Staffing shortages are a major problem for employers in 2022. One of the strategies that employers can use to fill vacant roles in their organizations is to create an employee talent pipeline. A talent pipeline can be used by businesses in all industries to build a pool of qualified candidates who can be contacted when openings or new positions come up. It is an effective way to ensure that the right person is hired in a timely manner. Companies that wait until a position is vacant to begin their search for a replacement lose time and money while they carry out a search from scratch. This reactive approach can put a strain on existing employees and limit company growth.
What is a talent pipeline?
A talent pipeline is a list or “pool” of people that your business or organization may want to hire when there is a job opening in the future – whether that be new roles or replacing employees who are promoted out of or leave existing roles. Creating a talent pipeline takes effort because of the need to develop long-term relationships with potential candidates who may be a good fit for your company in the future. This requires a proactive, rather than a reactive, approach to hiring where HR actively searches for the next generation of talent.
How to Create an Employee Talent Pipeline
No matter which industry you’re in, it’s a great idea to have a talent pipeline in place to attract the right people without wasting time starting from nothing. Here are some guidelines for building an effective talent pipeline:
1. Match roles to business goals
The HR team should start the pipeline by making a list of roles that match and support current and future business goals. What roles may be needed in the future as the company grows and expands?
2. Identify high turnover and highly critical roles
If there are roles within the business that tend to have a high rate of turnover, it is especially important to build up a list of people who may be able to fill those positions when they inevitably come open. HR should also identify highly skilled positions that would bring productivity to a halt if left vacant even for a short time.
3. Use both a pull and push strategy to attract outside talent
There are two ways to attract outside talent: pull and push marketing. In a “push” strategy, companies attend networking events, place ads on job boards, and contact talent directly on LinkedIn. Other ideas include creating employee referral and internship programs.
Businesses also benefit from a “pull” strategy where potential employees decide they want to work for your business, saving time spent actively searching for talent. This strategy is best accomplished by building a solid employer brand that lets potential employees know that you’re a great place to work.
4. Don’t forget about internal talent
One of the worst things a company can do is to overlook its internal talent. Current employees who show potential for and interest in promotions and lateral moves should be included in the talent pipeline. An annual talent review is the best way to ensure that no internal candidate falls through the cracks.
5. Assess the talent
Now that you have built up a talent pool, it’s time to assess what potential role(s) each person on the list could fill within your organization. Create assessment criteria by answering the following questions about each potential candidate:
- What skills and competencies does each candidate have that could benefit your business?
- What skills will they need to gain in order to succeed at your business? Could these skills be taught through internal training?
- What knowledge does each candidate have about your company and its culture? Will they fit in or shake things up? What information could you share with them to help them be a great fit upon hire?
6. Work on developing your talent
Once you have built up a pool of great people, you will want to turn to ongoing development strategies to set them up for success. Build a program that addresses any skills gaps; offer internal and external training or coaching opportunities and cross-functional experiences.
7. Review the success of your talent pipeline
Assess the effectiveness of your employer brand by counting the number of unsolicited requests to work for your company. You can gain insights into the effectiveness of your development programs by measuring employee turnover rates.
Other metrics to assess include the percentage of new hires that come from your talent pipeline, how long employees hired from the pipeline stay versus those hired outside the pipeline, how long it takes to hire a new employee from the pipeline versus those hired outside the pipeline, and the offer-to-acceptance ratio. If your offer-to-acceptance ratio is low then you may need to work on improving your salary and benefits packages. Small businesses can offer better quality benefits when they partner with a Professional Employer Organization (PEO). Ask us how!
Need help with hiring strategies? We’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are compliant with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long and changes happen). When choosing a PEO to partner with, there are many things to consider including cost, services, and technology solutions.
With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet, or phone. We can truly improve your employees’ work benefits while freeing you up to run your business.
What are you waiting for? Companies that partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!