How to Use the Supply Chain Analysis Model to Transform the Hiring Process

Today’s recruiters know great hiring requires a concerted, coordinated approach.   

{{cta(‘92009399-6050-4578-9d1e-9ccd4188ab3c’)}}By the same token, HR staff and recruiters are under more pressure than ever to streamline and optimize the hiring process while engaging candidates, performing administrative duties, and identifying applicants who will drive the greatest organizational growth’all while minimizing the costs of the talent selection process.

That’s a lot.

However, HR doesn’t need to reinvent the wheel to improve the efficiency of hiring practices. By adopting the supply chain model, recruiters, hiring managers, and HR staff can maximize both the value and efficiency of hiring and recruiting.  

After all, the most important aspect in supply chain management is to make sure each link in the process is strong, and the same logic can be applied to talent acquisition.

Identifying and Repairing Weak Links in the Hiring Process

Dr. John W. Boudreau describes supply chain analysis as a process as one that “optimizes supply chain elements, to achieve desired outcomes with the minimum resources.” When an aspect of production isn’t yielding optimum results, the whole process is examined. Boudreau adds, “If the quality of raw materials drops, supply chain logic compares the value of things like switching suppliers, more careful screening of deliveries, or adjusting manufacturing processes to handle lower quality materials.”

In other words, when there’s a weak link, the entire chain is analyzed so it can be found and repaired as smoothly ” and inexpensively ” as possible.

When it Comes to the Talent Selection Process, You Can’t Afford to Ignore Data

Like hiring, supply-chain analysis isn’t about creating a one-size-fits all solution, but about making the right decisions and creating a more efficient and effective process. However, streamlining hiring efforts requires more than simply reacting to specific events.

From the results provided by pre-hire assessments to a candidate’s social footprint, there is a bounty of information about candidates. But, Boudreau argues, “Most organizations today are awash in evidence about talent, yet lack the logic to use those numbers for vital strategic decisions.” 

This is especially true for fast-paced hiring environments, like contact centers. In terms of tracking inputs in a contact center hiring system, many HR departments don’t monitor and assess the outcomes of certain activities like sending out an employee referral flyer or posting jobs to the local unemployment office. This can pose a problem when it comes time to see what’s working and what isn’t in regards to the talent acquisition process.

The practice of supply chain analysis, however, eliminates ambiguity by assigning measurable inputs and outputs to each stage of the talent selection process. Below, we’ve illustrated how organizations can incorporate this logic into their staffing process to maximize the value of their efforts with achievable, measurable goals and outcomes.

An organized approach to the hiring process saves time and yields significant financial returns. Not only can a measured, planned strategy reduce the cost per hire, it can also improve early-stage attrition, quality of hire, and ” in the context of contact centers ” reduce call handle time per contact center agent. In some cases, successful utilization of this method allows organizations to identify and hire candidates who reach the quality level of a tenured agent four weeks faster than average.

By adopting this model into the hiring process, inputs can be linked to quality outputs. And in a business climate ” and a culture ” increasingly dominated by data-based decision-making, operating pre-employment selection processes more like a supply chain allows for the elimination of ambiguity in the hiring process by linking measurable actions to measurable results.

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