Replacing the Traditional Recruitment Model with Talent On-Demand
Industry professionals are frequently complaining about the shortage of talented individuals despite scores of college students graduating each year. Although unemployment remains lower for a few years, yet the underemployment rate is growing – despite the impressive rate of annual job creation. Moreover, underemployment is the most significant problem in software industry. Companies are unable to find the appropriate talent despite having a large pool of graduates. After years of studies and experimentation, most researchers are of the view that promoting talent on-demand is the most appropriate approach to fill the voids.
The rate of unemployment remains at 3.7% which is satisfactory. However, underemployment is peaking at 12.5% (Statista). These statistics refer to underemployed as individuals with part-time jobs. However, many experts also consider underemployed as individuals with jobs incompatible to qualification. Thus, there is probably no shortage of talent. Instead, inefficient utilization of talent develops the perception of skill deficit.
Why do the companies reiterate notion of lack of skills if there is sufficient talent? Let us take a look at the causes of inefficiencies and how talent on-demand may help.
The Drawback of Traditional Recruitment Model
The current model of recruiting employees in software industry is a clone of models from other decades-old industries. Although every field is growing, yet the pace of software engineering and IT is remarkable. New tools and frameworks are developing rapidly, but most of them remained unused because there is a massive cost of redefining enterprise architecture.
Moreover, at college graduate level, education is generic. In essence, it does not conform to industry-specific needs. Software development companies are working in a particular domain whereas course outline in colleges is generalized. This problem is creating a buffer zone between academic teaching and industrial expectations.
Most of the research in universities is performed at the postgraduate level. Graduates are usually working on projects which are already implemented. Businesses have to trade-off the skills with salary. Post-graduates tend not to take the job unless the salary is commensurate to their qualification and research work.
The recruitment agents struggle to find the correct match which corresponds to the position. Enterprises expect from hired individuals to have the capacity of training themselves. At times, they remain successful in finding one. However, they demonstrate a reluctance to hire fresh graduates. Recruiters expect the candidates to be a trained expert who does not need any further coaching.
On-demand Talent Management
The drawbacks reflect a significant vacuum between education at colleges and industrial ideology. Fortunately, the collaboration of some industrialists and academicians in various parts of the world is yielding impressive results. A researcher presents the findings of these collaborators collectively.
Talent on-demand scheme does not only work to segment the graduates for industries, but they also enable firms to choose the appropriate individuals. Skill Segmentation is the classification of graduates to connect them with a suitable company.
One major difference between traditional recruiting and acquiring on-demand talent services is short term jobs. The employment on ad hoc and temporary basis is an old practice, but talent management redefines them. Companies can seek the relevant services of more than one employee who divide the earning between them. Since these workers are serving more than one company simultaneously, there will be multiple earning sources.
One major challenge is to induce a sense of ownership in temporary or part-time employees. However, there are many examples from industry which provide a practical solution. Top freelance websites enable the aspirants to build a profile by remotely working on projects. Hence, the workers ensure sincerity to maintain a decent reputation.
Talent on-demand also replicates the model of freelancing with the exception of remote working. The hiring is a short-term, full-time and on-site employment. Thus, this approach also prompts employers to treat on-demand workers equally as their long-term counterparts. Equality pushes on-demand employees to speak highly about this company when they complete the term.
Role of On-demand Talent in Gig Economy
On-demand talent is not a concept anymore. A significant number of companies are implementing it by using the model for recruitment otherwise labeled as “gig economy”. One of the primary examples outside software industry is Uber and other ridesharing services. These companies hire drivers for part-time and do not bar driver if one intends to stop working. Freelancer and Upwork are other examples. However, freelancing is not the purpose of talent on-demand platform. Instead, it enables companies to hire employees to work on site.
Research confirms that approximately 50% of executives acquire expertise from third parties. This percentage indicates that entrepreneurs have massive opportunity to provide a platform, differing from freelance systems, to recruiters and job-seekers.
Since this talent management model requires changing jobs, some companies may not take the idea well. This is because short-term employees may not be able to build strong relationship with the company. Many talent innovation platforms offer to hire employees in groups in the same salary. This way, the employees have to divide salary but will reduce the amount of time too. Similarly, employers will ensure high motivation level among all on-demand employees.
Gig economy also suits workers because the majority of them want to increase their income. Executive talent on-demand allows them to work on more than one job. The employees also get access to the employment-specific benefits which are absent in freelance jobs.
The use of technology for bridging industry and academia has many examples. These examples indicate that the combination results in landmark achievements.
There is no panacea for all challenges
Traditional recruiting approaches to hiring full-time employees require robust experimentation with various candidates. If a candidate does not meet the requirements, both company and aspiring worker struggle – regardless of the number of skills. It is unwise to expect a candidate to be the jack of all trades. In most cases, one turns out to be the master of none.
The on-demand talent recruitment approach corresponds to the industrial needs of the 21st century. Every now and then, the problems of businesses vary which demand expertise. Hiring a long-term employee for a temporary task renders little help. Companies managing talent on-demand are also the need of the hour to serve as a gateway between skill and employment.
If you are interested in starting talent management business, contact us today allowing our professional team to guide you.