Dive Brief:
- In a move to rebrand itself and transform into an “agile, talent first” organization, automaker Volvo looked internally to find where it was lagging behind the competition with regard to talent and innovation, Harvard Business Review (HBR) reported.
- The company's discovery: cars, and the innovation needed to move them to a premium brand, rely less on the mechanical engineers that drove design in decades past, and more the software engineers that will propel them into the future. They eventually concluded that the CHRO must be an integral part of planning and acquisitions, HBR noted.
- Company executives looked outside the auto industry to hire sales reps from software giants and engineers from the cellphone industry, and ultimately added 3,000 hires in engineering and development in four years. Their shift to “acquirhiring” promises to enhance the brand; revenue hit an all-time high in 2017, HBR said.
Dive Insight:
Many companies are looking to cut out the middleman when acquiring tech talent by simply acquiring the company that employs them. The trend to acquihiring is gaining momentum as the competition for talent, particularly in the tech industry, becomes even more heated. As more industries look to technology to enhance and update their product, the trend will likely continue — and HR will increasingly need to be a part of these wider business conversations.
For small tech firms, the trend shows promise. Mega retailers have been picking up small players to increase their capability with data analytics. The practice allows them to reduce their outsourcing spend while keeping the culture and technology fit in house. The practice may be necessary for many companies vying to compete with major players for tech talent that’s lagging far behind demand.
But for the practice to work as designed, HR will need to be present every step of the way to ensure cultures align and that retention remains a top priority. Transitions are rarely fun, but thoughtful applications of tech adoption and strategy can go a long way in keeping it fairly turbulence-free.