2 Page 2 Executive Summary Talent acquisition has evolved from a tactical, back-office process to a strategic endeavor that directly impacts organizational growth. Organizations struggling to identify and attract talent must rethink their current strategies and technology options in order to align with corporate objectives. This study of 234 organizations, conducted in April and May 2013, will explore how best-practice organizations build results-driven talent acquisition programs, align goals with business objectives, and leverage world-class technology to achieve results. Best-in-Class Performance Aberdeen used the following three key performance criteria to distinguish Best-in-Class companies: 94% of first-year employees retained 80% of employees received ratings of exceeds performance 15% year-over-year improvement in hiring management satisfaction Research Benchmark Aberdeen s Research Benchmarks provide an in-depth and comprehensive look into process, procedure, methodologies, and technologies with best practice identification and actionable recommendations. Competitive Maturity Assessment Survey results show that the firms enjoying Best-in-Class performance shared several common characteristics, including: The ability to link talent acquisition initiatives to organizational profitability through validated data; The use of talent communities to engage candidates and employees; The measurement of quality of hire based on organizational fit and performance, and; The integration of talent-acquisition practices with performance management. Required Actions In addition to the specific recommendations in Chapter Three of this report, to achieve Best-in-Class performance, companies must: Improve visibility into all aspects of talent acquisition; Rethink technology options to improve efficiencies and create a positive candidate experience; Invest in a mobile solution for recruiters, hiring managers, and candidates, and; Consistently measure all aspects of talent acquisition. This document 2013 Aberdeen is the result Group. of primary research performed by Aberdeen Group. Aberdeen Group's methodologies provide for Telephone: objective fact-based research 5200 and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted Fax: 617 by Aberdeen Group, Inc. and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.
3 Page 3 Table of Contents Executive Summary... 2 Best-in-Class Performance... 2 Competitive Maturity Assessment... 2 Required Actions... 2 Chapter One: Benchmarking the Best-in-Class... 4 Business Context... 4 The Maturity Class Framework... 6 The Best-in-Class PACE Model... 7 Best-in-Class Strategies: The Role of the Recruiter... 7 Chapter Two: Benchmarking Requirements for Success Competitive Assessment Capabilities and Enablers Chapter Three: Required Actions Laggard Steps to Success Industry Average Steps to Success Best-in-Class Steps to Success Appendix A: Research Methodology Appendix B: Related Aberdeen Research Featured Underwriters Figures Figure 1: Top Pressures in Talent Acquisition... 5 Figure 2: Talent Acquisition Priorities... 6 Figure 3: Top Strategies for Talent Acquisition... 8 Figure 4: Year-Over-Year Business Improvements... 9 Figure 5: The Use of Social Media for Recruitment Figure 6: Top Process Capabilities Figure 7: Top Knowledge Management Capabilities Figure 8: Top Areas for Recruitment Technology Investment Figure 9: Elements of Talent Acquisition that are Linked to Organizational Profitability Figure 10: Video Interviewing Capabilities Tables Table 1: Top Performers Earn Best-in-Class Status... 6 Table 2: The Best-in-Class PACE Framework... 7 Table 3: The Competitive Framework Table 4: The PACE Framework Key Table 5: The Competitive Framework Key Table 6: The Relationship Between PACE and the Competitive Framework... 23
4 Page 4 Chapter One: Benchmarking the Best-in-Class Business Context If insanity is defined as doing the same thing over and over again but expecting different results, talent acquisition may fit the bill. Over the past decade, the shortage of critical skills has made the process of identifying and attracting talent a critical business objective. Yet, the majority of organizations have failed to mature in their recruitment efforts and continue to rely on the same antiquated processes and technology solutions. In fact, according to research conducted for this study, organizations are even regressing in their talent acquisition efforts as 57% have a reactionary process in place compared to only 44% of respondents in Today s workforce has changed dramatically. If talent acquisition does not keep pace, organizations will not only lose qualified candidates but also will jeopardize organizational growth and performance. In order to gain competitive advantage, organizations must consider adopting a new approach that focuses less on filling positions quickly and more on aligning with the business. This report will highlight how leading organizations achieve this goal by rethinking their strategies and technology options, challenging the traditional role of the recruiter, and focusing on how talent acquisition efforts can directly impact business outcomes. Fast Facts 57% of organizations have a reactionary approach to talent acquisition compared to 44% of organizations in Something is Broken The world of talent acquisition is one of the most complex and challenging areas of talent management. Despite a growing pool of available talent, finding the right fit is overwhelming even for the most seasoned recruitment professional. As organizations begin to respond to the demands of a modern workforce, talent acquisition seems to be taking a step backwards and moving further away from corporate priorities. One reason for this setback is that the internal and external pressures organizations face have intensified over the past year leaving many organizations feeling paralyzed about what actions they need to take. The most obvious example of these pressures is the shortage of critical skills a top challenge for 64% of organizations compared to only 55% in 2012 (see Figure 1). Without a clear understanding of what skills they need, where they can be found, and how they can acquire them, recruitment will remain stagnant.
5 Page 5 Figure 1: Top Pressures in Talent Acquisition Fast Facts 40% of organizations believe that job boards will be replaced in the next 5 years. Fortunately, these challenges are not insurmountable. Organizations that take a holistic approach to talent acquisition and focus on every element (employer branding, screening, assessment, hiring, and onboarding) are better able to address skill shortages and meet company growth objectives. In 2012, organizations focused primarily on sourcing as a way to improve recruitment, particularly since 40% of organizations believe that job boards will be obsolete in the next five years. This year, Aberdeen s research found that organizations are considering the full picture and recognize that areas such as employer branding and onboarding are also critical to the success of a talent acquisition function (see Figure 2). As this report will show, by rethinking the entire talent acquisition function rather than just one component, organizations will be able to make significant changes to the way they identify and attract talent and work on driving business outcomes.
6 Page 6 Figure 2: Talent Acquisition Priorities The Maturity Class Framework Aberdeen used three key performance criteria to distinguish the Best-in- Class from Industry Average and Laggard organizations: Retention of first-year employees Employees that exceeded performance expectations Year-over-year improvement in hiring manager satisfaction Table 1: Top Performers Earn Best-in-Class Status Definition of Maturity Class Best-in-Class: Top 20% of aggregate performance scorers Industry Average: Middle 50% of aggregate performance scorers Laggard: Bottom 30% of aggregate performance scorers Mean Class Performance 94% of first-year employees were retained 80% of employees exceed performance expectations 15% year-over-year improvement in hiring management satisfaction 87% of first-year employees were retained 52% of employees exceed performance expectations 4% year-over-year improvement in hiring management satisfaction 70% of first-year employees were retained 21% of employees exceed performance expectations 1% year-over-year improvement in hiring management satisfaction
7 Page 7 The Best-in-Class PACE Model Excellence in talent acquisition results from a combination of strategies, capabilities, and enabling technologies. The Best-in-Class display a number of common core characteristics: The ability to link talent acquisition initiatives to organizational profitability through validated data; The use of talent communities to engage candidates and strengthen the brand; The measurement of quality of hire based on organizational fit and performance, and; The integration of talent acquisition with areas of talent management such as performance and engagement. Table 2: The Best-in-Class PACE Framework Pressures Actions Capabilities Enablers Increasing competition in the market for top talent Strengthen ability to identify best fit talent Proactively build candidate pipeline Create a better candidate experience Hiring managers and candidates are given visibility in the status of the candidate Job roles deemed most critical to the organization s success are identified Metrics to measure success of recruitment have been defined Standardization of recruitment practices External online job / career portal Employee / candidate background checking Internal online job / career portal Employee eligibility / verification solutions Applicant tracking system (ATS) Employee referral tracking tools Pre-hire assessments Social networking sites Best-in-Class Strategies: The Role of the Recruiter In 2012, Best-in-Class talent acquisition strategies focused on both the art and science of recruiting. Talent acquisition professionals have to balance relationship-building skills with the analytical skills required to gain executive support and communicate with the business. This year s research reinforces that message since building a talent pipeline and workforce planning were identified as the top strategies. One difference, however, is the rise of employer branding as a top strategy and the need for talent acquisition professionals to flex one additional muscle communication skills (see Figure 3). Relationship Skills: Building a talent pipeline allows organizations to identify quality talent and create a talent pipeline regardless of current hiring needs. These are two strategic actions that are closely intertwined. Such organizations have greater insight into the talent they have and the talent
8 Page 8 they need at any given time creating a more strategic approach to identify talent. Analytical Skills: Workforce planning allows organizations to close talent gaps by understanding the demand and supply for talent. Organizations need to be able to prepare for current and future talent needs through headcount analysis, skill gap analysis, scenario planning, and talent segmentation. Best-in-Class organizations use this information to educate business leaders about talent needs. Communication Skills: In addition to building relationships with internal and external talent, talent acquisition professionals must also work with marketing and PR departments to ensure that the employer brand aligns with the corporate brand. Figure 3: Top Strategies for Talent Acquisition Organizations that execute on these strategic activities can achieve business results such as customer retention and customer satisfaction. Best-in-Class organizations improved these metrics at twice the rate of Industry Average and Laggard organizations (see Figure 4). The following pages will highlight some of the critical elements to consider when rolling out a talent acquisition strategy and driving business results. What distinguishes Best-in- Class organizations from Industry Average and Laggards is their ability to break from traditional recruitment models and redefine the future of talent acquisition on organizational growth.
9 Page 9 Figure 4: Year-Over-Year Business Improvements Fast Facts 78% of organizations are currently investing or planning to invest in talent communities. Building a Talent Community Aberdeen s research found that talent communities are one of the fastest growing areas of talent acquisition, with 78% of organizations currently investing or planning to make an investment over the next 12 months. For most organizations, a talent community is simply a database of active and passive candidates that receives alerts about job opportunities. What distinguishes Best-in-Class organizations from Industry Average and Laggards, however, is their ability to engage candidates through these communities and create a stronger employer brand in the process. In order for a talent community to be successful, talent-acquisition professionals must continually build relationships with talent and report on the effectiveness of these efforts to the business. While many organizations will use their corporate career pages to invite candidates to these communities, Best-in-Class organizations also use social media and extend talent communities to a broader audience of employees, alumni, and key stakeholders. Sixty-eight percent (68%) of Best-in-Class organizations see social media as critical to the recruitment strategy compared to 55% of All Others. Social media, for these organizations, is much less about blasting jobs to a group of individuals and more about building relationships, showcasing the brand, and engaging candidates as indicated in Figure 5. These organizations use social media to build communities that will help to power employee referral programs and strengthen employee engagement. In Aberdeen s 2012 Strategic Talent Acquisition: Are You Prepared to Hire the Best? report, we highlighted Pizza Hut as an organization that uses social media sites such as Facebook, LinkedIn, and Pinterest to help drive participation in its talent community.
10 Page 10 Figure 5: The Use of Social Media for Recruitment Assessing for Critical Roles According to Aberdeen s Human Capital Management Trends 2013 report, assessments are one of the highest areas of growth in talent acquisition. Currently, 82% of Best-in-Class organizations leverage pre-hire assessments compared to 54% of All Others. This represents a significant increase from the 68% of Best-in-Class organizations that leveraged assessments in One reason for this uptick is that Best-in-Class organizations are thinking more strategically about how to use this powerful recruitment tool, particularly when assessing for critical job roles. In any organization, there are critical roles responsible for driving revenue, performance, and client outcomes. Although these roles have an immediate impact on achieving higher levels of business performance, organizations often feel challenged identifying these roles and matching employee strengths to these roles. Sixty-three percent (63%) of Best-in-Class organizations are able to identify these critical job roles compared to 44% of All Others. Best-in-Class organizations achieve this goal through the use of assessments as a way to present a clear picture of the skills, behaviors, and competencies required to drive success in these critical roles. Defining Metrics for Success When determining the most critical metrics for evaluating the effectiveness of talent acquisition efforts, Best-in-Class organizations favor quality of hire and hiring manager satisfaction over time to fill and cost per hire. By
11 Page 11 understanding how these metrics are defined and evaluating them consistently, organizations are better able to align talent acquisition with corporate objectives. Quality of hire ensures that recruiters are more accountable for the performance of the hire once they are onboard instead of simply handing them over to hiring managers. Hiring manager satisfaction indicates that new hires meet performance goals and are the right fit. Although these metrics are a priority for many organizations, determining the key criteria used to measure quality of hire and hiring manager satisfaction is no small task. In fact, only 20% of organizations have a clear understanding of how quality of hire is measured. When asked to measure hiring-manager satisfaction, most organizations do this through survey results which can be ineffectual. The top criteria for measuring quality of hire includes: organizational fit (3.92), hiring manager satisfaction (3.82), and retention rate (3.94) based on scale of 1 to 4 (1 being the least effective and 4 being the most effective). Aberdeen Insights Discriminating Against the Unemployed The unemployed have been widely discriminated against by companies of all sizes and in every industry. Organizations incorrectly equate quality hires with employed talent. As a result, the Equal Employment Opportunity Commission (EEOC) began taking a closer look at discrimination against the unemployed after news that several organizations were posting job openings excluding unemployed job seekers from consideration. One ad posted the following NO UNEMPLOYED CANDIDATES WILL BE CONSIDERED AT ALL. Despite efforts by the EEOC, Aberdeen found that unemployed candidates make up a very small percentage of new hires for most organizations. For over 50% of organizations, 80% or more of their new hires were employed when they were being recruited. What organizations fail to recognize is that many of today s top talent have lost their jobs over the past year or decided to change careers based on circumstances outside of their control driven by a weak economy. Being employed is not a skill and if organizations are looking to close talent gaps and prepare for future talent needs they need to broaden their talent pool rather than reduce it. In the next chapter, we will see what the top performers are doing to achieve these gains.
12 Page 12 Chapter Two: Benchmarking Requirements for Success The selection and implementation of talent acquisition solutions and their integration with various talent management systems plays a crucial role in the ability to turn these strategies into performance and growth. Competitive Assessment Aberdeen Group analyzed the aggregated metrics of surveyed companies to determine whether their performance ranked as Best-in-Class, Industry Average, or Laggard. In addition to having common performance levels, each class also shared characteristics in five key categories: (1) process (the approaches they take to execute daily operations); (2) organization (corporate focus and collaboration among stakeholders); (3) knowledge management (contextualizing data and exposing it to key stakeholders); (4) technology (the selection of the appropriate tools and the effective deployment of those tools); and (5) performance management (the ability of the organization to measure its results to improve its business). These characteristics (identified in Table 3) serve as a guideline for best practices and correlate directly with Best-in-Class performance across the key metrics. Table 3: The Competitive Framework Process Organization Knowledge Technology Performance Best-in-Class Average Laggards Job roles deemed most critical to organization s success have been identified 63% 44% 43% Standardization across all aspects of recruiting 57% 54% 53% Core competencies are defined at the start of the hiring process 80% 66% 72% Screening is strategic and does not require a single error 56% 42% 29% Talent acquisition technology currently in use: 89% internal job portal 66% ATS 42% assessments 79% internal job portal 59% ATS 26% assessments 67% internal job portal 36% ATS 17% assessments Metrics to measure success have been agreed upon by key stakeholders 35% 24% 18%
13 Page 13 Aberdeen Insights Clear Channel: Getting Back to Basics For Clear Channel, communication is paramount. While other organizations are looking for the next best thing in terms of tools and technology, Clear Channel has been successful in its recruitment efforts by simply building relationships. These relationships serve as the foundation of its talent acquisition strategy and directly impact its ability to attract quality hires. Below are a few of the ways that Clear Channel builds its relationships: LinkedIn: through the creation of a LinkedIn group ( Career Channel Media + Entertainment ), Clear Channel has been able to build, captivate, and engage talent. With nearly 2,000 members, this group has active discussions and conversations that connect recruiters, hiring managers, and job candidates. Social Presence: Clear Channel s has a strong social presence due in large part to the personal brand of its Director of Talent Acquisition, Morgan Hoogvelt who is one of the more recognizable names in the recruitment industry. Hoogvelt and his team are easy to connect with, well-networked, and extremely approachable. Empower Candidates: Clear Channel provides resources for candidates to improve their interview skills and feel confident in the job search. It has created a resource guide for candidates and offers general advice throughout the recruitment process. Invest in Recruitment Process Outsourcing: Through its RPO investment, Clear Channel not only has the support for the administrative aspect of recruitment but it has a RPO provider that understands and reinforces its commitment to candidate engagement. Its RPO provider consistently receives high scores in candidate satisfaction surveys and prioritizes the candidate experience throughout its recruitment initiatives. As other organizations are trying to find a way to innovate the recruitment experience, Clear Channel has been successful by returning to the basics and building stronger relationships with job candidates. By focusing on the human side of recruitment, Clear Channel has successfully improved its ability to identify and attract talent. Capabilities and Enablers Based on the findings of the Competitive Framework and interviews with end users, Aberdeen s analysis of the Best-in-Class indicates that the following factors are critical to success: Take the steps needed to be prepared for current and future talent needs;
14 Page 14 Integrate talent acquisition with areas of talent management such as succession planning and performance management; Invest in innovative technology such as social media platforms, candidate relationship management, and video tools; Define key metrics in advance and ensure that these metrics align with business objectives. Process In strategic talent acquisition, organizations should be able to provide a clear picture of what talent is needed to any individual at any given point in time. As a result, process capabilities for talent acquisition are all about visibility and preparedness. Organizations need to have a clear understanding of talent they bring into the organization and also be prepared to address the talent they will need for the future. As a result, 62% of Best-in-Class organizations provide visibility to hiring managers and candidates on the status of the candidate through the recruitment process. One important step in providing this visibility is to identify the key competencies and roles critical to success. In any organization there are critical roles as well as competencies responsible for driving revenue, performance, and client outcomes. Eighty percent (80%) of Best-in-Class organizations are able to define core competencies at the start of the hiring process compared to 70% of All Others. Additionally, 63% of organizations have defined the jobs most critical to organizational success compared to 44% of All Others (see Figure 6). Figure 6: Top Process Capabilities Aberdeen Group, September 2013
15 Page 15 Organization Organizations looking to improve recruitment efforts are not only rethinking processes, they are also rethinking the structure of their talent acquisition function and moving to a centralized recruitment model. The benefits of a centralized strategy include greater accountability for hiring managers and an ability to evaluate the progress and performance of talent acquisition efforts in a consistent manner. This year s data revealed that Best-in-Class as well as Industry Average and Laggard companies are aggressively moving to a similar model. Sixty-one percent (61%) of Best-in- Class organizations have a centralized model compared to 51% of Industry Average and 56% of Laggard companies. Some of these centralized models include Centers of Excellence (CoE) as a way of gaining support and governance and well as shared analytics and learning. This shift has also sparked some organizations including Coca-Cola enterprises (featured in Aberdeen s 2012 Sourcing Gets Smart: Revamping Strategies, Rethinking Technology report) to build an internal sourcing function (an area of talent acquisition that has been outsourced in the past). Currently, 67% of organizations have an internal sourcing function. Knowledge Management Integration is one of the greatest challenges facing talent acquisition professionals. Not only do organizations need to think about where talent acquisition fits into the broader landscape of talent management but also how each element of talent acquisition is integrated to drive business results and create a consistent experience for the candidate. Aberdeen s research found that the most critical areas for integration, for many organizations, are performance management, succession planning, and onboarding. Few organizations, including the Best-in-Class, are able to provide a seamless transition from recruitment to these other areas of employee development. Figure 7 reveals how Best-in-Class organizations are just a step above Industry Average and Laggard organizations when it comes to providing data from the recruitment process to performance management and to onboarding. These organizations are also immature at providing recruiters with visibility into succession plans and organizational charts.
16 Page 16 Figure 7: Top Knowledge Management Capabilities Aberdeen Group, September 2013 Technology Decisions around recruitment technology are not simple. Organizations must consider solutions that will provide deep domain expertise and address the unique challenges and strategies involved in recruiting top talent. As a result, 84% of Best-in-Class organizations invest or plan to invest in best-of-breed ATSs rather than solutions from traditional human resources management system (HRMS) providers. Best-in-Class organizations recognize that these systems provide an understanding of how to handle complex recruiting needs and a way to improve the experience of recruiters, hiring managers, and candidates. Best-of-breed recruitment solutions have evolved dramatically from basic solutions used simply to process resumes and track applicants to systems that encompass the entire pre-hire lifecycle including candidate acquisition, requisition management, job postings, search capabilities, interview management, communications, and reporting. These systems foster a positive candidate experience through company career site branding, online employee referral programs, candidate self-service applications, prescreening questions, assessments, global configuration, social media, mobile capabilities, integration, contact management, compliance with equal employment opportunity (EEO) and the Office of Federal Contract Compliance Programs (OFCCP) regulations, and in many cases, support for high-volume recruiting. These are areas that are not typically supported by HRMS systems. Given the evolution of these systems, it is not surprising that talent acquisition technology is still a high-growth market as nearly 50% of Best-in- Class organizations plan to increase investment in recruitment technology
17 Page 17 over the next 12 months. When asked where these organizations would invest, they indicated they are looking to improve employer branding and sourcing two areas that typically fall out of the realm of HRMS or ERP providers. As indicated in Figure 8, organizations plan to invest in online talent communities, video tools, and workforce planning solutions in order to improve a strategic talent pool, brand the organization, and plan for future talent needs. In most cases, best-of-breed solutions are better able to support these areas either through advanced functionality or through partnerships with third-party providers. Figure 8: Top Areas for Recruitment Technology Investment Performance Management Talent acquisition needs to be evaluated and measured continuously not simply when a candidate accepts an offer. Furthermore, it needs to be linked to business outcomes. Very few organizations (including the Best-in-Class) are able to link organizational profitability / revenue with elements of talent acquisition (employer branding, sourcing, screening, assessment, hiring, and onboarding) as indicated in Figure 9. These organizations need to ensure that as they revamp their recruitment strategies, each element of talent acquisition must correlate with corporate objectives. For example, employer branding should align with corporate branding. Core competencies should be driven by business needs and onboarding should be linked to productivity and retention.
18 Page 18 Figure 9: Elements of Talent Acquisition that are Linked to Organizational Profitability Aberdeen Insights Video Interviewing Video is one of the most powerful talent acquisition tools for improving processes and creating a positive candidate experience. In fact, 31% of organizations participating in Aberdeen s talent acquisition research are investing in video interviewing, compared to 21% of organizations in Video interviewing has not only redefined how organizations engage with candidates, but it has created new opportunities for organizational growth and productivity. Companies are now able to extend their reach to a broader talent pool and improve visibility into the recruitment process. As organizations look to revamp their recruitment strategies and technology options, video interviewing is becoming a must-have.
19 Page 19 Aberdeen Insights Video Interviewing Although the demand for video is on the rise, understanding capabilities and selecting the right provider is still a challenge. Best-in-Class organizations are more advanced than Industry Average and Laggard organizations in their use of video interviewing and are more likely to select providers with enhanced capabilities such as multiple members of a hiring team collaborating on recorded responses (32% vs. 9%). Although live video interviewing is most popular amongst Best-in-Class, these organizations also embrace recorded video interview options faster than All Others. Figure 10: Video Interviewing Capabilities
20 Page 20 Chapter Three: Required Actions Whether a company is trying to move its performance in talent acquisition from Laggard to Industry Average, or Industry Average to Best-in-Class, the following actions will help spur the necessary performance improvements: Fast Facts Only 20% of Laggard organizations have a clearly defined employer brand. Laggard Steps to Success Create a Clear Employer Brand Strategy: Defining a clear employer brand and communicating that strategy both internally and externally will greatly improve an organization s ability to identify and attract talent. Currently, only 20% of Laggard organizations have a clearly defined employer brand compared to 40% of Best-in-Class organizations. Think More Strategically About Social Media: Social media can serve as a powerful recruitment tool and help to build talent communities for organizations, yet the majority of Laggard organizations have not adopted a strategic approach to social media. Only 50% of Laggards feel that social media is a critical tool compared to 68% of Best-in-Class organizations. Measure Quality of Hire: One of the most effective metrics for organizations to consider is quality of hire. Yet, determining the criteria for measuring quality is challenging for many organizations and only 15% of Laggards. Laggard organizations must consistently measure quality across the entire organization. Industry Average Steps to Success Formalize an Onboarding Program: Organizations must provide visibility around the status of candidates to hiring managers as well as key stakeholders. This visibility will help organizations to define core competencies and the most critical job roles. Only 50% of Industry Average organizations provide this visibility compared to 62% of Best-in-Class organizations. Integrate Talent Acquisition with Performance Management: Traditional recruiting models were siloed from other areas of talent management such as performance management. While many traditional HR silos were established for a reason, these silos have hindered critical talent initiatives and prevented HR from making talent a top priority in the organization. Industry Average organizations must be able to align talent acquisition to performance management data to help break down these silos.
21 Page 21 Best-in-Class Steps to Success Link Talent Acquisition to Profitability: Talent acquisition should improve not only HR performance but also the overall business performance. When organizations are effective in identifying and hiring talent, the overall business improves. Only 33% of Best-in-Class organizations are able to make this correlation through validated data. Invest in Innovative Technology Options: Innovation is a buzz word in talent acquisition technology. With solutions such as video tools and talent communities gaining steam, Best-in-Class organizations should re-evaluate what is not working and find alternatives. Prioritize Analytics: The use of analytics can greatly improve a contingent workforce management strategy by uncovering and providing intelligence to program leaders for improved business planning and collaboration.
22 Page 22 Appendix A: Research Methodology Between April and May 2013, Aberdeen examined the use, experiences, and intentions of more than 234 enterprises talent acquisition initiatives. Aberdeen supplemented this online survey effort with telephone interviews with select survey respondents, gathering additional information on talent acquisition strategies, experiences, and results. Responding enterprises included the following: Job title: The research sample included respondents with the following job titles: Director (22%); Manager (21%); Executive (17%); VP / EVP / SVP (13%); Consultant (7%); Staff (7%); General Manager / Managing Director (4%); Other (4%); CFO (2%); CSO (1%); and Partner / Principal (1%). Department / function: The research sample included respondents from the following departments or functions: human resources / talent management (56%); corporate management (12%); business development / sales (7%); other (5%); strategy (4%); operations (3%); product development / engineering (3%); logistics / supply chain (2%); customer service / support (1%); field service (1%); finance / administration (1%); information technology (1%); marketing (1%); procurement / purchasing (1%); and quality management (1%). Industry: The research sample included respondents from a wide variety of industries. Some of the larger industries represented were IT consulting / services (22%); financial services (8%); software (7%); government / public sector (6%); and automotive / other vehicles (5%). Geography: The majority of respondents (63%) were from North America. Remaining respondents were from Europe (18%); the Asia / Pacific region (13%); Africa and Middle East (4%); and South / Central America and Caribbean (2%). Company size: Thirty-one percent (31%) of respondents were from large enterprises (annual revenues above US $1 billion); 26% were from midsize enterprises (annual revenues between $50 million and $1 billion); and 43% of respondents were from small businesses (annual revenues of $50 million or less). Headcount: Forty-seven percent (47%) of respondents were from large enterprises (headcount greater than 1,001 employees); 25% were from midsize enterprises (headcount between 101 and 1,000 employees); and 28% of respondents were from small businesses (headcount between 1 and 100 employees). Study Focus Responding human capital and line-of-business executives completed an online survey that included questions designed to determine the following: The degree to which organizations use talent acquisition as part of their recruiting, as well as the structure and effectiveness of existing talent acquisition arrangements. The benefits, if any, that have been derived from talent acquisition initiatives. The study aimed to identify emerging best practices for talent acquisition usage in human capital management and to provide a framework by which readers could assess their own management capabilities.
23 Page 23 Table 4: The PACE Framework Key Overview Aberdeen applies a methodology to benchmark research that evaluates the business pressures, actions, capabilities, and enablers (PACE) that indicate corporate behavior in specific business processes. These terms are defined as follows: Pressures external forces that impact an organization s market position, competitiveness, or business operations (e.g., economic, political and regulatory, technology, changing customer preferences, competitive) Actions the strategic approaches that an organization takes in response to industry pressures (e.g., align the corporate business model to leverage industry opportunities, such as product / service strategy, target markets, financial strategy, go-to-market, and sales strategy) Capabilities the business process competencies required to execute corporate strategy (e.g., skilled people, brand, market positioning, viable products / services, ecosystem partners, financing) Enablers the key functionality of technology solutions required to support the organization s enabling business practices (e.g., development platform, applications, network connectivity, user interface, training and support, partner interfaces, data cleansing, and management) Table 5: The Competitive Framework Key Overview The Aberdeen Competitive Framework defines enterprises as falling into one of the following three levels of practices and performance: Best-in-Class (20%) Practices that are the best currently being employed and are significantly superior to the Industry Average, and result in the top industry performance. Industry Average (50%) Practices that represent the average or norm, and result in average industry performance. Laggards (30%) Practices that are significantly behind the average of the industry, and result in below average performance. In the following categories: Process What is the scope of process standardization? What is the efficiency and effectiveness of this process? Organization How is your company currently organized to manage and optimize this particular process? Knowledge What visibility do you have into key data and intelligence required to manage this process? Technology What level of automation have you used to support this process? How is this automation integrated and aligned? Performance What do you measure? How frequently? What s your actual performance? Table 6: The Relationship Between PACE and the Competitive Framework PACE and the Competitive Framework How They Interact Aberdeen s research indicates that companies that identify the most influential pressures and take the most transformational and effective actions are most likely to achieve superior performance. The level of competitive performance that a company achieves is strongly determined by the PACE choices that they make and how well they execute those decisions.
24 Page 24 Appendix B: Related Aberdeen Research Related Aberdeen research that forms a companion or reference to this report includes: Aligning Your Mobile Recruitment Strategy to Your Corporate Strategy; July 2013 Next Generation Talent Acquisition Technology; July 2013 Contingent Labor Management: Strategies and Solutions for a Flexible Workforce; August 2013 What is Your Most Effective Source of Hire?; May 2013 The Curious Case of Video Interviewing: Reducing Costs and Improving Efficiency; April 2013 Strategic Talent Acquisition in the SMB Market: Alignment, Integration and Innovation; December 2012 Information on these and any other Aberdeen publications can be found at Author: Madeline Laurano, Research Director, Human Capital Management, For more than two decades, Aberdeen's research has been helping corporations worldwide become Best-in-Class. Having benchmarked the performance of more than 644,000 companies, Aberdeen is uniquely positioned to provide organizations with the facts that matter the facts that enable companies to get ahead and drive results. That's why our research is relied on by more than 2.5 million readers in over 40 countries, 90% of the Fortune 1,000, and 93% of the Technology 500. As a Harte-Hanks Company, Aberdeen s research provides insight and analysis to the Harte-Hanks community of local, regional, national and international marketing executives. Combined, we help our customers leverage the power of insight to deliver innovative multichannel marketing programs that drive business-changing results. For additional information, visit Aberdeen or call (617) , or to learn more about Harte-Hanks, call (800) or go to This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologies provide for objective fact-based research and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc. (2013a)
Onboarding 2013 A New Look at New Hires April 2013 Madeline Laurano Page 2 Executive Summary The first impression an organization makes is often the most critical not only with customers and key stakeholders
Human Capital Management Trends 2013 It s a Brave New World January 2013 Mollie Lombardi and Madeline Laurano Page 2 Executive Summary Human capital management is a key business initiative. Without insight
Sourcing Gets Smart Revamping Strategies, Rethinking Technology April 2012 Madeline Laurano Sourcing Gets Smart: Revamping Strategies, Rethinking Technology Sourcing is the foundation of any successful
Employee Engagement Drives Client Satisfaction and Employee Success in In professional services, business success is achieved through employee success. Organizations that prioritize top talent gain competitive
Benchmarking VoIP Performance Management March 2008 Page 2 Executive Summary Aberdeen surveyed 159 organizations to identify best practices for managing Voice over Internet Protocol (VoIP). This report
Customer Analytics Segmentation Beyond Demographics August 2008 Ian Michiels Page 2 Executive Summary This report isolates best practices in customer analytics and customer segmentation. The report articulates
Workforce Management: Controlling Costs, Delivering Results Organizations today must balance the need to run an efficient and costeffective operation while remaining agile and flexible to meet both customer
Smart Machines Lead to Smarter Service: Remote Intelligence Signals Profitable Resolution The emergence of machine-to-machine (M2M) enabled equipment is driving a large growth of Field Service-based data
Avaya Users Deploy Best-in-Class Practices to Improve Contact Center Between March and July of 2012, Aberdeen surveyed 478 customer care executives regarding their contact center activities. Findings from
Application Performance in Complex and Hybrid Environments January 2012 Jim Rapoza ~ Underwritten, in Part, by ~ Page 2 Executive Summary Companies that do not rise to the challenges of ensuring performance
Small to Midsize Enterprises Profiting from Innovation March 2007 Executive Summary S mall to midsize enterprises (SMEs) are actively pursuing product development improvements to deliver more innovative
Lead Prioritization and Scoring The Path to Higher Conversion May 2008 Page 2 Executive Summary This report identifies best practices in lead scoring and prioritization by analyzing the processes, capabilities,
thyu Engineering Change Management 2.0: Better Business Decisions from Intelligent Change Management September 2007 Page 2 Executive Summary Managing engineering change has always been hard, and is a regular
Talent Assessment Strategies A Decision Guide for Organizational March 2010 Mollie Lombardi, Jayson Saba Page 2 Executive Summary Organizations today are continually looking for ways to make better decisions
Project Management in Software Development Taking the Complexity Out of June 2012 Nick Castellina, Nuris Ismail Project Management in Software Development: Taking the Complexity Out of In a survey conducted
Recruitment Software 101 What is Talent Acquisition? Once upon a time, personnel departments existed to simply find warm bodies to fill vacancies. Today, the best companies realize that success requires
Fixing First-Time Fix: Repairing Field Service Efficiency to Enhance Customer First-time fix is one of the most vital metrics in gauging field service performance. While workforce utilization, productivity,
Measuring Marketing Performance: The BI Roadmap to Information Nirvana October 2007 ~ Underwritten, in Part, by ~ Page 2 Executive Summary This report is a roadmap for marketing and business executives
Helping our clients win in the changing world of work: Recruitment Process: Why Outsource? A Manpower Insights Paper The future of RPO looks strong despite or perhaps aided by the current global recession.
A Guide for Implementing Best-in-Class Time and Attendance Strategies In July and August, Aberdeen Group surveyed more than 300 organizations in order to determine Best-in-Class practices in managing core
To ERP or Not to ERP: It Isn't Even a Question Enterprise Resource Planning (ERP) software is designed to be the system of record for operating and managing a business. Growing up out of the Manufacturing
Tapping into the Recruiting Power of Existing Power Employees Tapping into the Recruiting of Existing Employees a Recruiting Trends white paper, sponsored by Tapping into the Recruiting Power of Existing
recruitment & human resources organizational analysis review & industry best practices About the Authors David Szary David is a leading authority on developing radical, just-in-time recruitment solutions
A View into the Best-in-Class Strategic Meetings Management Program June 2011 Christopher J. Dwyer Page 2 Executive Summary The modern organization s planning, execution and management of strategic meetings
Real Estate and Facilities Lifecycle Management Page 2 Executive Summary A business environment that is unyielding in its pursuit of bottom-line savings and process efficiency has driven enterprises to
March 2013 Understanding the Real Impact of Social Media Monitoring on the Value Chain More and more companies have turned to social media monitoring or social listening tools to find the critical insights
Roadmap for Growth and June 2007 Page 2 Executive Summary New Aberdeen research reveals that customer data quality is a sales and marketing leadership issue. In surveying over 400 organizations, Aberdeen
SMART SOURCING A MARKET FOCUSSED RECRUITMENT SOURCING STRATEGY EXECUTIVE SUMMARY The key drivers that drive talent acquisition in good times and bad times, in tight labor markets or soft ones largely remain
Disaster Avoidance and Disaster Recovery: May 2010 Dick Csaplar Page 2 Executive Summary In May of 2010 Aberdeen surveyed over 100 organizations that had a formal Disaster Recovery (DR) program to learn
Engineering Change: The Key to Cost Reduction for Competitive The automotive industry has seen significant change over the last couple of decades, but looking to the future, there will be even more significant
Recruitment Process Outsourcing Methodology Statement Contents An Overview... 3 Steps To Success The Components of an Outsourced Recruitment Process... 4 Why Use RPO?... 6 Why Consult Group?... 8 About
The Evolution of the Contemporary Contingent Workforce May 2011 Christopher J. Dwyer ~ Underwritten, in Part, by ~ Page 2 Executive Summary The contemporary contingent workforce has undergone an evolution
The Next Generation of Manufacturing Systems January 2008 Page 2 Executive Summary The Manufacturing Execution System (MES) has outlived its original definition. Faced with dynamic market changes and competitive
Asset Management: Using Analytics to Drive Predictive Maintenance As seen in Aberdeen's December 2012 report, Asset Management: Building the Business Case for the Executive, lingering uncertainty around
Key Social Networking Strategies for Talent Acquisition Key Social Networking Strategies for Talent Acquisition INTRODUCTION LinkedIn recently published a survey that stated 80 90% of talent acquisition
Workforce Management in the Contact Center Optimizing Agent Scheduling and Productivity to Improve Customer Experience Results June 2012 Omer Minkara Workforce Management in the Contact Center: Optimizing
Social Selling: Leveraging the Power of User- Generated Content to Optimize The use of Social Media has become virtually universal, both for personal use as well as for a fast-growing set of business-to-consumer
Maintenance, Repair, and Operations (MRO) in Asset Intensive Industries February 2013 Nuris Ismail, Reid Paquin Maintenance, Repair, and Operations (MRO) in Asset Intensive Industries The impact Maintenance,
The Travel and Expense Management Guide for 2014 Trends for the Future March 2014 Louis Berard The Travel and Expense Management Guide for 2014: Trends for the Future In December 2013 and January 2014,
Predictive Analytics The Right Tool for Tough Times February 2010 David White Page 2 Executive Summary Enterprises are under pressure to predict the future behavior of customers and potential customers,
Streamlining Sales and Use Tax Management June 2011 William Jan Page 2 Executive Summary Being exposed to government tax audits and having to deal with fines and penalties are issues that companies fear.
Recruitment Process: Why Outsource? Open House November 2010 Think differently about work. John Loukas Manpower Business Solutions Director 2 RPO - Agenda RPO Overview - Definition RPO as a Talent Acquisition
HRO - Early Findings and Best-in-Class Talent Management Metrics - Kevin Martin Vice President and Principal Analyst, Human Capital Management Aberdeen Group October 23, 2008 AberdeenGroup 2007 Human Capital
ERP in Wholesale and Distribution Extending the Enterprise to Extend Profits October 2012 Nick Castellina ERP in Wholesale and Distribution: Extending the Enterprise to Extend Profits Enterprise Resource
Workday Human Capital Management Suite Modern businesses operate in highly competitive, complex global environments. An organization must thoroughly understand its global workforce in order to make quick
December, 2011 SaaS and Cloud ERP Trends, Observations, and Performance 2011 Over the past five years, Aberdeen has been measuring the willingness of organizations to consider Software as a Service (SaaS)
The Fundamentals of Managed Service Provider (MSP) Programs Part 3 of 3 Part 3: Business Case and Readiness By Jennifer Spicher contents This is the final of a three-part series designed to outline key
March 2011 Kevin Prouty ~ Underwritten, in Part, by ~ Page 2 Executive Summary Complex manufacturers face both similar and at the same time different challenges compared to other manufacturers. Complex
The Talent Framework Executive Summary Josh Bersin Stacey Harris Kim Lamoureux Madeline Laurano David Mallon May 2010 BERSIN & ASSOCIATES RESEARCH REPORT V.1.0 The Talent Framework Executive Summary The
Oracle Taleo for Recruiting Management: The Path that Leads to the Best Talent Sreenath Kamasamudhram, BizTech Introduction Today's Human Resources (HR), talent and learning executives face strategic challenges,
Spend Analysis: The Nexus of Spend Management November 2011 Constantine G. Limberakis Page 2 Executive Summary Due in part to the number of solutions that contain spend information in organizations today,
Redefining RPO: Comprehensive Talent Solutions Changing the Employment Landscape EXECUTIVE SUMMARY Recruitment process outsourcing (RPO) has undergone a transformation. What once was a function focused
2010 Project Management Report Standardized Best Practices and Technology Adoption in the AEC Industry January 2010 Cindy Jutras Page 2 Executive Summary A difficult economy and global competition leave
Make Global Recruiting a Winning Strategy A ManpowerGroup TM Solutions White Paper Make Global Recruiting a Winning Strategy Today s global workforce is on the move like never before. Macro-economic forces,
Recruitment Process Outsourcing: What You Should Look for in an RPO Provider James F. McCoy Vice President & RPO Practice Lead It used to be that companies looked exclusively at cost and process to identify
Core HR Systems Flawless Execution Enabling Strategic HR Management September 2009 Jayson Saba Page 2 Executive Summary In August and September 2009, Aberdeen surveyed more than 300 organizations regarding
2015 Baker s Dozen Customer Satisfaction Ratings: Talent Management Technology We rank the top providers of talent management platforms based on customer satisfaction surveys. By The Editors Talent management
Jobvite Hire: High Tech The innovative recruiting solution that fuels your innovation. Few industries today are as hot as high tech and few are as dynamic and competitive. The pace of technology growth
The State of Strategic Sourcing Building a Context for the Next Decade April 2011 Christopher J. Dwyer, Constantine G. Limberakis Page 2 Executive Summary Strategic sourcing, for as long as this function
Performance Management in the Midmarket January 2010 David Hatch, Max Gladstone Page 2 Executive Summary Executives and line-of-business management in mid-sized businesses are increasingly feeling pressure
Boosting Enterprise Application Performance in Distributed Environments April 2012 Jim Rapoza ~ Underwritten, in Part, by ~ Boosting Enterprise Application Performance in Distributed Environments Modern
The Impact of Payment Automation on Bottom-line Savings In the current recessionary environment, finance professionals have intensified their focus on working capital as well as improving the bottomline
Understanding Hiring vs. Recruiting Changing the hiring model to attract top talent involves rethinking practices. Dr. Cabot L. Jaffee AlignMark Inc. 500 Winderley Place #224 Maitland, FL 32751 February
UNLOCKING THE VALUE OF THE TOP SUPPLIERS THE POWER OF OPTIMIZING YOUR TALENT SUPPLY CHAIN TOM TISDALE TABLE OF CONTENTS 3 Introduction 4 Analytics considers the continuous flow of talent through a business
Predictive Analytics The Right Tool for Tough Times February 2010 David White Page 2 Executive Summary Enterprises are under pressure to predict the future behavior of customers and potential customers,
ADP Research Institute The Recruitment Quotient: Raising Your Talent IQ Contents 3 Introduction 4 Candidates Expectations: Higher Than You Might Expect 5 Employment Brands, Social Media, and the Consumerization
Embedded BI Boosting Analytical Adoption and Engagement March 2012 Michael Lock Embedded BI: Boosting Analytical Adoption and Engagement In today's business climate, the challenge of effective decision-making
Get Engaged to Talent version nº V9.1 Avature helps you tap into employees' social networks and increase their engagement in your ERP so that you can maximize the results of this powerful talent sourcing
5 Key Talent Acquisition Strategies for a New Decade Best Practices for Effective Talent Acquisition during a New Era in Talent Management An icims White Paper In many ways the coming decade will redefine
Talent Analytics Compare Your Talent against the Best in Your Industry How Effective are Your People Strategies? The largest proportion of an organization s expenditure is on its people. But how effective
THE FUNDAMENTAL S OF MANAGED SERVICE PROVIDER (MSP) PROGR AMS PART 1 OF 3 PART 1: THE WHAT, WHO, AND WHY OF MSP BY JENNIFER SPICHER CONTENTS p3 Introduction p4 Why an MSP is Important p6 What Is an MSP?
Global Trends in RPO & Talent Recruitment 2014 pam berklich The Recruiting Challenge Map Far from simply filling existing gaps as quickly and economically as possible, recruiting has become a high-stakes
Operational KPIs and Performance Management Are Your Daily Decisions Based on Fact? August 2008 Page 2 Executive Summary Businesses thrive or fail based on their ability to identify, define, track, and
Lead Nurturing The Secret to Successful Lead Generation November 2008 Ian Michiels Page 2 Executive Summary This report outlines the essential role lead nurturing will play in weathering the economic downturn.
Delivering Value to the Business Why Your Current HR Systems Hold You Back Delivering Value to the Business Why Your Current HR Systems Hold You Back When your Human Resources organization directly contributes
Businesses recognize that their most valuable resource is the people. With the demand for skilled talent continuously growing, it s a competitive necessity to have the best processes in place to attract,
10 Must-Track Metrics in Talent Acquisition Talent acquisition continues to be one of the most urgent issues for companies, and the pressure to hire the right people has created an intensely competitive
ITSM IT Transforms Itself into a August 2007 Page 2 Executive Summary This report is a roadmap for IT organizations that desire to shift from a focus on technology and internal needs to how it services
NEAT EVALUATION FOR CIELO: Recruitment Process Outsourcing Market Segment: Overall This document presents Cielo with the NelsonHall NEAT vendor evaluation for Recruitment Process Outsourcing (Overall market
hudson RPO ASIA pacific Recruitment Process Outsourcing Hudson RPO Asia Pacific is proud to be the winner of a number of industry rated awards including: HRO Today s Global Baker s Dozen List, 2010, 2011
ERP Selection Finding the Right Fit October 2012 Nick Castellina, Peter Krensky Finding a needle in a haystack is hard, but the task pales in comparison to finding a specific needle in a pile of needles.
The New Business of Business Leaders Hiring and Onboarding In the new millennium, leading business organizations capture data about people, turning it into actionable information, and using it for making