Talent Acquisition is the process of finding, acquiring, assessing, and hiring candidates to fill roles that are required to meet company goals and fulfill project requirements. Talent Acquisition also ensures that newly hired employees are effectively and efficiently acclimated to the organization, enabling the organization to rapidly and fully benefit from their capabilities.
Talent Acquisition is one of the six key human capital processes defined by TDRp(1) and includes:
- Talent assessment
- Talent selection (hiring)
In the TDRp framework, Onboarding (and its associated measures) appears under Talent Acquisition. In many organizations, this process is owned by the Learning & Development function. Additionally, as role of Talent Acquisition has become more strategic, many organizations also encompass Workforce Planning in Talent Acquisition. For TDRp, Workforce Planning is treated as a supporting process and its associated measures are not included in the Talent Acquisition process. In practice, each organization is free to organize their human capital activities any way they choose. We simply need a framework to organize the measures.
Each key process like Talent Acquisition contributes to the achievement of organization goals (for example, a 10% increase in sales or a 15% reduction in costs) and talent outcomes (for example, a 5 point increase in employee engagement or a 2 point increase in the retention rate). Often, some of the talent outcomes are top-level goals of the organization on par with an increase in sales or a reduction in costs. Other times, the talent outcomes are viewed as intermediate goals in support of achieving the top-level goals. TDRp is designed to work in either case.
More than 100 measures are defined for Talent Acquisition. These measures are grouped by type of measure (efficiency, effectiveness, outcome) and across six subcategories. Each organization should choose the measures most appropriate to achieve their goals and manage their human capital. Talent Acquisition will typically support the broader organizational goals, as well as talent management focused goals. A short summary of each Talent Acquisition sub-category, including examples, follows.
- Requisitions – measures that assess the volume of requisitions and hires from a recruiter perspective.
- Efficiency examples: Requisition Rate, Total Requisitions per Recruiter, Average Filled Requisitions per Recruiter, Job-Posting Factor
- Applicants & Interviews – measures that quantify the sourcing and interviewing of candidates.
- Efficiency examples: Average Interviews per Hire, Interview Rate, Referral Rate, Hire Rate, Percentage of No-Shows
- Hiring activity – measures that assess the volume, types, and sources of hires made.
- Efficiency examples: Recruitment Rate, Percent of Hires Referred, Rehires Percent of Total Hires, Net Hire Ratio, Recruiting Source Distribution
- Hiring cost – measures that calculate or compare the cost of hiring.
- Efficiency examples: Cost-per-Hire, Recruiting Cost Ratio, Sign-on Bonus Factor, Source Cost per Hire
- Hiring process – measures that assess the efficiency or effectiveness of the hiring process itself.
- Efficiency examples: Recruiter Response Time, Time-to-Fill, Time to Start, 90-Day Separation Rate
- Quality of hire – measures that assess the quality of hires made.
- Effectiveness examples: Hire Index, New Hire High-Performer Rate, First Year Separation Rate, Hiring Manager Quality of Hire Satisfaction
In addition to being grouped by TDRp category (efficiency, effectiveness, outcome), the measures have also been grouped into Tiers, which are described below. In choosing measures, we recommend starting with Tiers 1 and 2.
- Tier 1: These are typically going to be the Key Performance Indicators (KPIs) of a given Talent Process. They are likely to vary from one organization to the next and some “Tier 2” metrics may indeed be key to one organization and “Tier 1” metrics for them, while not for others. At a minimum, “Tier 1” metrics are a list of starting-point, TDRp suggested metrics for those looking to build measurement in a given Talent Process.
- Talent Acquisition examples: Quality of Hire Index, Offer Acceptance Rate, Cost-per-Hire, Time-to-Fill, 90-Day Separation Rate
- Tier 2: These are typically going to be the supporting metrics for a given Talent Process, which one might look to in order to determine why any noticeable changes or trends in KPIs might be occurring.
- Talent Acquisition examples: Recruitment Rate, Rehires Percent of Total Hires, Recruiter Response Time, Average Interviews per Hire, Referral Rate, Recruiting Source Distribution, Average Filled Requisitions per Recruiter
- Tier 3: These are usually the raw data points that when used in combination with one another create the Tier 1 “KPIs” and Tier 2 “metrics.”
- Talent Acquisition examples: Total Number of Requisitions Opened, Total Number of Positions Filled, Total Open Requisitions, Total Applicants, Total Qualified Applicants, Total Offers Accepted
Click here for a complete list of measures for Talent Acquistion. CTR members may also access the full electronic version of the TDRp Talent Acquisition Measures Library , which provides definitions, formulas, comparable measures, and complete references to source documents for a detailed discussion of each measure.
In addition to the measures described above, ten sample statements and reports have been created for Talent Acquisition. These are all available in pdf format and as Excel spreadsheets (CTR members only). The various statements and reports are described in the white paper Introduction to TDRp. The ten include the following:
High-level Business Outcome Statement (with qualitative impacts)
Detailed Business Outcome Statement
High-level Effectiveness Statement
Detailed Effectiveness Statement
High-level Efficiency Statement
Detailed Efficiency Statement
Summary Report (with quantitative impacts)
Summary Report (with qualitative impacts)
Program Report (coming in 2013)
These statements and reports are provided as a starting point in your understanding and application of TDRp. We know each organization is unique and will need to select its own measures, but the templates have proven valuable to the early adopters.
The white papers Introduction to TDRp and Extending TDRp to All Key Human Capital Processes are highly recommended. Since the TDRp initiative began with a focus on Learning & Development, more has been written for L&D than for the other key processes. The Tips and Tools for L&D, however, will also be helpful for understanding how to construct the various statements and reports for Talent Acquisition. With time, advice pieces will be written for each key process.
Notes:(1)The other five key human capital processes are Talent Acquisition, Learning & Development, Capability Management, Leadership Development, and Performance Management. Workforce Planning and Demographics has also been included as a key supporting process. For more on the TDRp framework see Introduction to TDRp and Extending TDRp to All Key Human Capital Processes.