Strategic Solutions for Navigating Talent Acquisition and Retention Challenges

The hiring landscape today has become more competitive than ever before. Marked by widespread skill gaps and a dwindling pool of seasoned talent, companies are faced with several challenges in acquiring and retaining top talent. In fact, our recent Workforce Trends Report found that 67% of employers anticipate challenges in attracting and retaining talent over the next year, with an equal percentage reporting a lack of quality applicants. A sustainable talent strategy might just be the key to alleviating this problem.

Forward-thinking companies are continually refining their talent strategies to cut time-to-hire rates. However, overly specific requirements and prolonged hiring cycles often cause hiring managers to lose candidates to competitors. Read on to discover three central strategies for acquiring and retaining talent and to learn more about how a sustainable talent strategy could be the answer to a rapidly evolving and fiercely competitive labor market.

1. Closing the Skills Gap — Professional Development Can Help

The emergence of AI and other tech advancements, paired with limited (professional) educational opportunities, have exacerbated the workforce skills gap. Our survey found that 30% of employers feel challenged to find candidates with technical skills, while 29% face difficulties finding candidates with critical thinking and problem-solving abilities.

Organizations grappling with talent shortages in areas like AI, machine learning, cloud computing, and data science must invest in employee education programs and mobility to ensure future success. Additionally, adopting a skills-based hiring model allows organizations to broaden their search and include a greater pool of candidates with the right core skills who can be upskilled as needed.

2. Increasing Work Flexibility to Expand Talent Pools

Increasingly, flexible work arrangements have become a non-negotiable for many top-tier candidates and job seekers. Our survey indicates that 40% of employees consider flexible work options crucial when deciding on a new job opportunity.

However, while companies have become more open to interviewing candidates from various markets, many still limit their searches to only two time zones. Such restrictions significantly shrink the talent pool, leaving many qualified workers off the table and open to competitors. To meet organizational talent needs, companies should leverage global markets and offer flexibility to current employees wherever they can.

3. Diversify Candidate Pools

A substantial gap has developed between employers' perceptions and employees' experiences regarding diversity, equity, and inclusion (DEI). Our survey found that while 91% of employers believe they prioritize DEI in their hiring practices, only 68% of employees agree that organizational DEI efforts are at their peak. Incorporating a thorough DEI strategy into your talent pipeline will open an abundance of potential candidates that you may have otherwise missed out on. Here are some strategies for expanding your talent pool to include a more diverse mix of applicants:

• Rethink your hiring requirements: Focus on essential skills and experiences rather than rigid qualifications like possessing a degree.
• Apply inclusive language: Write job postings that are welcoming for all applicants and free from biased or traditional business language.
• Pay transparency: Embrace policies that promote fairness and equity in compensation.

Additionally, implementing a mindset of "culture add" opposed to looking for a "cultural fit" can promote diversity within the organization. Rather than focusing on candidates who fit a certain mold, prioritize those who offer a range of experiences, perspectives, and ideas that complement the organization's values, skills, and work ethic.

Navigating the challenges of talent acquisition and retention in today's highly competitive market requires strategic thinking and a lot of adaptability. This is why implementing a sustainable strategy can serve as a lifeline for modern organizations. By bridging skill gaps through upskilling initiatives, broadening talent pools with flexible work arrangements, and enhancing DEI efforts, organizations can establish a resilient and enduring talent strategy.

To learn more about adapting to the challenges of a rapidly changing workforce, contact an LHH recruiter or review the resources on our LHH Hiring Hub.

Download our white paper, How to Build a Sustainable Talent Strategy.