5 Key Reasons Why You Should Start Building A Talent Pipeline Today!
Companies across the world are wondering how to properly build and maintain a talent pipeline. A talent pipeline consists of potential candidates that can be continuously nurtured and approached when vacancies arise. A recent survey from the ERE found that just 38% of employers recruit throughout the year. This article will outline five reasons why companies must implement a long-term sourcing strategy.
1. Reduce time to hire
The first key reason to build a talent pipeline is to reduce time-to-hire by 50% (number based on our own customer experience). Nurturing relationships with talents makes it easier to fill job vacancies.
2. Minimize business disruption
Unexpected vacancies will disrupt your business and might leave employees with a higher workload, as seen in a recent skills gap survey. Furthermore, work will be delayed or not completed at all. This will lead to declines in customer service, lower quality work, and revenue loss. With a strong talent pipeline, companies can quickly refill these positions and minimize negative impacts.
3. Increase success in interviews
This factor is based on your relationship with the potential talent. Because you already established a connection, candidates are seven times more successful in interviews than other candidates. This will significantly lower your time spent in interviews.
4. Lower cost per hire
Of course, you will have to initially invest a portion of your budget into your talent pipeline. In the long-term, however, it will pay off with a higher return on investment (ROI). Our customer case showed that companies had a 10 to 15 times higher ROI.
5. Find the best talent
Everybody wants the best talent. Building an interpersonal relationship with candidates before there is a vacancy will reduce the risk of a competitor salary war, as the candidate already has a connection with you.
So that is it! Five key reasons why you need to build your own talent pipeline. But why do 62% of employers still not have a yearly recruiting strategy? When it comes to deciding whether or not to implement a talent pipeline, there are generally two factors that come into play: time and money. As the ERE survey showed, 46% of hiring managers cite “lack of time” as the primary reason for not building a talent pipeline, while 29% cite the costs. What these companies may not realize is that the initial investment pays off. Like most projects, time and money needs to be invested at the beginning, but in the long-term, those investments will pay off.
Just as adventurer and Keynote speaker Reinhold Messner said at the World Talent Forum: “It is not about waiting for the moment when you think you are ready, which will never come, it is about getting started and going that way, step by step.”