How will you fill your next open position?

Take a moment to seriously consider the question. Do you have an answer ready, or did your brain instantly go into “I’ll figure it out when I get there” mode?

If your hiring strategy is to post an open position, wade through the applications you receive, hire a candidate, and forget about hiring until the next position comes up, you’re doing it wrong. Finding the right talent is too important to only think about it in a moment of need. It demands effort whether your company is currently hiring or not.

That’s where a talent pipeline comes in. Just like an oil or gas pipeline ensures a steady flow of natural resources, a talent pipeline ensures a steady flow of qualified candidates towards your organization. With a well developed talent pipeline, you can avoid the frustrating and discouraging situation of watching your open position receive only a weak trickle of applications, rather than a stream of strong ones.

It’s not enough to announce a job opening and hope for applicants to flood in. Here’s how to build a talent pipeline that attracts and fosters a steady flow of quality applicants, all the time.

Uber: A Cautionary Tale On the Importance of a Talent Pipeline  
A strong talent pipeline does more than ensure a consistent pool of job applicants — it drives business growth and strengthens your company’s brand. It helps keep your company’s existing talent satisfied in their workplace, and allows you to fill more positions internally; skipping the expensive and time-consuming process of external hiring.

This is no small matter. High employee turnover indicates a big problem in your talent pipeline, which can be devastating to your company — particularly if those problems become public.
Uber is learning this the hard way. Recent revelations about the sexist and cutthroat nature of its workplace have upset its investors and seriously damaged its reputation. Many qualified professionals — both women and men — will no longer consider Uber as a potential employer, feeling uncomfortable with the work environment.

“To cut off an entire source of great employees at the root is a major mistake, and I predict Uber pays for it dearly,” wrote one talent management author.

It’s obvious a weak talent pipeline limits the quality of applicants your company can attract (and therefore the quality of work produced), but it impacts more than just recruiting: a feeble talent pipeline can also make your company a less attractive investment. Venture capitalists often consider the strength of a company’s talent pipeline, in order to assess sustainability and assign a value to the business.

Research shows that companies who invest in talent generate greater returns for their shareholders, so it should come as no surprise that investors will be interested in your talent pipeline. A study from Aon Hewitt found that companies showing high employee engagement and a close connection between business and talent strategies created greater return for their shareholders.

The success of a business lies in its people. Without a strong talent pipeline to draw and retain top candidates, investors may view your company as unlikely to succeed in the long run, and unlikely to yield them a high return.

Learn from Uber’s mistakes and cultivate a strong talent pipeline. Your company will see the benefits in the workplace and on the balance sheet.

How To Start Developing Your Talent Pipeline
Before you begin reaching out to networking groups and generating referrals left and right, it’s important to set a strategy for talent development. All efforts to build your talent pipeline should be aligned with your company’s particular needs, business model, and plans for growth. It’s not just about attracting top candidates; it’s about attracting the right top candidates for your teams.
Here’s how to get started developing a talent pipeline.

Get Management Buy-in and Align with Corporate Needs
Managing and retaining talent isn’t just the responsibility of your human resources department. Make sure your senior management team understands the importance of building a talent pipeline, and is willing to support you in developing one.

The best way senior management can offer support is to provide a strategic perspective. Request time to sit down with your upper management team, and ask some key questions that will help you decide how to direct your efforts. What are company’s growth goals? Does it intend to expand into new markets? If so, what does the timeline look like?

These questions will guide your approach to talent development. Your pipeline shouldn’t lag behind your company’s plans; it should anticipate them. For example, if your company intends to set up operations in a new country in the next five years, start building a talent pipeline in that market now. Develop a pool of top candidates for tomorrow’s plans, rather than today’s realities.
With management buy-in and an understanding of the company’s future hiring needs, your company is well-positioned to go out and reach the people you want in your pipeline.

Establish Channels for Future Openings
Once you’ve defined a direction for the types of candidates you want to go after, it’s time to plan for how you will connect your pipeline to your business. Your talent pool will soon become stale if you don’t nurture open channels, through which qualified candidates can move from the pipeline to an interview whenever your company is hiring.
These channels can (and should) take many forms, including:

• Smart media and content. Tailored blog content and smart engagement through social media will attract people to your brand, and provide opportunities to engage with prospective hires long before they walk in for an interview.
• Leads and referrals. Encourage current and former employees to refer potential candidates to your company. Facilitate networking between your employees and employees at other companies. When important positions are open, ask key employees to personally reach out to people who may be able to help find the right person.
• Professional development opportunities. By providing professional development opportunities for your current employees, your company can invest in their skills and groom them for more senior roles in the organization.
• Partnerships with institutions. Participating in co-op and internship programs at universities allows you to line up and help shape young talent. It also establishes brand awareness of your company early in students’ professional lives, making them more likely to keep your company in mind throughout their careers.

A Strong Talent Pipeline Keeps on Giving
Rome wasn’t built in a day, and neither was your company. Developing and maintaining your talent pipeline will take time and thoughtful planning, but it’s worth it. The time you spend strategizing and building in the beginning will pay off in the long run, when you have a strong candidate pool that continually reinforces itself.

When done right, even those candidates that don’t become employees will become advocates for your company, which in turn will further strengthen your pipeline. Your company will be able to fill important positions faster, and be proactive about cultivating employees to step into leadership roles that become available down the road.

Soon enough, your toughest decision will become: Who do we turn down?