Optimization potential in the People Strategy

Now more than ever, it's about having the right talent in the right place at the right time — otherwise even the best business plan will disappear into thin air. But the initial situation to achieve just that is becoming more difficult every day and the learned talent acquisition mechanisms no longer work. In their time of need, most companies get into a game that they can only lose in the long run: They pump money into job boards and into headhunting. Their hope: a higher reach for their job offer, mass instead of class. But this reach is becoming increasingly expensive and the number of interested and suitable talents is melting: Just 26 percent of them are actively looking for jobs.

A completely new strategy is needed to attract urgently needed talent and close open vacancies — and in most cases even without the help of external service providers. But how and with which tools?

Transferring success principles from e-commerce

What already works excellently when it comes to recruiting also works with the personnel strategy — success principles can be transferred from e-commerce: From the well-known Business Model Canvas Will that Direct to Talent Strategy Canvas, including the associated adapted terminology. With this system, the entire personnel strategy can be displayed, evaluated and planned on a one-pager. It also provides transparency about what HR is actually doing to achieve the company's (business) goals.

But above all, the mission also serves an overarching purpose: to bring HR to the strategic table. Because: If talent becomes a scarce resource, then the business must be designed from a people perspective.

From an actual analysis to a target plan

Using such a canvas is extremely easy — a few basic things should still be considered:

• At best, everyone responsible for HR should be brought on board — recruiters as well as Head of Recruiting, Head of HR or Head of Employer Branding.
• When filling out the canvas for the first time, the aim is to capture the status quo, either with your own data or by getting closer to the industry average.
• With such an as-is analysis, HR managers go to C-level — ideally before the business plan is made. It is then about answers to the questions of what growth (or even savings) is planned. On this basis, it is possible to plan how HR can contribute to achieving these goals.
• Now is the time to get creative and try out new things: What can recruiting managers do to make the right adjustments? What can be done differently, new or better in the future? At least two new approaches including suitable KPI (key performance indicators) should make it into the implementation or test phase.
• It is best for recruiting managers to check on a quarterly basis how the measures and figures are developing: What has worked, what should be tested a little longer? What new ideas are we launching?

The seven-step plan

The canvas comprises seven columns that need to be filled. This is always done with the aim of calculating three essential values: Talent Acquisition Costs, Talent Lifetime Value and the relationship between the two.

The Talent Acquisition Costs include the costs of all measures to attract employees to the company. The total sum divided by the number of hires results in the talent acquisition costs. This number explodes, for example, when candidates drop out after the last interview step or after the contract has been sent. However, this can be counteracted by giving talents a better self-assessment.

The Talent Lifetime Value describes the value that employees generate for the company per year. It is made up of data relating to Talent Mobility and Talent Lifetime Cycle. These figures go through the roof when it comes to layoffs, for example — this can be counteracted in part with retention measures.

Die Ratio of Talent Acquisition Costs and Talent Lifetime Value says something about the relationship between the costs of recruiting employees and what he or she is likely to generate. The two must be in good proportion; a ratio of eight is ideal. These can be improved by reducing talent acquisition costs, i.e. getting talent on board cheaper, or by increasing the talent lifetime value (this means that talent stays on board longer and ensures a greater share of turnover or profit).

It is then necessary to answer the following questions from the company's point of view:

• Key channels: Where do I attract the attention of talents? For example, I can do this organically via Google Jobs. Or do I post paid job ads on LinkedIn and Indeed and/or invest in external services such as a headhunter?
• Key Activities: What measures do I implement? Am I using scouting or active sourcing? What do I offer in terms of self-assessment: Is the job advertisement so detailed and transparent that talents can assess whether the job suits them or not even before they actually apply? Could you organise (online) events in order to be able to tell talents something about the corporate culture and company values in a relaxed exchange?
• Key resources: Which resources do I use? Do I have a really good career page? In addition to the hiring manager, am I perhaps also working with my own recruiter (or even an entire recruiting team) — and instead possibly forego the significantly higher costs for a headhunter? And do I supplement my activities with specialized talent pools or niche portals?
• Value Proposition: What benefits do I offer? What are the real added values of a job, a department, or my entire company? How do I represent them? Is there revenue sharing or maximum flexible working conditions? And specifically in terms of the job: How much freedom do employees have? What part of a larger vision are they with me?
• Talent relation: What do I do to retain employees? What are the career paths and continuing education opportunities in the company? What opportunities do I offer high potentials? What about team building measures?
• Talent Mobility: How long do people stay in their positions? Are internal careers desired? How are they communicated? And why (and how) do we promote this within the company — or not
• Talent Lifetime Cycle: How long do employees stay with the company under which conditions? What is the turnover rate in the company? And how can I influence them? How do I help my employees become more productive? How do I make them happier in order to keep them in the company for the long term?

conclusion

We have also used the Canvas in our company and I am impressed to see how much strength — and potential for optimization — we are becoming increasingly independent of external service providers and how creativity in the People and Culture team seems to explode instead. Despite all (justified) seriousness when it comes to people strategy — let's still be brave to try out new things, throw established things overboard, make mistakes and learn from them. The canvas is the perfect model for doing just that — with a clear system and measurable.

You can download the canvas for free here.

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