5 Reasons Why Building a Talent Pipeline Now Leads to Better Retention Outcomes

5 Reasons Why Building a Talent Pipeline Now Leads to Better Retention Outcomes

In today’s competitive job market, keeping your best employees is just as important as finding them. Many organizations wait until an urgent hiring need arises before scrambling to find ideal candidates. This reactive approach consumes valuable time and leads to unsuitable hires who may exit the company sooner than expected.  

High employee turnover can create a vicious cycle of financial strain, decreased productivity, and reduced morale. Building a talent pipeline can significantly help to avoid this because it makes available a pool of potential candidates who are not only qualified but also interested in working in your organization.  

What is a Talent Pipeline? 

A talent pipeline is like a well-maintained reservoir, constantly collecting and nurturing a pool of qualified candidates of either external or internal employees. Internal employees can include high performers who show potential for advancement and can be nurtured through targeted training programs or mentorship opportunities. On the other hand, external candidates include qualified individuals you’ve connected with through various channels, even if they aren’t currently applying for a specific role. 

Talent Pipeline vs Talent Pool

Here’s how a talent pipeline differs from a simple pool of applicants: 

Proactive vs. Reactive: A pipeline is about anticipating future needs and building relationships in advance. A talent pool is more reactive, waiting for applications to come in before sorting through them. 

Quality vs. Quantity: The focus of a talent pipeline is on qualified candidates who align with your company’s values. A talent pool might have a wider range of candidates but with less emphasis on specific qualities. 

Nurturing vs. Overlooking: A talent pipeline involves engaging with potential hires, keeping them informed about your company, and building long-term connections. A talent pool is more passive, with less focus on ongoing interaction. 

Why is it So Important to Build a Talent Pipeline?

Building a talent pipeline offers several advantages, but improving retention is particularly significant because it can positively impact the productivity, morale, and culture of an organization. Here are five reasons why having a talent pipeline leads to better retention outcomes: 

1. Improved Candidate Fit 

One of the most significant advantages of a talent pipeline is its ability to enhance the match between candidates and job roles, ensuring alignment with the company culture. When a position opens, you already have a pool of pre-qualified candidates who understand your company culture and values. This leads to a smoother hiring process, allowing you to quickly and efficiently onboard the right person. 

This improved fit is not just about technical skills but encompasses values, work styles, and long-term career aspirations. As a cross-sectional study in Shanghai suggests, a strong correlation exists between a good fit (for both Person-Job and Person-Organization) and higher job satisfaction.¹ Employees who find their roles meaningful and in sync with their personal values are more engaged, productive, and, crucially, more inclined to stay with the company for the long term. 

Related: Aligning Personal Values: The Value of Cultural Fit in Company Values 

2. Enhanced Onboarding Experience 

According to the Society for Human Resource Management (SHRM), a good onboarding experience can ensure that 69 percent of employees stay with a company for at least three years.² Building a talent pipeline helps achieve this by fostering relationships with candidates beforehand.  

Candidates from the pipeline have been engaged with the company’s values, goals, and people, even before their first day, making them feel part of the team right from the start. You’ll have a better understanding of new hires’ skills and goals, allowing for a tailored onboarding experience that sets them up for success. This early investment in building relationships through the pipeline allows them to integrate seamlessly and become valuable contributors more quickly. 

Related: New Year, New Hires: A Comprehensive Employee Onboarding Guide for 2024 

3. Career Development Opportunities 

A key factor in an employee’s decision to stay with a company is the availability of career development opportunities. According to a LinkedIn survey, 94 percent of employees say that they would stay at a company longer if it invested in their career development.³ A talent pipeline not only serves to fill vacancies that may arise in the future but also identifies and prepares candidates for future roles within the organization. This foresight allows companies to invest in the continuous growth of their employees, aligning individual aspirations with organizational needs. 

In the same vein, a well-developed talent pipeline also identifies high-potential employees who are eager to grow within the company. Including internal talent in your pipeline demonstrates your commitment to promoting from within, providing clear paths for career advancement. This motivates employees to stay engaged and develop their skill sets, knowing they have opportunities for upward mobility. 

4. Strengthened Employer Brand 

A strong talent pipeline significantly contributes to a positive employer brand, which in turn attracts and retains top talent. An effective talent pipeline strategy involves not just engaging with candidates but also ensuring a positive candidate experience, regardless of the hiring outcome. This approach fosters goodwill and enhances the company’s reputation in the job market. 

A strong employer brand acts like a magnet for talent. It makes the company more desirable to work for, reducing the effort needed to attract candidates. Moreover, current employees who see their company as a desirable place to work are more likely to stay, reducing turnover rates. The impact of a positive employer brand is profound, creating a virtuous cycle that attracts new candidates while retaining existing employees. 

Related: Elevate Your Employer Brand: What to Know About Candidate Engagement in 2024 

5. A Lasting Talent Advantage 

Investing in a talent pipeline is a long-term strategy, but the benefits are undeniable. People want to feel valued, and being included in a talent pipeline demonstrates that their skills and experience are appreciated. For instance, including employees in relevant training programs or conferences shows a commitment to their growth.  

A highly motivated and skilled workforce is a powerful asset, attracting top talent and propelling business success. By fostering a culture of growth, opportunity, and development, you create a workplace where employees feel valued and motivated. This, in turn, leads to higher retention rates, a more engaged workforce, and a significant competitive advantage in the job market.  

SECURE YOUR TALENT PIPELINE TODAY WITH THE HELP OF GALT FOUNDATION

Don’t let the pressures of your immediate hiring needs dictate the pace and quality of your workforce. At Galt Foundation, we believe in proactive talent management, and we’re committed to helping employers like you build strong talent pipelines filled with diverse, qualified candidates – ready to step into open positions whenever they arise. 

Our commitment to inclusion allows us to connect you with a wider range of skilled individuals, regardless of their abilities. This approach ensures you have access to the best talent, ready to make a significant impact in your organization. Feel free to contact us today by filling a short request form or calling 1-877-361-1277 and let us help you eliminate the stress of last-minute hiring. 

References 

1 Xiao, Yuyin, et al. “Person–Environment Fit and Medical Professionals’ Job Satisfaction, Turnover Intention, and Professional Efficacy: A Cross-Sectional Study in Shanghai.” National Institutes of Health, 27 April 2021, www.ncbi.nlm.nih.gov/pmc/articles/PMC8078800/

2 “Don’t Underestimate the Importance of Good Onboarding.” SHRM, 10 Aug 2017, www.shrm.org/topics-tools/news/talent-acquisition/dont-underestimate-importance-good-onboarding

3 “2018 Workplace Learning Report.” LinkedIn Learning,  learning.linkedin.com/resources/workplace-learning-report-2018. Accessed 7 March 2024. 

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Let’s start a conversation! Are you a person with disabilities searching for a job or an organization with temporary or long-term employment needs? We look forward to helping you realize your potential.