Transforming talent acquisition for the future
26 October 2020 — Covid-19 has altered the talent acquisition landscape as we know it, with hiring activity hit hard; however, the quality of a new hire remains a top priority for the majority (60 percent) of businesses. That’s according to research from global talent acquisition and management firm, Alexander Mann Solutions.
The report – in partnership with Aptitude Research – analyzed quantitative and qualitive research across North America, EMEA and APAC during the pandemic to ascertain the impact of Covid-19 on talent acquisition.
Hiring activity takes a hit but speed of recruitment still a priority
According to the data, 38 percent of companies had put talent acquisition on hold as a result of Covid-19. Seventeen percent were reducing the number of hires planned this year, which can be expected given the current economic climate. Regardless of hiring plans, more than 60 percent of those surveyed reported that their top priority is filling open positions quickly.
The research report also indicated a trend in businesses turning to an outsourced recruitment model to best tackle 2020’s unique hiring challenges. Earlier in the year, 8 percent of companies used an outsourced model, but as the pandemic ensued, this number doubled. This is indicative of the impact of Covid-19 on resourcing teams, with 46 percent of responding firms experiencing layoffs across the talent acquisition department.
Internal talent acquisition a top priority
The report further indicated a focus on building internal resources over buying external skills. In April 2020, 39 percent of businesses indicated an intention to build internal capabilities while just 9 percent would borrow from other parts of the company. Seventeen percent of respondents revealed plans to leverage service providers to fill sourcing gaps.
While there was a clear trend in building internal talent, respondents highlighted that the pandemic had increased concerns around workforce planning as more companies faced staffing challenges. As the pandemic took hold in April 2020, 30 percent of those surveyed stated that workforce planning was a capability gap and priority, up from 12 percent reporting it before the pandemic. This is likely to be exacerbated by the impact of financial restrictions that have come in to play since the pandemic. Before Covid-19, 64 percent of companies were increasing talent acquisition budgets; yet, during the outbreak this dropped to 24 percent.
Nicola Hancock, Managing Director, Americas Region at Alexander Mann Solutions, commented, “Every organization has been impacted in some way by the pandemic. It has illuminated skills gaps and opportunities for reskilling and upskilling workforces. Most glaring is the need for an increased focus on workforce planning as traditional thinking will not help organizations effectively manage uncertainty, maximize hiring investments, and prepare for the future of work. Companies that are taking this time to rethink their talent acquisition strategies will be much further ahead when the current circumstances lift.”
The complimentary report can be downloaded by accessing http://go.alexandermannsolutions.com/ams-transforming-talent-report-2020-w2