The Future of HR and Talent Acquisition: Navigating Change and Embracing Opportunities

In a world where change is the only constant, HR and Talent Acquisition are undergoing a profound transformation. Economic uncertainties are shifting workforce dynamics from 'The Great Resignation' to 'The Big Stay,' bringing power back to employers. Yet, within this evolving landscape lies immense opportunity for innovative leaders.

Contents

The Shifting Landscape

The economic uncertainty of recent years has meant the ‘The Great Resignation’ has given way to ‘The Big Stay’ with workers choosing safety over new opportunities. This shift has moved the power back towards the employer, with tensions around flexibility, transparency and pay all simmering as organisational pressures mount and employee demands evolve.

While the economic outlook is uncertain, it’s clear that HR and Talent Acquisition (TA) professionals will continue to operate in an era of unparalleled change. Technological advancements, the rise of artificial intelligence (AI), changing government policy and evolving employee expectations are transforming workplaces. At the same time, tight budgets and expanding role requirements challenge leaders to innovate.

To succeed, HR and TA professionals must adapt to this dynamic environment, leveraging new tools and methodologies while maintaining a human-centric approach. Over the past year, our research has highlighted key opportunities for HR and TA leaders to thrive. This guide provides an executive summary to help shape your strategy and links to opportunities for further reading that covers specific areas in-depth. 

62% of candidates say they only apply for jobs that meet the majority of their EVP requirements.

Opportunities for HR Leaders

Employer Branding & EVP

A strong employer brand can transform metrics across the talent lifecycle. By clearly defining and communicating an organisation's vision, mission, purpose, and values, HR leaders position themselves at the strategic core of the business. This effort not only attracts top talent but also fosters employee engagement and retention.

Take Action:

  • Develop an Employee Value Proposition (EVP) that reflects your organisation’s strengths and values.
  • Access our EVP Guide for a step-by-step approach.

Data-Driven Decisions

HR software now offers robust workforce analytics that can be leveraged to inform decisions about employee engagement, satisfaction, and productivity. Talent Intelligence creates a further opportunity for deeper insight by incorporating external data, including industry trends and competitor insights.

Take Action:

  • Take an audit of the software used in your organisation to manage the workforce and the analytics available in each programme.
  • Prioritise KPIs and create a dashboard or monthly report to track progress against your internal goals.
  • Identify areas of weakness and create surveys to deep-dive into key concerns.
  • Improve your positioning and reduce risk by using Talent Intelligence to benchmark against competitors and identify critical industry trends.

Employee Wellbeing

Supporting employee well-being goes beyond offering discounted fitness options and mindfulness training. With growing awareness of neurodiversity, HR teams can lead the way in creating inclusive, supportive environments that respect individual needs.

Take Action:

  • Provide diverse resources and benefits that support holistic well-being.
  • Survey your workforce on the types of support they prefer, from physical and emotional to financial planning.
  • Download our Wellbeing Guide for more actionable insights.

Skills Mapping

The move towards skills-based hiring is accelerating. Internally, HR can develop skills maps to better align employees with projects and growth opportunities within the business.

Take Action:

  • Implement a skills mapping programme to identify talent gaps in your organisation.
  • Consider the current gaps and plan for the future by considering attrition and implementation of new systems and processes.
  • Consider Talent Mapping services to support your internal team.
  • Get our guide to Skills-Based Hiring and the Internal Talent Market for further insight.

70% of company leaders believe their organisations’ skills gap negatively impacts business performance.

Source: AIHR

Scaling Through Technology

51% of respondents stated they still use spreadsheets to handle payroll processes while 19% use manual or paper-based methods. Source: HR News

AI and automation are revolutionising HR processes. From reducing bias in recruitment to streamlining training, technology can improve efficiency and enhance the employee experience. However, with many organisations struggling to implement digital transformations the successful adoption requires organisations to both attract and retain tech talent to facilitate integration and align technology use with human-focused strategies.

Take Action:

  • Audit automation and AI capabilities within your current software.
  • Leverage software to automate repetitive tasks.
  • Review your EVP and how it is articulated to attract tech talent.
  • Promote internal communications to demystify AI and highlight career opportunities and learning programs. 
  • Consult our guides to AI for a responsible approach to implementation in your organisation.

The Future of HR and Talent Acquisition

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Internal Development

Employers believe 44% of workers’ skills will be disrupted by 2030, and that six in 10 workers will require additional training before 2027. Source: WE Forum

Upskilling employees to adapt to technological changes helps organisations remain competitive while fostering loyalty and engagement. 

Take Action:

  • Identify the important skills in your organisation now and those that will help accelerate future growth. 
  • Build L&D programmes that nurture internal talent to upskill in priority areas.
  • Market L&D programmes to your workforce, outlining the opportunities for training and advancement.

Supporting People Managers

70% of respondents believe that current leaders and managers are not adequately equipped to effectively develop mid-level leaders and only 23% of HR leaders are confident there are rising leaders who can meet the future needs of the organisation. Source: Gartner

Remote and hybrid work have redefined management. HR can guide people managers to adopt tools and practices that foster collaboration, effective communication, and leadership in a dispersed workforce.

Take Action:

  • Coach managers on best practices for managing hybrid workers.
  • Provide managers with coaching and training to facilitate tough conversations.
  • Incorporate learning and development into your role frameworks to encourage and reward performance. 

Employers believe 44% of workers’ skills will be disrupted by 2030, and that six in 10 workers will require additional training before 2027.

Changing Business Needs for Talent Acquisition Leaders

The role of TA professionals has evolved from operational tasks to strategic initiatives. Today’s TA leaders must optimise the candidate experience, embed diversity and inclusion, and use data to shape recruitment strategies.

Skills-Based Hiring

With 73% of recruiters prioritising skills over credentials, the switch to skills-based hiring is well underway. This approach expands talent pools and bridges skills gaps whilst improving diversity by elevating non-traditional learning and career paths. TA leaders must be at the forefront of this change, championing a new approach to recruitment that goes far beyond the removal of unnecessary degree requirements. 

Our guide to Skills-Based Hiring outlines this trend in further detail.

AI and Human Connection

AI’s growing role in TA includes automated job postings, candidate screening, and tailored communication. However, its true potential lies in freeing up time for meaningful human interactions.

Take Action:

  • Balance automation with personal engagement to foster stronger candidate relationships.
  • Evaluate the risks and benefits of implementing AI in the hiring process, learn more in our AI in Talent Acquisition Guide.

Data-Driven Insights

TA professionals are optimising attraction levels and increasing offer acceptance by benchmarking competitors and understanding the external talent market. This process uses primary research techniques to fully understand responsibilities, structure and total reward to inform your offer and key strategic decisions regarding talent. Those who aren’t benchmarking roles or only do so based on headline salary are being left behind by those undertaking comprehensive research for specific role families. 

Our Talent Intelligence service offers TA professionals a route to understanding the market for specific roles, and identifies relevant talent as part of the process. Learn more in our guide to Talent Intelligence or schedule a call today to find out how we can support you.

Diversity and Inclusion

TA professionals play a critical role in ensuring fair recruitment practices. Blind CVs, inclusive language, and skills-based hiring all help remove bias and promote equitable hiring.

Take Action:

Candidate Experience

With fierce competition for top talent, the candidate experience is crucial. Streamlined processes, clear communication, and timely feedback enhance the journey from application to offer.

Take Action:

  • Implement automated reminders where possible.
  • Prioritise time for direct 1:1 communication with candidates to maintain the personal connection.

Key Stats:

  • 72% of candidates say interview smoothness affects job acceptance.
  • 65% of candidates withdraw due to an unattractive EVP.
  • 92% of candidates do not complete the application process.

The Future of HR and Talent Acquisition

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Bridging HR and TA

While the structure of the two functions will differ from business to business, both HR and TA roles are critical to the talent lifecycle. Therefore, close collaboration between HR and TA is essential to align recruitment, onboarding, and the broader employee experience. 

The HR Leader of the Future

The modern HR leader transcends traditional support functions, driving organisational strategy. 

Key attributes include:

  • Representing people strategy at the highest levels.
  • Championing company values and purpose.
  • Leveraging data to inform decisions and measure outcomes.
  • Prioritising employee growth and development.
  • Embracing change and inspiring innovation across all levels.

The TA Leader of the Future

Tomorrow’s TA leaders embody the values of their businesses. They uncover untapped talent by embracing diverse and non-traditional paths in the hiring process and are committed to continuously improving the candidate experience and onboarding process.

Key attributes include:

  • A strong personal brand that platforms the business.
  • At the forefront of new hiring practices.
  • Committed to improving diversity and inclusion throughout the hiring process.
  • Values candidate feedback.
  • Trusts data-driven insights.
  • Uses automation and AI to remove manual tasks and accelerate analysis without compromising on the personal touch. 

“The future belongs to those who see possibilities before they become obvious.”

John Sculley, Former CEO of Pepsi and Apple

Our guides are necessarily top-line, offering a glimpse of the type of insight we provide for our clients, on a 1:1 basis we can offer so much more. 

We offer a research-led approach to talent acquisition and detailed talent intelligence that incorporates real-time primary research, supporting our clients to source exceptional talent without costly placement fees and make informed strategic decisions based on our research. 

Common use cases include: 

If you’d like to find out how we can help your organisation get ahead contact us on 0191 691 5600 or email hello@talentinsightgroup.co.uk for a no-obligation conversation.

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