The recruitment world is evolving. Hiring the right candidates is crucial for the success of any organisation, big or small. However, hiring highly skilled talent is proving to be incredibly difficult across multiple industries due to the current candidate-driven market and the ever-growing digital skills gap.
Generating leads and attracting the very best talent is no longer enough for success. Gone are the days when the reassurance of an attractive talent pipeline is enough! Businesses want to see an effective recruitment model that ensures a constant stream of enthusiastic, qualified, talented and well-matched candidates.
When it comes to appealing to candidates, organisations need to do more than just rely on internal recruiters and promoting job vacancies. The requirements of the latest generation of candidates and employers alike have evolved beyond expectations. What role does recruitment play in navigating the current skills gap crisis? And how do different types of recruitment methods impact hiring and retainment success?
- What is a talent pipeline?
- What are the benefits of creating a talent pipeline?
- Why internal recruitment is no longer effective
- How can a successful recruitment model help businesses?
- What are the different types of recruitment models?
- How does FDM’s recruitment model differ?
What is a talent pipeline?
A talent pipeline is a cohort of pre-screened and qualified candidates who can step into vacant roles throughout your organisation. The purpose of a talent pipeline is to fill existing or future positions easily and quickly – it plays a vital part of a company’s talent acquisition strategy. Having access to a collection of pre-qualified talent prevents businesses from starting their search from scratch every time they need to fill a role.
There are typically two types of candidates that contribute to a talent pipeline:
- Internal candidates – already have roles within your company and have demonstrated potential to move into other roles within the department or in management positions.
- External candidates – have been in contact with your company and have been screened as having the right qualifications and skills for future roles.
Building a talent pipeline requires an active approach that nurtures ongoing relationships with the candidates. It’s a framework that should be tailored to your company’s culture, needs and overall business goals.
What are the benefits of creating a talent pipeline?
Developing a talent pipeline strategy is vital for businesses that want to accomplish more than just creating a structure for the hiring process. A talent pipeline enables businesses to be two steps ahead of the competition, as well as their own hiring process. Not only does it save time actively sourcing and narrowing down ideal candidates, but it also enables recruiters and HR teams to develop a strategy that is customised to attract and hire key individuals.
5 benefits of a talent pipeline
Some of the key benefits of creating a talent pipeline include:
- Better quality candidates – Hiring to fill a high-priority position can lead to hasty hiring decisions. By communicating hiring targets in advance, recruiters can focus on identifying high-quality candidates that are suitable for the role instead of settling for those that are immediately available.
- Improves candidate experience – Talent pipelines are a more effective and candidate-friendly hiring strategy. It makes you engage with candidates on their terms, which provides a positive experience for everyone involved.
- Reduce the time to hire – Successful talent pipelines streamline the hiring process, as you have to nurture relationships with candidates. This allows you to hire more quickly because you don’t have to develop relationships from scratch.
- Improves diversity – For companies that are struggling to find candidates that meet their diversity requirements, a talent pipeline can be a valuable tool. Talent pipelines allow you to identify diverse candidates and build a relationship with them, instead of waiting for them to see your job postings.
- Engages passive candidates – Identify and build relationships with passive candidates, as this will enable you to introduce roles that could be a good fit for them. Avoid pushing specific job openings and focus on engaging candidates effectively if you want to compete for the best talent.
Why internal recruitment is no longer effective
Internal hiring is still being favoured by organisations around the world; however, when it comes to acquiring top talent, traditional recruitment methods are no longer effective. For businesses that are experiencing rapid periods of growth, internal recruitment methods are not suitable to keep up with the growing challenges of the changing market.
In particular industries, like the technology sector, companies need a robust external recruitment process to support the increasing demand. During periods of significant growth, new talent will be needed on a regular basis, especially if the work is largely project-based, which is where external recruitment can be highly beneficial. Although hiring internally is often one of the fastest and most efficient ways of filling open positions in the business, it does come with its limitations that can negatively impact the company’s growth and performance.
There are two main internal methods of recruitment that companies favour, both of which involve sourcing talent from elsewhere in the business. Existing employees already have a comprehensive understanding of how the business operates and unlike external hires, there is no need for them to be vetted.
Promoting existing employees who have demonstrated that they are willing to take on more responsibility is one of the most popular methods of internal recruitment. Advertising the vacancies internally can help attract junior employees who feel that they are ready to apply and interview for the senior position. Succession planning is another way to keep positions filled and ensure that employees transition into more senior positions to avoid long-term vacancies.
However, hiring internally for managerial and senior positions can cause tension between employees. Sometimes, depending on the situation, hiring managers externally can avoid this issue. thereby reducing internal politics.
2. Internal transfers
Internal transfers can also be useful depending on how the business is structured. If part of the business is overstaffed, then internal transfers can help alleviate this issue. However, transferring an existing employee and moving them into the vacancy will always leave an open position elsewhere in the company. It can sometimes work as a short-term solution, but it will be necessary to hire external candidates eventually to rebalance the workforce.
3. The risks of internal recruitment
By hiring internally, businesses risk stagnating their company culture, which can leave employees feeling stuck and prevent the company from growing. Recruiting external talent can bring a fresh perspective, new and innovative ways of thinking, and the skills required to grow and inspire existing employees.
Although there are opportunities for internal training involving existing employees training new hires, and new hires sharing their knowledge and experience with their teams, real growth is not possible without a change in perspectives. Hiring externally, whether nationally or internationally, can play a vital role in the business’s success, especially for those looking to tap into new markets.
When companies restrict their recruitment process, they risk limiting their talent pool and the opportunities that come naturally with hiring externally. Hiring candidates from a wider talent pool enables companies to find the perfect fit for the business, whether that’s in terms of experience, skills or qualifications. It can also help companies hire specialist candidates when required, and at a fraction of the cost. Highly qualified professionals can be difficult to source and typical recruitment fees can be expensive, so a robust external recruitment process is often an ideal solution.
External recruitment can help businesses become more diverse, both in terms of culture and skills, which builds the foundations of a strong team. According to a recent whitepaper by Robert Walters, nearly 75% of employers think that a diverse workforce is essential to promote creativity and innovation within an organisation. More than 50% of employees also believe that a diverse workforce introduces valuable new skills to the business.
How can a successful recruitment model help businesses?
Effective recruitment methods can contribute to the success of a business by achieving faster levels of growth. Choosing the right recruitment model to suit your company can lead to a more efficient and streamlined process, which delivers high-quality candidates. Businesses that invest in a robust recruitment model have a competitive advantage over their competitors, one that can lead to exceptional business performance.
However, recruitment can be costly, both in terms of the time and money required to hire high-quality candidates for various roles. Slow recruitment can significantly limit your company’s growth, as it can prevent businesses from driving revenue by taking advantage of short-term opportunities. It can also jeopardise the satisfaction of the existing workforce, especially if their resources are stretched, as this can lead to stress, burnout and general unhappiness in the team. An increase in attrition rates is often the result for many organisations with slow recruitment.
With talent acquisition becoming more challenging due to candidates no longer being limited by geographic boundaries, employers are forced to find new ways to attract the best talent to alleviate the current skills gap. As a result of the pandemic, businesses have become more agile and responsive in recruiting candidates with strong soft skills, which were previously overlooked. Candidates with the desired soft skills are now in high demand to combat the skills gaps, as they can be nurtured across a wider talent pool.
What are the different types of recruitment models?
Recruitment models can make or break the performance of a business, and choosing the right model is one of the most important decisions your organisation can make. With the right type of recruitment method in place, businesses can:
- Plan for future growth more easily;
- Equip workforces with more relevant skills;
- Provide more accurate forecasting.
Let’s explore the different types of recruitment in more detail.
5 types of recruitment models
- Contingency search
- Exclusive recruitment
- Retained or executive search
- Recruitment Process Outsourcing (RPO)
- On-demand recruiting
1. Contingency search
One of the most widely used recruitment models, contingency hiring works based on agreed terms and conditions with recruitment agencies or contractors to find candidates for an open position. Businesses are only required to pay the fee if the candidate is hired by the organisation. Depending on the specific needs of the company, the recruiter may set appropriate tests in order to find the right candidate, particularly in more technical roles.
Contingency recruiters have databases of prospective candidates to ensure they have enough support when selecting talent to put forward to their clients. The power is very much in the hands of the employer, which is why it’s not uncommon for multiple recruitment agencies to try and fill a role all at once. Contingency recruiters may even find themselves competing against the employer’s internal HR department, which will also be looking for skilled candidates to fill the role.
- The employers are in charge of the whole recruitment process from start to finish.
- If a candidate is not suitable for the role, businesses don’t have to interview them or pay a fee.
- Recruitment agencies will send the best candidates they can find to secure the fee.
- It can be very successful if a business has several roles to fill at once.
- Recruitment agencies are unlikely to use valuable resources in searching for candidates if they know they are competing against several agencies.
- Less people will be working on finding candidates for the job, so it could lengthen the process.
2. Exclusive recruitment
As the name suggests, this recruitment model is based upon an agreement between the employer and the recruitment agency regarding exclusive requirements. The recruiter agrees to fill the position by a particular date and if the recruiter is unable to fill the vacancy, the employer has the right to offer the opportunity to other agencies or impose financial penalties.
- Exclusive recruiters are fully committed to finding the right candidate for the employer.
- Recruiters will use all of their professional contacts to fill the position.
- Candidates will be screened more thoroughly by the recruiter as per the agreement.
- Working with one exclusive recruiter will ensure confidentiality, especially if the job vacancy must be kept away from the public eye.
- Exclusive recruitment may not be suitable for every business during periods of growth.
- Long-term exclusivity is not a feasible solution for all companies.
3. Retained or executive search
In this instance, businesses only hire one recruitment agency to fill open positions and the employer is required to pay an upfront fee for the retained recruiter to search for the right candidate. The retained recruiter works exclusively on an opportunity to fill the vacancy. Some recruiters may choose to interview the candidates on behalf of the company before putting forward a shortlist of suitable candidates, which meet their specific hiring needs.
This particular recruitment model is more intense compared to other methods, and in some cases, it can require headhunting individuals from competing companies. However, this more in-depth approach enables agencies to better understand the expectations of the employer, which leads to a better success rate.
- Recruiters will strive to build stronger, long-lasting relationships with the employer and will get to know the account inside and out.
- The shortlisted candidates will have been screened by the recruiter, speeding up the process.
- It can be successful in filling highly-skilled roles.
- Retained search can often be more costly in the long run.
- The long-term contracts involved in retained search are not suitable for all businesses and their changing situations.
- It can be risky for some businesses as there is no guarantee of a successful hire and the fees must be paid regardless.
4. Recruitment Process Outsourcing (RPO)
Recruitment Process Outsourcing is when companies transfer all or part of their talent acquisition to an external recruitment agency permanently. The partner agency is responsible for every aspect of the hiring process from sourcing candidates, to interviewing and sending job offers.
This particular recruitment model is becoming increasingly popular as companies look to improve their internal processes. It saves companies valuable time and money, as it relieves the pressure on the in-house HR department. However, outsourcing talent acquisition can be risky for some companies, as there is always the possibility that the recruitment agency may not fully understand the type of candidate you are looking for.
- Outsourcing talent acquisition can often lead to more positive candidate experiences.
- RPO can adapt to the business’s changes in unforeseen staffing needs.
- Candidate sourcing and onboarding are more efficient.
- RPO is a long-term solution that takes time and requires commitment for at least a year or more.
- Companies must give up some control over the hiring process to free up time and resources.
- It risks a mismatch between your company’s core values and the talent hired.
5. On-demand recruiting
On-demand recruiting is the process of filling a specific position at a certain time. The on-demand recruitment model is gaining popularity, as it can serve as an extension of the in-house recruitment process. Depending on the business’s needs, recruitment can be scaled up or down as necessary.
This recruitment model is more flexible than others and works especially well on a project by project basis.
- The flexibility of on-demand recruitment can produce a strong talent acquisition process.
- It is an effective way for companies to scale their recruiting efforts.
- On-demand recruiting is not suitable for companies that don’t have an effective onboarding process.
- The disruption in the employee culture can harm employees’ overall experience,
How does FDM’s recruitment model differ?
FDM Group provides support across the entire talent acquisition process (Recruit, Train, Deploy) and have over 30 years of experience helping businesses fill their skills gaps. Recruit, Train, Deploy is a 360° recruitment model that allows businesses to upscale projects and deliverables.
We work with our clients to fill the skills gaps within their teams and build their talent pipeline. FDM can provide scalable resources across multiple client sites at short notice thanks to our flexible contract terms. Unlike other recruitment models, FDM’s Recruit, Train, Deploy model reduces the costs associated with the recruiting, screening and training of candidates.
We recruit graduates, ex-forces personnel and those seeking to return to work after a career break. Our talent pipeline consists of high-calibre candidates from a wider range of backgrounds, skill sets and experiences.
Our award-winning training equips individuals with the learning resources, working methodologies and technical skills required to transition them into professional consultants. We guarantee clients the ability to scale at speed, as all of our consultants commit to working for two years.
We continue to support our consultants with professional and technical help while they are on site. Our FDM consultants can be transferred to the client’s permanent teams once the agreed contractual time frames have elapsed.