What are the REAL challenges facing talent acquisition today?

We often hear about the talent crisis from big consulting firms like Gallup, McKinsey, Korn Ferry, and Manpower, as well as niche firms like Accelery. We know the talent crisis is real and a 10-year trend. According to the most recent unemployment report, the labor market remains tight, with an unemployment rate of 3.5%. As the economy transitions to digital-first business, some economists point to structural barriers to labor market participation as a reason for the low jobless rate even as economic conditions become more difficult. Nonetheless, with a softening in the economy, hiring has slowed down. Technology companies alone will have laid off more than 45,000 workers in 2022.

So, what are the real challenges facing talent acquisition today? We’ve identified five. Do you agree? What are your top five challenges?

1.????Fake Candidates. This issue comes up when sourcing contingent workers or with staff augmentation. It’s not being seen among full-time workers yet, but with the rise of hybrid work, could we see more fake candidates in the future? What are you experiencing today? Here’s how the scenario unfolds. You meet a candidate on a Zoom or Teams call for a position. They are well-prepared for the interview, have the requisite skills, and can answer your questions. The interview is a success. You’re relieved. You decide to hire them. But when it’s time to do the work, they don’t seem to have the needed skills and no longer appear on camera. How could things have changed so quickly? You’ve been hornswoggled. The candidate is fake. ?

2.????Hiring Diverse Candidates. Hiring diverse candidates continues to be a struggle, requiring talent acquisition professionals to remind hiring managers to consider women and BIPOC candidates constantly. Could it be that organizations are not living their values? That could become a problem soon as stakeholders (i.e., investors and employees) begin to look beyond purpose and values statements to impact.

Hiring women also has its challenges. Women are less likely to apply for roles that don’t meet 100% of the qualifications. Men, on the other hand, apply when they meet a mere 60%. That’s a difference worth a few jokes. While the issues aren’t necessarily related, organizations are beginning to realize that not every role requires a degree. Some huge employers, Google, EY, Penguin Random House, Microsoft, and Apple, have started offering high-level positions to candidates without degrees to attract talent in a tight labor market. There’s a growing consensus that technical certifications are often sufficient for a role. For example, a JavaScript Developer needs experience and knowledge in JavaScript programming and doesn’t necessarily need a four-year college degree.

3.????Sourcing Talent. Depending on the role, as a recruiter finding a person to fill a position isn’t always easy. Searching niche locations requires time and energy, and recruiters don’t always have the resources. Being approachable on social media helps. When candidates do see job postings online, having a consistent social presence across all platforms creates the opportunity for candidates to ask questions about open positions and the company. Being active on social media is essential for sourcing talent that can sometimes be hard to find.

4.????Hybrid Work, Market Conditions, and Market Position. Hybrid work opened a massive pipeline of candidates for most companies embracing the benefits policy. Spotify recently released a report sharing the benefits of its hybrid approach. But what impact will this have on middle-market companies? When companies are no longer competing for candidates only within commuting distance of our offices, that creates many opportunities for recruiters. But it also creates challenges. Market conditions for your sector are also an important factor in talent acquisition. While hybrid work policies opened opportunities for sourcing candidates, market conditions meant fewer positions to fill and less competition, particularly in technology, real estate, and financial services.

When market conditions improve, competition will increase for candidates, and market position will be a significant factor in a candidate’s decision-making process. Hybrid work makes this challenge even more complex. Organizations in smaller markets will now compete against some of the largest technology companies in the world, traditional industry players, and new market entrants from adjacent industries. While some candidates are looking for smaller company experiences, culture and employee experience will be differentiators with these candidates. A candidate’s ability to engage with recruiters on social media can make a difference.

5.????Internal Approval Processes. Now that the market has slowed, many organizations have fewer positions to fill. However, internal approval processes for job requisitions and offers have gotten stricter. Is there anything worse than a two-week approval process? Extended approval processes are understandable, given the market conditions. But they put organizations at a competitive disadvantage.

So, what do you think? Talent acquisition is a tricky business. What are the issues you’re facing in your organization?