For years, leading companies’ process for finding talent has followed a typical routine involving investing in several college and university programs, sponsoring events and conferences, and expecting applicants to apply by the hundreds. However, with the war for talent intensifying and as millennials become a larger percentage of job seekers, the model is changing. The future of recruiting is about accessing and engaging talent in new ways.
Deloitte recently introduced the concept of the “open talent economy” which is “a collaborative, transparent, technology-enabled, rapid-cycle way of doing business.” Similar to the way the film industry operates, Deloitte believes that the way recruiting is headed involves employers and candidates finding each other on a playing field that is more level and open.
The workforce today is evolving; now comprised of a mixture of employees, contractors, freelancers, and people with no formal ties to the organization. According to the Harvard Business Review, 1.3 billion people will work virtually in the next few years.
Open Talent Economy Continuum
In this economy, access to talent is more important than ownership of talent. People will move freely from role to role and across organizational and geographic boundaries. Driven by personal mobility, connected markets, social media, and mobile technology, the open talent economy is forcing businesses to reframe the way they think about talent and talent acquisition.
Rather than just a business expense, talent of all kinds will become an asset and a strategic investment that will drive performance and productivity in business operations.
What’s Causing the Shift?
Several global trends are driving the shift towards an open talent market.
Globalization: The emergence of a global talent market is changing the way recruiters and managers acquire, develop, and manage talent and work. The open transmission of ideas, practices, and people, lets different parts of the world to influence each other in new ways.
Technology: The increase in computing speed, storage, and power is making global, real-time collaboration possible in almost every area. In HR, technology is shifting from “systems of record” to “systems of engagement”.
Mobility: Today’s workforces are more able to work where they want, making career moves more seamless and more frequent.
Social: With people connecting, sharing information, and building communities online, there is a shift from the traditional organization to dynamic talent networks. Organizations now use social media to not only build and promote their talent brand, but to connect with people who relate to the organization in different ways.
Education: Rapidly growing pools of talented manufacturing, services, and knowledge workers continue to reshape global talent networks. Massive Open Online Courses (MOOCs) through leading universities are making high-quality courses available to thousands of students around the world.
Analytics: Rather than looking at historical data to make decisions, employers are now using data analytics for predictive purposes. Those who can effectively mine large pools of worker and business data for hidden insights and apply them are able to perform more successfully in the new talent economy.
Companies Leading the Way
Several companies are already embracing the future of recruiting. Glassdoor, a website that provides an inside look at organizations, is disrupting how candidates find information about employers. Since employers do not control the view, potential hires can see real-life salary details and personal views about the company from employees.
Meanwhile, companies such as GitHub and StackOverflow, which started off as places to share coding, have evolved into leading job platforms where users can be invited to apply for jobs by companies like Apple and Google.
CodinGame, a website where programmers play and solve puzzles to improve their skills, has become a place for job searches and recruiting. While playing games to practice their skills, programmers are able to demonstrate their abilities to potential employers, while employers are able to get an inside look at candidate potential that goes beyond what a resume or portfolio might reveal.
DCR Workforce has built a productive and collaborative ecosystem, Smart Track xCHANGE, which redefines the traditional relationship between staffing agencies, managed service providers, candidates, and client companies. Smart Track xCHANGE takes a client-centric approach to matching skilled talent with top staffing professionals, leading to faster and more cost-efficient sourcing.
“Welcome to the open talent economy – a collaborative, transparent, technology-enabled, rapid-cycle way of doing business. What the open source model did for software, the open talent economy is doing for work.” ~Deloitte