How to create a future-ready, strategic TA function

According to ManpowerGroup, three of every four employers globally are having difficulty finding the talent they need, with the greatest impacts being felt in Japan.

ManpowerGroup’s data indicates that employers across countries, industries, and company sizes are all struggling to attract and retain employees, potentially jeopardizing their growth prospects.

But are internal recruitment and talent acquisition (TA) functions in a healthy condition to help address this talent shortage?

The latest study from The Talent Labs into the current state of the TA world uncovered some reason for disquiet.

Only 34% of respondents consider their current skills sourcing structure to be highly effective, for example.

Meanwhile, nearly half (48%) of our sample base told us they are reassessing their structure to better align with business and candidate needs, while also seeking substantial cost savings.

This suggests room for improvement, so let’s consider some key recommendations.

Flexible organizational structure

A starting recommendation is to prioritize a more flexible organizational structure.

Hybrid organizational structures that combine centralized and decentralized elements are increasingly important for modern TA functions.

Why? Because they allow for standardization of processes where feasible, while enabling responsiveness to local market dynamics.

Our study reveals that organizations with a hybrid model are better aligned geographically and demonstrate greater operational efficiency.

For instance, 54% of organizations with a hybrid model align their operations geographically, compared to nearly two-thirds (62%) of those with a decentralized model.

In contrast, only 28% of organizations with a centralized approach are fully aligned with their local markets.

And yet 67% of firms are running a centralized recruiting structure, i.e. one characterized by decision-making and strategic execution being managed at a corporate or headquarter level.

Among the 39% who have had their talent structure in place for less than one year, this rises to 71% who are running a centralized structure.

To ensure future readiness, evaluate your organization’s specific market presence and operational demands.

For businesses operating across diverse geographic regions with unique local needs, a hybrid model may be beneficial.

This approach blends the efficiency of centralized oversight with the agility of decentralized execution, and, as our members tells us, actually enables organizations to maintain consistency in their TA practices while being adaptable to local market conditions.

Prioritize hiring quality over speed

Another key recommendation is to avoid focusing solely on speed of hiring.

Time to Hire is the most tracked metric (82%), followed by Diversity of Candidates (68%), Time to Offer (67%) and Cost of Hire (60%), according to our data.

Less likely to be tracked are Quality of Hire and Quality of Process, however.

In fact, Quality of Hire dropped slightly compared to last year, from 32% to 26%. And those with a geographically decentralized structure are more likely to prioritize cost over quality when it comes to hiring metrics.

While filling positions quickly is important, focusing on Quality of Hire is crucial for long-term success.

A shift towards these quality-focused metrics to improve employee retention avoids costly layoffs, which is an imperative.

Becoming more strategic with talent

Successful TA operations are not just about filling vacancies but are crucial strategic partners in the broader business framework.

Consider ways to enhance your talent function’s agility to better support the business.

To do this involves regular stakeholder engagement, where feedback is sought and acted upon and where the TA team is seen not just as a support function, but as strategic business partners.

To gain an understanding of the wider needs, issues and challenges of their peers, TA leaders also need to be embedded within the business.

As well as being a recent The Josh Bersin Company recommendation, a move to a more strategic, consultative function is also reflected in Gartner‘s Talent Advisor model.

The model recommends that traditional recruiters progress to becoming advisors to the business, contributing to business goals and financial return on investment through data-driven decision making.

It also helps recruiters to seek out and report on talent opportunities, as well as provide strategic talent advice around areas such as building talent pipelines, retention, succession and leader planning.

Invest in your people

To attract and retain the best, foster recruitment and talent acquisition career development.

According to LinkedIn’s ‘The Future of Recruiting 2024’ report, 91% of recruiting professionals say they are focused on being agile to adapt to hiring needs.

As LinkedIn’s Head of Global Talent Acquisition Erin Scruggs noted in the study: “Every recruiter needs to be able to be flexible and deploy into hotspots versus specializing in specific domains.

“We didn’t do that a year ago, two years ago, or three years ago.

“But it’s critical for staying agile.”

Increasingly, TA pros need to be ‘full- stack’ recruiters who can work seamlessly across different functions and stages of the hiring process.

Yet there are notable shortcomings in career opportunities within talent functions.

Our data reveals that only 18% of organizations provide clear career and development pathways for TA professionals. For nearly half (49%), this remains a ‘work in progress’.

This lack of career development is also evident in the minimal investment in training–only 7.1% of the total talent acquisition budget is allocated to training, for instance.

The future of the talent function

A final thought here. There is an urgent need for better integration of TA functions with other HR disciplines such as learning & development, employee engagement, and performance management.

This integration is crucial to ensure that the TA function operates as part of a cohesive strategy for effectively managing and developing human capital, rather than in isolation.

Aligning the TA function closely with business strategies, adopting a flexible, forward-thinking approach, and investing in your talent acquisition team will better prepare organizations for the challenges of the evolving skills landscape.

It is the leaders that invest thoughtfully in their TA structures and skills-based approaches who will emerge as the winners in the competitive talent market of tomorrow.