Date: February 24th, 2024
Estimated Read Time: 5 minutes
Sponsorship Acknowledgment: This edition is proudly presented by Sonar Talent, developing an AI-powered talent marketplace for tech business leaders.
With a presidential election and uncertain global markets, 2024 will likely be a rollercoaster year for TA technology. Although the December JOLTS figures suggest a flat month in December, the increased job openings for large organizations might be a reason for optimism as companies staff up to meet their Q1 goals.
To better understand what to expect this year, I dug into Mercer's 2023 State of Talent Acquisition Study to determine what TA leaders say they will focus on this year. Here are the key takeaways:
The Main Challenges
One of the main challenges highlighted is the skills gap, with 64% of companies reporting difficulty finding sufficiently skilled workers. This issue is slightly less pronounced in the tech sector, affecting 61% of companies, but remains a significant hurdle.
We've all been on the giving or receiving end of setting hiring goals, so it's unsurprising that unrealistic expectations from managers complicate the hiring process, with 62% of companies across the board and 69% within tech struggling to meet these demands.
The third challenge highlights the current market dynamics with attracting top talent, a challenge for 58% of companies, though this is less of a problem in the tech sector, where 37% report difficulties. No doubt, the extensive layoffs over the last 18 months have (temporarily) shifted the tech market back to a demand-constrained environment.
How AI Can Help
Although 42% of survey respondents say they don't or won't use AI in the recruiting process, AI technology is emerging as a crucial tool for addressing these challenges.
Currently, 38% of TA leaders use AI to source and engage potential hires, demonstrating the technology's role in building talent pipelines. This will likely increase if the labor market remains tight and the primary way to engage candidates remains outbound sourcing.
Third on the list is leveraging AI to create engaging social media posts and enhance employer branding with 27%. The same percentage analyzes internal TA data to improve decision-making, while 26% utilize AI for candidate-centric job matching. Analyzing market data with AI to identify trends in the TA market is also a growing practice, cited by 24% of leaders.
What's Been Tried
Companies have experimented with various AI-driven initiatives to improve their hiring processes. 30% of companies have used AI-generated job descriptions to attract suitable candidates more efficiently. About 24% have adopted mobile application processes and SMS communications to streamline candidate engagement.
Automated interview scheduling has been implemented by 23% to reduce administrative burdens, and 22% have introduced chatbots to assist applicants through the application process. Efforts to eliminate bias in resume screening have also been undertaken by 22% of companies, demonstrating a commitment to fairness and diversity in hiring.
The Cost of Not Keeping Up
The reluctance to adopt new technologies can have serious repercussions, including missed revenue opportunities and a shortage of essential skills, especially in critical sectors like healthcare. This could hinder growth and innovation, emphasizing the importance of staying current with TA technologies.
Top Priorities
The top 3 priorities for the year ahead are:
- Adopting diverse and inclusive hiring practices is at the top of the agenda for many companies, reflecting a broader industry trend toward creating equitable workplaces.
- Improving candidate sourcing capabilities is also a high priority, as companies seek more effective ways to identify and attract suitable candidates.
- Additionally, enhancing the company's reputation and Employee Value Proposition through strategic social media and branding efforts is crucial for attracting top talent.
Are you eager to overhaul your recruitment strategy?
I partner with entrepreneurs as an advisor and mentor during their growth phase. I help them lay the correct foundation for building a world-class team, avoiding expensive mis-hires and churn while reducing time away from the core business.
If you are a founder or startup executive passionate about building great teams and have an appreciation for using data to make better decisions, I'd love to hear from you.
With economists expecting strong growth in the year ahead, we’ll see a revival of the buoyant hiring market we saw pre-2020. The slowdown over the last two years and increased layoffs could mean many employees are looking to change jobs in the next six months. For the tech industry, this could be a massive boost for growing companies with recent funding as they can build teams they need to unseat market leaders adopting a more conservative growth plan to appease investors.
For those of us in the recruiting space, this likely means a rapid expectation increase to deliver without the headcount and ramp time to support. AI can’t replace a trained and fully ramped team, but it can help improve performance when used correctly. I recorded a 10-minute video last year covering ChatGPT level-ups for recruiters; let me know what you think!
Until next time!
Chris Mannion
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