The war for talent is evolving, and a new Mercer report paints a comprehensive picture of how the game is changing. While attracting talent remains important, building a sustainable and skilled workforce requires a more nuanced strategy.
What they’re saying: The Mercer study surveyed talent and HR leaders at nearly 500 U.S. companies about best practices and trends in talent acquisition.
Skills gap widening: Nearly two-thirds of companies struggle with a crippling skills gap, exacerbated by unrealistic expectations from managers. This mismatch is hindering growth and competitiveness. Addressing this disparity requires strategic investment in skills frameworks and ensuring leadership alignment with talent acquisition goals.
Yet, skills-based hiring lags: Despite the removal of college degree requirements for certain jobs, actual jobs going to nondegreed candidates increased only 3.5%, according to a study reported in the Wall Street Journal. The slow rate of change is attributed to managers’ reliance on old hiring habits, highlighting the need to affirmatively change the hiring mindset.
Hiring on hold: The hiring boom is cooling down, with projected growth in 2024 falling short of last year's surge. Companies are projecting a hiring increase of less than 30% in 2024, versus 44% in 2023. Average “Time to Accept” rates are long, with 67% of hires taking 30-90 days.
Technology and cultural integration: AI and virtual hiring are reshaping the recruitment process. Leveraging these technologies can streamline recruitment and widen the talent pool. However, it's crucial to prioritize cultural fit alongside skills to ensure successful employee integration.
Building a future-proof workforce requires a measured approach:
- Invest in skills frameworks: Identify critical skills necessary for success and develop frameworks to attract and nurture relevant talent.
- Prioritize cultural fit: Look beyond skills to find individuals who resonate with company culture and values, promoting team cohesion and long-term success.
- Leverage technology thoughtfully: Integrate AI and virtual tools to enhance the recruitment process but remember, the human touch remains vital.
Next steps: By taking a proactive and strategic approach, companies can build a sustainable talent pipeline that drives success. Transformation is a journey, not a destination – start by assessing your current strategy and prioritizing investments that align with your long-term goals.
