Solution: Talent & Market Insights

Mental Health in the Workplace: A Strategic Imperative  

Posted on by akessler

One out of every two people in the world will develop a mental health disorder in their lifetime, according to a large-scale study co-led by researchers from Harvard Medical School and the University of Queensland. It’s not hard to understand why workplace mental health has become a larger part of our collective consciousness.  

For employers, it means the global workplace is experiencing a mental health crisis that directly impacts business performance. According to Gallup’s State of the Global Workplace report, in 2024, employee engagement fell to a 10-year low of 21%, matching the decline witnessed during COVID-19 lockdowns. Meanwhile, burnout symptoms affect one in five workers globally, with certain demographics and industries experiencing significantly higher rates. 

Today, more than 3.5 billion working adults each spend roughly 90,000 hours (or about 45 years) of their lives at work, underscoring the workplace’s potential to profoundly influence health. The business case for workplace mental health support has never been clearer—or more urgent. 

The State of Workplace Mental Health 

In the last five years, the typical organization has experienced disruption at every level. From pandemic turnover to a hiring boom then bust. From remote work to the return to the office. We’ve seen rapidly restructured teams, disrupted supply chains and shrinking budgets—not to mention eye-watering advancements in AI technology.  

It’s no wonder the global workforce is experiencing unprecedented levels of mental health challenges. According to the same Gallup report, two-thirds (58%) of the global workforce is “struggling” and 9% are “suffering.” Just a third of global employees (33%) class themselves “thriving.” 

Behind these data points are significant variations in the day-to-day emotional experiences of employees. When asked which negative feelings they experienced “a lot of the day yesterday,” 40% of global employees reported feeling stress, 23% sadness, 22% loneliness and 21% anger. 

The Demographic Divide 

Mental health challenges affect the workforce unevenly, creating targeted opportunities for intervention. 

Age 

According to a study from the World Economic Forum, the youngest workers (18-28) report burnout symptoms at three times the rate of older workers—27% versus 9% for those over 60. Nearly half (47%) of young workers report that their job negatively affects their mental health. This divide is further reflected in today’s multigenerational workforce—younger employees have reduced their weekly working hours by nearly two hours since 2019, compared to just one hour for older workers. 

Gender 

WEF also reports that women experience disproportionate mental health challenges at work. Female managers saw a seven-percentage-point drop in wellbeing in the past year. Women are 8 percentage points more likely to report exhaustion symptoms than men (46% versus 38%) and report higher rates of poor or fair mental health than men (23% versus 15%). Working women under 30 carry the greatest burden, with over a third (36%) reporting fair or poor mental health. 

Other Key Demographics 

  • LGBTQI+ individuals score 9 percentage points lower on overall health than heterosexual employees. 
  • Neurodivergent employees are 24 percentage points less likely to report “faring well” compared to neurotypical peers. 
  • Employees with financial stress show dramatically lower overall health (41% versus 76% for those with good financial status). 
  • Remote workers consistently report higher levels of negative emotions across all categories: stress (45%), sadness (30%) and loneliness (27%). 

The Hidden Productivity Crisis of Workplace Mental Health

The economic implications of poor mental health in the workplace are staggering. According to WEF, enhanced mental health for employees could generate up to $11.7 trillion in global economic value.  

The costs of poor mental health are evident in absenteeism, turnover and productivity losses which account for $2 to $9 trillion in losses globally every year. 

  • Workers with fair or poor mental health average nearly 12 days of unplanned absences annually versus 2.5 days for other workers—a $47.6 billion annual productivity loss in the U.S. alone.  
  • Organizations lose 15-20% of total payroll in voluntary turnover costs due to burnout 
  • Employees with untreated insomnia cost approximately $2,280 more for employers per year 

Despite these alarming figures, the gap between recognizing the problem and effectively addressing it remains wide. While 23% of CHROs now rank wellbeing among their top organizational priorities, only 21% of employees strongly agree that their organization cares about their wellbeing—matching a record low. 

The Layoff Effect 

The trend of large-scale layoffs has created significant mental health implications. In 2025 alone, over 51,000 tech employees and 61,000 U.S. government employees have been laid off. The ripple effects of layoffs impact entire organizational cultures, undermining engagement and productivity, as the fear of layoffs erodes motivation and contributes to anxiety and depression. Job insecurity leads to adverse mental health effects, with 45% of employees experiencing high job insecurity reporting burnout symptoms. 

The Connection Between Engagement and Wellbeing 

Record-low engagement is costing organizations billions in lost productivity. Gallup estimates the global cost of disengagement at $9.6 trillion annually (9% of global GDP). Employees who aren’t thriving report 61% higher likelihood of burnout and 48% higher likelihood of daily stress. 

Gallup’s recent data reveals a critical relationship between engagement and wellbeing: 

  • 50% of engaged employees are thriving in life overall, compared to just one-third of disengaged employees. 
  • Engaged employees report fewer daily negative emotions, including stress. 
  • Only 30% of employees feel connected to their company’s mission/purpose—a record low. 

These findings suggest a virtuous cycle: improving engagement enhances wellbeing, which in turn supports sustained engagement and productivity.  

So, what can organizations do to boost employee engagement and wellness in the workplace? 

Strategic Approaches for Supporting Workplace Mental Health 

Invest in Manager Development 

Manager burnout correlates directly with declining team performance, increased absenteeism and turnover. Yet less than half of the world’s managers (44%) say they have received management training, making it one of the most effective wellbeing initiatives employers can invest in. 

According to Gallup, when employers provide management training, manager thriving levels improve from 28% to 34%. Thriving increases further to 50% when managers are encouraged to pursue personal development opportunities.  

Address Core Drivers of Burnout 

In 2019, the World Health Organization (WHO) included burnout in its International Classification of Diseases, defining it as an occupational phenomenon, rather than a medical condition. Burnout is driven by much more than just hours worked. Workplace factors contributing to burnout include: 

  • Toxic workplace behavior 
  • Role ambiguity 
  • Being treated unfairly 
  • Unclear communication 
  • Lack of manager support 
  • Unreasonable time pressure 

Organization-wide, addressing factors like this that might be affecting mental health can have a more profound impact than generic wellness initiatives.  

Implement a Holistic Approach to Workplace Mental Health

Effective mental health strategies require interventions at multiple organizational levels. Providing access to support resources and mental health awareness training for managers can help support employees at an individual level. In addition, encourage managers to look at various roles to find ways to enhance employees’ autonomy and ensure they have reasonable workloads. At the team or department level, leaders can influence the ways teams work together and create space for recovery by ensuring employees are cross-trained and workloads can be transferred. Organization-wide structural changes are equally essential, addressing systemic issues like compensation equity, career development paths and recognition programs that reinforce psychological safety.  

Research shows that organizations taking this multi-level approach see significantly better outcomes than those implementing isolated wellness programs. According to the WEF report, comprehensive interventions targeting structural issues, leadership behaviors and individual support tools simultaneously can deliver up to three times the return on investment compared to fragmented approaches. The most successful organizations treat mental health not as a separate initiative but as an integrated consideration in every business decision, from office design to performance management systems. 

Focus on Presenteeism, Not Just Absenteeism 

While absenteeism is easier to measure, presenteeism (working while unwell) represents a larger economic impact. Many organizations track sick days but overlook the more substantial productivity drain of employees who are physically present but mentally struggling. 

According to WEF, conditions like depression cause productivity losses exceeding $300 per employee annually in the U.S., primarily through presenteeism. Employees experiencing mental health challenges often exhibit decreased focus, impaired decision-making, reduced creativity and diminished capacity for collaboration—all while appearing to be “at work” according to traditional definitions. 

Regular pulse surveys, performance analytics and team effectiveness assessments can help identify patterns of presenteeism before they translate into more serious issues like turnover or disability leave. Creating psychological safety for employees to disclose struggles before they become debilitating is equally important, as early intervention has been shown to significantly reduce both the duration and severity of mental health challenges. 

Building Resilience with Workplace Mental Health 

As organizations navigate economic uncertainty, technological disruption and evolving workforce expectations, they must also keep in mind that their employees are also impacted by these factors. In order to keep your workforce healthy and productive, mental health support must shift from a peripheral benefit to a core business strategy. 

The data is clear: organizations that invest strategically in mental health create competitive advantage through higher engagement, reduced turnover, increased productivity and stronger organizational culture. Few investments offer comparable returns. Building mental health resilience isn’t just about supporting employees—it’s about securing your organization’s future performance and sustainability in an increasingly complex world. 

Navigating the Gen Z Era: Insights for Effective Early Careers Recruitment 

Posted on by akessler

Navigating the Gen Z Era: Insights for Effective Early Careers Recruitment 

The future of work isn’t coming—it’s already here, and it’s powered by Generation Z.

Born into a world of uncertainty, Gen Z isn’t just adapting—they’re rewriting the rules. These digital natives are bringing fresh perspectives, unmatched tech-fluency and a hunger for meaningful work. But they’re also demanding authenticity, flexibility and a real commitment to social impact.

Can your organization keep up?

From TikTok-worthy employer branding to creating a workplace that balances purpose with work-life harmony, this ebook, Navigating the Gen Z Era: Insights for Effective Early Careers Recruitment, is your roadmap to successfully recruiting and retaining the Gen Z powerhouse.

In this ebook, you’ll discover:

  • What makes Gen Z tick: Understand their unique values and career expectations
  • Why your outdated recruitment tactics are falling flat with this generation
  • Strategies to align your early careers program with Gen Z’s values and expectations

Download your copy today for expert tips for reimagining your early career recruitment program to become a Gen Z magnet.

Talent Insights Inform Search for Executive Leader for Healthcare System

Posted on by akessler
Talent Insights Inform Search for Executive Leader for Healthcare System

Healthcare Recruiting

Talent Insights Inform Search for Executive Leader for Healthcare System

A non-profit healthcare system engaged their RPO partner, PeopleScout, for talent insights to boost their search for a highly competitive new Chief Analytics Officer.

Situation 

A non-profit healthcare network was seeking a Chief Analytics Officer based in a large city in the United States where they’re headquartered. Other requirements for the role included experience in AI and data management platforms.  

They had engaged an executive search firm but weren’t seeing results. As their long-term healthcare RPO partner, PeopleScout’s dedicated talent advisory practice stepped in to provide the healthcare provider with an in-depth analysis of the talent market to support a more targeted search. 

Solution 

The PeopleScout Talent Advisory team worked with the client to define the most pertinent job characteristics and review job skills and compensation. This ensured that the role was aligned with the capabilities in AI and data management that the client required.  

Our analysis focused on the talent market in their required location to show the size of the talent pool that possessed their required skills. We were able to determine that there were less than 10 potential candidates based in that city that had all the skills they were looking for. The report we produced showed how adjusting their requirements would affect the size of the available talent pool.  

Here’s what we found: 

  • We identified candidates living in other cities that were currently commuting large distances during the week for work. This helped the client see if they relaxed their location requirement or were open to a flexible work arrangement (i.e., two-weeks working in the city, two-weeks working at home), they could grow their talent pool significantly. 
  • We uncovered a pattern that most people in similar roles had a tenure of approximately two to three years before switching jobs, usually after delivering a data transformation project. We advised the client that people who were only a year to 18 months into their current role may be less interested in switching. The optimum level of two to three years of tenure would make candidates more open to moving. 
  • We noticed a pattern that many people with the relevant skills were working as independent consultants. This revealed an additional pool of candidates who might be interested in going back to full-time work which the client hadn’t considered.  
  • We also found that many of the qualified candidates worked in financial services and might be receiving salaries on the high end of the spectrum. This helped the client reset expectations around the compensation range in order to secure the right person for the role.  

Results 

The talent insights we shared showed the client that flexing their requirements for the position could expand the talent pool in different ways. This data helped the healthcare company to make more informed decisions about the sourcing strategy for their new Chief Analytics Officer. 

At a Glance

  • COMPANY
    Healthcare Network
  • INDUSTRY
    Healthcare
  • PEOPLESCOUT SOLUTIONS
    Talent Advisory
  • ABOUT THE CLIENT
    The client is an American non-profit healthcare company and integrated delivery network.
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Healthcare Talent Shortage: Changing Demographics, Growing Demand & Shifting Skills

Posted on by epadmin

As the world of work transforms, the healthcare industry is at the epicenter of change. The industry is growing rapidly and facing a healthcare talent shortage and skills gaps. At the same time, the accelerating pace of medical and technological advancements means medical professionals must constantly adapt to new breakthroughs and changing expectations. Talent acquisition and HR professionals need to be ready to meet the growing challenge. To do so, they must understand the full picture of the healthcare talent landscape.

Is a Generational Change Creating a Healthcare Talent Shortage?

The industry is facing challenges in both supply and demand. Hospitals and Health Networks magazine calls the generational change “the most powerful force operating in our health system right now.”

On the supply side, the baby boomer generation is reaching retirement age, and according to Becker’s Hospital Review, one-third of practicing physicians are more than 55-years old and nearing retirement. Replacing doctors and surgeons who have decades of experience is challenging, as those earlier in their careers lack the years of training, education and on-the-job hours. The next generation in the workforce, Generation X, is relatively small. While the millennial generation is the largest generation in the workforce, the oldest millennials are nearly 40 years old, and some of Gen Z are too young even to start medical school. As baby boomers retire, these generations will have to fill that gap.

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How RPO Can Solve The Top Challenges In Healthcare Talent Acquisition

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On the other side of this equation, the overall population is aging, with 10,000 Americans turn 65-years-old every day. Caring for an aging population will require even more healthcare professionals.

As baby boomers age, the demand for healthcare is increasing, including home health services, long-term and aged care. Chronic conditions like heart disease, diabetes, cancer are becoming more common with nearly half of the American population suffering from a chronic illness. According to a study JAMA Internal Medicine, , baby boomers have a longer lifespan but higher rates of hypertension, high cholesterol, diabetes and obesity. This means the largest generation to reach retirement age will likely also need more healthcare than any previous generation

The Healthcare Talent Shortage

The aging baby boomer generation is fueling industry growth. The healthcare industry is predicted to be the largest driver of growth in the U.S. economy through most of the next decade. Yet, most healthcare organizations continue to experience strains as the healthcare talent shortage increases. This is a multi-pronged issue driven by increased demand, retirement, burnout and a lack of new healthcare professional entering the field complicating healthcare recruitment.

And experts predict the healthcare talent shortage will only get worse. The Bureau of Labor Statistics (BLS) projects that the country will face a shortage of 195,400 nurses by the year 2031. While doctors and nurses are the most visible employees in the healthcare industry, growth in the industry will impact positions throughout the sector. An increase in patients, hospital visits and appointments will call for more support staff, like clinic support, medical technicians, billing and coding professionals and even non-clinical hospital staff like janitorial and food service.

Laboratory technicians are facing many of the same labor challenges as physicians and nurses. Many are reaching retirement age, and retirements are expected to accelerate. Replacing them will tough, as the number of students graduating from laboratory technician programs is declining.

Plus, due to a shift towards home-based care, home health aide shortages are projected to grow significantly. The BLS predicts that the number of openings for home health and personal health roles will increase 37% by 2028.

Healthcare Talent Shortage

Less visible roles are also impacted by healthcare talent shortages. The medical coding profession has been plagued for years by a shortage of coders. Job growth for the position accelerated after the implementation of the Affordable Care Act, and experts expect that growth to continue along with the rest of the industry.

A Transforming Workplace

In addition to the healthcare staffing challenges, the healthcare industry is not immune to the changes impacting organizations across the country—like the digitization of services and the growing gig economy. The healthcare industry is always experiencing change due to technological advancement, medical research and new regulations. However, to adapt to these trends, organizations will need to seek out talent in different ways and find people with new skill sets.

Use of telemedicine and virtual care expanded during COVID-19 and are continuing to rise as a way to improve access. Jobs in these types of workplaces require different technology and communication skills than more traditional hospital and clinic jobs.

While many think of the gig economy as a place for creatives or rideshare drivers, the contingent workforce is taking on a greater role in healthcare. SIA reports that hospitals are turning to contract physicians and traveling nurses to deal with the talent shortage. Some practitioners are turning to this freelance work to boost their earning potential, and the system helps increase staffing at rural healthcare facilities that struggle with healthcare recruiting.

Large hospitals are also bringing in a greater share of doctors due to consolidation within the industry. Since 2019, over 100,000 private practice doctors have transitioned into employees of larger corporate healthcare organizations. Nearly three-quarters of physicians are part of larger healthcare systems in the U.S., a record high.

A Necessary Response

To remain competitive in this challenging talent landscape, healthcare organizations must take a proactive approach to planning their workforces, sourcing and recruiting talent, retaining workers and appealing to millennials and Generation Z workers who will fill the roles of retiring baby boomers.

Areas across the United States are already feeling the impact of the healthcare talent shortage, and experts say the pressure will only grow. Organizations need to respond now to prepare. Here are some steps companies in the healthcare industry should take to manage skills shortages and how technology can help.

Countdown to Skills Crisis? What Our Latest Research Tells Us About Skills Gaps

Posted on by akessler

By Simon Wright, Global Head of Talent Advisory Consulting

The workforce skills landscape is transforming at blinding speed. Automation, AI, sustainability initiatives, demographic shifts—global forces are conspiring to make skills gaps and talent shortages more acute by the day. Don’t think it’s moving that fast? Well, the World Economic Forum predicts that a jaw-dropping 85 million jobs could sit vacant by 2030, resulting in $8.5 trillion in lost revenue.

The very meaning of “skills” is shifting beneath our feet. Skills requirements have already changed 25% since 2015, and experts forecast 65% more change by 2030. However, companies still rely heavily on degrees and experience over skills when it comes to making hiring decisions. No wonder we’re careening towards a global skills crisis.

PeopleScout partnered with skills-based workforce management platform provider Spotted Zebra to survey over 100 senior HR and talent acquisition leaders globally, plus over 2,000 employees worldwide, to compare perspectives. Our new research report, The Skills Crisis Countdown, maps the skills landscape and diagnoses the disconnects between employers and their workforce.

Read on for some key findings from our report.

HR Leaders are Ill-Prepared for the Skills Crisis

According to a study by PwC, 40% of global CEOs believe their business will be economically unviable in 10 years unless they reinvent for the future. Our study revealed that nine out of 10 HR leaders believe that up to 50% of their workforce will require new skills to effectively perform their job in the next five years. Yet, when asked if they are currently undergoing or planning a workforce transformation initiative in the next three years, nearly half (45%) of HR leaders admit to having no plans to undertake one.

So, in other words, half of employees will soon be underprepared for the future, but most companies have no strategy in place to address the issue.

According to LinkedIn, 84% of members are in occupations that could have at least one quarter of their core skills affected by generative AI (GAI) technologies, like ChatGPT. So, how are HR leaders preparing for this digital transformation and the AI era? Shockingly, a full third (34%) say they have no preparations in place to prepare for new technologies. Those who are preparing emphasize bringing in outside talent rather than reskilling existing employees.

Industry Composition by GAI Segment
Percentage of LinkedIn Members by Industry

Impact of GAI on workplace skills
(Source: LinkedIn Economic Graph Research Institute)

This is likely because they lack an understanding of the skills they have within their existing workforce. Our data revealed that 68% of organizations identify skills from manager feedback, which is highly subjective. So, it’s no surprise that 56% of employees think their skills are underutilized in their current roles, and 61% think there are other roles in their organization where their skills could be utilized.

An unprecedented skills revolution is barreling down the tracks, but companies are fast asleep at the switch. It’s time to wake up and get employees future-ready or risk a global skills crisis and talent scarcity for decades to come.

Digital & Tech Skills Gaps are Widening but Tech Skills are Viewed as Unimportant

Both employers and employees dangerously underestimate the importance of tech and digital skills. In our survey, both parties listed tech and digital literacy skills with low importance. With the skyrocketing demand for tech and digital talent, this does not bode well.

skills in the workplace

Mobile apps, ecommerce and digital transformation have made technology integral to every corporate strategy. However, supply isn’t keeping up with demand. McKinsey analyzed 3.5 million job postings in high-tech fields and found there’s a wide divide between the demand for tech and digital skills and the qualified talent availability. The most sought-after skills have less than half as many qualified professionals per posting compared to average global figures. 

No wonder 63% of HR leaders in our survey admit they struggle to recruit the skills they need. Closing tech and digital skills gaps through recruitment alone is no longer sufficient. So, we were concerned when our research showed that 73% of the workforce haven’t been offered opportunities to reskill.

Organizations must invest in helping their employees evolve their skills via reskilling and internal mobility to cultivate digital and tech literacy across their entire workforce.

Case Study: Reskilling in Action

The Challenge:

A large global financial services company needed to undertake a major digital transformation program. The organization needed to acquire key digital and tech skills while leveraging the existing company knowledge of employees in declining customer service roles by reskilling them.

Previous efforts by the organization to assess employees’ suitability for reskilling were led internally and included multiple, time-consuming line manager interviews. Of even greater concern, around a quarter of those who began the reskilling program dropped out.

The Solution:

The bank worked with their long-time RPO partner, PeopleScout, and Spotted Zebra to assess customer service staff in bank branches and call centers to find ideal candidates for its tech and digital skilling program. Skills profiles were created for tech roles, which employees were assessed against to find the best fit.

The Results:

  • Redeployed 150 people, saving over $2.5M in exit costs
  • Saved over $350,000 in training and development costs
  • Reduced time investment by hiring managers
  • Reduced the reskilling cost-per-person by 70%

Employees Don’t Feel Confident in their Skills for the Future

A third (34%) of workers have doubts about how their skills will keep pace with new technology and automation. Meanwhile, just 17% of organizations are offering targeted reskilling programs for existing employees.

Where are HR Leaders Deploying Skills-Based Practices?

Skills-Based Practices in the workplace
(Source: PeopleScout and Spotted Zebra)

This imbalance spells disaster. As change overwhelms existing skill sets, most workers will begin to feel unsure of their career paths or left struggling to stay relevant.

Investing in reskilling makes solid business sense. We must bridge the gap between workers anxiously facing uncertainty and leaders failing to invest in their resilience. HR leaders who empower their workforce with adaptable skill sets today will drive continued success in times of swift and sweeping change.

Finding a Talent Partner to Support Your Skills Transformation

The agility to match emerging skill requirements will soon become a competitive necessity. If you haven’t started your skills-based transformation, now is the time.

In our survey, one in two HR leaders admitted to a lack of understanding of skills-based practices. If you’re struggling to understand how to take advantage of skills-based practices in your organization, PeopleScout is here to be your guide.

As a recruitment process outsourcing (RPO) partner, we can help you understand the skills within your existing workforce as well as the external market supply and demand. We offer solutions across the skills agenda, from skills-based talent intelligence and market insights, building skills frameworks, and creating skills-based success profiles to redesigning recruitment processes, skills-based hiring strategies, and helping you maximize the potential of your existing workforce.  

To learn more about PeopleScout’s skills-focused talent solutions, get in touch.  

[On-Demand] The Ticking Talent Clock: Is Time Running Out to Address the Skills Crisis?

Posted on by akessler

[On-Demand] The Ticking Talent Clock: Is Time Running Out to Address the Skills Crisis?

With the rapid advancement of AI, accelerated digitalization and the greening of the economy, businesses are grappling with the changing nature of work—how we work and the types of jobs we do. In fact, a new research report from PeopleScout and Spotted Zebra, The Skills Crisis Countdown, reveals that nine in 10 HR leaders believe that up to half of their workforce will need new skills to perform their jobs in the next five years. Yet, only less than one in 10 say they are actively investing in reskilling programs.

Are HR leaders running out of time?

Join PeopleScout’s Global Head of Talent Consulting Simon Wright and Spotted Zebra’s Chief Customer Officer Nick Shaw as they delve into the key findings from the research, lay bare the skills crisis and show why the clock is ticking for HR leaders.

In the webinar, Simon and Nick cover:

  • How organizations are addressing the mismatch in skills demand and supply
  • The current state of skills utilization, skills-based hiring and the need to expand talent pools
  • Strategies for improving talent mobility (including case studies and success stories)
  • Practical steps you can take to transition to a skills-focused model
  • And more!

 

The Skills Crisis Countdown: The Clock is Ticking on Tackling Skills Gaps

Posted on by akessler

The Skills Crisis Countdown: The Clock is Ticking on Tackling Skills Gaps

Our latest research reveals, nine in 10 HR leaders believe that up to 50% of their workforce will need new skills to perform their jobs in the next 5 years. Yet, only 7% say they are actively investing in reskilling programs, and 45% admit to having no plans to undertake a workforce transformation initiative to prepare for the changing skills landscape.

PeopleScout partnered with skills-based workforce management company Spotted Zebra to survey over 100 senior Human Resources and Talent Acquisition leaders from organizations around the global and 2,000+ employees globally to compare perspectives on workforce skills. The resulting research report, The Skills Crisis Countdown: The Clock is Ticking on Tackling Skills Gaps, provides a detailed picture of the current skills landscape and the disconnects between the perspectives of employees and businesses.

Download our free report for the latest research exploring:

  • The current state of skills in the global workforce and outlook for the future
  • How HR leaders are preparing for the impending skills crisis
  • How employees expect their skills will need to adapt to new technology or automation.

Plus, you’ll get a roadmap of actionable steps to help your organization become more skills-centric.

Talent Predictions: How Talent Acquisition Will Navigate 2024

Posted on by akessler

By Simon Wright, Head of Global Talent Advisory Consulting 

We are in one of the most transformative periods in the history of work. Between technological disruptions, societal shifts and global events, the talent landscape five years from now will likely look very different than it does today. However, even in times of uncertainty, we can discern key trends that will impact the way organizations source, recruit and retain talent. 

As a leading talent solutions provider, PeopleScout has a unique vantage point to view the forces shaping the future of work. Based on our experience and industry insights, we believe there are eight core areas talent acquisition leaders should embrace in 2024 to up-level their strategic importance within the business.  

1. Talent Leaders Will Look to New Models to Ride the Economic Waves 

The power balance has now shifted back to the employer amidst a tight labor market, fewer vacancies and a cost-of-living crisis. But if you think it’s time to pause investment in your talent programs, think again.  

Talent acquisition teams shrunk during COVID-19 and then grew quickly as part of the bounce back only to shed jobs again this past year. With continued uncertainty, TA leaders must showcase the value they bring to business by minimizing the impacts of economic fluctuations.  

It’s time to leave behind the boom and bust and embrace agility through a strategic approach to workforce planning and forecasting. Talent solutions like recruitment process outsourcing (RPO), including modular RPO solutions, offer responsiveness to help stabilize operational delivery amidst unpredictable economic waves.  

2. Business Transformation Will Shape the Workforce 

The specific skills and capabilities companies need are shifting rapidly, which means the jobs and roles employers need to fill are changing too. According to McKinsey research, one-third of new jobs created in the U.S. in the past 25 years were types that barely existed previously, particularly in high-demand areas like data analytics, software development and renewable energy. According to Totaljobs, despite a general slowdown in hiring, the demand for green jobs continues to go up, skyrocketing by 677% between 2019 and 2023. 

However, this business transformation is being hampered by the lack of talent and relevant skills. Economic, social and labor market changes are evolving faster than workforce training and development systems can keep pace. There simply aren’t enough workers with experience in emerging fields and new technologies.  

TA leaders must work proactively to build the reputation and influence of their employer brand with potential talent now—ahead of the hiring they need to do in the future. This means being able to recruit the best talent in the market, not just the best talent in your pipeline. Investing in candidate nurturing and employer branding strategies now will ensure organizations can hire first—and fast—when the time comes. 

3. Employees Will Continue to Reevaluate Their Relationship with Work 

TA leaders must be the eyes and ears for their organization, tuning in to the candidate market and shaping the employer value proposition (EVP) to meet the changing needs and expectations of candidates. Today’s employees are demanding more, and the one-size-fits-all EVP approach must evolve to keep up.  

Organizations that refresh their EVP with a more human-centric approach that recognizes employees as people, not just workers, will go beyond traditional offerings to provide exceptional life experiences that match employee needs. Delivering a positive emotional connection will be crucial for improving retention, overcoming the productivity vacuum and attracting quality talent in 2024.  

4. Data Will Be the Key to Overcoming Talent Scarcity  

The labor market has shrunk due to the retirement of Baby Boomers, and companies face an enormous brain drain of institutional expertise. Not only is the upcoming population smaller and not replacing the Boomers who are leaving the workforce, but they lack the some of the soft skills of the departing generation. With this double depletion at play, organizations will need to work hard to attract and train Gen Z in order to keep their workforce development on track for the future. 

Additionally, long-term illness, including lingering complications from COVID-19, has sidelined many working-age adults. The latest ONS data shows that the number of people economically inactive because of long-term sickness is now over 2.5 million in the UK alone. 

The key to reducing the impact of talent scarcity in 2024 is data. It’s time for TA leaders to treat talent intelligence as business intelligence, bringing it to the C-suite to drive decision making and inform strategy. Organizations must leverage data to understand both internal and external talent pools, maximizing ROI on talent attraction and retention efforts. 

Talent Acquisition Predictions

5. Skills-Based Practices Will Take Center Stage 

In order to keep pace with changing roles and dwindling talent pools, leading organizations are taking a proactive and holistic approach to adapting their workforces. They are investing in upskilling and reskilling programs while also leveraging RPO partners to find professionals with the most in-demand and future-proof skills. 

More organizations will look to expand candidate pools and tap into diverse skill sets through skills-based recruitment. To do this, organizations must evolve their candidate assessment practices to focus on skills rather than credentials or pedigree. We’ll see more organizations follow the likes of Google and drop their university degree requirements. This will have the added benefit of promoting greater diversity, equity and inclusion (DE&I) in the workplace.  

6. Internal Mobility Will Receive Big Investment 

More than a third (36%) of HR professionals surveyed identified employee retention as a priority in 2024. Internal mobility will become the key to retention as well as filling open roles and skills gaps. Focus will shift from building external talent pools to internal talent pools, putting methods in place to identify transferable skills that can be boosted to support business transformation.  

We saw an uptick in labor hoarding in 2023 talent trends. In 2024, organizations must invest in transforming the skills of the workers they’ve kept on board in order to ensure they’re ready for what’s on the horizon. 

In 2024, career moves won’t take a linear path but will weave across departments and disciplines, providing workers with variety and rewarding work. Organizations must train hiring managers to look at candidates, not just for their fit for a specific role, but for the value they can bring to the organization.  

7. Long Overdue Tech Upgrades Will Happen for HR 

The Josh Bersin Company estimates the HR technology is a $250 billion market. 2024 will be the year of recruitment tech stack upgrade.  

Organizations will look to capitalize on AI-powered features to do the heavy lifting so their teams can focus on more valuable recruiting activities. TA leaders should look to technology to augment human touches throughout the candidate experience, to identify opportunities for streamlining through automation, and to help them better interrogate data for a more agile resourcing model.  

This is also an opportunity for TA leaders to demonstrate they can deliver digital transformation and deliver ROI from these investments. This has been a criticism of talent acquisition and HR in the past, and it’s time to dispel that narrative.  

8. AI Fever Will Hit an All-Time High 

And finally, it wouldn’t be a 2024 talent acquisition forecast without a mention of AI. Generative Artificial Intelligence (GAI) tools, like ChatGPT, were on the tip of our tongues in 2023. As organizations grapple with the ethics of AI, most will succumb to the transformative potential and begin to test and experiment with how AI can benefit their workforce and operations in 2024.  

The role of technology will keep evolving within talent acquisition, but it’s primed to have a pivotal role in streamlining recruitment tasks and improving efficiency in everything from screening to assessments to interview scheduling.  

Organizations should take a principled approach to leveraging AI and automation to augment recruiting, while ensuring human oversight and care for people remains central. Starting with a small project or two will clear the mist so you can see clearly where AI will add value to your recruitment tech stack and candidate experience. 

The Importance of the Right Talent Partner to Help You Ride the Waves 

The future of work holds exciting potential, but also some uncertainty. However, while individual trends are difficult to predict, TA leaders that embrace agility, skills practices and tech innovation will find themselves in a strong position to prove their value in driving business performance. As your talent partner, PeopleScout will be ready to support, challenge and inspire you for whatever lies ahead. 

By staying on top of key shifts like these and working with an expert talent solutions provider like PeopleScout, companies can build workforces with the skills, mindsets and diversity of experiences to thrive in the next era of business. 

The Multigenerational Workforce: Bridging the Gap So Everyone Can Thrive [Infographic]

Posted on by akessler

It’s a new era in the workforce as we speed towards 2030 with four powerhouse generations in the mix: Baby Boomers, Gen X, Millennials and Gen Z. Understanding what makes your employees of all ages tick is the key to unlocking a culture where everyone thrives.

Check out this infographic on the multigenerational workforce and pave the way for an inclusive workplace that’s all about motivation and growth.

Get more on the multigenerational workforce in our guide, Destination 2030: 10 Predictions for What’s NEXT in the World of Work.

3 Strategies for Solving Hospitality Recruitment Challenges with Technology

Posted on by nfuqua

Amongst travel and hospitality recruitment challenges is a clear and persistent issue: staffing shortages. Talent leaders are struggling to fill empty roles amid low unemployment rates.

According to a 2023 survey by Deloitte, more than half of hotel executives (53%) say their properties have between 25–74% of the workforce they had in 2019. The situation at airports is even tighter with 62% of executives saying their workforce is half its prepandemic size or smaller.

On top of this, the unemployment rate sits at 3.8% in the U.S., 4.3% in the UK and 3.7% in Australia. The travel industry also saw a massive exodus of workers. In 2022, the U.S. Bureau of Labor Statistics reported record quit rates during the Great Resignation, with the quit rate in leisure and hospitality jumping by a percentage point to 6.4%. So, how can talent leaders hire hospitality and travel workers when the available pool is smaller?

Luckily, the right technology solutions deployed at the right times during the recruitment process can help talent leaders source, attract and screen candidates to find the best talent more efficiently and effectively. In this article, we’ll cover three technology interventions that talent acquisition teams can put into place to tackle hospitality recruitment challenges.

Hospitality Recruitment Challenge No. 1: Our open positions receive few applicants, and many of those who do apply do not have the background or experience needed to succeed in the role.

Solution No. 1: Invest in artificial intelligence sourcing technology to fill the top of your funnel.

Amongst common hospitality recruitment challenges that we see is finding talent with a wide variety of specialized skills across diverse and distant geographies. There is no one-size-fits all approach to hiring travel and hospitality talent. Finding a chef for a luxury property in Lake Como, Italy will look very different from a search for housekeeping staff at a family resort in Orlando, Florida. Finding a flight attendant looks very different from filling a baggage handler role.

With such a tight talent market, employers must target passive talent. During the Great Rehire talent leaders focused on filling roles as quickly as possible, but now they need to focus on finding and hiring more experienced workers.

An AI-enabled candidate sourcing tool can identify passive candidates with the right experience for specific roles and can even identify which candidates would be most likely to leave their current employers. Within seconds, recruiters can build a list of these candidates and share the opportunity. PeopleScout’s total talent suite, Affinix®, includes the AI sourcing feature, Talent Finder, which can connect employers with millions of passive candidates.

Consider the following best practices for using an AI sourcing tool:

  • Before searching for candidates, make sure you have a thorough understanding of the technical and soft skills needed to be successful in the role.
  • Use features, like PeopleScout’s Diversity Boost, that can identify candidates from underrepresented backgrounds to help meet your DE&I goals.
  • Blend AI with the human touch. By having a recruiter reach out to a sourced candidate with a personalized message, employers can create a positive experience.
  • Make sure a human makes all final hiring decisions. AI can make the process more efficient, but hiring managers should make the final call.

Hospitality Recruitment Challenge No. 2: Candidates drop out of our process before reaching the offer stage, either by abandoning the application or ghosting the interview.

Solution No. 2: Improve the candidate experience by making the process quick and easy by embracing tools like SMS or virtual interviews.

Hospitality employers must ensure that their candidate experience sets them apart from other employers at every stage of the candidate journey. For candidates, how they’re treated during the hiring process is a preview of what their experience will be as an employee.

PeopleScout research shows that the hospitality industry has a lot of room for improvement in this area. In our analysis of the candidate experience of more than 215 different organizations, the hospitality sector came in last overall with the lowest average scores in every stage except Follow-Up (in which it was second to last). While hospitality organizations effectively showcased their diversity and inclusion efforts on their career sites, only half gave candidates the opportunity to register their interest.

Your candidate experience should be unique to your brand and help you distinguish yourself from other employers hiring for similar roles or skills. Many talent acquisition teams don’t appreciate that candidates don’t perceive the recruitment process as a funnel. They’re the main character in their own story, and they expect to be treated that way. Candidates want to engage in their job search on their own terms. So, anytime they encounter a roadblock to getting the information they want, especially if they don’t know what to expect in the next stage, they’re more likely to drop out of your process.

There are several ways to leverage  technology to make the process easier for candidates. First, start with a shortened application. According to PeopleScout research, nearly 40% of organizations asked candidates to duplicate information that was already contained in their resume or CV. Make sure your application only collects the information that is most critical for determining who moves along to the next step of the process.

From there, other technology solutions can be used to gather the additional information necessary to make a hiring decision. SMS can be used for an initial text screening, and virtual interviews, like those available in Affinix, allow candidates to answer additional questions at their own pace while feeling as though they’re driving the process.

Finally, automated communication can keep a candidate engaged in the process. The right technology platform can help by sending automated messages to candidates, via email or chatbot technology, updating them on their application status. You can even craft messages letting a candidate know if they did not get the job, so they aren’t left wondering if you ghosted them.

Consider the following best practices for using technology to improve your candidate experience:

  • Make sure your application is mobile-friendly and can be filled out in 10 minutes or less. Test your current application to see how long it takes to apply.
  • Provide candidates with the opportunity to opt-in to receive text messages or emails from your organization to remain in compliance with local spam laws.
  • Tailor the type of virtual interview to the type of role. While video interviews may be appropriate for customer-facing roles, others may prefer the opportunity to answer questions with recorded audio.
  • Make it simple for candidates to understand where they are in your process; this can be something as simple as a progress bar.

Hospitality Recruitment Challenge No. 3: Our assessment process isn’t effective at identifying the candidates most likely to succeed in the role, leading to increased turnover, reduced productivity and disengaged employees.

Solution No. 3: Assess candidates for passion, purpose and mindset.

The travel and hospitality industry is all about guest experience, and hotels, airlines, restaurants and theme parks differentiate themselves with the unique experience that they provide. So, talent leaders need to find candidates who not only have the right skills and experience but also a deep understanding of the brand and how it is reflected in the service provided.

For example, in a major city, you may find three hotels on the same street, one catering to a high-end luxury experience in a historic building, another geared toward young travelers with bold art and hit music playing in the lobby, and a third designed with business travelers in mind—with a large business center, meeting rooms and plenty of quiet spaces for someone to plug in their laptop. Many hotel brands even have this variety of styles within their own portfolios. The service provided in each hotel looks different, and a person who excels at a luxury property may not thrive in a trendy hotel.

By selecting the right assessment tool, employers can go beyond looking at just capability, behavior and results but also determine whether candidates align with their organization’s purpose, have passion for the work they would do and whether they have the mindset to adapt to new environments.

By building an assessment during pre-screening that accounts for passion, purpose and mindset in addition to the standard skills and experience, employers can use technology to shortlist candidates based on several different attributes at the same time. This way, employers can get a clear picture of the different strengths and weaknesses of candidates in order to make informed decisions about which candidates are best to bring forward to the interview stage.

By identifying candidates who match well with an employer’s brand of guest experience, talent leaders can reduce turnover and build a happier, more engaged team. In turn, that leads to better customer experience and a better bottom line.

Consider the following best practices for building an effective assessment for hospitality talent:

  • Identify the essential behaviors for the role to separate those who will actually be successful from those who simply present well during an interview.
  • Build assessment tools around your organization’s vision and values so applicants have a chance to form a connection to them from the start.
  • Self-evaluation tools can also be used to help applicants consider their own strengths and whether the role will offer sufficient opportunity to use and demonstrate them.
  • Distinguish between good candidates who meet the criteria and great candidates who will take an organization further.

Finding the Right Talent Technology for Hospitality

The travel and hospitality industry still faces an uphill climb in returning to or even exceeding their prepandemic staffing levels, but talent leaders have additional and improved tools available to help identify, attract and screen candidates. However, in a full marketplace, finding the right tools can be a challenge. Consider partnering with an RPO with expertise in technology that can help identify the most impactful ways new tools can solve your most pressing hospitality recruitment challenges.

Get more strategies for attracting and hiring hospitality, travel and tourism talent, with our Recruitment Handbook for Travel and Hospitality.