Recruitment challenges are intensifying. In 2019, the unemployment rate dropped to a 50-year low in the U.S, hitting 3.5% while the number of unfilled job roles reached more than seven million.
Looking back on 2019, Mercer’s Global Talent Trends report reveals HR’s biggest talent acquisition challenges were a lack of predictive analytics, manual processes, and delivering a poor candidate experience. According to the report, these challenges pose significant risk to business performance, especially for high growth companies, when it comes to talent acquisition. Organizations are under pressure to attract and hire the right talent to compete in the future, however, the availability of skills remains a foremost challenge across all industries. In Ceridian’s Future of Work report, 57% of industry leaders cited the inability to find the right skills as their top recruiting concern.
Overcoming these talent challenges and building a future-ready workforce in the next few years will be vital to the success of any company. Here are the top recruiting trends that will shape talent strategies over the next five years.
The World Economic Forum as well as several other sources have written extensively on the impact of automation in the workplace and the increasing demand for technical skills that do not currently exist in today’s workforce. Virtually every industry is experiencing heavy competition for talent and to add to this challenge, the most in-demand skills of the future are becoming industry-agnostic. While demand for data scientists, robotics engineers, and tech specialists continues to climb, organizations must also acquire talent that understands how to harness the value of emerging technology. In fact, humanistic skills that can’t be replicated by machines, such as critical thinking and adaptability, are growing steadily in demand.
According to LinkedIn’s Future of Recruiting report, a top priority in the next five years for talent acquisition professionals is keeping up with rapidly changing hiring needs. This means companies must detach from the practice of sourcing candidates with all the required skills for open job roles and adopt a more agile approach to finding top talent. Market leaders are hiring people with broad experiences and capabilities and developing talent pools consisting of candidates from outside the industry that have an interest and aptitude for building new skills. These organizations are leveraging technology to source candidates with a variety of skills that can be applied within their industry.
Today, the role of the recruiter is evolving as HR teams now play a key part in ensuring the company has the right talent to drive business outcomes. Forward-thinking HR teams are moving away from filling role vacancies that currently exist and instead, focusing on skills that will be needed for the future and identifying which candidates will move the needle long-term.
Organizations are leveraging recruiting technology and tapping into data sources to better understand the characteristics typical of high performers, as well as which factors are likely to make them flight risks. Access to this information drives more strategic, targeted hiring, and also gives HR teams valuable insight into how they can improve the work environment to attract and retain high performers.
Organizations are realizing the benefits of hiring baby boomers as a talent pipeline. The Bureau of Labor Statistics states that people are living longer and retiring later. In fact, a third of middle-aged Americans plan to work part-time after the age of 65. This demographic is healthier, work in less physically demanding jobs, and are in more need of retirement income than previous generations, according to Glassdoor’s 2020 Hiring Trends report. In the next decade, it will be essential to source talent outside of the traditional talent pools and consider older candidates that have transferrable skill sets.
Additionally, hiring new candidates reactively to full open roles puts strain on resources and can lead to business discontinuity. Organizations are investing in retaining older workers past the typical retirement age to help lessen the effects of skill and knowledge loss. The healthcare industry in particular is one sector experiencing significant knowledge loss as baby boomers retire in waves. Organizations are bridging the gap of knowledge lost from retiring workers – from institutional knowledge to operational procedures – by leveraging succession planning and making workplace learning more social and collaborative.
Fifty percent of leaders claim they struggle from a recruiting perspective because their industry is not seen as attractive, and they have difficulty attracting younger works. This is especially true in the manufacturing industry where less than half of millennials believe manufacturing offers fulfilling careers.
Top technology companies are leading the charge with employer branding and crafting unique brand propositions to attract top talent. These companies have built their reputations as desired places to work by creating an employer brand that employees are proud to put on their resumes.
Candidates have more choice in a tight labor market which means when choosing an employer to work for, organizations that distinguish themselves as an excellent place to work will have the strategic competitive advantage. Marketing and offering benefits that set them apart from competition, such as creative compensation packages, progressive leave policies, and on-demand pay technology will help companies improve the perception of their sectors, enabling them to attract the best talent.