Çuuííty ín 1uíent Seíectíon

:
líndíng the leríect lít
September 2011

HCI
Research
In partnership with:
Acquiring Top Talent Through On-Demand Pipelines
iii
Copyright © 2011 Human Capital Institute. All rights reserved.
iii
1ubíe oí Contents
Executive Summary ......................................................................................1
Definition of Key Terms ................................................................................2
Introduction ..................................................................................................3
Talent Quality Satisfaction ...........................................................................4
Talent Quality Segments ..............................................................................4
The Talent Selection Process .......................................................................5
Sourcing and Culture ...........................................................................................................6
The Talent Search .................................................................................................................6
Understanding Successful Selection ....................................................................................7
Key Survey Findings .....................................................................................7
Sourcing and Culture ...........................................................................................................7
Sourcing and Culture: Permanent Hires ..........................................................................8
Sourcing and Culture: Contract Talent ............................................................................9
The Talent Search ...............................................................................................................11
The Talent Search: Permanent Hires..............................................................................11
The Talent Search: Contract Talent ................................................................................12
Understanding Successful Selection ..................................................................................13
Understanding Successful Selection: Permanent Hires .................................................14
Understanding Successful Selection: Contract Talent ....................................................15
HPH versus HCT ........................................................................................17
Quality of Hire/CT Measure Effectiveness ........................................................................17
Contract Talent Evaluation Rigor ....................................................................................18
Communicating Needs to Staffing Partner ...............................................19
Conclusions ................................................................................................20
About This Research ..................................................................................22
Appendix A: About the Research Partners ...............................................22
Appendix B: Contract Talent Use Profile ...................................................23
Appendix B: Respondent Demographics ..................................................25
Appendix C: Works Cited ..........................................................................27
1
Copyright © 2011 Human Capital Institute. All rights reserved.
Lxecutíve Summury
Despite contract talent (CT) comprising between 5-25% of an organization’s workforce,
1
few
approach CT search and selection with the same rigor as permanent talent. As CT fills increasingly
important roles and functions, it is imperative that employers hold CT up to standards comparable
to that of their permanent employees.
Aerotek, a leader in the recruiting and staffing industry, and the Human Capital Institute (HCI)
examined how pre- and post-hire assessments, rigor in candidate selection, and quality of post-
hire evaluations differ between permanent staff and contract talent.
The research identified several differentiating aspects of “great” talent quality organizations:
standard operating procedures that go beyond a basic checklist of pre-assessment activities,
allocating the time and resources to fully define positions including the skills, experience and
education required, and considering the culture of the department, and the fit of the potential
employee.
A majority of employers demonstrate more rigor in selecting and measuring quality of permanent
talent than CT. A much smaller minority have equally stringent selection, and these organizations
realize the benefit of establishing pre- and post-hire procedures.
Key findings from this research include:
The differentiating aspects of organizations most satisfied with quality of talent are those that
devote the time and resources for each of the following phases of the Talent Selection Process:

Sourcing and Culture
Corporate and departmental culture is considered more frequently among those “very
satisfied” with CT. Culture and fit are just as important for CT and when properly executed,
ensures success for both the CT worker and the organization. Properly defining the
candidate “fit” is a key practice for those very satisfied with their talent quality.
Çuuííty ín 1uíent Seíectíon:
líndíng the leríect lít
1
“What Influences Contract Talent Usage?”, June 2011, Human Capital Institute
2011 HCI Research
2
Copyright © 2011 Human Capital Institute. All rights reserved.

The Talent Search
For both permanent hires and CT, those organizations that conduct pre-hire assessment are
much more likely to be satisfied with their talent selection.
Nearly half of the organizations “not satisfied” with their contract talent quality were unsure of
the types of pre-assessments their organization or staffing partner used to evaluate contract
talent. This represents a disconnect regarding the contingent talent used by an organization
and the firm’s tendency to actively monitor the CT evaluation and selection process.

Understanding Successful Selection
Those companies reporting higher talent quality use an informed approach to managing
the selection process. These organizations quantify and understand manager and hire
satisfaction, and revise their approach to sourcing based on this response. These measures
of validating “job fit” are a missing component for many moderate and low quality talent
organizations.
Deínítíon oí ley 1erms
Contract Talent
HCI defines contract talent (CT) as full- and part-time workers and independent contractors who
are not part of an organization’s regular, traditional workforce, including: freelancers, temporary
help, interim executives and consultants.
Talent Quality Segments
The results of the research were analyzed by those who stated their department or line managers
were “very satisfied” with the quality of their permanent hires and CT staff, versus those
“somewhat satisfied” or “not satisfied.” Segments referenced in this research include:
Permanent Hire Quality of Hire

High Quality Permanent Hire Firms (HPH)
Department/line managers are “very satisfied” with new employee quality of hire.

Moderate Quality Permanent Hire Firms (MPH)
Department/line managers are “somewhat satisfied.”

Low Quality Permanent Hire Firms (LPH)
Department/line managers are “neither satisfied nor dissatisfied,” “somewhat dissatisfied”
or “very dissatisfied.”
Quality in Talent Selection: Finding the Perfect Fit
3
Copyright © 2011 Human Capital Institute. All rights reserved.
Contact Talent Quality

High Quality Contract Talent Firms (HCT)
Department/line managers “very satisfied” concerning the contract talent quality.

Moderate Quality Contract Talent Firms (MCT)
Department/line managers are “somewhat satisfied.”

Low Quality Contract Talent Firms (LCT)
Department/line managers are “neither satisfied nor dissatisfied,” “somewhat dissatisfied”
or “very dissatisfied.”
The “Checklist” Approach
This candidate selection approach, used by many organizations, is marked by an over-reliance on
traditional hiring steps such as unstructured interviews, background investigations, and reference
checks.
lntroductíon
The goal of this research was to profile how organizations satisfied with their CT quality differ
in their talent acquisition practices. The hypothesis prior to conducting this research was that
permanent hire selection would be more standardized and rigorous compared to CT selection and
assessments.
While the research confirmed there were differences between the rigor applied to permanent
hires versus CT, it also discovered the shortcomings many organizations had in regard to their
permanent hiring processes. Well-established talent acquisition best practices are not being
performed consistently and talent quality is suffering as a result.
As the market for key talent gets more competitive, employers need to significantly improve their
talent culture and tactics if they hope to effectively compete for the best and brightest.
Additionally, this research examines the use and impact certain processes have on selection and
hiring for both permanent hires and CT to identify practices that should be adopted to ultimately
improve selection.
2011 HCI Research
4
Copyright © 2011 Human Capital Institute. All rights reserved.
1uíent Çuuííty Sutísíuctíon
Cne |n |htee |eadets ´vety sa||s|ed´ v||h qua|||y o| nev emp|oyees,
|ess |han one |n |out sa||s|ed v||h qua|||y o| con|tac|ots
The research suggests both permanent hire and contract talent quality is in
need of considerable improvement. There is only moderate satisfaction with
talent quality, as less than one in three respondents stated their department or
line managers were very satisfied with the quality of hire for new employees.
An even lower percentage (22%) indicated their managers were very satisfied
with the contract talent quality.
Why is talent quality assessment so low? This is a clear indication that many firms
need to evaluate the process by which they identify talent and new techniques
should be considered. It is likely that the changing economy and increased
competition for talent will further affect the accessibility of quality talent.
Without changes to the selection process, satisfaction is unlikely to improve.
How satisfied are your
department or line managers?
Talent Quality Satisfaction
New Employee Contract Talent
Very Satisfied 31% 22%
Somewhat Satisfied 56% 61%
Neither Satisfied nor Dissatisfied 9% 14%
Somewhat Dissatisfied 4% 3%
Very Dissatisfied 0% 0%
The costs, both tangible and intangible, to the organization can be significant
when the wrong talent is selected for a position. “Poor selection processes
and bad hires can adversely affect any organization through: Dissatisfied
employees, leading to both low individual and work group productivity; Higher
turnover, including termination of low-performing employees; Increased cost
and effort in attracting, selecting and training replacement hires; Delayed
productivity; Lost productivity, along with stress and anxiety, among existing
employees; and Decreased customer satisfaction and market share.”
2

1uíent Çuuííty Segments
The analysis for this research identified six distinct groups characterized
by their satisfaction with permanent hire and contract talent quality. The
2
Bonney, Thomas and Kehoe,
Kathryn “Recruiting and Retaining
Talent” May 2, 2011, Mergers &
Acquisitions Report
Quality in Talent Selection: Finding the Perfect Fit
5
Copyright © 2011 Human Capital Institute. All rights reserved.
tactics used by these companies provide clear direction regarding quality
talent selection protocols. Those organizations that report a higher degree
of satisfaction with their hire and CT quality simultaneously report a more
comprehensive, rigorous process for talent selection.
Segments referenced in this research include:
Permanent Hire Contract Talent
HPH: High Quality Permanent Hire
Firms
Department/line managers very
satisfied with the quality of hire
for new employees.
HCT: High Quality Contract Talent
Firms
Department/line managers very
satisfied with the contract talent
quality they work with.
MPH: Moderate Quality Permanent
Hire Firms
Department/line managers
somewhat satisfied.
MCT: Moderate Quality Contract
Talent Firms
Department/line managers
somewhat satisfied.
LPH: Low Quality Permanent Hire
Firms
Department/line managers
neither satisfied nor dissatisfied,
somewhat dissatisfied or very
dissatisfied.
LCT: Low Quality Contract Talent
Firms
Department/line managers
neither satisfied nor dissatisfied,
somewhat dissatisfied or very
dissatisfied.
1he 1uíent Seíectíon lrocess
The use of defined, measured processes with various checkpoints is correlated
with a firm’s ability to source quality talent from both a permanent hire and CT
perspective. Research has identified the critical role that comprehensive job
definitions, focused assessment activities and post-hire measurement have on
this function. “Analysis of the Best-in-Class reveals that the degree to which
an organization succeeds with a talent acquisition strategy depends largely
on how well job role needs are defined, applicants are matched against those
definitions, and performance is measured once a candidate comes on board.
This is especially important to retain workers once found and to be able to hire
from a position of growth rather than from a position of replacement. Essential
ingredients of a successful talent acquisition strategy that produce top results
include the proper mix of process, organizational knowledge, technology, and
performance measurement.”
3

3
“Talent Acquisitions Strategies,
Employer Branding and Quality of
Hire Take Center Stage” July, 2008
Aberdeen Group
6
Copyright © 2011 Human Capital Institute. All rights reserved.
HCI Research
Sourcing and Culture
The research results point to a clear connection between classification (very
satisfied with their permanent hire and contract talent quality) and the steps
organizations conduct before hiring permanent employees and/or contract
talent. These organizations have a much stronger reliance on holistic job
definition. Along with defining the skills, experience and education required,
high quality talent firms also consider the interpersonal and intrapersonal “fit”
of the candidate’s personality and work habits with the corporate culture.
Firms not satisfied with their permanent hire and contract talent quality tend
to rely solely on defining the position they are hiring for in regard to skills,
experience and education required. This basic approach is rife with potential
problems as an individual may possess the proper skills and experience to
conduct the job they are hired for; however their personality and approach to
the job may be counter to the company culture and could be quite damaging
to morale, productivity and departmental retention rates in the long run.
Bernie Linnartz, a senior partner at Empowerment Experts, cited the
importance of culture and “fit” when hiring. “Skills that meet the needs of the
job are a necessity. This is a relatively easy area to assess. Attitude can make
all the difference in the world. It has to do with personality to some extent yet
more so to professionalism and style of interacting with others. Alignment
relates to an overall fit with the actual work and culture of the organization. It is
about believing and owning the purpose, vision and mission of the underlying
business strategy. A candidate may well have the right skills and attitude (as
well as) have alignment with the business but just may not be interested in
doing the job and being a part of the company.”
4

Those most satisfied with their CT quality recognize the positive affect
properly defining the culture of the department to ensure CT fit. While this
adds another step, the benefits to the organization are significant concerning
CT quality and team dynamics. These benefits include higher organizational
satisfaction with talent, higher performance, increased tenure and decreased
risk and cost.
5

The Talent Search
A majority of the respondent firms indicated they primarily use background
investigations, reference checks and interviews as pre-hire assessments for
permanent hires. Considering their comprehensive approach to defining
the position, it was somewhat surprising that the firms did not have a higher
frequency of using other assessments including skills assessments, peer
reviews, scenario-based testing or cognitive- ability testing.
4
Bernie Linnartz “What To Look For
When Hiring; Management Corner”
May 26, 2011, Taos News
5
“Contract Talent: Are Contractors
Included in Strategic Talent
Management Initiatives?” November
2010, Human Capital Institute
Sourcíng und
Cuíture
High Quality Talent
Firms:

Fully define position
prior to hiring including
skills, experience and
education required.

Consider the
departmental culture to
ensure proper fit.

Target hiring sources
and agencies based on
positional needs.
Low Quality Talent
Firms:

Rely solely on defining
skills, experience and
education required for
position prior to hiring.
Acquiring Top Talent Through On-Demand Pipelines
7
Copyright © 2011 Human Capital Institute. All rights reserved.
Contract talent pre-assessment usage varies significantly. Nearly 80% of
the high-quality CT organizations use pre-hire assessments, conducted
by themselves or their staffing partners. Conversely nearly 50% of the low
quality talent firms were unsure regarding the types of pre-assessments their
organization or staffing partner use to evaluate their contract talent. This
signifies a disconnect regarding quality of CT used by the organization and
their tendency to actively monitor it. It is somewhat incongruous that there is
dissatisfaction with an outcome (CT quality) and yet there is not a clear idea
regarding how the process is monitored.
Understanding Successful Selection
Many of the organizations that are very satisfied with permanent hire quality
use opinion mechanisms such as manager satisfaction and job performance
evaluations to measure quality of permanent hire. A higher percentage of
these companies also track retention rates and evaluate hiring channels and
sources. Those firms reporting low levels of satisfaction with this population
also report significantly lower use of these techniques.
Overall, a majority of firms indicated they do not have a formal system in place
for measuring either permanent hire or CT quality.
Brenda Galligan, Vice President and Recruiting Manager at Wells Fargo,
noted that her organization uses surveys and performance evaluations as a
way of ensuring quality of hire. “We have a manager survey that goes out 30
to 60 days after a person is hired. [Satisfaction] is on a scale of 1 to 5 and our
company average is above 4; so I would say managers are very satisfied. We
[also] measure quality of talent by mapping it back to performance in the first
90 days. We also track productivity for a majority of the positions.”
The frequency of conducting CT post-assignment metrics is considerably
higher among high quality contract talent organizations (HCT). The primary
tools used by HCT firms are providing feedback to their staffing partner, and
measuring both manager and CT satisfaction. These feedback-based methods
help guide talent selection process improvements at higher talent quality firms.
ley Survey líndíngs
Sourcing and Culture
Better CT staffing is the result of well planned, focused talent searches,
conducted with clear strategy in place and purpose in mind. Our survey
results demonstrate a higher percentage of HCT organizations have
Lnderstundíng
Successíuí
Seíectíon
High Quality CT Firms:

Provide feedback to
staffing partner.

Measure manager
satisfaction with new CT.

Measure CT satisfaction
with position.
Low Quality CT Firms:

Majority do not have a
system or use multiple
measures for post-hire
quality.
2011 HCI Research
8
Copyright © 2011 Human Capital Institute. All rights reserved.
centralized sourcing and hiring. Conversely, nearly two-thirds of low quality
contract talent (LCT) organizations are failing to act as one cohesive entity
when staffing their CT.
These centralized systems and standardized practices assist in more than
just practical concerns related to leveraging CT acquisition and compliance
issues. They provide the necessary environment for organizations to perfect
their CT staffing process. CT staffing practices rooted in a single, unified
planning result in the acquisition of higher quality talent than those who
source CT individually by sector.
This should not come as a new revelation to CT users. A 2009 HCI survey
observed, “[I]n many, if not most organizations, contract talent is acquired in
a decentralized fashion, with few controls and little uniformity; if so, this is a
situation that can easily lead to wasted resources and lower quality of hire.”
6

Sourcing and Culture: Permanent Hires
Devoting time and resources to properly define requirements for open
positions, considering the culture of the department to ensure proper “fit” for
the position, and targeting sources based on need, all correlate highly with
those organizations most satisfied with their quality of talent.
The best employers don’t just hang a “help wanted” sign out front and sort
through every candidate as they walk through the door. They meticulously
establish whom it is that their organization needs, and where that person will
most likely be found.
Many organizations seem to better understand the value of pre-hire planning
when it comes to their permanent hires. Nearly all HPH and MPH firms are
6
“The State of Contract Talent
Management and the Role of HR”
January, 2009, Human Capital
Institute
0% 20% 40% 60% 80%
72%
52%
32%
HCT Organizations
MCT Organizations
LCT Organizations
Figure 1 How much do
you agree or disagree that
the method for sourcing
and hiring contract talent is
centralized and standardized
across the enterprise/
organization?
% Who Responded “Strongly
or Somewhat Agree”
Quality in Talent Selection: Finding the Perfect Fit
9
Copyright © 2011 Human Capital Institute. All rights reserved.
fastidious about developing their ideal candidate profile, defining positions and
accounting for cultural considerations. There is a considerable gap between LPH
firms and their more successful counterparts in regard to these activities.
Most Common Pre-Hire Measures
HPH MPH LPH
Gap
HPH:LPH
Positions being hired for are fully
defined including skills, experience and
education required
97% 93% 74% +23
The “culture” of the department is
considered to ensure new employee will
be a good “fit”
95% 88% 49% +46
Nearly all the HPH firms use additional methods for defining positions
beyond the common pre-search preparations. Search targeting, evaluation
standardization and identifying factors associated with new-hire success
are practices almost as commonplace as position definition and cultural
considerations within HPH firms. MPH firms are not quite as dedicated to
these additional pre-search steps.
LPH firms continue their trend of not adequately preparing to find new hires,
with a tremendous gap present for these additional planning considerations.
Additional Pre-Hire Measures
HPH MPH LPH
Gap
HPH:LPH
Candidate hiring sources are targeted
based on positional skill needs
94% 84% 61% +33
All candidates are consistently evaluated
using the same standards, i.e. structural
behavior-based interviews
93% 80% 55% +38
Factors that are predictors of success for
the position have been identified and are
used to identify candidate qualities
86% 73% 47% +39
Sourcing and Culture: Contract Talent
In comparison to permanent hire preparations, contract talent search
preparations aren’t as developed across all quality segments.
2011 HCI Research
10
Copyright © 2011 Human Capital Institute. All rights reserved.
This may indicate a larger problem of employers not viewing CT as staff,
per se, but rather as outsiders. This type of thinking can lead to eventual
dissatisfaction of CT quality, as firms sit back and just accept the quality of
their CT as an exogenous factor, and do not take initiative to develop and
improve it.
HCT MCT LCT
Gap
HCT:LCT
Positions being hired for are fully
defined including skills, experience and
education required
96% 80% 75% +21
The “culture” of the department is
considered to ensure contract talent will
be a good “fit”
88% 63% 47% +41
Specialized Contract talent agencies or
vendors are targeted based on positional
needs, i.e. technical staffing firms
84% 76% 69% +15
Factors that are predictors of success for
the position have been identified and are
used to identify contract talent qualities
77% 62% 34% +43
A majority (88%) of the High Quality CT firms consider “culture” to ensure proper
candidate fit. Less than two-thirds (63%) of the Moderate Quality CT firms and
less than half (47%) of the Low Quality CT firms consider this vital attribute. Those
who fail to find outstanding CT perhaps do not see value in conceptualizing CT
as a true part of their company, so much so that making efforts to ensure the CT
individuals fit into the larger corporate culture is not considered.
New staff that can ease seamlessly into the established team will require
less time to become fully functional in their new position, and will be more
engaged in the company and its work. Employers’ awareness that an individual
is more than just the sum total of their knowledge, skills and abilities ultimately
translates to real results in organizations’ satisfaction with their talent.
Before starting a search for new hires, employers should develop an idea
of who precisely they are looking for, and how will that person fit into their
organization. Successful hirers spend time developing a clear picture of their
ideal hire before they even post one job notification. They see empty spaces
inside their workforce, examine and analyze those gaps, and seek out the very
specific talent that it will take to fill them.
¨1he eva|ua||on o| out
(petmanen|) |a|en| and
con|tac| |a|en| |s pte||y
much |he same. Because
o| |he |ypes o| ptojec|s
and p|aces ve have |o
en|et |n|o such as schoo|s,
govetnmen| |ac|||||es and
m||||aty bases, ve have
out con|tac| assoc|a|es
and out petmanen|
h|tes go |htough |he
same baclgtound
checls. Because |hey´te
a con|tac| emp|oyee
doesn´| mean |hey´te
|tea|ed any d|||eten|.´
¨\e (a|so) measute
out con|tac|ots´
pet|otmance |he same
vay ve measute out
petmanen| emp|oyees´
pet|otmance.´
1ony Curíbuy
Contruct Soíutíons Leuder
Southeust
lngersoíí Rund-1rune
Quality in Talent Selection: Finding the Perfect Fit
11
Copyright © 2011 Human Capital Institute. All rights reserved.
Organizations all too often waste time and money evaluating resumes
and applications for poorly defined positions. This waste is affecting the
quality of their end result. Hirers spend valuable time and lose productivity,
and significantly increase their likelihood of mismatching individuals and
positions when there is no mechanism in place to help focus their search
and filter their applicants.
Filling positions without taking the time to understand the job requirements
can result in hiring workers who are under-skilled and unable to succeed,
says Dave Poling, Director of Recruiting for Aerotek. “By investing time
into defining the responsibilities and skills associated with each position
and developing a strategic hiring process, organizations will enhance their
overall workforce.”
The Talent Search
If organizations are to search for candidates with such a detailed and in-depth
profile in mind, the typical “checklist assessments” will only be somewhat
useful in the talent search. Top employers need sophisticated assessments that
go beyond the basics and get to the true value that the candidate has to offer.
As recently reported, “Research has shown that cognitive aptitude tests, for
example, are much more accurate predictors of job performance than are other
widely used employee selection techniques. For example, a comprehensive
review of peer-reviewed studies of the predictive validity of various selection
techniques concluded that aptitude tests are twice as predictive as job
interviews, three times as predictive as experiences and four times as predictive
as education level.”
7

The Talent Search: Permanent Hires
Nearly every organization surveyed indicated they use references and
conducted interviews for their permanent hires. These two procedures appear
to constitute the base components of any potential hire assessment.
A higher percentage of HPH firms report using one or two methods in addition
to the checklist assessments, such as skills testing and peer reviews.
7
Pre-Employment Testing: An
Overview” May 10, 2011, Criteria
Corporation
1he ºCheckííst¨
Assessment
Approuch
Approach used by many
organizations featuring an
over-reliance on traditional
assessments such as
background investigations,
reference checks and non-
structured interviews to
assess candidates.
2011 HCI Research
12
Copyright © 2011 Human Capital Institute. All rights reserved.
A large percentage of LPH firms do not use even the basic assessment
methods.
HPH MPH LPH
Gap
HPH:LPH
Background/reference checks 90% 90% 83% +7
Structural behavior-based interviews 86% 76% 65% +21
Skills assessment testing to measure
aptitude regarding hard skills required
for position
46% 38% 30% +16
Peer review opportunities are provided
to candidates to be able to interact with
those performing job and ability to get
feedback
46% 35% 25% +21
Scenario based testing 31% 26% 11% +20
Cognitive abilities testing to measure
problem solving skills
25% 21% 14% +11
The Talent Search: Contract Talent
HCT firms hold their CT to as high an assessment standard as possible.
These organizations demonstrate a level of interest in their CT similar to what
they show for their permanent hires. 79% of HCT firms ensure that there
are measures in place to evaluate CT, whether it is done by them or by their
staffing partner. More than a quarter of the HCT firms have two checkpoints,
one assessment performed by the partner, and another performed by the
organization itself.
Nearly half of the survey respondents who were dissatisfied with their contract
talent (LCT firms) were not even sure about the types of pre-assessments their
organization or staffing partner use to evaluate CT.
Which of the following pre-
hire assessment methods
does your organization use to
evaluate talent?
Quality in Talent Selection: Finding the Perfect Fit
13
Copyright © 2011 Human Capital Institute. All rights reserved.
HCT MCT LCT
Gap
HCT:LCT
Our contract talent vendors and
agencies conduct pre-assessments
to ensure qualified contract talent is
assigned to our organization
30% 29% 23% +7
My organization utilizes their own pre-
assignment assessments to evaluate
contract talent
22% 18% 10% +12
Both 27% 22% 18% +9
NET USE PRE-ASSESSMENTS 79% 69% 51% +29
Not sure 21% 31% 49% +28
If an organization is disinterested in their CT assessment to the point they were
not even sure who, if anyone, was performing these evaluations, it’s no wonder
that they ultimately receive unsatisfactory talent.
In addition, waning satisfaction with CT quality may lead some organizations
to stray away from using CT all together. Firms that confuse their own ability
to develop a quality contract workforce with poor overall CT quality may
eventually shy away from making use of this highly effective staffing option.
As a previous HCI survey found, “our 2010 data also suggest that
organizational satisfaction with CT has made it more challenging for businesses
to determine where and how to add talent. Forty-seven percent of the 2010
survey respondents say the most frequent challenge they face in regard to CT
is “Deciding when to hire (traditional or full-time) talent versus contract talent.”
This challenge uncovered in the 2010 data signals a new need for talent
management practitioners to have more robust tools, processes, and systems
in place. More effective business processes would help talent managers better
assess and evaluate roles and tasks.”
8
Understanding Successful Selection
Organizations should constantly evaluate the effectiveness of their hiring
process. Without a measure of the quality of talent produced, there is no way
for the employer to know how effective their methods actually are. 8
Contract Talent - An Imperative for
Talent Management in the New
Normal,” August, 2010, Human
Capital Institute
Does your organization or
staffing partner use any
type of pre-assessments
to evaluate contract talent
prior to working with your
organization or does your
agency or vendor conduct
these assessments?
2011 HCI Research
14
Copyright © 2011 Human Capital Institute. All rights reserved.
Even employers who are content with their procedures and the talent it
brings them should not discount the affects of exogenous forces such as an
organizational shift in focus or business goals, or fluctuations in the talent market.
These events may precipitate a change in the ideal hire profile, the definition of
positions or the appropriate procedures to find and assess candidates. Because
organizations, talent pools and markets are in perpetual flux, the nuts and bolts
of a hiring process must be monitored and frequently adjusted.
Top performing firms measure the quality of hire for their permanent hires and
CT and use this data as feedback to drive how the selection process.
“Companies do not hold their recruiting function accountable for documenting
the return on investment from the resources used in the staffing process. The
absence of reporting and evidence documenting the link between candidate
evaluation and outcomes such as product or service delivery implies a lack of
interest by management or a lack of capability.”
9

While a higher percentage of HPH and HCT firms indicated they have
a formal system to measure quality of hire, it is not a majority of these
organizations. This may indicate an emerging trend; the organizations that
find the best talent have implemented ways to measure it, even in the face of
formula or data obstacles.
9
“Quality of Hire: Moving from
Efficiency to Effectiveness”
February, 2004, Shaker Consulting
Group and the Society for Human
Resource Management
7%
7%
7%
77%
72%
61%
16%
21%
32%
0% 20% 40% 60% 80%
Unsure
No
Yes
HPH
MPH
LPH
“Contingent workers are
often seen as commodities,
to an even greater
extent than permanent
employees. What does
human capital say about
this view of contingent
employees? This
longstanding paradox,
needing your contingent
workforce to be motivated
and engaged — a part of
the team, but also needing
to keep them at a distance
— is a real challenge in
talent management.”
9
Figure 2 Does your
Organization have a
Permanent Hire Formal
QOH System?
Quality in Talent Selection: Finding the Perfect Fit
15
Copyright © 2011 Human Capital Institute. All rights reserved.
Understanding Successful Selection: Permanent Hires
If quality of hire is such meaningful HR data, why aren’t more practitioners
tracking it? Even those who recognize that value of monitoring quality of hire
may not always feel confident in doing so, simply because of the ambiguous
nature of the metric. It is not an objective, straight forward unit of measure,
and uncertainty as to how it should be quantified may cause HR leaders to
simply not conduct any assessment at all.
There are, fortunately, exemplars to follow. “We measure new hire quality on
a monthly and quarterly basis on a scale of one to ten and average across all
departments,” said Don Evans, Head of Talent Acquisition at Syngenta. “Right
now, our company average is about 8.5. Three months after someone is hired,
we send out a new hire survey. The survey consists of ten questions about
performance, observations as related to the expectations of the position and
time put into work. This is then related to midyear and annual reviews.”
30%
24%
19%
62%
60%
53%
8%
16%
28%
0% 20% 40% 60% 80%
Unsure
No
Yes
HPH
MPH
LPH
Figure 3 Does your
Organization have a Contract
Talent Formal QOCT System?
2011 HCI Research
16
Copyright © 2011 Human Capital Institute. All rights reserved.
Those organizations very satisfied with their permanent hire quality have a
clear approach to measuring talent quality. Quality measures that HPH firms
find effective are often an aggregation of common talent measures, including
tracking retention rates, conducting job performance evaluations, measuring
manager satisfaction and evaluating hiring sources.
HPH MPH LPH Gap
HPH:LPH
Track retention rates
80% 62% 54% +26
Measure manager satisfaction with new
hires
75% 53% 41% +34
Evaluate hiring channels/sources
74% 48% 38% +36
Conduct job performance evaluations
3-6 months after hire date
73% 61% 52% +21
Measure new hire satisfaction with
position and/or company
62% 44% 30% +32
Evaluate time required for new hire to
become proficient in position
57% 39% 30% +27
Compare pre-hire assessment with post-
hire performance review
37% 22% 12% +25
It is somewhat surprising that many of these monitoring activities are not being
conducted by all organizations. The survey results demonstrated that those
not very satisfied with their talent quality are particularly lax at conducting
measurements to track their human capital assets.
Understanding Successful Selection: Contract Talent
Measures used by HCT firms that are lacking in MCT and LCT firms includes
measuring manager satisfaction with new hires, and conversely, the contract
talent satisfaction with the position. This measure of validating “job fit” is a
missing component for many organizations that use CT.
Quality in Talent Selection: Finding the Perfect Fit
17
Copyright © 2011 Human Capital Institute. All rights reserved.
HCT MCT LCT
Gap
HCT:LCT
Provide feedback to staffing partner 71% 54% 38% +33
Measure manager satisfaction with new
hires
69% 47% 30% +39
Measure contract employee satisfaction
with position
58% 26% 12% +36
Evaluate time required for contract talent
to become proficient in position
47% 35% 14% +33
Track conversion rate of contract talent to
permanent hire
41% 40% 29% +12
Compare pre-assignment position
requirements with post-assignment review
39% 23% 10% +29
Require staffing partner to conduct job
performance evaluations 3-6 months after
hire date
37% 25% 15% +12
HlH versus HC1
Quality of Hire/CT Measure Effectiveness
HCT firms are notably deficient in conducting post-assignment measures in
comparison to HPH firms. HCT firms tend to use manager satisfaction and
feedback to their staffing partner as the primary means for measuring quality of
CT in their firms.
HPH HCT
Gap
HPH:HCT
Measure manager satisfaction 75% 69% +14
Conduct evaluations 3-6 months after hire date 73% 37% +36
Measure employee satisfaction 62% 58% +4
Evaluate time required proficiency 57% 47% +10
Compare pre-hire assessment with post-hire or
assignment performance review
37% 39% +2
Contract Talent
How effective are the
following in measuring the
quality of contract talent in
your firm?
% Who Responded “Strongly
or Somewhat Agree”
2011 HCI Research
18
Copyright © 2011 Human Capital Institute. All rights reserved.
Contract Talent Evaluation Rigor
A key component of the HCT firm is the higher presence of evaluation “rigor”.
More than half of the HCT firms indicated their evaluation of Contract Talent
quality was just as rigorous as their permanent hire quality of hire evaluations.
Only 15% of the LCT firms approached their CT evaluations with the same rigor
as permanent hire evaluations.

When asked why their organization’s evaluation of contract talent quality was
not as rigorous as their organization’s permanent hire quality evaluations,
lack of resources was mentioned most frequently by LCT firms. These firms
perceive a lack of value in approaching CT quality with the same rigor and yet
they readily acknowledged the lower quality associated with their CT. It would
seem they need to adjust their own approach to realize higher quality talent.
Perhaps elevated awareness regarding the negative affects associated with
lower quality talent needs to be developed before these firms will adjust their
CT acquisition practices.
HCT MCT LCT
Gap
HCT:LCT
We don’t have the resources 36% 39% 53% -17
Contract Talent staffing partner
conducts evaluation
40% 36% 32% +8
Concerned about co-employment risks 24% 34% 14% +10
Other 20% 20% 27% -7
Figure 4: Is your
organization’s evaluation
of contract talent quality
just as rigorous as your
organization’s permanent
hire quality of hire
evaluations?
85%
15%
30%
70%
47%
53%
0% 20% 40% 60% 80% 100%
LCT
MCT
HCT
Yes
No
Quality in Talent Selection: Finding the Perfect Fit
19
Copyright © 2011 Human Capital Institute. All rights reserved.
Using a staffing partner to complete evaluations has resource and cost
advantages and allows for active monitoring to ensure evaluations are being
conducted according to the organization’s quality expectations. Firms have
much to gain from taking a more proactive role in CT quality control and they
may find there are benefits for conducting these evaluations in-house along
with relying solely on partners.
Communícutíng Needs to Stuííng lurtner
Organizations whose CT staffing is provided principally by a staffing partner must
provide their partner with regular feedback. Firms have to communicate what is
needed to ensure satisfactory talent is provided. If the CT staffer is unaware of
their personnel deficiencies, they will not make any improvement efforts.
The best staffing firms will anticipate this need and solicit this feedback. “At
Aerotek, we complete a formal interview process, perform on-boarding for
each candidate, and establish an assessment process that can mirror the
organization’s performance review structure for permanent employees,” said
Ayman Hamid, Director of Business Operations at Aerotek. “We understand
the expectations of each position and the culture of the company for whom we
are hiring. This due diligence up front ultimately helps improve the quality of
hire and reduces attrition down the road.”
The survey results present strong evidence that HCT firms maintain an open
dialog with their CT providers, and are perpetually gauging their source of
and relationship with CT, through frequent reviews of the provider and their
contract.
Frequency of renewing
contract talent with staffing
partner
44%
29%
28%
21%
15%
7%
20%
26%
14%
15%
30%
51%
0% 20% 40% 60% 80%
Not sure
Annually
More than
once a year
Less often
than once
a year
HCT
MCT
LCT
HCI Research
20
Copyright © 2011 Human Capital Institute. All rights reserved.
Concíusíons
Today’s businesses are faced with slow growth, fluctuating demand and
heightened competition for key talent. Contract talent affords organizations
the key benefit of being able to access talent in a flexible manner to better
operate in these uncertain times.
While CT use is predicated on a need for flexibility and fixed term use,
the temporary aspect associated with CT should not lead to discounting
the talent selection process. Those organizations that approach their CT
selection with a rigor equal to their approach to permanent hiring understand
increase quality and reduced cost benefits of proper talent identification
and management. These firms have a distinct competitive advantage over
those companies who do not understand the value of developing and using a
formal contract talent system.
Key practices that should be incorporated into any organization seeking to
improve their contract talent quality should include:

Clearly articulate and apply equal rigor in the identification of the
CT position. Developing and communicating more holistic position
definitions will enable staffing partners to better meet the skills and
culture requirements associated with the position.
57%
40%
33%
18%
7%
6%
7%
20%
24%
18%
34%
36%
0% 20% 40% 60% 80%
Not sure
1–3 years
Every year
More than 3 years
HCT
MCT
LCT

Be cognizant that the most experienced candidate in regard to skills and
background alone may not be the best selection for the firm as culture fit
has to also be a primary consideration.

Identify the most effective hiring sources and agencies based on the
needs of the position.

Develop a collaborative post-assignment assessment approach with their
staffing partner to ensure CT follow-up evaluations are a standardized
process performed on a regular basis. Manager and individual CT
satisfaction have to be key components of this evaluation process.
Clear and timely reporting also has to be a core component to enable
monitoring of this key aspect of the talent selection process.

The CT selection process has to be flexible and quickly adaptable
to reflect changing external factors such as the economy and skill
shortages. The process also has to be revised based on post-
assignment assessment metrics.
Contract talent is a key asset for any organization and the talent quality
inherent within this segment of the workforce should not be overlooked.
Acquiring Top Talent Through On-Demand Pipelines
21
Copyright © 2011 Human Capital Institute. All rights reserved.
HCI Research
22
Copyright © 2011 Human Capital Institute. All rights reserved.
About 1hís Reseurch
This research was developed in partnership between the Human Capital
Institute (HCI) and Aerotek between May and June, 2011. HCI members were
invited to complete a 30-question survey. 495 surveys were completed and
the results are summarized in this paper. In addition, in-depth interviews were
conducted with Talent Management thought leaders. To supplement these
primary research methods, HCI researchers also reviewed relevant information
from a variety of secondary sources, including white papers, articles, books,
interviews, and case studies.
Appendíx A:
About the Reseurch lurtners
About Aerotek
Aerotek, headquartered in Hanover, Md., is a leading provider of technical,
professional and industrial staffing services. Established in 1983, Aerotek
is an operating company of Allegis Group, the largest provider of staffing
services in the U.S. Aerotek operates a network of more than 200 non-
franchised offices throughout the U.S., Canada and Europe. For more
information, visit http://www.aerotek.com.
About Human Capital Institute (HCI)
HCI is the global association for strategic talent management and new economy
leadership, and a clearinghouse for best practices and new ideas. Our network
of expert practitioners, Fortune 1000 and Global 2000 corporations, government
agencies, global consultants and business schools contribute a stream of
constantly evolving information, the best of which is organized, analyzed and
shared with members through HCI communities, research, education and
events. For more information, please visit www.hci.org.
Acquiring Top Talent Through On-Demand Pipelines
23
Copyright © 2011 Human Capital Institute. All rights reserved.
Appendíx ß: Contruct 1uíent Lse lroííe
Percent of Contract Talent in Organization
% of Current
Workforce
% of Workforce
In One Year
0% * 10% 9%
1%-5% 41% 40%
6%-15% 28% 27%
16%-25% 10% 11%
26%-50% 4% 5%
51%-75% 2% 2%
76%-100% 1% 1%
Don’t know 4% 6%
* 8% of the 495 respondents did not have any current or projected Contract Talent.
Annual Contract Talent Spend
Less than $500,000 42%
$500,000-$1 million 14%
$1-$5 million 13%
$5-$20 million 3%
More than $20 million 4%
Not sure 24%
Who is Responsible for Managing Contract Talent
A combination of HR, Functional Managers, Procurement 33%
HR 29%
Department/Functional Manager 27%
Procurement 4%
Owner/President 2%
Project Manager 1%
Other 3%
Don’t Know 2%
HCI Research
24
Copyright © 2011 Human Capital Institute. All rights reserved.
Hire Own Contract Talent or Have Staffing Partner
Have a partner 50%
Hire our own 47%
Not sure 3%
Who Manages and Procures Contract Talent?
Self-managed by our organization 76%
Managed by a Third-Party (MSP) 16%
Don’t know 7%
Who Manages Contract Talent Program Tools and Systems?
Self-managed tools developed by our organization 67%
Third-party Vendor Management System (VMS) 17%
Don’t know 16%
Use Independent Contractor Engagement Specialist?
Yes 7%
No 78%
Don’t know 15%
Appendíx ß: Respondent Demogruphícs
Acquiring Top Talent Through On-Demand Pipelines
25
Copyright © 2011 Human Capital Institute. All rights reserved.
10%
10%
9%
8%
5%
4%
4% 4%
3%
2%
1%
20%
Technology
Government
Healthcare
Professional Services
Non-profit/Charity
Financial Services
Retail
Insurance
Industrial Goods & Services
Banking
Pharma/Life Sciences
Media
Food & Beverage
Aerospace & Defense
Utilities
Oil and Gas
Construction & Materials
Personal & Household Goods
Automobiles & Parts
Real Estate
Chemicals
Industrial Metals & Mining
Forestry & Paper
Other
25%
21%
13%
13%
9%
5%
3%
3%
3%
2%
3%
Director
Manager
Team Member
Middle Manager
Vice President
Senior Director
C-Level (CEO, CHRO, CIO, etc.)
Executive
Senior Vice President
President
Other
15%
24%
10%
5%
6%
17%
5%
2%
2%
Less than $10 million
$10-100 million
$100-500 million
$500-750 million
$750 mill-1 billion
$1-10 billion
$10-50 billion
$50-100 billion
>$100 billion
Industry
Level
Revenue
HCI Research
26
Copyright © 2011 Human Capital Institute. All rights reserved.
87%
5%
4%
2%
1%
1%
North America
Asia/Pacific
Europe
Africa
Central/South America
Middle East
90%
3%
1%
1%
5%
Human Resources
Operations
IT
Strategy
Other
48%
16%
5%
11%
21%
Less than 1,000
1,000-3,000
3,001-5,000
5,001-10,000
10,000+
Region
Function
Number of Employees
Acquiring Top Talent Through On-Demand Pipelines
27
Copyright © 2011 Human Capital Institute. All rights reserved.
Appendíx C: \orks Cíted
“What Influences Contract Talent Usage?”, June 2011, Human Capital Institute
Bonney, Thomas and Kehoe, Kathryn “Recruiting and Retaining Talent” May 2, 2011, Mergers & Acquisitions
Report
“Talent Acquisitions Strategies, Employer Branding and Quality of Hire Take Center Stage” July, 2008 Aberdeen
Group
Bernie Linnartz “What To Look For When Hiring; Management Corner” May 26, 2011, Taos News
“Contract Talent: Are Contractors Included in Strategic Talent Management Initiatives?” November 2010, Human
Capital Institute
“The State of Contract Talent Management and the Role of HR” January 2009, Human Capital Institute
“Pre-Employment Testing: An Overview” May 10, 2011, Criteria Corporation
“Contract Talent — An Imperative for Talent Management in the New Normal,” August, 2010, Human Capital
Institute
“Quality of Hire: Moving from Efficiency to Effectiveness” February, 2004, Shaker Consulting Group and the
Society for Human Resource Management
1250 Connecticut Avenue, Washington, D.C. 20036
866-538-1909
www.hci.org

Acquiring Top Talent Through On-Demand Pipelines

Executive Summary......................................................................................1 Definition of Key Terms................................................................................2 Introduction..................................................................................................3 Talent Quality Satisfaction ...........................................................................4 Talent Quality Segments ..............................................................................4 The Talent Selection Process .......................................................................5
Sourcing and Culture ...........................................................................................................6 The Talent Search .................................................................................................................6 Understanding Successful Selection ....................................................................................7

Key Survey Findings .....................................................................................7
Sourcing and Culture ...........................................................................................................7 Sourcing and Culture: Permanent Hires ..........................................................................8 Sourcing and Culture: Contract Talent ............................................................................9 The Talent Search ...............................................................................................................11 The Talent Search: Permanent Hires..............................................................................11 The Talent Search: Contract Talent ................................................................................12 Understanding Successful Selection ..................................................................................13 Understanding Successful Selection: Permanent Hires .................................................14 Understanding Successful Selection: Contract Talent....................................................15

HPH versus HCT ........................................................................................17
Quality of Hire/CT Measure Effectiveness ........................................................................17 Contract Talent Evaluation Rigor ....................................................................................18

Communicating Needs to Staffing Partner ...............................................19 Conclusions ................................................................................................20 About This Research ..................................................................................22 Appendix A: About the Research Partners ...............................................22 Appendix B: Contract Talent Use Profile ...................................................23 Appendix B: Respondent Demographics ..................................................25 Appendix C: Works Cited ..........................................................................27

Copyright © 2011 Human Capital Institute. All rights reserved.

iii

.

and post-hire procedures. 1 . Key findings from this research include: The differentiating aspects of organizations most satisfied with quality of talent are those that devote the time and resources for each of the following phases of the Talent Selection Process: Sourcing and Culture Corporate and departmental culture is considered more frequently among those “very satisfied” with CT. Aerotek. ensures success for both the CT worker and the organization. Human Capital Institute Copyright © 2011 Human Capital Institute.1 few approach CT search and selection with the same rigor as permanent talent. experience and education required. it is imperative that employers hold CT up to standards comparable to that of their permanent employees. A majority of employers demonstrate more rigor in selecting and measuring quality of permanent talent than CT. and the fit of the potential employee. As CT fills increasingly important roles and functions. The research identified several differentiating aspects of “great” talent quality organizations: standard operating procedures that go beyond a basic checklist of pre-assessment activities. Culture and fit are just as important for CT and when properly executed. and the Human Capital Institute (HCI) examined how pre. Properly defining the candidate “fit” is a key practice for those very satisfied with their talent quality. A much smaller minority have equally stringent selection. June 2011. rigor in candidate selection. 1 “What Influences Contract Talent Usage?”. allocating the time and resources to fully define positions including the skills. and quality of posthire evaluations differ between permanent staff and contract talent.Despite contract talent (CT) comprising between 5-25% of an organization’s workforce.and post-hire assessments. and considering the culture of the department. All rights reserved. a leader in the recruiting and staffing industry. and these organizations realize the benefit of establishing pre.

.and part-time workers and independent contractors who are not part of an organization’s regular. those organizations that conduct pre-hire assessment are much more likely to be satisfied with their talent selection.” 2 Copyright © 2011 Human Capital Institute. These organizations quantify and understand manager and hire satisfaction. Moderate Quality Permanent Hire Firms (MPH) Department/line managers are “somewhat satisfied. and revise their approach to sourcing based on this response. including: freelancers.” Segments referenced in this research include: Permanent Hire Quality of Hire High Quality Permanent Hire Firms (HPH) Department/line managers are “very satisfied” with new employee quality of hire. Understanding Successful Selection Those companies reporting higher talent quality use an informed approach to managing the selection process. These measures of validating “job fit” are a missing component for many moderate and low quality talent organizations.2011 HCI Research The Talent Search For both permanent hires and CT. All rights reserved. versus those “somewhat satisfied” or “not satisfied. This represents a disconnect regarding the contingent talent used by an organization and the firm’s tendency to actively monitor the CT evaluation and selection process.” “somewhat dissatisfied” or “very dissatisfied. Contract Talent HCI defines contract talent (CT) as full. Talent Quality Segments The results of the research were analyzed by those who stated their department or line managers were “very satisfied” with the quality of their permanent hires and CT staff. interim executives and consultants. temporary help. traditional workforce.” Low Quality Permanent Hire Firms (LPH) Department/line managers are “neither satisfied nor dissatisfied. Nearly half of the organizations “not satisfied” with their contract talent quality were unsure of the types of pre-assessments their organization or staffing partner used to evaluate contract talent.

Additionally. background investigations.” The “Checklist” Approach This candidate selection approach. this research examines the use and impact certain processes have on selection and hiring for both permanent hires and CT to identify practices that should be adopted to ultimately improve selection. The goal of this research was to profile how organizations satisfied with their CT quality differ in their talent acquisition practices. Copyright © 2011 Human Capital Institute.Quality in Talent Selection: Finding the Perfect Fit Contact Talent Quality High Quality Contract Talent Firms (HCT) Department/line managers “very satisfied” concerning the contract talent quality. and reference checks. employers need to significantly improve their talent culture and tactics if they hope to effectively compete for the best and brightest. used by many organizations. As the market for key talent gets more competitive. The hypothesis prior to conducting this research was that permanent hire selection would be more standardized and rigorous compared to CT selection and assessments. While the research confirmed there were differences between the rigor applied to permanent hires versus CT.” Low Quality Contract Talent Firms (LCT) Department/line managers are “neither satisfied nor dissatisfied. 3 .” “somewhat dissatisfied” or “very dissatisfied. Moderate Quality Contract Talent Firms (MCT) Department/line managers are “somewhat satisfied. is marked by an over-reliance on traditional hiring steps such as unstructured interviews. Well-established talent acquisition best practices are not being performed consistently and talent quality is suffering as a result. it also discovered the shortcomings many organizations had in regard to their permanent hiring processes. All rights reserved.

selecting and training replacement hires. both tangible and intangible.”2 2 Bonney. The Copyright © 2011 Human Capital Institute. An even lower percentage (22%) indicated their managers were very satisfied with the contract talent quality. Talent Quality Satisfaction New Employee 31% 56% 9% 4% 0% Contract Talent 22% 61% 14% 3% 0% How satisfied are your department or line managers? Very Satisfied Somewhat Satisfied Neither Satisfied nor Dissatisfied Somewhat Dissatisfied Very Dissatisfied The costs. Why is talent quality assessment so low? This is a clear indication that many firms need to evaluate the process by which they identify talent and new techniques should be considered. and Decreased customer satisfaction and market share. It is likely that the changing economy and increased competition for talent will further affect the accessibility of quality talent. leading to both low individual and work group productivity. There is only moderate satisfaction with talent quality. All rights reserved. Delayed productivity. Thomas and Kehoe. to the organization can be significant when the wrong talent is selected for a position. among existing employees. “Poor selection processes and bad hires can adversely affect any organization through: Dissatisfied employees. Higher turnover. 4 . along with stress and anxiety. 2011. Lost productivity. Mergers & Acquisitions Report The analysis for this research identified six distinct groups characterized by their satisfaction with permanent hire and contract talent quality. satisfaction is unlikely to improve. Increased cost and effort in attracting.2011 HCI Research The research suggests both permanent hire and contract talent quality is in need of considerable improvement. as less than one in three respondents stated their department or line managers were very satisfied with the quality of hire for new employees. including termination of low-performing employees. Kathryn “Recruiting and Retaining Talent” May 2. Without changes to the selection process.

LPH: Low Quality Permanent Hire LCT: Low Quality Contract Talent Firms Firms Department/line managers Department/line managers neither satisfied nor dissatisfied. 5 . quality they work with. organizational knowledge. The use of defined. Segments referenced in this research include: Permanent Hire Contract Talent HPH: High Quality Permanent Hire HCT: High Quality Contract Talent Firms Firms Department/line managers very Department/line managers very satisfied with the quality of hire satisfied with the contract talent for new employees. dissatisfied. “Analysis of the Best-in-Class reveals that the degree to which an organization succeeds with a talent acquisition strategy depends largely on how well job role needs are defined. 2008 Aberdeen Group Copyright © 2011 Human Capital Institute.Quality in Talent Selection: Finding the Perfect Fit tactics used by these companies provide clear direction regarding quality talent selection protocols. rigorous process for talent selection. All rights reserved.”3 3 “Talent Acquisitions Strategies. focused assessment activities and post-hire measurement have on this function. Those organizations that report a higher degree of satisfaction with their hire and CT quality simultaneously report a more comprehensive. and performance is measured once a candidate comes on board. Employer Branding and Quality of Hire Take Center Stage” July. Essential ingredients of a successful talent acquisition strategy that produce top results include the proper mix of process. MPH: Moderate Quality Permanent Hire Firms Department/line managers somewhat satisfied. technology. This is especially important to retain workers once found and to be able to hire from a position of growth rather than from a position of replacement. measured processes with various checkpoints is correlated with a firm’s ability to source quality talent from both a permanent hire and CT perspective. Research has identified the critical role that comprehensive job definitions. MCT: Moderate Quality Contract Talent Firms Department/line managers somewhat satisfied. applicants are matched against those definitions. neither satisfied nor dissatisfied. somewhat dissatisfied or very somewhat dissatisfied or very dissatisfied. and performance measurement.

The Talent Search 4 Bernie Linnartz “What To Look For When Hiring. Consider the departmental culture to ensure proper fit. It has to do with personality to some extent yet more so to professionalism and style of interacting with others. increased tenure and decreased risk and cost. it was somewhat surprising that the firms did not have a higher frequency of using other assessments including skills assessments. These organizations have a much stronger reliance on holistic job definition. All rights reserved. Target hiring sources and agencies based on positional needs. A candidate may well have the right skills and attitude (as well as) have alignment with the business but just may not be interested in doing the job and being a part of the company. “Skills that meet the needs of the job are a necessity. Human Capital Institute 5 A majority of the respondent firms indicated they primarily use background investigations. This is a relatively easy area to assess. however their personality and approach to the job may be counter to the company culture and could be quite damaging to morale. vision and mission of the underlying business strategy. the benefits to the organization are significant concerning CT quality and team dynamics. Firms not satisfied with their permanent hire and contract talent quality tend to rely solely on defining the position they are hiring for in regard to skills. Considering their comprehensive approach to defining the position. These benefits include higher organizational satisfaction with talent.5 High Quality Talent Firms: Fully define position prior to hiring including skills. productivity and departmental retention rates in the long run. high quality talent firms also consider the interpersonal and intrapersonal “fit” of the candidate’s personality and work habits with the corporate culture. reference checks and interviews as pre-hire assessments for permanent hires. Alignment relates to an overall fit with the actual work and culture of the organization. higher performance. 6 . Along with defining the skills.”4 Those most satisfied with their CT quality recognize the positive affect properly defining the culture of the department to ensure CT fit. Low Quality Talent Firms: Rely solely on defining skills. Bernie Linnartz. cited the importance of culture and “fit” when hiring. It is about believing and owning the purpose. experience and education required for position prior to hiring. scenario-based testing or cognitive. This basic approach is rife with potential problems as an individual may possess the proper skills and experience to conduct the job they are hired for. experience and education required. peer reviews. Taos News “Contract Talent: Are Contractors Included in Strategic Talent Management Initiatives?” November 2010. experience and education required. experience and education required. While this adds another step.HCI Research Sourcing and Culture The research results point to a clear connection between classification (very satisfied with their permanent hire and contract talent quality) and the steps organizations conduct before hiring permanent employees and/or contract talent. a senior partner at Empowerment Experts. Attitude can make all the difference in the world.ability testing. 2011. Copyright © 2011 Human Capital Institute. Management Corner” May 26.

Measure manager satisfaction with new CT. Brenda Galligan. conducted with clear strategy in place and purpose in mind. Vice President and Recruiting Manager at Wells Fargo. A higher percentage of these companies also track retention rates and evaluate hiring channels and sources. This signifies a disconnect regarding quality of CT used by the organization and their tendency to actively monitor it. a majority of firms indicated they do not have a formal system in place for measuring either permanent hire or CT quality. Low Quality CT Firms: Majority do not have a system or use multiple measures for post-hire quality. Measure CT satisfaction with position.” The frequency of conducting CT post-assignment metrics is considerably higher among high quality contract talent organizations (HCT). “We have a manager survey that goes out 30 to 60 days after a person is hired. Our survey results demonstrate a higher percentage of HCT organizations have Copyright © 2011 Human Capital Institute. Conversely nearly 50% of the low quality talent firms were unsure regarding the types of pre-assessments their organization or staffing partner use to evaluate their contract talent. The primary tools used by HCT firms are providing feedback to their staffing partner.Acquiring Top Talent Through On-Demand Pipelines Contract talent pre-assessment usage varies significantly. We [also] measure quality of talent by mapping it back to performance in the first 90 days. [Satisfaction] is on a scale of 1 to 5 and our company average is above 4. 7 . noted that her organization uses surveys and performance evaluations as a way of ensuring quality of hire. All rights reserved. conducted by themselves or their staffing partners. We also track productivity for a majority of the positions. Nearly 80% of the high-quality CT organizations use pre-hire assessments. High Quality CT Firms: Provide feedback to staffing partner. Those firms reporting low levels of satisfaction with this population also report significantly lower use of these techniques. Sourcing and Culture Better CT staffing is the result of well planned. so I would say managers are very satisfied. Overall. These feedback-based methods help guide talent selection process improvements at higher talent quality firms. Understanding Successful Selection Many of the organizations that are very satisfied with permanent hire quality use opinion mechanisms such as manager satisfaction and job performance evaluations to measure quality of permanent hire. It is somewhat incongruous that there is dissatisfaction with an outcome (CT quality) and yet there is not a clear idea regarding how the process is monitored. and measuring both manager and CT satisfaction. focused talent searches.

They provide the necessary environment for organizations to perfect their CT staffing process. A 2009 HCI survey observed. Conversely. and targeting sources based on need. nearly two-thirds of low quality contract talent (LCT) organizations are failing to act as one cohesive entity when staffing their CT. with few controls and little uniformity. “[I]n many. 8 .2011 HCI Research centralized sourcing and hiring. and where that person will most likely be found. all correlate highly with those organizations most satisfied with their quality of talent. this is a situation that can easily lead to wasted resources and lower quality of hire. 2009. All rights reserved. Figure 1 How much do you agree or disagree that the method for sourcing and hiring contract talent is centralized and standardized across the enterprise/ organization? % Who Responded “Strongly or Somewhat Agree” LCT Organizations 0% 20% 32% HCT Organizations 72% MCT Organizations 52% 40% 60% 80% These centralized systems and standardized practices assist in more than just practical concerns related to leveraging CT acquisition and compliance issues. They meticulously establish whom it is that their organization needs. if so. considering the culture of the department to ensure proper “fit” for the position. The best employers don’t just hang a “help wanted” sign out front and sort through every candidate as they walk through the door. Human Capital Institute Many organizations seem to better understand the value of pre-hire planning when it comes to their permanent hires.”6 Sourcing and Culture: Permanent Hires Devoting time and resources to properly define requirements for open positions. unified planning result in the acquisition of higher quality talent than those who source CT individually by sector. contract talent is acquired in a decentralized fashion. CT staffing practices rooted in a single. Nearly all HPH and MPH firms are Copyright © 2011 Human Capital Institute. This should not come as a new revelation to CT users. if not most organizations. 6 “The State of Contract Talent Management and the Role of HR” January.

All rights reserved. 9 . defining positions and accounting for cultural considerations.Quality in Talent Selection: Finding the Perfect Fit fastidious about developing their ideal candidate profile.e. LPH firms continue their trend of not adequately preparing to find new hires. MPH firms are not quite as dedicated to these additional pre-search steps. Additional Pre-Hire Measures HPH Candidate hiring sources are targeted based on positional skill needs All candidates are consistently evaluated using the same standards. Most Common Pre-Hire Measures HPH Positions being hired for are fully defined including skills. with a tremendous gap present for these additional planning considerations. evaluation standardization and identifying factors associated with new-hire success are practices almost as commonplace as position definition and cultural considerations within HPH firms. contract talent search preparations aren’t as developed across all quality segments. structural behavior-based interviews Factors that are predictors of success for the position have been identified and are used to identify candidate qualities 94% MPH 84% LPH 61% Gap HPH:LPH +33 93% 80% 55% +38 86% 73% 47% +39 Sourcing and Culture: Contract Talent In comparison to permanent hire preparations. Search targeting. Copyright © 2011 Human Capital Institute. There is a considerable gap between LPH firms and their more successful counterparts in regard to these activities. i. experience and education required The “culture” of the department is considered to ensure new employee will be a good “fit” 95% 88% 49% +46 MPH LPH Gap HPH:LPH +23 97% 93% 74% Nearly all the HPH firms use additional methods for defining positions beyond the common pre-search preparations.

as firms sit back and just accept the quality of their CT as an exogenous factor. and seek out the very specific talent that it will take to fill them. HCT Positions being hired for are fully defined including skills. Those who fail to find outstanding CT perhaps do not see value in conceptualizing CT as a true part of their company. Successful hirers spend time developing a clear picture of their ideal hire before they even post one job notification. and how will that person fit into their organization.e. skills and abilities ultimately translates to real results in organizations’ satisfaction with their talent. New staff that can ease seamlessly into the established team will require less time to become fully functional in their new position. i. and do not take initiative to develop and improve it. but rather as outsiders. experience and education required The “culture” of the department is considered to ensure contract talent will be a good “fit” Specialized Contract talent agencies or vendors are targeted based on positional needs. and will be more engaged in the company and its work. . per se. 10 Copyright © 2011 Human Capital Institute. technical staffing firms Factors that are predictors of success for the position have been identified and are used to identify contract talent qualities MCT LCT Gap HCT:LCT +21 96% 80% 75% 88% 63% 47% +41 84% 76% 69% +15 77% 62% 34% +43 A majority (88%) of the High Quality CT firms consider “culture” to ensure proper candidate fit. Before starting a search for new hires. All rights reserved. They see empty spaces inside their workforce. Less than two-thirds (63%) of the Moderate Quality CT firms and less than half (47%) of the Low Quality CT firms consider this vital attribute. examine and analyze those gaps. employers should develop an idea of who precisely they are looking for. Employers’ awareness that an individual is more than just the sum total of their knowledge. so much so that making efforts to ensure the CT individuals fit into the larger corporate culture is not considered. This type of thinking can lead to eventual dissatisfaction of CT quality.2011 HCI Research This may indicate a larger problem of employers not viewing CT as staff.

“By investing time into defining the responsibilities and skills associated with each position and developing a strategic hiring process. three times as predictive as experiences and four times as predictive as education level. “Research has shown that cognitive aptitude tests. organizations will enhance their overall workforce. 7 Pre-Employment Testing: An Overview” May 10. A higher percentage of HPH firms report using one or two methods in addition to the checklist assessments. As recently reported. This waste is affecting the quality of their end result. These two procedures appear to constitute the base components of any potential hire assessment.Quality in Talent Selection: Finding the Perfect Fit Organizations all too often waste time and money evaluating resumes and applications for poorly defined positions. Filling positions without taking the time to understand the job requirements can result in hiring workers who are under-skilled and unable to succeed. the typical “checklist assessments” will only be somewhat useful in the talent search. reference checks and nonstructured interviews to assess candidates. All rights reserved. says Dave Poling. Criteria Corporation Copyright © 2011 Human Capital Institute.” Approach used by many organizations featuring an over-reliance on traditional assessments such as background investigations. a comprehensive review of peer-reviewed studies of the predictive validity of various selection techniques concluded that aptitude tests are twice as predictive as job interviews. Director of Recruiting for Aerotek. 2011. 11 .”7 The Talent Search: Permanent Hires Nearly every organization surveyed indicated they use references and conducted interviews for their permanent hires. are much more accurate predictors of job performance than are other widely used employee selection techniques. and significantly increase their likelihood of mismatching individuals and positions when there is no mechanism in place to help focus their search and filter their applicants. Hirers spend valuable time and lose productivity. The Talent Search If organizations are to search for candidates with such a detailed and in-depth profile in mind. such as skills testing and peer reviews. for example. Top employers need sophisticated assessments that go beyond the basics and get to the true value that the candidate has to offer. For example.

Which of the following prehire assessment methods does your organization use to evaluate talent? HPH MPH Background/reference checks Structural behavior-based interviews Skills assessment testing to measure aptitude regarding hard skills required for position Peer review opportunities are provided to candidates to be able to interact with those performing job and ability to get feedback Scenario based testing Cognitive abilities testing to measure problem solving skills 90% 86% 90% 76% LPH 83% 65% Gap HPH:LPH +7 +21 46% 38% 30% +16 46% 35% 25% +21 31% 25% 26% 21% 11% 14% +20 +11 The Talent Search: Contract Talent HCT firms hold their CT to as high an assessment standard as possible. one assessment performed by the partner. Nearly half of the survey respondents who were dissatisfied with their contract talent (LCT firms) were not even sure about the types of pre-assessments their organization or staffing partner use to evaluate CT. 12 Copyright © 2011 Human Capital Institute. 79% of HCT firms ensure that there are measures in place to evaluate CT.2011 HCI Research A large percentage of LPH firms do not use even the basic assessment methods. . and another performed by the organization itself. All rights reserved. More than a quarter of the HCT firms have two checkpoints. These organizations demonstrate a level of interest in their CT similar to what they show for their permanent hires. whether it is done by them or by their staffing partner.

“our 2010 data also suggest that organizational satisfaction with CT has made it more challenging for businesses to determine where and how to add talent.”8 Understanding Successful Selection Organizations should constantly evaluate the effectiveness of their hiring process. if anyone.” This challenge uncovered in the 2010 data signals a new need for talent management practitioners to have more robust tools.Quality in Talent Selection: Finding the Perfect Fit HCT Our contract talent vendors and agencies conduct pre-assessments to ensure qualified contract talent is assigned to our organization My organization utilizes their own preassignment assessments to evaluate contract talent Both NET USE PRE-ASSESSMENTS Not sure MCT LCT Gap HCT:LCT 30% 29% 23% +7 Does your organization or staffing partner use any type of pre-assessments to evaluate contract talent prior to working with your organization or does your agency or vendor conduct these assessments? 22% 18% 10% +12 27% 79% 21% 22% 69% 31% 18% 51% 49% +9 +29 +28 If an organization is disinterested in their CT assessment to the point they were not even sure who. 13 . waning satisfaction with CT quality may lead some organizations to stray away from using CT all together.An Imperative for Talent Management in the New Normal. More effective business processes would help talent managers better assess and evaluate roles and tasks. Human Capital Institute Copyright © 2011 Human Capital Institute. was performing these evaluations. it’s no wonder that they ultimately receive unsatisfactory talent. there is no way for the employer to know how effective their methods actually are. Without a measure of the quality of talent produced. Firms that confuse their own ability to develop a quality contract workforce with poor overall CT quality may eventually shy away from making use of this highly effective staffing option. and systems in place. As a previous HCI survey found. All rights reserved.” August. 8 Contract Talent . processes. 2010. In addition. Forty-seven percent of the 2010 survey respondents say the most frequent challenge they face in regard to CT is “Deciding when to hire (traditional or full-time) talent versus contract talent.

Figure 2 Does your Organization have a Permanent Hire Formal QOH System? 32% Yes 21% 16% 61% No 72% 77% 7% 7% 7% 0% 20% 40% 60% 80% HPH MPH LPH Unsure 9 “Quality of Hire: Moving from Efficiency to Effectiveness” February. These events may precipitate a change in the ideal hire profile. 2004. talent pools and markets are in perpetual flux. This may indicate an emerging trend. the nuts and bolts of a hiring process must be monitored and frequently adjusted. even in the face of formula or data obstacles. needing your contingent workforce to be motivated and engaged — a part of the team. Because organizations. . Shaker Consulting Group and the Society for Human Resource Management 14 Copyright © 2011 Human Capital Institute. All rights reserved. Top performing firms measure the quality of hire for their permanent hires and CT and use this data as feedback to drive how the selection process. to an even greater extent than permanent employees. The absence of reporting and evidence documenting the link between candidate evaluation and outcomes such as product or service delivery implies a lack of interest by management or a lack of capability.”9 While a higher percentage of HPH and HCT firms indicated they have a formal system to measure quality of hire. the organizations that find the best talent have implemented ways to measure it.” 9 Even employers who are content with their procedures and the talent it brings them should not discount the affects of exogenous forces such as an organizational shift in focus or business goals. but also needing to keep them at a distance — is a real challenge in talent management. What does human capital say about this view of contingent employees? This longstanding paradox. or fluctuations in the talent market.2011 HCI Research “Contingent workers are often seen as commodities. it is not a majority of these organizations. “Companies do not hold their recruiting function accountable for documenting the return on investment from the resources used in the staffing process. the definition of positions or the appropriate procedures to find and assess candidates.

Three months after someone is hired. It is not an objective. All rights reserved. simply because of the ambiguous nature of the metric. Head of Talent Acquisition at Syngenta. fortunately.” said Don Evans. straight forward unit of measure. our company average is about 8. The survey consists of ten questions about performance. exemplars to follow.5. There are. 15 . observations as related to the expectations of the position and time put into work. “We measure new hire quality on a monthly and quarterly basis on a scale of one to ten and average across all departments. “Right now. and uncertainty as to how it should be quantified may cause HR leaders to simply not conduct any assessment at all.” Copyright © 2011 Human Capital Institute. why aren’t more practitioners tracking it? Even those who recognize that value of monitoring quality of hire may not always feel confident in doing so.Quality in Talent Selection: Finding the Perfect Fit 28% Yes 16% 8% 53% No 60% 62% 19% Unsure 24% 30% 0% 20% 40% 60% 80% HPH MPH LPH Figure 3 Does your Organization have a Contract Talent Formal QOCT System? Understanding Successful Selection: Permanent Hires If quality of hire is such meaningful HR data. we send out a new hire survey. This is then related to midyear and annual reviews.

The survey results demonstrated that those not very satisfied with their talent quality are particularly lax at conducting measurements to track their human capital assets. Understanding Successful Selection: Contract Talent Measures used by HCT firms that are lacking in MCT and LCT firms includes measuring manager satisfaction with new hires. and conversely. the contract talent satisfaction with the position. HPH Track retention rates Measure manager satisfaction with new hires Evaluate hiring channels/sources Conduct job performance evaluations 3-6 months after hire date Measure new hire satisfaction with position and/or company Evaluate time required for new hire to become proficient in position Compare pre-hire assessment with posthire performance review 80% 75% 74% 73% 62% 57% 37% MPH 62% 53% 48% 61% 44% 39% 22% LPH 54% 41% 38% 52% 30% 30% 12% Gap HPH:LPH +26 +34 +36 +21 +32 +27 +25 It is somewhat surprising that many of these monitoring activities are not being conducted by all organizations. measuring manager satisfaction and evaluating hiring sources.2011 HCI Research Those organizations very satisfied with their permanent hire quality have a clear approach to measuring talent quality. This measure of validating “job fit” is a missing component for many organizations that use CT. 16 Copyright © 2011 Human Capital Institute. Quality measures that HPH firms find effective are often an aggregation of common talent measures. All rights reserved. . including tracking retention rates. conducting job performance evaluations.

HPH Measure manager satisfaction Conduct evaluations 3-6 months after hire date Measure employee satisfaction Evaluate time required proficiency Compare pre-hire assessment with post-hire or assignment performance review 75% 73% 62% 57% 37% HCT 69% 37% 58% 47% 39% Gap HPH:HCT +14 +36 +4 +10 +2 Copyright © 2011 Human Capital Institute. All rights reserved. 17 .Quality in Talent Selection: Finding the Perfect Fit HCT MCT Provide feedback to staffing partner Measure manager satisfaction with new hires Measure contract employee satisfaction with position Evaluate time required for contract talent to become proficient in position Track conversion rate of contract talent to permanent hire Compare pre-assignment position requirements with post-assignment review Require staffing partner to conduct job performance evaluations 3-6 months after hire date 71% 69% 54% 47% LCT 38% 30% Gap HCT:LCT +33 +39 Contract Talent How effective are the following in measuring the quality of contract talent in your firm? % Who Responded “Strongly or Somewhat Agree” 58% 26% 12% +36 47% 35% 14% +33 41% 40% 29% +12 39% 23% 10% +29 37% 25% 15% +12 Quality of Hire/CT Measure Effectiveness HCT firms are notably deficient in conducting post-assignment measures in comparison to HPH firms. HCT firms tend to use manager satisfaction and feedback to their staffing partner as the primary means for measuring quality of CT in their firms.

lack of resources was mentioned most frequently by LCT firms. More than half of the HCT firms indicated their evaluation of Contract Talent quality was just as rigorous as their permanent hire quality of hire evaluations. Figure 4: Is your organization’s evaluation of contract talent quality just as rigorous as your organization’s permanent hire quality of hire evaluations? HCT 30% 53% 47% Yes No 85% 60% 80% 100% MCT 15% 70% LCT 0% 20% 40% When asked why their organization’s evaluation of contract talent quality was not as rigorous as their organization’s permanent hire quality evaluations. Only 15% of the LCT firms approached their CT evaluations with the same rigor as permanent hire evaluations. Perhaps elevated awareness regarding the negative affects associated with lower quality talent needs to be developed before these firms will adjust their CT acquisition practices. . All rights reserved. These firms perceive a lack of value in approaching CT quality with the same rigor and yet they readily acknowledged the lower quality associated with their CT.2011 HCI Research Contract Talent Evaluation Rigor A key component of the HCT firm is the higher presence of evaluation “rigor”. HCT MCT We don’t have the resources Contract Talent staffing partner conducts evaluation Concerned about co-employment risks Other 36% 40% 24% 20% 39% 36% 34% 20% LCT 53% 32% 14% 27% Gap HCT:LCT -17 +8 +10 -7 18 Copyright © 2011 Human Capital Institute. It would seem they need to adjust their own approach to realize higher quality talent.

Firms have to communicate what is needed to ensure satisfactory talent is provided.” The survey results present strong evidence that HCT firms maintain an open dialog with their CT providers. Director of Business Operations at Aerotek. and establish an assessment process that can mirror the organization’s performance review structure for permanent employees.” said Ayman Hamid. we complete a formal interview process. through frequent reviews of the provider and their contract. “At Aerotek. The best staffing firms will anticipate this need and solicit this feedback. This due diligence up front ultimately helps improve the quality of hire and reduces attrition down the road. and are perpetually gauging their source of and relationship with CT. . If the CT staffer is unaware of their personnel deficiencies. they will not make any improvement efforts. perform on-boarding for each candidate. More than once a year 51% 15% 14% 30% Frequency of renewing contract talent with staffing partner Annually 7% 26% 20% 15% 21% 28% 29% 0% 20% 40% HCT MCT LCT 80% 19 Less often than once a year Not sure 44% 60% Copyright © 2011 Human Capital Institute. “We understand the expectations of each position and the culture of the company for whom we are hiring. Firms have much to gain from taking a more proactive role in CT quality control and they may find there are benefits for conducting these evaluations in-house along with relying solely on partners.Quality in Talent Selection: Finding the Perfect Fit Using a staffing partner to complete evaluations has resource and cost advantages and allows for active monitoring to ensure evaluations are being conducted according to the organization’s quality expectations. Organizations whose CT staffing is provided principally by a staffing partner must provide their partner with regular feedback. All rights reserved.

While CT use is predicated on a need for flexibility and fixed term use. Developing and communicating more holistic position definitions will enable staffing partners to better meet the skills and culture requirements associated with the position. .HCI Research Every year 18% 36% 34% 1–3 years 7% 6% 7% 24% 20% 18% More than 3 years Not sure 0% 20% 33% 40% 40% 57% 80% HCT MCT LCT 60% Today’s businesses are faced with slow growth. Those organizations that approach their CT selection with a rigor equal to their approach to permanent hiring understand increase quality and reduced cost benefits of proper talent identification and management. These firms have a distinct competitive advantage over those companies who do not understand the value of developing and using a formal contract talent system. All rights reserved. the temporary aspect associated with CT should not lead to discounting the talent selection process. 20 Copyright © 2011 Human Capital Institute. fluctuating demand and heightened competition for key talent. Contract talent affords organizations the key benefit of being able to access talent in a flexible manner to better operate in these uncertain times. Key practices that should be incorporated into any organization seeking to improve their contract talent quality should include: Clearly articulate and apply equal rigor in the identification of the CT position.

Identify the most effective hiring sources and agencies based on the needs of the position. Copyright © 2011 Human Capital Institute. All rights reserved. Contract talent is a key asset for any organization and the talent quality inherent within this segment of the workforce should not be overlooked. 21 . Manager and individual CT satisfaction have to be key components of this evaluation process. Clear and timely reporting also has to be a core component to enable monitoring of this key aspect of the talent selection process. The process also has to be revised based on postassignment assessment metrics.Acquiring Top Talent Through On-Demand Pipelines Be cognizant that the most experienced candidate in regard to skills and background alone may not be the best selection for the firm as culture fit has to also be a primary consideration. Develop a collaborative post-assignment assessment approach with their staffing partner to ensure CT follow-up evaluations are a standardized process performed on a regular basis. The CT selection process has to be flexible and quickly adaptable to reflect changing external factors such as the economy and skill shortages.

and case studies.. Our network of expert practitioners. is a leading provider of technical. 495 surveys were completed and the results are summarized in this paper. Md. research. articles. HCI researchers also reviewed relevant information from a variety of secondary sources. including white papers.com. and a clearinghouse for best practices and new ideas. books. Aerotek is an operating company of Allegis Group. interviews. the best of which is organized.HCI Research This research was developed in partnership between the Human Capital Institute (HCI) and Aerotek between May and June. 22 Copyright © 2011 Human Capital Institute. All rights reserved. For more information. the largest provider of staffing services in the U. global consultants and business schools contribute a stream of constantly evolving information.org. please visit www. . professional and industrial staffing services. About Aerotek Aerotek.hci.. analyzed and shared with members through HCI communities. Fortune 1000 and Global 2000 corporations. Aerotek operates a network of more than 200 nonfranchised offices throughout the U. 2011. For more information. About Human Capital Institute (HCI) HCI is the global association for strategic talent management and new economy leadership.S. Canada and Europe. government agencies. education and events. In addition.S. in-depth interviews were conducted with Talent Management thought leaders. HCI members were invited to complete a 30-question survey. headquartered in Hanover. To supplement these primary research methods. Established in 1983. visit http://www.aerotek.

Procurement HR Department/Functional Manager Procurement Owner/President Project Manager Other Don’t Know 33% 29% 27% 4% 2% 1% 3% 2% 23 Copyright © 2011 Human Capital Institute. All rights reserved. .000 $500.000-$1 million $1-$5 million $5-$20 million More than $20 million Not sure 42% 14% 13% 3% 4% 24% Who is Responsible for Managing Contract Talent A combination of HR. Functional Managers. Annual Contract Talent Spend Less than $500.Acquiring Top Talent Through On-Demand Pipelines Percent of Contract Talent in Organization % of Current Workforce 0% * 1%-5% 6%-15% 16%-25% 26%-50% 51%-75% 76%-100% Don’t know 10% 41% 28% 10% 4% 2% 1% 4% % of Workforce In One Year 9% 40% 27% 11% 5% 2% 1% 6% * 8% of the 495 respondents did not have any current or projected Contract Talent.

All rights reserved.HCI Research Hire Own Contract Talent or Have Staffing Partner Have a partner Hire our own Not sure 50% 47% 3% Who Manages and Procures Contract Talent? Self-managed by our organization Managed by a Third-Party (MSP) Don’t know 76% 16% 7% Who Manages Contract Talent Program Tools and Systems? Self-managed tools developed by our organization Third-party Vendor Management System (VMS) Don’t know 67% 17% 16% Use Independent Contractor Engagement Specialist? Yes No Don’t know 7% 78% 15% 24 Copyright © 2011 Human Capital Institute. .

All rights reserved. etc. CIO.Acquiring Top Talent Through On-Demand Pipelines Industry Technology Government Healthcare 20% 1% 2% 4% 4% 4% 8% 5% 10% 10% 9% Professional Services Non-profit/Charity Financial Services Retail Insurance Industrial Goods & Services Banking Pharma/Life Sciences Media 3% Food & Beverage Aerospace & Defense Utilities Oil and Gas Construction & Materials Personal & Household Goods Automobiles & Parts Real Estate Chemicals Industrial Metals & Mining Forestry & Paper Other Revenue 2% 2% 5% 17% 24% 5% 10% 15% Less than $10 million $10-100 million $100-500 million $500-750 million $750 mill-1 billion 6% $1-10 billion $10-50 billion $50-100 billion >$100 billion Level 3% 3% 5% 9% 13% 3% Director 2% 3% Manager Team Member 25% Middle Manager Vice President Senior Director C-Level (CEO. 25 .) 21% 13% Executive Senior Vice President President Other Copyright © 2011 Human Capital Institute. CHRO.

000 5.HCI Research Region 1% 1% 2% 5% 4% North America Asia/Pacific Europe Africa 87% Central/South America Middle East Number of Employees 21% Less than 1.001-10.000 3. .000+ Function 1% 1% 3% 5% Human Resources Operations IT 90% Strategy Other 26 Copyright © 2011 Human Capital Institute.000-3. All rights reserved.001-5.000 11% 5% 16% 48% 1.000 10.

” August. All rights reserved. 2004. Human Capital Institute “The State of Contract Talent Management and the Role of HR” January 2009. 27 . Employer Branding and Quality of Hire Take Center Stage” July. Criteria Corporation “Contract Talent — An Imperative for Talent Management in the New Normal. Human Capital Institute Bonney. Kathryn “Recruiting and Retaining Talent” May 2. Management Corner” May 26. 2011. Human Capital Institute “Pre-Employment Testing: An Overview” May 10. Human Capital Institute “Quality of Hire: Moving from Efficiency to Effectiveness” February. Mergers & Acquisitions Report “Talent Acquisitions Strategies. June 2011. 2011. 2011. 2010. Thomas and Kehoe. Shaker Consulting Group and the Society for Human Resource Management Copyright © 2011 Human Capital Institute. 2008 Aberdeen Group Bernie Linnartz “What To Look For When Hiring. Taos News “Contract Talent: Are Contractors Included in Strategic Talent Management Initiatives?” November 2010.Acquiring Top Talent Through On-Demand Pipelines “What Influences Contract Talent Usage?”.

Washington.org . 20036 866-538-1909 www. D.1250 Connecticut Avenue.hci.C.