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

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.

How to Scale Candidate Engagement for Total Talent Acquisition 

By Mark Fita, Global Vice President of Implementation 

An extensive amount of time and energy is put into candidate engagement, as candidate-centricity continues to dominate in a labor market of inverted supply and demand. However, the engagement strategy often focuses solely on full-time hiring. But why?  

Contingent labor is critical for responding to the fluctuating supply and demand of today’s talent market. Many organizations have increased contingent labor spend to decrease costs and increase liquidity amongst our uncertain economic environment. A total talent acquisition strategy—encompassing both full-time and contingent workers—helps organizations reduce agency costs and improve fulfillment to meet the most critical business demands. 

In our recent study, Inside the Candidate Experience 2023 Report, we found that just two in 10 candidates rate their most recent recruitment experience as positive. Candidate ghosting, long application processes, and long delays in between hiring steps have become the norm.  Clearly, organizations must improve how they’re engaging with candidates to improve outcomes across all their hiring programs.  

Keep reading to explore the differences between the permanent and contingent candidate journey, and to learn how investing in candidate engagement as part of total talent acquisition strategy improves recruitment outcomes.

A Tale of Two Candidate Journeys: Permanent and Contingent Workers

Let’s take a look at the recruitment processes for permanent and contingent workers.

Recruitment process workflows for both permanent employers and contingent workers

The strategies for engaging with and acquiring both permanent and contingent talent are often siloed.  

Typically, Procurement leaders oversee contingent labor spend, while talent acquisition leaders look after full-time hiring. Contingent hiring is also sometimes decentralized, with hiring managers taking responsibility for their own departmental hiring. The two sides are often competing for similar talent, with each side paying a premium to get workers in the door. 

Permanent hiring typically involves thorough vetting with recruiters responsible for moving candidates manually through the process.  

The contingent hiring process includes various stages and handoffs, especially as suppliers pass along the candidate to the hiring manager. 

The Importance of a Total Talent Acquisition Strategy

We often see senior leaders go to their internal stakeholders to plead for 50 or even 100 workers in a particular job type to keep up with growth. Think of software developers, commercial drivers, nurses and more. These leaders are so desperate for talent that often they don’t care about the workers’ classification.  

This makes having a comprehensive total talent acquisition strategy that includes both full-time and contingent labor hiring even more critical. Silos between these recruitment processes result in poor candidate engagement. Full-time and contingent workers end up engaging differently with your brand, leading to ghosting and drop-off—and higher costs for the business. 

While employers understand the importance of the candidate experience, there is still room to grow. Some of the common pitfalls we see are: 

  • Delivering one directional communication to candidates 
  • Not tailoring the outreach and message to different target audiences  
  • Spreading the talent attraction budget too thinly across job boards and aggregators 
  • Not asking for feedback  

Now, let’s contrast that with what candidates want:  

  • A mobile-first experience  
  • Cultural immersion, regardless of worker classification 
  • Job flexibility, including remote work options 
  • A quick and easy application processes 
  • Fewer interviews and shorter assessments 
  • Real-time status feedback (No recruiter phone tag!) 

The Candidate Engagement Pyramid

So, how do you create an engaging candidate experience that gives both full-time hires and gig workers what they want? I like to think of the candidate engagement pyramid: the recruiting process, talent engagement technology and the worker value proposition. 

the candidate engagement pyramid

Why a pyramid? Because each level is built on the one below it. Organizations that focus on one area at the expense of others don’t have a solid foundation for their talent acquisition program.

Streamlining the Recruitment Process

At the base of the pyramid, an optimized recruiting process engages talent every step of the way. Candidates should drive the process and be able to self-progress throughout the recruiting workflow, regardless of whether they’re applying for a permanent or contingent role.

Focus on Your Candidates, Not Your Company

Start by focusing on the targeted talent personas. Your recruitment marketing campaigns and job postings must feature thoughtful messaging that resonates with this audience and highlights what’s in it for them—not just what your organization needs.

Make Your Career Site Work Harder for You

Over 90% of job seekers globally use career sites to search for opportunities. Streamlining your career site to provide more information and eliminate candidate confusion goes a long way to increasing application rates for full-time and contingent roles.

Is your career site easy to navigate? Have you eliminated job duplicity? For example, let’s say a large retailer is hiring across 20 locations in a major metropolitan area. If I apply to one location, will I be considered for all, or do I have to apply to each location separately? Do I need to apply for the part-time role if I already expressed interest in the full-time role? Consider adding FAQ content to your site that answers these types of questions and lays out the process for each job type.

Move to Mobile-First Applications

Next, a mobile-first, quick-apply process is a must-have. Over 90% of candidates have used a mobile device to apply for jobs. Yet less than half of employers are taking advantage of a one-click application tool. When a candidate can complete an application in less than three minutes, completion ratios are as high as 80%.

I recognize there are regulated jobs that require specific information. However, I’d encourage you to work with your legal teams to determine what you must know upfront and what you can move to a screening step or to the formal paperwork in the post-interview or offer phases.

Streamline Interviews

The shelf life of an engaged candidate is short. Phone tag leads to disengagement. If you can’t connect with candidates quickly, they’re gone. Technology is a great way to connect with candidates and speed up the vetting process. You could introduce pre-recorded digital interviews, screening questions delivered and answered by text message, or even automated interview scheduling tools.

The more interviews a candidate must complete the more likely they are to drop out of the process. Obviously, if you’re looking for a senior executive, they need to be thoroughly vetted. However, a panel interview for a hospitality worker wouldn’t make sense, so make sure your recruitment stages match the type of role.

Make Faster Decisions

Close the candidate. Today’s competitive market requires you to make fast decisions.

If your candidate is “the one,” make them feel special and respect their time. Candidates will not wait for you, so get the offer paperwork out quickly.

candidate engagement for contingent workers

Leveraging Technology for Total Talent Engagement

Talent engagement technology is closely tied to the recruitment process. The right tools at the right point in your process can further streamline the candidate journey and prove that you value their time.

Here are some examples of how our clients leverage technology to improve their recruitment process.

  • Full-Time Candidate Journey
    Raquel submits a three-minute application via her mobile phone and receives an automated text-based assessment. Built using natural language processing, the assessment deems her a good fit against the scoring rubric. Raquel then gets a text with a link to self-schedule an in-person interview with a hiring manager as soon as two hours later. This entire process takes about 15 minutes. Raquel has an offer by the end of the day.
  • Contingent Candidate Journey
    Mario is a contractor who has worked on an assignment at your company before. He received glowing reviews and prefers short-term assignments due to the flexibility it offers him and his family. Your company has an advanced direct-sourcing platform that manages all current and former workers. This makes it easy and fast for Mario to find and apply for jobs because his information is pre-loaded. Mario was also pre-onboarded through your organization’s preferred supplier for this labor category. Now he can sign up for a variety of shifts without going through the formal vetting process.

Invest in Your Talent Tech Stack for Candidate Engagement

Here are a few tools to consider adding to your talent tech stack to create scenarios like these that will keep your potential full-time and gig workers engaged:

  • Chatbots: Chatbots help candidates submit applications, vet passive talent and even automate some of the screening process. They also support candidates by answering common questions and can even be linked to a standby live resource to assist with queries that fall outside of pre-determined content.
  • Interview Scheduling: Self-scheduling tools help the candidate take charge of their experience by allowing them to find interview slots that suit them. It cuts the lengthy back and forth of coordinating calendars, saving time and creating a frictionless experience for candidates, hiring managers and recruiters alike.
  • Digital Interview Tools: There are many options for virtual interviews, including on-demand phone interviews, text interviews as well as live and pre-recorded video interviews. Virtual interviews are mobile-friendly. Plus, they are perfect for remote workers and those with variable work schedules as candidates can record their interview responses when convenient for them.
  • CRMs: CRMs help with regular delivery of relevant communications and content to keep candidates engaged throughout the recruitment process. You can also keep permanent and contingent talent pipelines warm and ensure they’re informed about your latest vacancies and opportunities.
  • Analytics: A talent analytics suite aggregates data to empower you to increase fulfillment, decrease costs and reduce the time it takes to put a worker on the job. There are times when it makes sense to bring on a contractor or someone with less experience who can get trained in the same amount of time it takes to find the ideal permanent candidate. Recruitment analytics provides insights to power decisions like this and increase your agility in a competitive market.

Many providers offer a broad range of capabilities or act as a middle layer that brings together the best-of-breed tools to help you stay ahead. Whether you go with a technology suite or choose to leverage integrations to connect your systems, your selection should support a consistent and compliant set of workflows.

Employer value proposition for total talent acquisition

Expanding Your EVP to Include All Job Roles

Candidates today have greater expectations when it comes to work culture, flexibility, DE&I and pay equity—regardless of their working arrangement. While these expectations carry on well past onboarding, for the purposes of this article we’re going to focus on talent acquisition.

Change Your Perspective

We often talk about the employer value proposition (EVP) and how important it is to sell workers on a company’s proposition. But does yours apply to both your gig workers and permanent employees? Have you formally defined the value proposition for contractors?

Rather than using the term EVP, which implies the value is only experienced by those you employ directly, I like to use Worker Value Proposition (WVP) to make it more inclusive. Your WVP captures the essence of your uniqueness as an employer and the “give and get” between you and your workers—regardless of worker classification.

So, how do you move from EVP to WVP?

  • Boost Your Cultural Inclusion 
    First, make sure that the workers are culturally immersed in your brand. Where applicable, do your contractors get one-on-ones with managers? Are they included in company events and celebrations? Can they join ERGs? What about access to paid time off or flexible schedules? Be mindful that a person’s worker classification doesn’t change the need to do things like dropping off the kids at school, attending doctors’ appointments or running errands.  
  • Create Growth Opportunities
    Demonstrating growth opportunities is a struggle for many employers, for both contractors and employees. Has your organization invested in creating formal career paths for all its departments? Have you mapped out how workers, regardless of labor type, impact the organization and how their skillsets can translate into long-term mobility and growth?
  • Communicate Consistently
    You may be doing some of these things already, but are you communicating it during the recruitment process for both full-time and contingent roles? It’s not enough to tuck it away at the bottom of a job description. We’re helping our clients get more creative in showing their WVP through employee spotlight videos, realistic job previews, community spotlights and more.

One final note, WVP is not just a marketing exercise. The responsibility also sits with talent acquisition. Recruiters are often the first direct point of interaction between talent and your WVP, so make sure they understand their role as brand ambassadors.

Choosing a Total Talent Partner for Better Candidate Engagement

You may find yourself in a position where you need some help from a talent partner to achieve your total talent hiring goals. Here are three key things to look for:  

  1. Look for a partner with a holistic purview of the total talent landscape coupled with demonstrated success in hiring in your required labor categories. A partner should be prepared with the right market intelligence to map your talent personas against your talent market and identify, engage with, attract, and retain the talent that you need.  
  2. Your partner should have a tech stack that brings the right balance of open web sourcing, AI, and automation. Plus, these tools should introduce more candidate engagement and recruitment optimization.  
  3. Your talent partner should create a total workforce solution unique to your business that goes well beyond the traditional means of direct sourcing. They need a track record of creative problem solving, leveraging their in-house resources to enhance your social media presence, your employer brand, your DE&I strategies, and more. 

Webinar On Demand

Boosting Candidate Engagement with a Comprehensive Talent Strategy

Inside the Candidate Experience

Inside the Candidate Experience

The Hard Truth About Candidate Expectations vs Candidate Experience Realities

The candidate experience has never been more important. Yet, the latest research from PeopleScout shows that less than two in 10 candidates would rate their recent recruitment experience as excellent.

We audited the candidate journey of over 215 organizations around the world, giving each a Candidate Experience Quotient (CandidateXQ) score—a calculation based on 40 key experience indicators, including 15 critical factors that make or break the candidate experience.

By analyzing these CandidateXQ scores alongside data gathered from surveying over 2,400 job seekers globally, we uncovered a clear disparity between candidate expectation and reality.

Download our free Inside the Candidate Experience report for the latest research exploring:

  • What candidates expect at each stage of the journey and how employers stack up
  • Where each industry is succeeding or struggling with candidate experience
  • Actionable steps you can take to improve your CandidateXQ

Destination 2030: 10 Predictions for What’s Next in the World of Work 

Destination 2030:

10 Predictions for What’s Next in the World of Work

The last few years have been tumultuous for talent acquisition leaders, and it doesn’t look as if the pace of change is going to let up. Are you looking for ways to future-proof your workforce and create a resilient talent strategy?

Buckle up and join us as we travel to the world of work in 2030! Our ebook, Destination 2030, explores the latest research and global workforce trends and how they might impact the way we work.

In this ebook, we explore:

  • Demographic changes in the workplace and how to engage each generation
  • The changing role of technology in candidate and employee engagement
  • Our top 10 predictions for what’s next in world of work

[On-Demand] Boosting Candidate Engagement with a Comprehensive Talent Strategy

[On-Demand] Boosting Candidate Engagement with a Comprehensive Talent Strategy

The current hiring environment remains a challenge for employers—in the U.S., there are currently 4.3 million more open jobs than there are job seekers. Not only are employers struggling to find enough qualified candidates, keeping them engaged proves even more critical amid rising trends like candidate ghosting and recruitment process drop-out as well as the continued Great Resignation.

To cope, many organizations have added more gig workers, but the market for contingent workers suffers the same challenges. If talent leaders aren’t leveraging a unified strategy for recruiting both full-time employees and gig workers, gaps in their workforce will persist.

So, how can you engage these different types of candidates? Join PeopleScout Global Vice President of Implementation Mark Fita for the newest Talking Talent webinar, Boosting Candidate Engagement with a Comprehensive Talent Strategy, available now on-demand.

In this webinar, Mark will cover:

  • Today’s candidate recruitment process landscape
  • Best practices for optimizing your recruiting process
  • How to expand your employer brand to gig workers
  • The importance of using the right technology to engage candidates
  • And more!

Total Workforce Solutions: A Holistic Approach to Talent Channel Management

Modern workforce management has evolved. Increasingly, organizations are leveraging a multi-channel approach for sourcing talent to extend the reach of both their internal and external workforce. In fact, evidence of this trend can be seen in a survey conducted by the MIT Sloan Management Review, which found that 87% of global executives included some portion of external workers (contingent workers, contractors, freelancers and statement of work [SOW] consultants) when considering their workforce composition. 

And, because employers are leveraging multi-channel sourcing strategies, workforce management programs are more complex – thereby resulting in the need for new strategies, proven methodologies and enhanced levels of service from outsourced providers. So, in this article, we’ll discuss how a Total Workforce Solution (TWS) can help your organization by providing a holistic approach to total talent management through enhanced strategic capabilities; precise and up-to-date workforce information; and greater visibility into the multi-channel workforce.

What Are Talent Channels?

A talent channel is a managed and repeatable source of talent and may include anything from a job board to staffing vendors and college campuses. Essentially, a talent channel is a dependable path that leads job-seekers to your open positions.

Just as marketers utilize a variety of marketing channels and techniques to acquire customers, talent professionals likewise need to utilize various talent channels to attract prospective job candidates. And, while there are a host of recruitment channels and platforms to choose from, below we’ve outlined some of the most common and effective sources:

  • Job Boards: Job boards (including generalist and specialist websites) – where recruiters and organizations post open positions – have long been a source of candidates. More recently, job aggregators like Indeed have provided an alternative platform where job-seekers can search and apply for jobs. 
  • Internal Recruitment: Internal recruitment offers many benefits. For example, internal talent pools already have a wealth of knowledge about the company, the company culture and expectations. Therefore, directly sourcing and redeploying candidates who are already within the organization can also dramatically decrease time-to-hire, as well as hiring costs associated with training and onboarding.  
  • Campus Recruiting: Campus recruiting has been a mainstay for recruiting the next generation of young talent for years. Campus recruiting involves sourcing, engaging, and hiring college talent for internships and entry-level positions, while also building a talent pipeline for an organization’s future hiring needs.
  • ATS Database: An organization’s Applicant Tracking System (ATS) is an invaluable resource for sourcing and curating top talent. An ATS offers a recruiting channel full of applicants who may not have been the best fit for one position, but who have the experience and skills needed for a current or future opening. 
  • Events: Whether you host career events or attend networking opportunities, the power of face-to-face interactions with candidates is priceless. And, although in-person meetings have been less likely lately due to the pandemic, many organizations are still leveraging virtual events to meet and engage with candidates. 
  • Employee Referrals: Employee referrals are an effective way to build a talent pool because they allow employees to submit candidates from their professional and personal networks for open roles. Plus, by encouraging referrals, employers can tap into a steady flow of candidates, while also providing additional opportunities for engagement and compensation for current employees.
  • Staffing Vendors: Organizations might also outsource certain recruitment functions to staffing vendors to curate talent pools and supply candidates. Staffing vendors help organizations with permanent placement, executive search, SOW contracting and procuring talent of all categories – both permanent and contingent.

Sometimes, a hiring or procurement manager may fill an open role from a certain talent channel and labor type simply due to historical practices or for budgeting reasons. However, a Total Workforce Solution model opens the possibilities for reassessing historic practices and identifying the most efficient labor category and talent channel to deliver better outcomes.

Why Total Workforce Solutions Are Perfect for Workforce Management

workforce management

Total Workforce Solutions – also known as Total Talent Solutions and Total Talent Acquisition – are outsourced programs that blend the capabilities of Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP) programs by integrating the talent acquisition function for permanent and contingent workforces under one delivery team. By bringing together disparate talent functions under one centralized program, Total Workforce Solutions provide organizations with greater visibility for all workers, including full-time employees and contingent workers (such as temporary workers, independent contractors, freelancers and SOW providers). Total Workforce Solutions also provide a holistic view that leads to better workforce, sourcing channel, and demand management by deploying the resources, technology, and strategies best suited to improve talent and business outcomes. Specifically, a TWS offers:

Data Capture & Analysis: A TWS can take unstructured workforce management data from multiple sources and formats and create structured outputs, which create greater visibility into an organization’s workforce and talent channel efficacy. This enables an organization to measure the success of each recruiting channel, as well as employer brand campaigns and staffing vendor performance.

Resource & Process Control: The right workforce management view helps ensure the right work is being done by the right type of worker. Thanks to the holistic view provided by a Total Workforce Solution, organizations can track how budgets, headcount, procurement, staffing vendors and other issues are being managed across the entire enterprise.

Talent Engagement Expertise: Understanding the talent market is key to knowing how to best attract and engage job-seekers across all labor categories. To that end, a TWS provider’s ability to engage with job-seekers in both full-time and contingent sourcing channels in ways that job-seekers want to be engaged is driven by expertise in candidate experience and engagement. What’s more, TWS providers also have dedicated resources to support education and adoption of the best practices among an organization’s hiring managers and other stakeholders; this ensures that talent teams are engaging candidates from all talent channels in the right way.

Single Point of Contact: While procurement, HR, and talent teams each have their own methods, talent channels, and hiring objectives, each department strives to secure talent to meet their organization’s business needs. Fortunately, Total Workforce Solutions can help successfully align talent acquisition strategy across each of an organization’s recruitment channels by communicating between HR, recruiting and procurement teams. In this way, the TWS ensures that the right talent decisions are made for wider business goals, thereby optimizing both permanent and contingent workforces to give you a total talent view.

Workforce Management: Leveraging Talent Channels to Plan Ahead

In the dynamic talent environment created by the pandemic, employers are finding it increasingly difficult to source talent. Even so – and despite persistent hiring challenges – organizations need to be smart about the allocation of talent acquisition resources when filling roles. For example, conversations about filling open roles should begin with fundamental questions, like: What do we need to accomplish? Is the role easily managed with clearly defined goals? Is it core to the organization’s long-term strategy? Does the role require a long-term commitment, project ownership and management?

Depending on the answers to those questions, you can determine whether a full-time employee or a contingent worker is the best option. And, understanding how to more effectively fill or augment talent gaps also allows teams to scale, prioritize and be nimble – each important factors in today’s business climate.

Furthermore, different talent channels will have different advantages and disadvantages to consider. But, a TWS provider can provide insights by identifying all available sourcing channels, as well as assess where work needs to be done and what skills are needed to get it done. Then, from this evaluation emerges a talent strategy that taps into available candidates from across an organization’s recruitment channels – which then provides a high level of precision for getting the work done with the highest-quality output at the most cost-effective rate.

Candidate & Hiring Manager Experience

In talent acquisition, the human element matters. Specifically, an empowered experience on the part of workers who feel they have access to more opportunities can help boost an organization’s employer brand across its talent channels, as well as among job-seekers and the general public. At the same time, a positive experience for a hiring manager who has access to all talent types equates to higher engagement from the manager, including an increased commitment to sourcing talent from the right talent channels and at the right time and cost to achieve the desired goals.

Furthermore, the traditional employer brand is built on the idea of the employee value proposition that seeks to answer, “Why would this company be a great place to work?” And, to appeal to the growing, flexible workforce, the concept of the Assignment Value Proposition (AVP) is gaining ground as a fundamental brand component to support cases in which an organization needs to sell the value of the project just as much as the strength of the business itself. Add to this assignment value the idea that an organization provides many ways to work – through traditional employee roles or flexible assignments – and the result is a reputation that appeals to professionals of all working preferences.

Fortunately, a TWS provider can help you create compelling employer value propositions across your talent channels so you can attract the right mix of external workers and traditional employees. In particular, a TWS provider will have discussions with your team to consider the following in relation to messaging:

  • Work: Role versus project type and required necessity of skill; core versus non-core
  • Speed: Time to fill, time to contract, time to productivity and leveraging known relationships to reach candidates
  • Cost: Expected tenure of salary plus benefits or rate; or pay rate plus mark-up or deliverable and milestones
  • Worker Engagement: Classification preference or mandates, talent motivation, and talent communication

This discussion will provide you with insights into delivering precise and sophisticated messaging to job-seekers regardless of talent channel, as well as create better recruitment marketing for talent sourcing, engagement and management activities. Moreover, a TWS provider with a firm understanding of your workforce needs that is supported by the right talent technology and committed to continuous improvement will bring the value of a holistic view into your talent channels and workforce strategy. As a result, your organization will be able to make better data-driven decisions and broaden your choices from a single note to a full orchestra of talent options. While the journey takes time and dedication, the effect of this approach – in terms of access to talent, speed of engagement, cost control, and alignment of talent and business strategy – makes the effort essential for growth in today’s competitive global business environment.