LinkedIn recently released the results of their 3rd Annual Global Recruiting Trends survey, which asked 3,300 talent acquisition leaders to share their thoughts on hiring and budget trends.
Five key trends regarding the future of talent acquisition emerged:
For talent leaders, the main focus in 2014 is to improve the fundamentals of recruiting. Top priorities include sourcing, the talent pipeline, and improving quality of hires.
A deeper examination in the same study surveyed 1,500 recruitment firms to identify trends in the U.S. recruitment firm landscape. Three further trends emerged:
U.S. hiring growth is far outpacing global growth, for both full-time positions and temporary workers.
Source: LinkedIn 2013 Global Recruiting Trends
While hiring volume has grown in 2013, recruitment budgets have not kept up, requiring firms to do more with less money. Additionally, competition is fierce in the recruitment market, with 65% of survey respondents citing availability of quality talent as their key obstacle for talent acquisition.
“American business must continue the work of the last 10 years in finding better ways to diversify talent and use it more flexibly. So much talent in our country remains untapped because we have not found enough innovative ways to effectively use those who want to work part time or work non-standard hours.” ~Bob Mortiz, U.S. Chairman and Senior Partner of PwC
Recruiters, both in the U.S. and globally, say that social professional networks are their number one source for quality hires, followed by internal candidate databases and applicant tracking systems. They also view social and professional networks as the top long-lasting trend in talent acquisition.
Bridging Talent Tensions
McKinsey & Company pointed out that we would require 16 million to 18 million more college-educated workers than would be available in 2020. Bridging this gap would require increasing young people’s rate of graduation by 2.5 times the historical rate of increase, while also raising the participation rate of college-educated women and older workers at more than twice the historical rate of increase.
The widening skills gap brings to light a mismatch between the demand for skills and the supply of workers who have them, thus prompting managers to rethink how they manage talent. As the demand of jobs has shifted from an industrial economy to a digital economy, new models are emerging to fill the talent gaps. Firms need to adapt and acquire new skills to stay competitive, and talent has become central, at the level of marketing or finance, to corporate strategy.
As work is increasingly becoming project based, the short-term demand for non-core skills is increasing, and employers are looking to build their own network of freelancers and contract workers on an as-needed basis.
“The search industry has been forced to evolve. It’s no longer simply about finding people. The organizations that embrace talent as a strategic investment – that means acquisition, development and retention – are going to win going forward.” ~Tierney Remick, President of Consumer Marketing Practice at Korn Ferry.