I Don’t Need a Talent Acquisition Strategy, Do I?

I Don’t Need a Talent Acquisition Strategy, Do I? 600 400 Balance Point Team

Jeremy is the office administrator for a boutique graphic design studio. Business has grown quickly since the company opened its doors three years ago. They’ve recently acquired several new, high-profile clients but are struggling to keep up with the constant need for talented designers and project managers. 

With no dedicated HR support person, Jeremy has taken on many human resources responsibilities including payroll, benefits administration, and the challenging task of recruiting and hiring.

Technology Eases Jeremy’s Challenges

The company’s president gave Jeremy the green light to use human capital management (HCM) technology to help him manage the workforce’s needs. Jeremy is thrilled how the software helps him streamline many administrative tasks–especially hiring, thanks to the applicant tracking system. He uses it to post jobs, collect applications, set up interviews, communicate with candidates, and make offers.

Soon, all open positions are filled, and things are looking up.

Jeremy’s Company Transitions

To accommodate their clients’ requests, the company soon adds website design and development to the services they provide, a logical transition. Unfortunately, many of the newly hired employees don’t possess the skills and background to support the new direction the company is taking.

Some, who are unwilling to seek training, are let go. Others, who sense the building tension and shift in culture, begin seeking other job opportunities.

What went wrong?

While Jeremy and his manager had good intentions, evident by the decision to invest in HCM technology, they did not have a talent acquisition strategy in place to guide their hiring decisions.

We don’t need a talent acquisition strategy, do we?

All businesses benefit from a formal talent acquisition strategy, an HR strategy that seeks to fulfill long-term organizational needs by identifying top talent, convincing them to bring their unique skills to the company, and stay.

Here are three reasons why you, and Jeremy, need to have one:

To Protect The Bottom Line

Bad hires take a toll on a company in more ways than just morale. According to SHRM, it costs up to 50-60% of an employee’s annual salary to find a direct replacement.

That means, if one of the graphic designers at Jeremy’s company making $60,000 a year were to quit, it would cost them anywhere from $30,000-$45,000 to find and train a replacement.

A talent acquisition strategy helps you hire smarter, reducing the odds of making a bad hire.

To Build Company Culture

An important element of a talent acquisition strategy is defining your employer brand. An employer brand is the company’s identity that is communicated to current employees and potential employees during the hiring process. It ensures that the employees you hire are cultural fits whose values and goals are aligned with the company.

If the shift in direction at Jeremy’s company was properly communicated to employees, it’s likely they would have been embraced it rather than look to flee.

To Ensure Future Growth

Perhaps the most compelling reason to craft a talent acquisition strategy is to support your company’s long-term growth. It ensures talent is being utilized properly and that employees possess the skills necessary to grow with the company.

Jeremy’s company anticipated the expansion into website creation, yet never took it into consideration when expanding the team. If they had, then they would have had the appropriate talent to successfully transition the business.   

Learn from Jeremy’s mistakes and take a smarter approach to hiring. Talk to an HCM expert today and discover the best ways for you to bring in the right people to help your business grow.

Click here to book your free consultation >>

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