaders who responded to the survey provided compelling insight that the challenges they face are dominated by a pervasive shortage of talent. Seven in ten respondents (69 percent) identified this as their greatest concern, and this rose to 80 percent when asked of leaders at large organizations (that fill more than 2,500 roles per year). Concerns about political uncertainty are also directly linked to the availability of talent; 80 percent of respondents believe a shortage of work visas will make talent acquisition more difficult.

Adoption of talent acquisition tools predicted to grow

A vast majority of organizations already deploy talent sourcing, identification and applicant tracking systems tools. And while more than six in ten (61 percent) are experimenting with social media networks to cast a wider net for talent, there is little evidence that this extends much beyond utilizing the single most popular online professional network. The historic reliance on job boards will undoubtedly continue changing, perhaps radically, as the sector is being disrupted by consolidation and acquisitions by new power players who dominate internet search.

With the skills shortage showing no signs of abating, we anticipate further adoption of Candidate Relationship Management (CRM) tools, currently only implemented by 36 percent of organizations. In order to improve recruitment process efficiencies, digital tools such as video interviewing platforms will also increase beyond the 34 percent in use now, as demand for better internal alignment and communication grows.


T A L E N T T E C H L A B SE X E C U T I V E S U M M A R Y

Speed and efficiency win over money when defining success

Budget issues are identified as the most likely challenge to encounter when purchasing and implementing new talent acquisition tools (58 percent). However, a higher proportion of talent acquisition leaders prioritize speed and efficiency over cost when defining success for talent acquisition technology implementations. More than six in ten (62 percent) respondents rated time-to-hire as the top measurement. However, the value of being considered an “innovative” solution cannot be understated. If talent acquisition leaders believe a tool can creatively solve their challenges in a reliable way it will significantly increase adoption rates.

Non-employee talent and technology solutions for a new era

As the skills shortage continues to bite, organizations are increasingly seeking new avenues to source and secure new talent. And with more workers willing to engage on a contingent basis, it is clear that talent acquisition leaders will take on a greater and more prevalent role in the management of contractors and freelance talent. An overwhelming eight in ten respondents (79 percent) expect their role in securing non-employee talent to increase in the immediate future. Talent acquisition leaders are developing creative and more integrated workforce solutions that can accommodate a mix of traditional employed and hybrid non-employee independent contractors.

Respondents indicate that in the years ahead, the skills shortage will continue to drive the demand for investments in new talent acquisition technology. Sourcing solutions are identified by 45 percent of total respondents as most likely to see rapid investment and development in the coming years, almost twice as high as the next area for growth—talent engagement (26 percent). The growth in demand for non-traditional workers will also rapidly increase demand for Freelancer Management Systems (FMS), currently implemented by less than ten percent of organizations surveyed.



THE ENVIRONMENTAL ISSUES: POLITICAL, ECONOMIC, ORGANIZATIONALThe legislative decisions being made by the U.S. government are increasingly likely to impact our industry and how organizations approach talent acquisition.

CHART 3: Political rhetoric impacting how respondents perceive the talent acquisition landscape

R E S U LT S

63%

10%

24%Will make talent acquisition more difficult

Will have no effect on talent acquisition

Will make talent acquisition easier

A large majority of respondents (63 percent) are concerned that the current U.S. Administration will make talent acquisition more difficult. This drops only slightly (to 61 percent) when exploring the opinion of talent acquisition leaders from larger organizations.

Large organizations show resilience in the face of political uncertaintyTalent acquisition leaders are overwhelmingly most concerned about overcoming a shortage of work visas, with eight in ten respondents (80 percent) ranking this as a worry. Uncertainty around healthcare legislation (39 percent) is a concern for less than half. However, larger organizations appear to be less adversely impacted by the Trump Administration policies. While still a majority, only 59 percent of respondents from large organizations registered anxiety about the visa policy and only 16 percent confirmed any anxiety regarding healthcare policy and the Affordable Care Act (half the rate of talent acquisition professionals generally).

R E S U LT S T A L E N T T E C H L A B S


CHART 4: Respondents most concerned about shortage of work visas, but larger firms more insulated

Talent shortage and the skills gap is (by far) the most pressing concern

Beyond the political environment, the shifting economic environment is impacting how talent acquisition leaders approach their tasks. Respondents are most worried about the skills gap/talent shortage (69 percent). However, this rises to 80 percent of respondents when looking at the same challenge within larger organizations who fill more than 2,500 roles per year.

CHART 5: Seven in ten respondents overwhelmingly identify skills gap as ‘biggest hurdle’

0% 10% 20% 30% 40% 50% 60% 70% 80%

Shortage of work visas

Offshoring/outsourcing policy changes

Affordable Care Act (ACA) uncertainty

Filling the new roles created by job growth

80%59%

39%16%

34%

36%27%

49%

Total Respondents Large Organizations

0% 10% 20% 30% 40% 50% 60% 70% 80%

Skills gap/talent shortage

Effectively engaging prospects or candidates

Sophistication of talent acquisition team/function

Interviewing comprehensiveness

Subpar company culture

Lack of hiring tools

Desire of talent to work independently (contractor)

69%

46%

38%

24%

22%

17%

10%



Candidate engagement challenges can be resolved with effective technology

Establishing and effectively maintaining engaged candidates is a top challenge for almost half (46 percent) of respondents. Similarly, four in ten respondents (38 percent) ranked the sophistication of their function as an area for improvement. It seems clear that technology solutions can help resolve these hurdles if properly adopted.

TALENT ACQUISITION LEADERSHIP

Leading a talent acquisition team requires strong organizational skills and effective use of technology

When it comes to the challenges that prevent talent acquisition teams from aligning with the hiring manager, one issue stands alone. The hectic nature of the hiring manager’s role is identified by almost half (46 percent) of respondents, surpassing a lack of training for hiring managers, which was identified by 36 percent of respondents as the next most significant challenge.

CHART 6: Hiring manager scheduling more challenging to overcome than lack of training or communication

Respondents who lead their talent acquisition teams also face obstacles with communication. More than a third of respondents (34 percent) report a lack of follow-up communication after interviews, and 33 percent believe communication prior to interviews can also be improved. While all these challenges may be alleviated with the effective use of talent acquisition technology, more than one in five respondents (22 percent) admit that they lack the technical tools and support to overcome the current challenges in the talent acquisition process.

R E S U LT S

0% 10% 20% 30% 40% 50%

Hiring manager is too busy

No formal hiring manager training in place

Lack of follow-up communication after interviews

Lack of manager prep and communication prior to an interview

Lack of technical tools and support

46%

36%

34%

33%

22%



Aligning talent acquisition with the wider organization goals seen as most important

When asked to rank (on a scale of 1-5) the importance of talent acquisition priorities in their organization, “aligning talent acquisition with the wider business strategy” came far ahead of any other priority.

Assessing candidate fit to the organization is ranked second and marketing the employer brand is a close third. It is clear that talent acquisition leaders recognize the importance of aligning their mission and deliverables with the wider organization and the culture it represents.

CHART 7: Top priority of talent acquisition leaders is aligning goals with wider organization

While talent acquisition leaders are paying attention to the political and policy changes being proposed in Washington D.C., more of their attention is captured by the more immediate industry and organizational challenges facing them.

3.85 3.90 3.95 4.00 4.05 4.10 4.15

Aligning talent acquisition with the wider business strategy

Assessing candidate fit to the organization

Marketing the employer brand

4.12

3.98

3.94

Rating scale: 1 = not a priority, to 5 = very important

When asked to rank the importance of talent acquisition priorities, “aligning talent acquisition with the wider business strategy” was ranked far ahead of any other priority.



TALENT ACQUISITION TECHNOLOGY

Most utilized talent acquisition tools

The talent acquisition tools most widely implemented by respondents are topped, unsurprisingly, by Applicant Tracking Systems (ATS). All large organizations have adopted the use of these tools, and only a few smaller operations are currently operating without an ATS. Sourcing tools are also widely adopted, with job advertising (66 percent) and social networks and search (61 percent) in use by more than six in ten organizations. The historic reliance on job boards will undoubtedly continue changing, perhaps radically, as the sector is being disrupted by consolidation and acquisitions by new power players who dominate internet search. Despite widespread claims by respondents of applying social networking tools, our experience indicates that most organizations in some verticals are not looking much further than a single online professional network for their social talent sourcing needs.

CHART 8: Applicant sourcing, tracking and assessment tools most in use

R E S U LT S

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Applicant Tracking System

Job Advertising

Social Networks and Search

Assessment Tools

Employer Branding

Career Site Hosting Platform

Recommendation and Reference Checking

Candidate Relationship Management

Video Interviewing

Referral Tools

Online Staffing Solutions (e-Staffing Vendors)

Talent Acquisition Analytics Platform

Interview Process Management Tools

Talent Marketing System

Freelancer Management System

88%

66%

61%

55%

53%

51%

36%

36%

34%

32%

24%

22%

21%

10%

9%



The lack of adoption for many tools suggests more growth can be expected in coming years. It is already clear that talent acquisition leaders are wrestling with communication challenges and aligning talent acquisition with hiring managers and other stakeholders in the organization. Yet many of these tools are proven to help overcome these problems. For example, Candidate Relationship Management (CRM) tools are only currently in use by 36 percent of organizations, although this leaps to 57 percent of larger organizations who fill more than 2,500 roles per year. The higher adoption by larger organizations clearly indicates the value of these tools as hiring volumes increase and therefore when scale is critical.

Similarly, larger organizations are leading the way with video interviewing adoption, utilized by 52 percent of respondents in larger organizations, compared to 34 percent generally. These and other tools are likely to see an implementation wave in coming years. We see evidence of this with software companies increasingly aligning with implementation partners from the big advisory firms to help clients roll out new technologies across large and complex infrastructures.

Employer branding leads ranking for “most innovative” tools

Employer branding tools are considered the most innovative talent acquisition technologies to have been implemented in the past two years. A third of respondents (33 percent) rated employer branding as most innovative, which rose to 39 percent for larger organizations. However, as we have seen previously, only half of organizations have currently adopted these tools. The value of being considered an “innovative’” solution cannot be understated. If talent acquisition leaders believe a tool can creatively solve their challenges in a reliable way, it will significantly increase adoption rates.

CRM tools are only currently in use by 36 percent of organizations, although this leaps to 57 percent of larger organizations who fill more than 2,500 roles per year.



On the other end of the innovation spectrum and despite widespread media coverage, only 11 percent of respondents rate chat bots and artificial intelligence tools highly for innovation, ostensibly because they are very new and their value has not yet been rigorously tested. Anecdotal evidence suggests that these systems have not yet been able to justify investment compared to current state methods.

The tools considered most innovative were scored as such because users also found them to be most consistently effective. Similarly, the tool considered least innovative, digital reference checks, is also rated among the least effective by most respondents. While automation of talent acquisition processes was seen as compelling, in many cases less than perfect results have offset the potential efficiency gains. This reflects an underwhelming performance by these tools.

CHART 9: “Most innovative” tools point to solutions most likely to see increased adoption in future

Which tools fail to measure up?

The tools that scored “least effective” are those that users adopted but failed to be impressed with once operational.

Referrals have long been deemed to be the best prospects for hire, so referral platforms came to marketto increase the number of quality candidates being referred. However, the effectiveness of referral

0% 5% 10% 15% 20% 25% 30% 35%

Employer Branding

Mobile Recruitment

Analytics Platform


Video Interviewing

Online Assessments

Referral Platform

Job Marketing and Distribution

Chat Bots/AI Enhanced Processing

Digital Reference Checks

33%

27%

27%

25%

25%

21%

15%

15%

11%

4%

R E S U LT S



platforms has left many early adopters underwhelmed. A quarter of respondents found their experiencewith referral platforms to be less than they bargained for.

A close second, with 22 percent of respondents rating it “least effective,” are digital reference checks.This is a likely corollary to those who rate them innovative but unreliable, with the market collectivelyunimpressed with early results.

Video interviewing is now a mature offering in the market and is made up of a large field of suppliers.While the pack of providers has stratified of late—with a few solutions rising to the top based onreliability and innovative user interfaces—one in five respondents (19 percent) are still unimpressedwith the effectiveness of video interviewing. We submit this impression may have been influenced bythe timing of when firms implemented their solution.

Chat bots and AI enhanced processing are new to the market and highly immature. Therefore the 19 percent who found their effectiveness to be low is not surprising. Online assessments are also rated as ineffective by one in five respondents (19 percent). More research is needed for these tools to determine if improvements are being made and user experiences are improving.

CHART 10: Respondents rate the least effective tools, and are most underwhelmed by referral platforms

0% 5% 10% 15% 20% 25% 30%

Referral Platform

Digital Reference Checks

Video Interviewing

Chat Bots/AI Enhanced Processing

Online Assessments

Job Marketing and DIstribution

Analytics Platform


Mobile Recruitment

Employer Branding

25%

22%

19%

19%

19%

17%

15%

13%

12%

11%


The speed of technology innovation

Two thirds of respondents (66 percent) indicate that most talent acquisition tech implementations are completed within six months or less. While this drops to 48 percent in larger organizations, it is still an incredibly fast pace of technology implementation. Although solutions that are niche or implemented in discreet regions or markets can be more quickly adopted, larger systems like ATS and CRM solutions have many more challenges and typically take much longer to implement.

CHART 11: Tech implementation process averages less than six months for most organizations

In the crowded technology space of talent acquisition, leaders require time to effectively research the most effective solutions for their needs. All talent acquisition leaders want tools that provide compliance and reliability, but there are often multiple solutions that claim to be best suited to overcoming the challenges faced by the talent acquisition team, and their pros and cons must be weighed. In larger organizations, talent acquisition leaders must consider implementation across multiple locations, cultures, and how solutions operate within the rubric of corporate infrastructure, legal governance and compliance watchdogs.


0% 10% 20% 30% 40%

Less than one month

1-3 months

4-6 months

7-12 months

1-2 years

More than 2 years

11%

34%

21%

18%

12%

4%

R E S U LT S



The merits of integration, or not?

CHART 12: Most respondents don’t enjoy much integration

While there are merits of having full integration, it is often not a choice into which people opt. Solutions integration is circumstantial, and in many large and complex organizations, there are few merits of having all tools integrated.

For example, if an ATS solution is normally in place for 5-7 years, by the time it is fully integrated in a large organization, it would likely have to be replaced or updated.

Therefore, full integration is often not a natural state for many talent acquisition leaders, who are comfortable operating multiple solutions. If full integration were to be pursued, it would be at astronomic expense.

Technology implementation challenges

Budget issues are identified as the most likely barrier to encounter when purchasing and implementing new talent acquisition tools (by 58 percent). More than half the respondents (51 percent) find it challenging to develop a business case for investing in talent acquisition solutions, and this is possibly linked to the one in five respondents (21 percent) who report a lack of clarity of product offerings. The other contributor to developing a compelling justification for return on investment (ROI) is that systems which are implemented to achieve higher quality of hires, more diversity, or better candidate experience can prove difficult to quantify, at least in monetary terms.

13%

35%17%

Less than half of them

More than half of them

All of them

None of them

35%

Percent of respondents' solutions being integrated:


CHART 13: Budget is most common barrier during tech purchasing, but product education also a challenge

Financial limits are also common when talent acquisition solutions are being integrated. More than half of respondents (51 percent) faced cost issues during implementation; however, this drops to 27 percent for respondents from larger organizations. Integrating legacy tools is a concern for four in ten respondents from larger organizations, while legal compliance is also more of a concern for talent acquisition leaders in larger organizations (20 percent). This is compared to only four percent of respondents in smaller organizations—those who fill less than 500 roles per year.

TABLE 1: Cost remains top issue for smaller firms, replaced by legacy tech and IT bandwidth in larger firms

OVERALL RESPONDENTS

LARGER ORGANIZATIONS

SMALLER ORGANIZATIONS

#1 Cost 51% 27% 40%

#2 IT bandwidth 39% 41% 23%

#3 Legacy technology issues 39% 41% 22%

#4 Lack of knowledge 27% 14% 21%

#5 Lack of executive support 20% 14% 16%

#6 Long implementation cycles 19% 20% 15%

#7 Legal compliance 13% 20% 4%


0% 10% 20% 30% 40% 50% 60% 70%

Lack of budget

Developing business case and ROI justification

Lack of bandwidth

Defining the need adequately

Lack of executive sponsorship

Long implementation cycles

Lack of clarity on product offerings

58%

51%

44%

31%

29%

27%

21%

R E S U LT S



The case for point solutionsTwo thirds of respondents (66 percent) would prefer to implement best-of-breed solutions over seeking, or waiting for, a fully integrated suite that provides all the functionality they may aspire to have. Respondents from larger organizations are more likely to prefer integrated solutions (41 percent) over the general survey population (34 percent), likely a result of the complexity of running multiple piecemeal tools in an elaborate corporate environment.

However, there are virtually no end-to-end solutions in the enterprise market that ideally address all the functional needs of modern talent acquisition efforts. As such, although 34 percent of respondents would prefer this solution, the practical reality is that necessity dictates talent acquisition leaders select point solutions in order to deliver results. Due to the chronic skills shortage and the frantic pace of modern talent acquisition, users can’t afford to wait for a fully integrated suite and are not prepared to pay significantly higher costs for them.

Top indicators of successful tech implementation Improving speed and efficiency seems to drive the definition of success for most talent acquisition solutions implementations. More than six in ten (62 percent) respondents rated improving time-to-hire as the top measurement of success. Hiring manager satisfaction is a close second in terms of top performance indicators (57 percent) and is actually more important for respondents in larger organizations (64 percent). However, only one in five respondents (21 percent) rate alignment with the original project objectives as a top indicator of success. We found this surprising, given previous results that indicated the importance of alignment with organizational goals.

CHART 14: Time-to-hire rated top success indicator, quality of hire and employee retention lower

0% 10% 20% 30% 40% 50% 60% 70%

Time-to-hire

Hiring manager satisfaction

Candidate quality/candidate job fit

Employee retention/employee turnover

Align with overall company profitability goals

Project's original objectives

C-suite satisfaction

62%

57%

56%

44%

30%

21%

18%


THE FUTURE OF TALENT ACQUISITION

Demand for talent to shape future planning

Respondents indicate that the skills shortage will continue to drive the demand for investments in new talent acquisition technology. Sourcing solutions are identified by 45 percent of total respondents as most likely to see investment and development. We find this interesting. While Talent Tech Labs has identified the wide array of sourcing solutions in the market, many of which are deemed highly effective, this survey finding indicates that market adoption of these sourcing solutions lags the prevalence these tools have in the market. Twenty-six percent of respondents indicated that the next area for growth is talent engagement tools.

CHART 15: Skills shortages ensure talent sourcing solutions will drive future technology development

Do talent acquisition tools impact company revenue?

Looking ahead, one of the clearest ways to avoid future budget challenges is to link the performance of talent acquisition solutions to improving revenue growth or profitability. Currently, less than half of respondents (45 percent) measure the ability of talent acquisition solutions to improve the financial health of their organizations. This drops to one-third (36 percent) of respondents from larger organizations. We found this to be surprisingly low.


0% 10% 20% 30% 40% 50%

Sourcing/talent identification

Talent engagement

Selection/assessment

Onboarding

45%

26%

19%

6%

R E S U LT S



The next frontier: Non-employee talent

Another consequence of the ever-present skills shortage is the growing dependence on non-employee talent. This coincides with the increasing number of workers who choose or need to work on a contract or project basis. With organizations increasingly seeking new avenues to source and secure new talent, and more workers willing to engage on a contingent basis, it is clear that talent acquisition leaders will take on a greater and more prevalent role in the management of contractors and freelance talent.

To date the responsibility to manage this function and the use of Vendor Management Systems (VMS) have been the domain of Procurement. We find it truly notable that a vast majority of respondents (79 percent) project that the responsibility to attract and deploy this contingent part of the workforce will soon become the domain of Talent Acquisition teams. This is a significant shift, and a strategic one. The tactical management that Procurement brings is being outpaced by the strategic imperative to attract the desperately needed talent for organizations to effectively compete and grow.

CHART 16: Talent acquisition solutions expanding to incorporate non-employee talent in future

Talent acquisition leaders appear to recognize the wider context of their future role, playing a greater part in developing creative and more integrated workforce solutions to manage the growing contractor workforce.

21%

Yes, talent acquisition team will evolve to handle more non-employee talent

No, talent acquisition team involvement will decrease or remain the same

79%


A third dimension for talent acquisition technology solutions

In response to the increasing willingness of workers to apply for flexible work, we’re witnessing a rapid expansion of technology-based platforms for presenting opportunities and managing this swelling number of workers seeking flexible accommodation. Talent Tech Labs refers to these emerging platforms as temporary labor marketplaces and Freelancer Management Systems (FMS). Initially, these upstart new market entrants have gained traction with small and midsized buyers of temp services. We have already seen (in earlier results) that less than one in ten organizations (nine percent) currently operate FMS. We anticipate rapid growth in the number of organizations implementing these types of solutions, growing beyond the current small-to-midsized buyers into the larger corporate market. And with flourishing demand for these tools will come new competitive offerings and advancements in the solutions available.

R E S U LT S


A B O U T TA L E N T T E C H L A B S

Located in the heart of Manhattan, Talent Tech Labs engages in investigation, research, validation, and acceleration of emerging technologies that can improve the state of play in talent acquisition through collaboration and connecting early-stage companies with forward thinkers in the industry. Learn more at www.TalentTechLabs.com.

307 West 38th Street Suite 1301 • New York, NY [email protected] • www.TalentTechLabs.com

© 2017 Talent Tech Labs. All rights reserved.

www.TalentTechLabs.com

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2017 state of talent acquisition … talent tech labs, our mission is to improve the state of the...

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