How do organizations find the right talent?

Ask business owners what their most valuable asset is, and they’ll tell you it’s their employees. More than facilities, equipment or inventory, it’s people who can make or break a company. But finding good people is getting harder and harder. In spite of the fact that there are more workers than ever before, owners and managers will tell you they are having trouble finding the right “talent.”

The word “talent,” used in the traditional sense, means innate ability. To owners and managers, it means brainpower, creativity, ability to learn, initiative and loyalty. And they believe there is a serious “talent shortage” in business. It takes longer and longer to fill open positions, and most owners will admit that they have “settled” for employees more often than they would like. In fact, 83 percent of those who responded to a national human resources study from a leading HR firm indicated they are “deeply concerned” about finding and keeping the right workers.

Complicating the situation even further is the imminent retirement of baby boomers, which means that companies are going to lose large numbers of experienced workers in a short time. One source indicates that more than half the workers at America’s 500 leading companies will retire in the next five years. Many employers cite a disparity between what schools are producing and what employers need. For example, the U.S. is producing far too few scientists and engineers in comparison to the rest of the world.

As a result of this dearth of talented workers, companies are casting nets more widely, are employing more part-time and older workers, and are spending more than ever before on training. To ensure longer-term hires, many companies are placing priorities on interpersonal “fit” and preparing to spend more resources on education and skill development. Many do not believe that hiring the A+ student is the answer anymore. Agility, creativity and leadership are much more highly sought after than good grades. In other words, eligibility for the job is becoming less important than suitability.

How do organizations find the right talent? While bonuses seem to work well for the big guys, the expense typically cuts smaller companies out of that market. Many firms opt for referral bonuses instead, rewarding current employees when they refer a talented employee to the company. One problem with that strategy is that only 52 percent of workers would feel comfortable referring a job candidate to their own organizations, a fact that begs another question for companies: Why are only half of our workers compelled to refer others to the organization?

One low-cost way to recruit and retain talented workers is to sell them on your workplace environment, your company culture and the company’s reputation. Offering options for professional development, in-house training, flexible scheduling and telecommuting are all excellent recruitment tools. Recruiters encourage potential employees to look at the entire employment package—not just salary—when considering placement.

The ideal employee will have not only competencies that match the job description but also an equal degree of passion. For these employees, work doesn’t seem like work; it becomes part of their lives. They will have high levels of emotional intelligence, practice self-control and be well-rounded individuals.

Staff members who will work with the new hire should discuss the skills, education, training and behavioral profile the ideal candidate should present. Once applications are received, many can be rejected based on the résumé itself. The balance of the applicants can be screened using sound behavioral interviewing techniques, including asking open-ended questions about how the candidate has handled specific situations. Be sure to include a team of trusted and discerning employees in the interview process.

Some employers are using retention bonuses as well to encourage employees to stay with the organization. This strategy for retention goes hand in hand with competitive compensation—a cut or two above market level—for the most talented employees, along with benefits as the key mechanisms to keep good folks on the payroll.

Seeking talent and fit is a tall order, but when you compare it to the trauma and expense of making the wrong hire, it seems like a small investment.