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www.pwc.com.au
Corporate Recruitment 2020
– Maturity Model
Published
February 2017
PwC
Late in 2016 a group of corporate Talent Leaders and leading industry vendors got
together to co-design an industry Ma...
PwC
Participating organisations
3PwC
PwC
New Basic
Getting the basics right in order to make
the most of what we have
Shifting Expectations
Shifting the focus ...
PwC 5
Corporate recruitment maturity – 2020
Foundation – Tech & Analytics
New Basic
Getting the basics right in order to m...
PwC 6
Corporate recruitment maturity – 2020
Foundation - Recruiters
New Basic
Getting the basics right in order to make
th...
PwC 7
Corporate recruitment maturity – 2020
Impact on experience of business operations
New Basic
Getting the basics right...
PwC
New Basic
Getting the basics right in order to make
the most of what we have
Shifting Expectations
Shifting the focus ...
www.pwc.com.au
www.tqsolutions.com.au
© 2016 PricewaterhouseCoopers. All rights reserved.
PwC refers to the Australia memb...
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Corporate Recruitment 2020 Maturity Model Feb 2017

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Corporate Recruitment / Talent Acquisition Maturity Model - How Talent Acquisition will evolve in the next 5-8 years. A Model developed by TQSolutions and PwC with input from industry.

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Corporate Recruitment 2020 Maturity Model Feb 2017

  1. 1. www.pwc.com.au Corporate Recruitment 2020 – Maturity Model Published February 2017
  2. 2. PwC Late in 2016 a group of corporate Talent Leaders and leading industry vendors got together to co-design an industry Maturity Model for Corporate Recruitment. The catalyst for this was an Australia Post project to redefine a compelling future recruitment model to enable their growth strategy. Several industry workshops took place in Sydney and Melbourne. In total, over 100 people were involved in creating and refining this model which we’re now publishing. We hope it allows you to: • Stimulate conversations with your team, the business and leadership • Assess your current approach to recruitment against the future • Build a roadmap to prioritise and sequence how to move your organisation forward. • If you’d like more information about the Maturity Model, its content or indeed the process of co-design please contact one of the team below. We are also conducting a benchmarking survey (Jan/Feb) using this content so that you can compare your current state against your industry peers. 2 Introduction and tips for use Talent leaders/recruitment team • Use it as a diagnostic and benchmark for your talent strategy so that you can establish where you are relative to the model • Against that background set shared goals and, again, determined investment and execution priorities • Reference to measure progress and identify interdependences in planning – identifying gaps and advantages. HR team and HR business partners • Use as a way to align to shared goals and agree investment and execution priorities • Create a shared language across the business for the HR team and a common tool to drive and measure progress. Business unit leaders/executive teams • Establish the delta between where you are and what optimised could look like in your context • Build shared view of the future and what’s possible and explore the impacts that has in business planning and roadmaps • Understand what might impact thinking in the future and determine appropriate responses. Conversations to start CEO TQSolutions Consulting 0407 873 413 Gareth.Flynn@tqsolutions.com.au Gareth Flynn Head of Design for People PwC Australia 0412 322 044 Lynette.Nixon@pwc.com Lynette Nixon
  3. 3. PwC Participating organisations 3PwC
  4. 4. PwC New Basic Getting the basics right in order to make the most of what we have Shifting Expectations Shifting the focus of effort from process execution to candidate experience Transforming Building competitive advantage by developing new partnerships and shifting to a marketing and analytics mindset Foundation OrganisationMindset Operating Model (Inflexible moving to agile) • Fixed model – eg in-house with limited resource, capacity and capability; substantial reliance on third party agencies • Flexible Model – eg Recruitment Centres of Excellence created and broader skills/capabilities deployed as required • Highly agile model – adapting to business need with strategic partners and specialist vendors providing flex to the model; Function and business responsible for recruitment • ‘Everyone is a recruiter’ – fully leverage internal and external networks including customers, advocacy groups and other organisations Funding (Cost centre moving to revenue options) • Functionally owned by HR with restrictive funding model, seen as cost centre by the business • Additional funding released as links to business performance become visible • Recruitment can demonstrate direct links to P+L and revenue streams through improved analytics • Business accepts Recruitment’s influence on bottom line and funds appropriately • Model has the ability to generate revenues/profit through the commercialisation of its activities to other external organisations Cross-functional alignment (Business involvement in recruitment) • Broader business expects HR to ‘own’ recruitment • Business starts to see it’s integral role in recruitment ‘ownership’ • Recruitment, HR and marketing forge partnership to fully leverage the brand in the internal and external marketplace • Fully integrated function with clear links between operating business units and corporate functions such as finance, marketing, technology & HR Sourcing & Brand Strategy (Reactive and generic moving to proactive and customised) • “Post & pray” mentality – focus on active job seekers/specific vacancies – Linear process of talent sourced and screened as roles become available. Brand messaging is generic and ‘catch-all’ • Elements of proactive sourcing are introduced, emergence of talent communities, sourcing CRM activities • Attention to employer brand as a key pillar of talent strategy – ability to attract the right talent through well defined EVP • Focus moves from merely brand appeal to brand influence in the consumer and labour markets. Advanced marketing capability supports segmented EVP and targeted communications to talent communities • As knowledge of talent becomes deeper and relationships longer term, employment related messaging becomes increasingly tailored and customised to individuals – an EVP of ‘1’ 4 Corporate recruitment maturity – 2020 Foundation – Organisation mindset Involves the establishment of dedicated sourcing and branding expertise and the introduction of proactive sourcing / talent pipelines More sophisticated metrics allow business to understand recruitment's influence and impact on bottom line, resulting in further investment Business recognises that to be successful it has to integrate several key functions including HR / Recruitment and Marketing / Finance & Analytics. E.g. Recruitment & Marketing work together to develop integrated consumer / employment brand strategy Significant level of referrals of talent from the business and other external participants including external advocates. ERP / EOI is now the highest yielding sourcing channel Leadership includes insights and trends from Recruitment as crucial part of decision making. At this level the business is highly self- sufficient and enabled Optimised Creating a new eco-system in which talent is accessible, mobile and relevant; influenced by the principles of the sharing economy
  5. 5. PwC 5 Corporate recruitment maturity – 2020 Foundation – Tech & Analytics New Basic Getting the basics right in order to make the most of what we have Shifting Expectations Shifting the focus of effort from process execution to candidate experience Transforming Building competitive advantage by developing new partnerships and shifting to a marketing and analytics mindset Candidate Management (Fragmented, manual moving to integrated, automatic) • Platform manages the individual recruitment process and provides basic reporting functionality (eg ATS) • Technology enables greater relationship management, allowing segmented engagement with candidates (eg CRM) • Next generation CRM, CRS, BI, self-service models put greater focus on the person and their experience, not just the process • Seamless candidate relationship management for full employee lifecycle with some elements shared between organisations on common talent platforms Technology Agility (Static moving to agile) • Long-term, fixed functionality –Organisations typically adopt tried and tested technology • Long-term, flexible technology solutions that can be tailored by external vendor as required • Organisations more willing to try new tools + technology on a trial basis to test functionality and document lessons learned • High agile, scalable, adaptable etc. Organisations partner with tech-solutions vendor to implement and maintain best of breed tech solutions with a ‘fail fast’ mentality Foundation Tech&Analytics Interoperability (Fragmented moving to integrated) • Effort expended on core HR/recruitment system to manage ‘requisitions’ and process – independent from other systems • Broader technology eco-system created, focussing on engagement and relationship based systems and tools • Agile technology solutions are deployed + reviewed to service all cross-functional recruitment and employment related activities • Fully integrated platform or ‘marketplace’ of technology solutions supporting the complete ‘workforce’ lifecycle Technology ownership & operation (arms length moving to integrated) • Organisation owns and operates their own technology platforms • Increased partnerships with specialist technology and outsource vendors • Technology platforms starts to become integrated and ‘shared’ across vendors and organisations • Technology becomes a common platform across organisations to support the new eco- system and common employment language Technology enabled Administration Platforms (Manual moving to Automation) • Administrative tasks manually triggered (eg requests for additional information, hiring approvals etc) • Semi-automation of administrative tasks – Prompts sent to recruiter eg pre-populated data from candidate input • Administration functions automatically processed through tech – candidate/ employee data auto-populates across all administrative functions • Full automation of administration processes eg outsourcing of recruitment admin to co- bots/user-interface bots, Application of data (Descriptive moving to Predictive) • Recruitment data used mainly for reporting on core hiring activity and process & lag metrics used for performance management (eg Time to hire) • Data allows greater visibility of talent within the organisation and predicative analytics emerges as tool for improving job fit & performance based on success profiles • Candidate data is stored within talent community CRM systems where deep personal profiles drive the predictive applications • Experimentation with Machine Learning and Algorithm based matching of roles/people based on skills/capability data. Eg Candidates filtered through smarter algorithms to identify potential internal/ external talent • Candidates become part of a pre-qualified network shared internally among business leaders • Use of smart data rather than big data for talent related decisions. Data used to predict hiring patterns and workforce requirements. • Machine Learning and algorithm based processes iterate and drive more efficient and accurate hiring data Marketing platforms (Narrow moving to Diverse) • Social media & traditional platforms introduced for basic job/career profiling • Social Media increasingly used to engage and interact with extensive talent communities across multiple channels • Ad-tech and consumer profiles used to tailor & position message and opportunities to target audience • Digital marketplace and talent network generated from online marketing and branding activities This is the world of the traditional 'Applicant Tracking' or 'Requisition Management' system A significant level of resource in HR & recruitment functions are deployed against administrative / manual tasks ad activities (low value add) A broader set of Recruitment metrics are used and are increasingly measuring business relevant outcomes e.g. NPS, Revenues, Cost Avoidance, Productivity and Engagement Companies adopt a 'fail fast' strategy and experiment / trial new technologies. Niche technologies are introduced as plug-ins to core systems. Best of breed technology strategies result in an optimum balance between automation and human intervention. Seamless integrations allow technologies to talk with one another and for data to flow between them Optimised Creating a new eco-system in which talent is accessible, mobile and relevant; influenced by the principles of the sharing economy
  6. 6. PwC 6 Corporate recruitment maturity – 2020 Foundation - Recruiters New Basic Getting the basics right in order to make the most of what we have Shifting Expectations Shifting the focus of effort from process execution to candidate experience Transforming Building competitive advantage by developing new partnerships and shifting to a marketing and analytics mindset Foundation Recruiters Team composition & skills (Homogeneous moving to Heterogeneous) • Most people in Recruitment have a generalist HR/Recruitment background or have simply ‘fallen’ into the industry from elsewhere • Emergence of career recruiters/talent advisors – addition of new competencies – skills in data analytics, consumer marketing, employment branding and human centered design • Highly specialised Professionals with core marketing/user experience or analytics capability to design and deliver meaningful hiring experiences – eg People involved in hiring become stronger marketers and brand ambassadors • Recruiters evolve into talent relationship specialists and talent advisors, working within a broader eco-system internal and external to the organisation that work for Interpersonal skills (IQ moving to EQ) • Basic business communication etiquette – eg transactional relationship with Hiring Managers • Develops closer working relationships with Business and the external talent market – gains deeper understanding of specific role skills/capability requirements • Higher emotional intelligence is required in order to influence key (and more senior) people within business as well as various external market participants and other corporates • Ability to significantly influence market/industry specific networks and navigate complex matrixed organisational and market relationships Functional role (Process management moving to relationship management) • Follows standard assessment procedures (Screening, Interviewing, Referencing) • Basic awareness of cognitive bias • Builds relationships with Hiring Managers and uses key success factors to tailor selection procedures – understands and actively employs effective bias reduction techniques • Success profiles are modelled based on data and objective data; Assessment is based on unique role requirements and objective proof points. Predictive assessment methodology drives much of the hiring process • Utilises Data/Technology solutions for the removal of bias – susceptible elements of selection and assessment process. Degree of specialisation (Generalised moving to specialised) • Generalist – Generic knowledge across business/market sectors, Limited understanding of broader market beyond immediate boundaries • Specific job-family expertise within organisation – awareness of best job-seekers in the market at time • Domain/industry/sector specialisation – enabling effective succession management and external search/networking • Specialisation is deep and highly valuable to the individual recruiter and the organisation they support. Specialisation allows them to provide input into strategic decisions in their organisation/for their industry. Recruiters and Recruitment start to build their commercial acumen and speak the same language as the business Emergence of talent communities allows recruiters to have greater visibility of internal and external talent in particular job families Predictive behavioural / econometric tools are introduced to super charge success profiles and link performance to quantifiable data held by the business Recruiters won't process manage / administer anymore, they are purely relationship based and brand marketeers. The Recruitment function is augmented with skills from other disciplines including finance, technology and marketing. Optimised Creating a new eco-system in which talent is accessible, mobile and relevant; influenced by the principles of the sharing economy
  7. 7. PwC 7 Corporate recruitment maturity – 2020 Impact on experience of business operations New Basic Getting the basics right in order to make the most of what we have Shifting Expectations Shifting the focus of effort from process execution to candidate experience Transforming Building competitive advantage by developing new partnerships and shifting to a marketing and analytics mindset Impactonexperienceof…. Businessoperations Success Metrics (reporting metrics moving to P+L metrics) • KPI’s based around process efficiencies • Recruitment KPI’s evolve to align more to business outcomes – Redefined metrics of success (eg eNPS, Diversity, Culture) to put the consumer at the heart of the process • Quantitative KPI’s linked to business P&L drivers – time to productivity, new-hire impact on P&L, Peer- based metrics, impact to NPS • Qualitative KPI’s and measures linked to business P&L developed (Quality of Hire, team cohesion, productivity, engagement, Brand Awareness) linked to Business P+L Workforce Planning (Limited moving to strategic workforce planning) • Limited workforce planning capacity or capability, no links to business • Closer ties to business to forecast large annual trends, whilst reviewing historical hiring informing basic recruitment planning • Analytics increasingly used to predict demand, resource requirements and to assess and improve performance of recruitment • View of talent availability based on annual business cycles, tied to broader strategy • Strategic workforce planning + Data and insights generated by analytics fully support short, medium and long term talent objectives in support of business strategy • Recruitment can easily respond to short term business demands whilst maintaining its plans towards future talent goals Talent Mobility (Static moving to dynamic) • Organisations recruit external talent in isolation to broader areas of the business and often overlooking internal mobility options • Internal Mobility programs and EOI’s create opportunities for existing staff across the business to transition to other areas of the organization • Global/regional mobility mindset with active/organic talent networks for critical skills and job families • Talent is seamlessly mobile within and between organisations leveraging strength of each to build joint talent eco-systems Talent Management (Linear moving to matrix) • Employment opportunities/progression articulated in terms of career ladders • Strong focus on employee engagement & Mobility – internal talent pools allow pre-qualified high potential candidates to be profiled and shared internally within the business • Predictive ‘Marketplace’ or platform connecting internal and external candidates with current and future career opportunities • Proactive hiring and job seeking become a reality as exchanges between talent and organisations become more sophisticated eg Organisations access “shared” talent pools and promote their career opportunities and brand Traditional recruitment functions are divorced from success / talent management activities Talent Management activities are typically focused on the limited number of internal opportunities available to talent Increased workforce visibility and employee related analytics will permit much richer workforce planning and skill needs identification that will drive recruitment's future talent pipelining activities Recruitment KPIs are aligned to the business KPIs and objectives in relation to business performance and how recruitment influences it. This requires a cross functional approach to access all relevant data and a clear understanding of how one function impacts the overall outcome Optimised Creating a new eco-system in which talent is accessible, mobile and relevant; influenced by the principles of the sharing economy
  8. 8. PwC New Basic Getting the basics right in order to make the most of what we have Shifting Expectations Shifting the focus of effort from process execution to candidate experience Transforming Building competitive advantage by developing new partnerships and shifting to a marketing and analytics mindset Impactonexperienceof…. Internal+ExternalCandidates On-boarding (Fragmented moving to integrated) • New hire taken through basic (and often inconsistent) experience focused on systems, compliance and provisioning • On-boarding experience provides candidates and business users with engaging, relevant, timely information, preparing new hires for their first week in role • Seamless and consistent recruitment, pre-boarding and onboarding experience across the organisation (up to first month in role) resulting in high levels of engagement and productivity • Candidate identity/reputation/pre- qualification moves with them between assignments/jobs and organisations further streamlining the onboarding process Candidate engagement (General moving to customised) • Basic communication expectations for candidates are mostly addressed • Traditional channels are used • Greater reliance on marketing & talent management to build a strong brand to attract and engage with candidates • Channels are diversified to include some that are more relevant to the audience • EVP articulates consistent message to internal + external candidates • Segmented channels & methods of engagement are tailored to target audience needs • Fully segmented recruitment marketing & communications. Talent networks utilised to engage potential candidates using the most relevant channel and highly customised message and candidate experience Assessment (General technical moving to predictive analytical) • Assessment is mostly against a fixed set of technical skills and experience requirements • Candidates pitch to organisation to ‘choose’ them • Automated profiling of candidates as they pass through early recruitment stages so they can be approached for opportunities in the future • Candidates assessed against success profiles based on multiple dimensions, mostly competency based • Predictive tools help candidates identify the right opportunity and organisation for them • Cultural ‘fit’ more important than technical skill-based requirements • Candidates and organisations increasingly rely on peer to peer review data • Predictive econometric tools use hard data to build accurate success profiles and assessment protocols • Assessment is fully gamified to engage, challenge and excite candidates within the talent communities or during specific hiring processes Unsuccessful Candidate Experience (Limited moving to advocacy) • Little focus on unsuccessful candidate experience – Managing unsuccessful candidates often seen as a drain on recruiting resources • Expectations shift and the provision of constructive feedback is seen as a minimum expectation, candidate charters are developed governing the experience provided to successful and unsuccessful applicants. • Some unsuccessful applicants are moved into talent communities • Utilisation of unsuccessful candidates increases within the organisation as alternative opportunities/positions materialise • Internal candidates act on prior feedback received by undertaking training programs to upskill themselves or considering secondment opportunities that will assist their career goals • Complete innovation of ‘rejection experience’ so that candidates leave the process as advocates for the organisation having developed themselves through their engagement with the business • Unsuccessful applicants in one organisation can access other opportunities through the shared talent eco-systems that exist 8 Corporate recruitment maturity – 2020 Impact on experience of internal and external candidates On-boarding has no 'owner' and is typically left to the business to manage. The user experience is patchy and inconsistent Introduction of new success profiles and automated assessment tools permits validation and assessment of people 'pre the hiring process' as part of the talent community Candidates and workforces are segmented allowing richer and more tailored branding and communication. The range of channels is diversified to allow people to be communicated on their platform of choice As relationships with external organisations grow, the rejection experience from one company will open doors to another. Mobility of hires and rejected applicants between firms will be commonplace, as will the ability of rejected candidates to upskill themselves via training programs / secondments based on the feedback received post a hiring process. Optimised Creating a new eco-system in which talent is accessible, mobile and relevant; influenced by the principles of the sharing economy
  9. 9. www.pwc.com.au www.tqsolutions.com.au © 2016 PricewaterhouseCoopers. All rights reserved. PwC refers to the Australia member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. Liability limited by a scheme approved under Professional Standards Legislation. At PwC Australia our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.au. WL127045095

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