Talent Strategy:  Active versus Passive

Does your recruitment strategy include both?

In conversations with hiring managers (outside of HR), we often hear misinformed ideas about the recruitment process.  One of the questions is “Why would we engage a headhunter when we can place an ad on LinkedIn or Indeed?”   

At the onset of most any recruitment process is the decision to either use an external search firm or use internal resources to make the hire.  If you ask this question purely from the perspective of choosing the process requiring the least upfront expense – you will choose to post your vacant position online and begin reviewing the massive influx of applications.  However, like most things in life – the most “effective” answer isn’t so simple. 

When comparing the costs between paying for an online job post and engaging an external recruitment partner, it’s easy to see that the external process appears significantly more expensive.  So, one would then ask, where is the value in using an external partner versus a do-it-yourself approach?

There are many advantages to using a qualified recruitment partner, but for the purposes of this article, I’ll speak to one of the greatest advantages, and that is giving you access to BOTH vetted passive AND active talent.  A job posting will limit your access to only the active segment of any given talent market.  What’s the difference between active and passive talent?

Passive talent are those people within any given talent pool that are NOT ACTIVELY SEEKING a new job whereas active talent are those people who ARE ACTIVELY networking and reviewing job postings for new opportunities.  

If you have key strategic and tactical considerations for this hire, you will most likely want the most comprehensive search process to ensure you are getting the best available talent.  Recruiting from both passive and active talent pools can have several advantages over recruiting from only an active talent pool. Here are some essential reasons your recruitment strategy should include passive talent and why it may be more advantageous in certain situations:

1. Quality of Candidates:  Passive candidates are typically gainfully and happily employed, which generally means they are successfully performing in their current roles.  Consider them immersed in leveraging their valuable skills and experience with their employer and living their best life outside work which means they have little time or interest in scanning job posts online.  Recruiting from within this segment of the market requires direct contact.  While it takes more effort, it has been proven to contribute to a higher quality of hire compared to hiring from a pool of active candidates who may be in job search mode due to performance issues or other reasons that may conflict with your hiring needs.

2. Specialized Skills: Passive candidates may possess specialized skills or expertise that are not readily available in the active job market. By targeting passive talent, you have a better chance of finding individuals with the specific skills and experience your organization needs.  If you are only focusing on those candidates that are active you may be forced to compromise your goals and objectives by hiring someone who isn’t ideally suited for the role.

3. Reduced Competition:  Since passive candidates are not actively applying for jobs, one may assume there is less competition for their attention. While this may be true in some cases, in some instances, highly sought-after talent may be inundated with internal and external recruiters vying for their attention.  If competition is fierce for this particular skill set, it is incumbent on leveraging a healthy employer brand and successful organization to gain advantage.

4. Long-term Perspective:  Passive candidates may be more likely to view job opportunities from a long-term perspective. They may be looking for a role that aligns with their career goals and offers professional growth rather than just a short-term fix. This can contribute to better employee retention in the long run.  An effective third-party recruitment partner will help you capture those longer-term perspectives in an effective position description.  They will have experience relaying those career and personal benefits from working with your organization.

5. Cultural Fit: Passive candidates may already be familiar with and successful within their current company’s culture. If they align with your organization’s values and work culture, they may be more likely to integrate seamlessly into your team.  Working with an experienced search partner can help you leverage this.

6. Strategic Hiring: Recruiting passive talent allows you to be more strategic in your hiring process. Instead of filling immediate gaps, you can identify and approach individuals who possess skills that align with your long-term goals.

7. Networking Opportunities:  Engaging with passive candidates often involves networking, which can have additional benefits. Even if the candidate is not immediately interested, the relationship-building process can create a positive impression and may lead to future opportunities or referrals.  Successful recruiters and headhunters are actively engaged in networking and relationship-building on a daily basis.  Engaging the right search partner can pay dividends in getting you access to passive talent you may otherwise be unable to reach.

While recruiting passive talent has significant advantages, I am not advocating that you overlook active candidates.  A comprehensive recruitment strategy involves approaching both active and passive segments of the talent market and not one at the expense of the other.

– Carlos Acosta

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