Many companies are filling fewer roles, a major shift from the blistering pace of hiring that we’ve seen over the last few years. Due to economic fears and a job market settling from the pandemic-era disruption, this less hurried atmosphere has ushered in a trend toward candidate quality over quantity. Today companies are taking a slower, more methodical approach to finding people with the specific skills required to build out their workforce for the future.
This changed landscape brings to companies a new set of hiring challenges. To understand what human resources leaders across the globe are experiencing, HireVue surveyed 6,000 talent leaders across industries from the U.S., U.K., and Australia. The findings of our 2024 Global Hiring Report found that the biggest challenges companies are facing with hiring are:
- Scarcity of skills: 17% of companies say a lack of qualifying skills and 15% say a lack of qualifying experience is their biggest barrier to finding top talent.
- Slashed budgets: In response to economic uncertainty, 47% of budgets were slashed (up from 39% the year prior). And now, recruiters are being asked to do more with less.
As talent teams tackle these new complexities, we’re seeing three key trends emerge:
1. Potential skills are more valuable than past experience alone in the new economy.
Talent teams used to make hiring decisions based solely on a candidate’s education and past work experiences, but past achievements alone won’t always signal future success in today’s rapidly changing economy. The question has now become less about which skills a candidate possesses and more about which skills they can hone. In our Global Trends survey, we saw a positive trend toward hiring for skills and potential:
- Nearly all (96%) respondents said they are now looking at candidates’ ability to learn new skills, while still assessing for skills that transfer to new responsibilities as roles evolve.
- 34% of companies said they’re comfortable using skills assessments in general, and already use them across the hiring process — up from 29% the year prior.
- 65% use skills assessments specifically to determine potential.
- 21% have gone as far as replacing resumes with skills-based assessments.
2. Comfort with using AI is exploding.
Last year was generative AI’s big break. From ChatGPT to AI image generators, and everything in between, there’s no denying that AI has taken the world by storm. Even with limited budgets, 30% of our survey respondents increased their HR technology budgets last year. Leveraging AI and automation is a way to get more done, even with fewer roles filled. Talent teams are working with tech like never before. The biggest advantages of AI cited by companies were:
- Time-saving (51%): Automation significantly streamlines efficiency so candidates can be hired quickly.
- Greater flexibility all around (50%): It takes away tedious tasks from recruiters, giving them more time to create connections with the right candidates.
- Cost-saving benefits (45%): It reduces costs by automating tasks and eliminating the need for manual labor.
The benefits of AI tools are extensive. From skills matching to immediate candidate engagement, these tools have quickly advanced a traditionally slow, archaic hiring process. But what about the risks? Before committing to technology, hiring teams should consider:
- Bias and fairness: companies should have auditable and explainable processes with publicly available 3rd party audit results and an AI Explainability Statement to demonstrate fairness.
- Privacy and security: protecting candidate data is essential — look for SOC 2 Type 2 audits, ISO 27001 certificates, and a FedRAMP certification if you’re in the public sector.
Recruitment and human connection go hand-in-hand. Technology will never be able to replace personal touch. What it does replace are tedious, mundane tasks that bog down the process. Even more, AI can help connect talent to opportunity and unlock potential that humans may have otherwise missed. Once AI handles the early stages of the process, talent teams can step in and create connections.
3. Personal well-being is a climbing priority.
When asked what investments they made last year to become employers of choice, 45% of HR professionals said they increased their wellness programs. It’s a trend we slowly saw emerge following the salary hikes during The Great Resignation. And it’s a change that could reduce employee attrition and alleviate company-wide budget issues. A commitment to employee well-being begins far before a candidate is hired. Candidates want proof that employers will keep their workplace wellness promises. If they feel like you care for them in the hiring process, they are more likely to accept a job offer.
Hiring is not just about adding a name to the organizational chart. It’s about finding candidates with ideal skills and future potential—then building an organization that helps them thrive. And over the last year, we’ve seen a positive trend in the right direction:
- Flexibility: Employers are embracing more flexible work arrangements. Twenty-six percent moved to a combination of in-person and virtual interviews. As a result, demand for remote work has dropped as a hiring barrier by 14% in two years.
- Internal mobility: Fifty percent of talent teams are turning their focus to internal candidates. That’s compared to 44% the year prior. Employers who understand how well-being and retention are linked will continue to be most successful as the competition for talent continues to rage on.
What Can Companies Do to Find the Right Talent
How can talent teams find and engage people in this unique landscape? It starts with the right hiring tools:
- Quickly take candidates through the hiring funnel and show them their time matters.
- Answer their questions at any time of the day with a conversational AI chatbot.
- Give candidates the flexibility to take skills assessments, schedule interviews, or take on-demand interviews—all at their convenience.
- Assess candidates based on skills— don’t miss out on the ideal candidate because their previous experience doesn’t perfectly match the job description.
Technology is completely rewriting how we work. Top companies that embrace ever-evolving digital transformation are at the forefront of innovation and growth. In today’s fast-paced environment, talent teams must quickly adapt to changes. The most competitive companies will be the ones who uncover the human potential in their workforce, work side-by-side with technology to maximize success and invest in a culture where employee well-being is front and center.
Sibyl McCarley is SVP of People Success at HireVue, the leader in human potential intelligence, enabling organizations to elevate the hiring conversation from evaluating candidates’ credentials to understanding what they are capable of. HireVue’s deep expertise in science, AI and data, helps companies understand candidates’ unique skills and potential to match them to jobs where they can excel today, while also suggesting their path to the future. Serving over 1,150 pioneering customers around the globe including over 60% of the Fortune 100, HireVue has hosted more than 70 million video interviews and 200 million chat-based candidate engagements.