Local vs. Global Talent Search: HR Tech Makes the Difference
November 15, 2023
How do you find the best talent for your business? This is a crucial question that every organization faces, as talent acquisition is the key to success in today’s competitive and fast-changing world. But finding the right talent is not easy, especially when your location, culture, and network limit you. This is precisely where HR tech steps in to streamline and enhance the talent acquisition process.
Therefore, many businesses are shifting to a more globalized approach to talent acquisition, expanding their reach and scope beyond their local markets. By leveraging technology, data, and partnerships, businesses can access a larger and more diverse talent pool, reduce hiring costs and time, and enhance their employer brand and reputation.
Important to note that even if the majority of companies are back at the office full-time or with a hybrid structure, a study by LinkedIn revealed that 70% of talent professionals agree that virtual recruiting will become the standard.
Let’s explore the difference between local and global talent search and how Human Resource technology can help to expand the candidate pool and match the best talent for the position.
Comparison of Local vs. Global Search
Hiring local talents versus global talents is a strategic decision that can have significant implications for the success and competitiveness of an organization. Both options have their advantages and challenges, depending on the context and goals of the employer. Here are some of the main points of comparison:
Pros and Cons of Hiring Local Talents
On one hand, hiring local talents can offer many benefits for employers, such as lower recruitment costs, faster onboarding, higher retention rates, stronger employer branding, better cultural alignment, and reduced relocation costs. Local talents can better understand and serve their local markets, their customers and behavior, as well as contribute to the social and economic development of their communities. According to a report by the Georgetown University Center on Education and the Workforce, U.S. corporations spend nearly $180 billion annually on formal training and talent development, but only 2% of employees are actually using their employer’s tuition assistance programs. This suggests that there is a huge potential for employers to tap into the existing skills and talents of their local workforce rather than spending more on external training and education.
There are also some challenges, such as limiting the diversity and availability of skills in the workforce, especially in areas where there is a shortage of qualified candidates or a high demand for specialized expertise. To overcome this challenge, employers may need to invest more in training and developing their local talents, as well as leveraging technology and partnerships to access global talent pools when needed. Based on a LinkedIn report, 64% of learning and development professionals say that reskilling their current workforce to fill skills gaps is more of a priority now than ever. Additionally, more than one-third of workers feel less confident they have the skills to do their jobs well, and 46% predict their current skills will disappear in the next few years. These findings indicate that employers have to adopt a proactive and strategic approach to talent development, as well as foster a culture of lifelong learning among their local talents.
Pros and Cons of Hiring Global Talents:
On the other hand, there are also advantages to searching for global talents, such as expanding the diversity and availability of skills in the workplace, enhancing the innovation and creativity of the company, accessing new markets and opportunities, and gaining a competitive edge in the global arena. Besides, hiring candidates from other locations can bring fresh perspectives and insights and enrich the cultural diversity and inclusiveness of the company. So, how much critical are those elements? Based on a LinkedIn survey, 76% of employees and job seekers said diversity was important when considering job offers. The UK already employs almost twice as many D&I workers (per 10,000 employees) as any other country. The UK is followed by Ireland, Switzerland, UAE and Germany as part of the top ten countries globally to employ the most D&I workers. By hiring global talents, employers can leverage their unique capabilities and potential but also attract more talent and customers.
Some of the cons are higher recruitment costs, longer onboarding, lower retention rates, weaker employer branding, potential cultural clashes, and increased relocation costs. To overcome these challenges, employers may need to invest more in attracting and retaining global talents, as well as fostering a culture of collaboration and integration among their employees. According to a report by Mercer, the average cost of a long-term international assignment in 2020 was $311,000 per year, and the average cost of a short-term international assignment was $79,000 per year. These costs can vary depending on the destination, the duration, the family size, and the policy type of the assignment. By hiring global talents, employers can avoid these costs and focus on investing in the development and retention of their global workforce.
The Impact of HR Tech
HR technology, commonly known as HR tech, has revolutionized the recruitment process, transforming both how employers discover and attract talent and how candidates navigate their job search. This innovative approach enables employers to tap into a broader and more diverse talent pool by leveraging a variety of channels and platforms, including job boards, social media, career sites, and talent networks. For candidates, HR tech provides enhanced access to information and opportunities through various devices and tools like mobile phones, chatbots, and video interviews. In fact, Recruitment agencies are already reporting 800% more engagement with job ads that have video embedded.
HR tech has a huge impact on streamlining the hiring process. Besides, as per a report from the Society for Human Resource Management (SHRM), a significant 76% of HR professionals affirm that technology has not only simplified but also made the recruiting process more efficient. Thus, HR technology is having a substantial impact on streamlining the hiring process and will certainly continue to play an increasingly prominent role in shaping the future of talent acquisition.
The Role of Applicant Tracking Systems (ATS) and Other Tools in Streamlining Recruitment
Applicant tracking systems (ATS) are software applications that help employers manage the recruitment process, from posting jobs to hiring candidates. ATS can automate and optimize various tasks, such as screening resumes, scheduling interviews, sending feedback, and generating reports. It can also integrate with other tools, such as assessment tests, background checks, and onboarding platforms, to create a seamless and consistent candidate experience. Presently, almost 99% of Fortune 500 companies routinely utilize ATS platforms. When we delve into various organizational sizes, we find that 70% of large enterprises leverage an ATS. Meanwhile, 20% of Small and Medium Enterprises (SMEs) have adopted this technology. Additionally, a substantial 75% of recruiters utilize an ATS or another technology-driven recruitment tool to assess applicants, enhancing the overall candidate experience. Evidently, the positive influence of ATS is noteworthy, with 94% of recruiters acknowledging its beneficial impact on their organizations' hiring processes.
AI and Machine Learning (ML) in the Hiring Process
One of the applications of AI and ML in the field of human resources is matching candidates to job requirements. This process involves analyzing the data from resumes, profiles, assessments, and feedback and finding the best fit for each position based on various criteria, such as skills, experience, education, and interests. Matching candidates to job requirements helps employers save time and money, improving the quality and diversity of hires and enhancing the overall candidate experience.
HR Tech Success Stories
As we have seen, HR tech can help companies find and attract the best talent, whether they are local or global. Here we present some real examples of how different companies have used it to achieve their talent goals and overcome their challenges:
Alcon, a global leader in eye care with more than 20,000 employees in over 70 countries, wanted to transform its employee experience and align its HR function with its business strategy. To do so, Alcon partnered with Gartner to implement a new HR technology platform that integrated various HR processes (talent acquisition, performance management, learning and development, and compensation and benefits). The new platform enabled Alcon to streamline its HR operations, improve its data quality and analytics, and enhance its employee engagement and retention. As a result, Alcon reduced its HR costs by 30%, increased its employee satisfaction by 15%, and improved its talent outcomes by 20%.
Genentech, a biotechnology company with more than 15,000 people in the U.S., had the purpose of fostering a culture of continuous feedback and development among its employees and managers. They decided to adopt a new approach to performance management. With the new tool, they encouraged casual, consistent, and meaningful conversations between employees and managers throughout the year. The tool also allowed employees and managers to track their progress, goals, and achievements. The results were an increase in employee engagement by 12%, manager effectiveness by 10%, and performance ratings by 8%.
Chanel wanted to attract and retain diverse and talented people who shared its values and vision. So, it invested in its employer branding and talent acquisition strategy, using various HR tech tools, such as social media, video interviews, gamified assessments, and chatbots. These tools helped the luxury fashion brand showcase its culture and identity, reach and engage potential candidates, and provide a personalized and seamless candidate experience. In this way, it increased its talent pipeline by 40%, its candidate conversion rate by 30%, and its employee referrals by 25%.
Finding the right talent is not only about finding the right fit for the job but also about finding the right balance between local and global talent search. Each option has its advantages and challenges, depending on the context and goals of the employer.
The role of HR technology is crucial in this dynamic, as it allows organizations to reach and attract a broader and more diverse pool of talent. As these technologies evolve rapidly, organizations that want to stay ahead of the competition in talent acquisition need to keep up with the latest trends and innovations in HR. Technologies like HR-CTRL can help enterprises simplify and accelerate the recruitment process, as well as match candidates to job requirements more effectively. HR-CTRL empowers your HR team to do precisely that. Stay up-to-date with our latest product release aimed at simplifying talent acquisition processes!