Talent acquisition leaders often struggle to have their voices heard at board level. While the work they do is seen as an essential component of a company’s growth, their input is rarely taken into account when major decisions are made at board level.
But could CEOs be making a big mistake in not allowing their TA leaders a seat at the executive table?
We certainly think so, and here’s why.
Talent Acquisition and the bottom line
Talent acquisition, as you may have guessed, is all about acquiring the talent that helps a company improve its performance.
Unlike recruitment, it’s rarely about filling positions and more about finding that something that is currently missing from the team.
It’s not about driving revenue nor is it about boosting sales.
Or is it?
According to a survey of 400 talent leaders, talent acquisition is directly responsible for boosting profits by as much as 20%.
Then there’s the fact that if your company produces a product or provides a service at consumer level, there’s a strong chance that a portion of your candidates are, in fact, customers or potential customers. Estimates put this ratio at an impressive 1 in every 5 candidates.
Suddenly all that effort you put into candidate experience makes even more sense now, right?
Having said that, if your company is strictly B2B then driving revenue through your recruitment funnel probably isn’t going to happen.
So how is it that we still have that 20% rise in profits regardless of the industry?
The answer is simple - it’s all about taking the right approach to finding talent.
The right approach
Sourcing people that improve a team or department’s productivity should always be the priority when acquiring talent. This means zeroing in on the high performers in the industry. People with a track record of performing at the very highest standard and over-delivering on their potential.
These are the people that will drive their new colleagues to improve their own performance and, as a result, make the department more productive and cost effective.
Prioritizing innovativeness and industry experience over academic prowess can also have a similar effect. It’s widely accepted that innovators will produce 10 to 25 times the output of the average employee and motivate the people around them to do the same.
But perhaps the most effective strategy to allow the CEO to understand the monetary value of TA is to seek out talent for positions that will have an instant impact on revenue. The likes of sales and marketing positions are perfect and will provide you with instant data on the effectiveness of TA and its relevance to the company’s bottom line.
At the end of the day, the only way you can convince the CEO that talent acquisition leaders should have a voice at board level is to represent the importance of TA through numbers. This can be through the use of TA data or by showing the direct impact high-quality TA has on revenue and profits.
If you think that TA leaders deserve a voice then why not watch our webinar TA securing a spot at the Exec Table?