As competing for in-demand talent further intensifies, hiring for potential is gaining traction in South East Asia as a successful talent growth strategy, with 94% of such hires being retained. But close to 42% of hiring managers in the region remain reluctant to evolve their recruitment strategies beyond hiring based solely on experience despite the resources required to recruit, evaluate and subsequently manage employees who are not a good fit.
Robert Walters, one of the world’s leading specialist professional recruitment consultancies, revealed in its latest guide, “Grow your Talent, Hire Based on Potential,” latest insights on the motivations and results behind hiring for potential as a long-term strategy toward talent growth. More than 3,000 respondents, including hiring managers and professionals from six countries, shared their views.
“In a world where algorithms can help now to identify and screen basic keywords in a CV, it has become increasingly important for hiring managers to base their hiring decisions on future skills. In the banking and financial services sector, for instance, the way customers are thinking about saving and investing their money may not necessarily fit with the traditional banking outfit anymore and we need to adapt the way we attract talent accordingly,” said Priya Gupta, Manager of Banking and Financial Services, Robert Walters Philippines.
Across the region, respondents cited preference for candidates who can pick up work immediately, the technical nature of the role and the lack of know-how to evaluate the person’s potential as key reasons for not hiring high-potential professionals. These are the same reasons why 30% of respondents believe that a candidate with the right qualifications and experience will eventually show up.
The Filipino Potential: Hiring For Potential As Emerging Trend
In the Philippines, 43% of hiring managers and professionals stated that it took two months or more to fill a position, with identifying quality hires seen as time-consuming and challenging. For those who hired high-potential candidates 98% proved to be quality hires. Successful respondents shared tips on recognising high potential candidates at the recruitment stage. Top traits that hiring managers look out for are the willingness to learn, the motivation to take up the job and succeed in the role and enthusiasm and dedication.
Faced with a shrinking pool of talent with in-demand skill sets, Filipino hiring managers rated the ability to learn quickly just as important as having relevant experience, with 59% of them considering it as their top standard when looking for a new hire. This is followed by the candidate’s cultural fit (54%) and soft skills and technical skills exhibited (41%).
Having relevant experience, while commonly viewed as important in the recruitment stage, proved to be less of a deciding factor in measuring the quality of an employee. The top reasons cited for determining a less-successful hire include the failure to deliver satisfactory work (31%), less-than-desired work attitude (18%) and not having the right work ethic (15%). Only 12%of respondents identified the lack of relevant skills, knowledge or expertise as a reason a hire did not work out.
Nurturing Your Own Pool Of Talent, Especially For Niche Skill Sets
“Indeed, there is no elevator to success but ladders of patience and wise investment. Identifying high potential candidates and developing a strong learning culture go hand-in-hand in establishing a strong talent pool with hybrid skill sets. Competitive companies that actively commit to a more effective and opportunity-rich recruitment process are empowering hires to reach their full potential. These are the individuals who will then secure the rise of their businesses not only in the present but in the future,” added Priya Gupta.
“Grow your Talent, Hire Based on Potential” suggested ideas for companies that wish to adapt their recruitment strategies to hire for potential. These strategies can help companies and hiring managers identify the crucial and secondary requirements to a role, ensure a realistic job description, look out for signs of opportunities or progress in the candidate’s job experience, and engage the expertise of recruitment consultants, especially in hiring talent with niche skill sets.