An organization’s employees are essential to business success. However, according to a survey of more than 40,000 employers from around the world conducted by Manpower Group, 74% of employers say they are struggling to find the skilled talent they need.
As business needs and in-demand skills continue to rapidly evolve, developing and implementing effective talent acquisition strategies can help companies stand out in today’s fast-paced labor market to attract and hire employees with the skills they need.
To help your organization future-proof your workforce, learn more about what strategic talent acquisition is, why talent acquisition strategies are important, top trends challenges in talent acquisition, and how to develop and implement effective strategies.
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What is Talent Acquisition?
Talent acquisition is the ongoing process of identifying, sourcing, attracting, hiring, and onboarding qualified employees for an organization. Successful talent acquisition can help ensure an organization has workers with the right skills to support short- and long-term business needs.
While the terms talent acquisition and recruitment are often used interchangeably, understanding the differences between the two is important to building an effective workforce. Recruitment focuses on filling immediate job openings as soon as possible, while talent acquisition takes a more proactive approach that prioritizes aligning a company’s workforce with long-term, strategic business goals.
Comprehensive talent acquisition strategies include:
Workforce Planning: Understanding current and future talent and skills needs based on business objectives to ensure proactive workforce planning.
Employer Branding: Developing a compelling and authentic perception of the company as an employer of choice for qualified workers.
Sourcing and Recruiting: Using diverse candidate sourcing channels and approaches to reach and attract skilled candidates.
Candidate Experience: Supporting a positive and engaging experience for all applicants, whether or not they ultimately receive an offer and join the organization.
Candidate Evaluation and Selection: Implementing efficient steps to evaluate candidates' skills, experience, and team fit while reducing total time-to-hire and driving efficiencies.
Onboarding and Integration: Integrating new hires into the organization and encouraging development, engagement, and retention.
The Importance of Effective Talent Acquisition Strategies
Understanding how to develop and implement successful successful talent strategies can help your organization engage and hire employees with the skills you need to meet your business goals. On the other hand, lacking a strategic approach to talent acquisition can lead to wasted time and resources each time you have a hiring need, as well as challenges with attracting qualified candidates.
Benefits of effective talent acquisition include:
Decreased time-to-hire
Cost savings
Enhanced data-driven decision making
Improved candidate experience
Increased productivity, engagement, and performance
Reduced employee turnover
A strengthened employer brand and perception to potential candidates
A competitive advantage over other organizations hiring candidates with similar skills
More proactive workforce planning to align with long-term business needs
Talent Acquisition Trends and Challenges
Despite the importance of talent acquisition, organizations face many challenges with attracting and hiring talent with the skills they need. According to a survey of 500 U.S.-based talent acquisition leaders conducted by GoodTime, talent acquisition teams met less than half (47.9%) of their hiring goals in 2024.
Top trends and challenges in talent acquisition include:
Skills Gaps
Shifting business needs, technological advancements, and other factors have created significant skills gaps in roles and businesses across industries. Our recent research shows that 32% of the skills required for the average job were different in 2024 than they were in 2021.
Technological Disruption
In addition to presenting skills gaps, the rise of artificial intelligence (AI), automation, and other technologies is leading talent acquisition and recruitment teams to rethink their hiring processes. Organizations are increasingly looking for new ways to drive efficiencies in talent acquisition and engage top candidates before they receive competing job offers. The GoodTime survey found that 99% of talent acquisition leaders now use AI to streamline hiring processes.
Talent Shortages
Certain industries and geographic locations have a shortage of qualified talent more so than others, leading to increased competition for top candidates. The Manpower Group research cited above shows that some of the top industries facing talent shortages include healthcare and life sciences, energy and utilities, and information technology.
Evolving Candidate Expectations
Candidates are increasingly demanding a positive candidate experience, flexible work arrangements, and opportunities for growth and development. In a competitive talent market, top candidates are hired quickly and won’t hesitate to abandon a hiring process if the experience isn’t meeting their needs. According to a survey of recent job seekers published by CareerPlug, 66% of individuals surveyed said a positive experience impacted their decision to accept an offer, while 26% declined an offer due to a poor experience.
Measuring ROI
As organizations increasingly invest in technology and look to drive efficiencies across talent acquisition strategies and processes, measuring and understanding the return-on-investment (ROI) of talent acquisition efforts can be difficult. In fact, a study conducted by The Josh Bersin Group and Visier unveiled that only 10% of companies directly correlate their talent acquisition and other human capital data to overall business goals in a systemic way.
Effective Talent Acquisition Strategies To Address Labor Market Trends and Challenges
To address common trends and challenges and build a team of qualified employees with the skills needed to support long-term business goals, organizations need to adopt proactive talent acquisition strategies.
1. Embrace Labor Market Data
Keeping up with rapidly shifting business and skills needs can be overwhelming. Using the latest labor market data can help your organization identify trends, measure the effectiveness of talent acquisition initiatives, and optimize and improve talent acquisition processes to remain competitive.
At Lightcast, our offerings such as competitive recruitment and Talent Recruit give your organization access to the latest data on supply, demand, and compensation, helping you understand your market, expand your applicant pool, and fill job openings. With access to this data, you can determine the best job title to attract qualified talent, understand which skills to look for in candidates, determine where to look for potential applicants, and ensure you’re offering competitive compensation.
2. Focus on Skills-Based Hiring
Leveraging the latest labor market data can also support an emerging trend many organizations are adopting: skills-based hiring. Rather than primarily relying on educational backgrounds and past job titles, skills-based hiring identifies qualified candidates who may have otherwise been overlooked.
Skills-based hiring breaks jobs down based on specific skills and connects candidates or internal employees with jobs that align with their skills. This may include hiring employees from a different industry or role who have adjacent skills relevant to your business needs.
3. Use Technology and Automation
Given widespread adoption of AI in recent years, talent acquisition teams that don’t use the latest technology will be left behind and risk losing top talent to the competition. Rather than being a job replacer, AI can be a job enhancer by enabling your talent acquisition team to automate repetitive tasks, improve efficiency, and ensure you’re hiring the most qualified candidates.
The latest technology can also ensure a positive and engaging candidate experience throughout the recruitment process by streamlining the process of screening applicants, providing clear and timely communication, and extending offers.
4. Invest in Upskilling and Reskilling
In addition to identifying and hiring external candidates, successful talent acquisition also focuses on developing and advancing existing employees through upskilling and reskilling. Taking an ongoing approach to upskilling and reskilling can help your organization address skills gaps and keep pace with technological change.
Similar to using the latest labor market data to inform your external talent acquisition strategies, taking a data-driven approach to upskilling and reskilling can drive workforce agility and ensure employees at your organization are engaged and adaptable to shifting demands.
Through Lightcast Open Skills, you can access a free, user-friendly library of more than 32,000 skills created by a team of expert economists and labor market analysts to identify upskilling and reskilling opportunities and create relevant career pathways for current employees.
Case Study: How Providence Health and Services Uses Lightcast To Address the Healthcare Talent Shortage
Providence Health and Services is a 160-year-old healthcare system that includes more than 50 hospitals, 1,000 medical groups, and 120,000 employees, also known as caregivers. The healthcare system conducts industry-leading research, is at the forefront of healthcare innovation, and understands the critical importance of hiring the right employees.
The healthcare industry is facing a significant talent shortage that shows no signs of slowing down, with a shortage of almost 5.7 million nurses expected worldwide by 2030. Providence wanted to rethink how to approach the healthcare talent shortage by engaging individuals who had not previously considered working in the healthcare industry.
Providence enlisted the support of Lightcast Taxonomies to create an inventory of jobs and use a common language of skills and titles to standardize their job descriptions. Lightcast Taxonomies organize skills, occupations, and jobs into an understandable system based on millions of job postings and online profiles, helping organizations like Providence unlock new possibilities in the labor market. As a result, Providence is better equipped to continue to build a strong healthcare workforce despite the ongoing healthcare worker shortage.
Partner with Lightcast to Achieve Your Talent Acquisition Goals
A proactive and strategic approach to talent acquisition is critical in securing a competitive advantage and achieving long-term success in today's dynamic business landscape. By understanding trends and challenges associated with talent acquisition and implementing effective strategies, your organization can build an impactful and adaptable workforce that’s prepared to align with business needs both now and in the future.
At Lightcast, we offer the most comprehensive data on skills, jobs, supply, and demand throughout the global labor market and are here to help you take a data-driven approach to achieving your talent acquisition goals. Through our workforce consulting services, our team of economists, data scientists, and subject matter experts blend their deep workforce knowledge with world-class labor data to address your specific talent acquisition needs and challenges.
Learn more about our solutions for enterprises or get in touch with a member of our team directly to jump start your workforce consulting project.
