Skills Shortage in Healthcare: Tackling the Lack of Healthcare Professionals

Healthcare organizations face a number of unique recruitment challenges compared to other industries. Finding and attracting candidates with the specific clinical, medical, and administrative skills required is an ongoing battle, especially for critical roles like nurses, physicians and specialist practitioners. With a large portion of the healthcare workforce reaching retirement age, an older population demanding more healthcare services, and new technology shifting the skills needed in the healthcare workforce, a skills shortage in healthcare is growing rapidly.

Healthcare organizations must plan now for the future by undertaking comprehensive workforce planning, establishing a robust talent pipeline, focusing on retaining their current workers and appealing to the younger generations to step into those roles.

The Healthcare Talent Landscape

The healthcare industry faces an uphill battle when it comes to recruitment and staffing. A perfect storm of factors, including an aging population, workforce shortages across multiple disciplines, and a global pandemic that has stretched resources to the breaking point, has created immense challenges. Healthcare organizations must navigate a highly competitive recruitment landscape to attract and retain top talent. Additionally, new healthcare roles are emerging that require specialized skill sets, further complicating hiring efforts. In this constantly evolving climate, understanding the current healthcare recruitment landscape is crucial for organizations looking to build a strong, sustainable workforce.

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How RPO Can Solve The Top Challenges In Healthcare Talent Acquisition

Demographic Shifts Are Increasing Demand

People are living longer, and as Baby Boomers age, the demand for health services, including home health services, long-term and aged care, is increasing. Chronic conditions like heart disease, diabetes, cancer are becoming more common with nearly half of the American population suffering from a chronic illness.

An older and sicker population is putting pressure on healthcare workers, especially those in clinical roles like nurses, physicians, health aides and therapists. Plus, demand is high for cardiovascular technologists, clinical lab technicians and other allied healthcare professionals who operate specialized equipment to diagnose and treat chronic conditions. Attracting and retaining top healthcare talent has never been more competitive, with demand increasing in both acute care and community settings, including large health systems, public health organizations, tech companies moving into healthcare, travel nursing firms, long-term care facilities, the military, healthcare research, mental health agencies, insurance and managed care companies, and even other industries.

Talent Supply Can’t Keep Up with Demand

The increase in demand seems to coincide with a healthcare talent shortage. The Bureau of Labor Statistics (BLS) projects that the country will face a shortage of 195,400 nurses by the 2031. Plus, a shift towards home-based care means the shortage of home health aides is projected to grow significantly. The BLS predicts that the number of openings for home health and personal health roles will increase 37% by 2028.

With home-based and long-term care growing, the U.S. healthcare system is also experiencing shortages for occupations like physical therapists and occupational therapists. Plus, these facilities find recruiting and retaining nursing assistants, care aides and direct care workers increasingly difficult due to low wages, demanding work and limited career advancement opportunities.

Retirement and Burnout Create Retention Issues

The challenges surrounding the skills shortage in healthcare are exacerbated by healthcare professionals exiting the workforce in droves. Experienced nurses, doctors and other clinicians are retiring and leaving patient care roles, resulting in the loss of crucial knowledge and experience for healthcare systems.

According to the American Association of Colleges of Nursing the median age of a Registered Nurse (RN) is 46 years old. Plus, more than a quarter of RNs report they plan to retire or leave nursing over the next five years. The rates of RN turnover in the United States have ticked up over recent years, growing from 17% in 2017 to 26% by 2021.

Driven by the strain of the pandemic and a shrinking workforce, many healthcare workers are experiencing burnout. According to the Medscape National Physician Burnout and Suicide Report, the average burnout rates for nurses and physicians in the US is 40%.

Burnout also has an impact on patient care. According to Nursing Times, about half of midwives say they’re afraid of making a mistake because they’re exhausted.

Innovation is Shifting the Skills Shortage in Healthcare

As care delivery models have shifted, there is a growing need for nurses and staff with specialized skills and experience. Use of telemedicine and virtual care expanded during COVID-19 and is continuing to rise as a way to improve access to healthcare. Digital disruptor Amazon recently completed an acquisition of One Medical and is now offering a new model of digital “concierge” or “membership” healthcare.

In addition, new innovations in digital health (think personal health tracking apps or wearables), med-tech, genomics, precision medicine, AI and more are transforming healthcare and shifting the necessary skills in the healthcare workforce.

Rising Labor Costs are Adding to the Strain on Healthcare Organizations

With nationwide labor shortages and inflation, healthcare organizations face rising costs for salaries, benefits and contract staffing. In all industries, workers are requiring more competitive compensation, benefits and perks to be enticed. This puts a particular strain on healthcare organizations where staffing is literally a matter of life and death.

High turnover among certified nursing assistants drives up costs for long-term care facilities and impacts quality of care. In order to keep high patient care standards and staff shortages, the U.S. healthcare system relies heavily on costly contract and travel nurses and other providers which further drives up labor costs for hospitals. In fact, contract labor expenses have risen more than 250% over the past three years.

Addressing the Skills Shortage in Healthcare

Addressing the skills shortage in healthcare requires a multi-pronged approach—improving workforce planning, enhancing recruitment and retention efforts, and elevating the perception of healthcare careers for the next generation.

Workforce Planning

To effectively respond to the changing healthcare talent landscape, organizations must take proactive steps to plan for their future needs. The future will look different for every organization. Healthcare organizations in Florida and the Southwest, where there are large numbers of retirees, will have different staffing needs than organizations in trendy urban areas in the Pacific Northwest or East Coast where the population tends to be younger and healthier. Region also makes a difference in attracting candidates, as rural health systems are already struggling to fill positions. Healthcare organizations should know what their needs will be in the coming years and what challenges they’ll face attracting workers.

Data analytics is a valuable tool for workforce planning. The American Hospital Association recommends that organizations analyze data including current workforce demographics, potential future workforce requirements, and factors impacting the data, like the increasing popularity of walk-in clinics, telehealth services and digital healthcare models. Predictive and prescriptive analytics tools can help healthcare organizations plan for future needs and evaluate how different decisions will impact those hiring needs. According to SHRM, this type of workforce planning can save money by eliminating issues with understaffing and overstaffing. Predictions can provide organizations with a clearer view of how and when different talent gaps will impact them. Armed with that information, healthcare organizations can make informed decisions when it comes to forming partnerships, increasing retention and reaching out to younger workers.

Building Talent Pipelines

A key strategy for combating the the skills shortage in healthcare will be convincing more people to enter the healthcare industry. Too often, HR leaders at organizations only think of potential candidates through a narrow lens. They focus on the people who already work in the industry and who already have the education and skills to be a nurse, medical technician or phlebotomist. There aren’t enough people already in those pipelines to fill the talent gap. Healthcare organizations need to think broad and start focusing on the young people who are considering a career in healthcare. They need to start marketing to these candidates earlier than ever before.

The American Hospital Association recommends that healthcare organizations establish community pipelines by partnering with high schools, colleges and other academic institutions. Through these partnerships, healthcare organizations can start engaging with future candidates earlier than ever and help drive young people to the healthcare industry. Partnerships can also create more candidates in a geographical region with a specific set of skills. According to the American Association of Colleges of Nursing, a partnership in Minnesota between the University of Minnesota and the VA Healthcare system helped expand enrollment in the university’s nursing program and increased the program’s focus on veteran care. The program ensures more graduates in Minnesota with the skills necessary to care for veterans. Healthcare organizations should form these partnerships strategically, using their workforce planning predictions to understand which types of positions will have the greatest demand and where these partnerships can have the biggest impact.

skills shortage in healthcare

Focusing on Retention

HR leaders at healthcare organizations are grappling with the stresses the skills shortage in healthcare is creating for their current employees . Understaffing creates larger workloads and longer hours. According to CareerBuilder, 70% of nurses say they feel burnt out in their current job and more than half rate their stress level as “high.” According to Medscape, only 56% of nurses would choose their career if they had a chance to start over again. If current health care workers are stressed, burned out and regretting their career choice, that could harm the talent pipeline. Healthcare organizations cannot afford to lose younger nurses due to stress or burnout.

Healthcare organizations will have to face the challenges of burnout head on to retain their workers. Healthcare Dive offers tips for ways HR professionals can help, including making your staff aware of the signs of burnout and teaching self-care strategies. Wellness among the healthcare workforce must be a priority. Some healthcare organizations have created quiet rooms stocked with yoga mats and massage chairs where nurses can go during their shifts to take a break. CareerBuilder recommends offering a flexible work environment, encouraging exercise, establishing an open-door policy, offering mental health tools and focusing on continued education.

While an expensive option, contract healthcare providers can also help ease the burden on understaff facilities. PRN, or “pro re nata,” positions are growing in popularity throughout the entire healthcare industry. The positions are typically part-time, as needed, and many healthcare workers are turning to these roles for the flexibility, rather than taking full-time positions. Healthcare organizations can use PRN workers to cover understaffed shifts, which can lift some of the burden on permanent employees.

Appealing to Younger Workers

Healthcare organizations are competing for the best of the limited talent pool. To succeed in attracting candidates, healthcare organizations must build a strong employer brand and meet the needs of millennial and Generation Z workers.

What do millennials want? Countless writers have tried to answer that question, but Harvard Business Review reports millennials aren’t necessarily all that different from older generations. They want good managers, interesting work and the opportunity to learn and grow. Like many other generations, they want to make a positive impact and help solve social and environmental challenges. By its nature, a career in healthcare can provide that. One thing that does set millennials apart from earlier generations is an increased debt burden due to higher education costs. Some financial experts recommend that organizations consider new benefits packages that offer student debt repayment to lure millennial workers.

As for Generation Z, the oldest members are just starting to enter the workforce, but experts say to be prepared for a cohort of workers well versed in technology. According to Forbes, in addition to being technologically savvy, members of Gen Z are also entrepreneurial and serious-minded after watching the impact of the Great Recession, so organizations should expect creativity and offer continuing educational opportunities. Harvard Business Review recommends reaching Gen Z candidates where they are—on mobile devices. Authenticity and personalization are also important to this segment of the workforce, as they’ve grown up bombarded with personalized advertisements online.

Engaging an Expert to Tackle the Skills Shortage in Healthcare

As they work to manage the growing skills shortage in healthcare, healthcare organizations are turning to experts in healthcare RPO, MSP and Total Workforce Solutions for healthcare staffing support. As you plan for the future, a talent partner can help provide a view of the whole talent spectrum, finding the right mix of both full-time and contingent workers. As the gig economy grows in popularity and more healthcare workers turn to contingent work, a talent acquisition partner can also ensure compliance on legal issues. Healthcare organizations should seek out partners with the right experience to tackle the specific needs of the industry.

A partner with a depth of data analytics experience can help develop a unique plan that addresses the needs, region and demographics of your individual healthcare organization. Data expertise can also help organizations determine why current employees leave and predict which changes could make the biggest differences in employee retention.

Healthcare organizations should also look for a partner with strong experience in building candidate-centered application processes and employer branding. As healthcare organizations compete for talent, a candidate-centered process and strong employer brand will help bring in the millennial and Gen Z workers.

Ultimate Recruitment Process Outsourcing Toolkit

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

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.  

Talent Predictions: How Talent Acquisition Will Navigate 2024

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. 

Church of England: Full-Scale Recruitment Process Review Through a DE&I Lens

Church of England: Full-Scale Recruitment Process Review Through a DE&I Lens

Church of England: Full-Scale Recruitment Process Review Through a DE&I Lens

The Church of England turned to PeopleScout to help them review and co-create a future-proof recruitment process strategy to support them in recruiting people who reflect the diversity of the communities they serve.

Situation

The Church of England (C of E) and its seven National Church Institutions (NCIs) have made great progress already in creating a diverse, fair, and unbiased recruitment processes. But, like most organizations, they face unique challenges. The main one being the barriers which come with being a faith and mission-based organization, coupled with the external perception of the Church. With the progress they had already made, the C of E were looking to accelerate the pace of change and take this to the next level, which is where PeopleScout came in.

Solution

The Church of England engaged PeopleScout to execute a recruitment process review through a diversity, equality and inclusion lens (DE&I) with the goal of uncovering further opportunities, including:

  • A forensic deep dive of over 80 internal documents spanning role creation, assessment policy, organizational values, and DE&I training.
  • DE&I data analysis of C of E’s recruitment processes focusing on progression and engagement.
  • Deep immersion in the organization and connection with its members to understand what is happening on the ground through discovery interviews and focus groups, winning hearts and minds along the way.
  • Regular consultative check-ins with the core team to ensure they are involved at each step of the way so they can own the recommendations.
  • Co-creating a vision of what the future can look like with an actionable roadmap decided by current C of E employees.

Results

Examples of some of our recommendations include:

  • Create a competency/behavior library and corresponding bank of interview questions to support hiring managers when designing role profiles, job descriptions and interviews for their roles.
  • Revisit the Church of England’s brand visibility, marketing strategy and transparency based on feedback from their new joiners in order to better attract candidates from all backgrounds and religious orientations.
  • Create clarity around instructions for filling out application forms to allow more consistency in response quality from candidates (e.g., using example responses).
  • Keeping interview panels to a maximum of two or three members from C of E to reduce candidate anxiety.
  • Create a central onboarding checklist to ensure everyone receives the same support when joining their role in any of the NCIs.

With the support of PeopleScout, Church of England’s National Church Institutions now have:

  • Clarity over their current strengths in diverse recruitment to roll out wider, as well as opportunities for improvement
  • Actionable, realistic, tailored recommendations for creating change in their unique organization
  • A co-created roadmap with both quick wins and long-term strategy to mobilize change immediately whilst maintaining momentum
  • Out-of-the-box ideas for talent attraction and candidate experience to boost the diversity of new joiners
  • Support and buy in from key stakeholders and employee resource groups so that any actions can have a lasting embedded impact

At a Glance

  • COMPANY
    Church of England
  • INDUSTRY
    Public Sector
  • PEOPLESCOUT SOLUTIONS
    Recruitment Process Outsourcing
  • ABOUT CHURCH OF ENGLAND
    The seven National Church Institutions (NCIs) work together at an international and national level, supporting the ministries of the Church.

The Recruitment Handbook for Financial Services Talent

The Recruitment Handbook for Financial Services Talent

The financial services industry faces immense recruitment challenges. With skills gaps persisting, economic uncertainties complicating hiring, and cultural perceptions pushing away young talent, talent leaders need solutions.

That’s why we created The Recruitment Handbook for Financial Services Talent.

In this information-packed guide, you’ll discover:

  • The latest global trends impacting financial services hiring so you can plan accordingly
  • 4 key recruitment strategies to solve your biggest hiring obstacles
  • Real-world examples and case studies of these strategies in action with RPO

Whether you need to build your employer brand, enhance your candidate experience, upskill employees or leverage better sourcing techniques, this handbook has tactics you can implement right away.

Download your copy now.

Talent Trends: 2023 in Review

By Simon Wright, Global Head of Talent Advisory Consulting  

Earlier in 2023, we highlighted six key areas that would impact how companies attract, retain and develop talent. With the year wrapping up, we’re revisiting these critical topics to examine what transpired in the talent landscape and what may be on the horizon for 2024.  

From closing persistent skills gaps to offering more work flexibility, companies continue to face pressing talent challenges. Economic fluctuations have led some employers to pull back on hiring and remote work, while others doubled down on upskilling programs and expanded their talent pools.  

In the following review, we trace how the 2023 predictions played out amidst an uncertain economy and ever-evolving workplace. 

1. Closing Skills Gaps 

What We Said: 

With rapidly evolving technologies requiring new skills, companies are making upskilling and reskilling their workforce top priorities. Most employees feel unprepared for future jobs, so it’s important for organizations to invest in development to retain employees, build confidence, and help them adapt to changing business priorities. 

What We Saw: 

Skills gaps, and the upskilling and reskilling that must happen in order to close them, are still very much top of mind for HR leaders. The economic slowdown has increased candidate availability, so in the short term there has been more tech talent available, for example. But long term, there is still a skills crisis, and organizations are largely yet to shift to skills-based practices. 

We’ve seen front-runner organizations investing in skills development initiatives to grow the workforce they need. For example, Amazon’s program Career Choice is part of a wider initiative to invest over $1.2 billion by 2025 to provide 300,000 U.S. workers with the training they need to pursue careers in whatever field they choose.  

The average shelf-life of skills is now less than five years. So, the skills conversation is only going to get louder. If the World Economic Forum’s prediction is correct that over 85 million jobs will go unfilled by 2030 due to a lack of skilled talent, resulting in $8.5 trillion (USD) in annual lost revenues, then this is the most pressing issue facing talent leaders today.  

2. Offering More Flexibility 

What We Said: 

Amidst the acceleration of remote work, companies are facing mounting pressure to offer greater location and schedule flexibility to attract and retain talent.  

What We Saw: 

The return to the office debate is still raging. Employees want greater flexibility, but more and more employers are pulling people back into the office. Even Zoom, the video communications company that helps us all work from home, announced in August that it will start tightening its restrictions on remote work. Amazon, Disney and more have all reduced remote-work days. 

While power has shifted back to the employer, this issue won’t go away. If you really think your employees love coming to the office just because you’ve introduced free snacks, you don’t understand what flexibility means to your workers. Flexibility is not just about where you work. True flexibility is about giving more autonomy to your employees about the kinds of work they do and when and where they do it. 

3. Shifting to Contingent Workers 

What We Said: 

As the desire for work flexibility drives more professionals into freelance and contract roles, organizations are increasingly utilizing these temporary workers to fill pressing skills gaps and specific project needs while maintaining financial and strategic workforce flexibility. 

What We Saw: 

The economic uncertainty this year has made organizations less likely to make permanent hires. Plus, freelancers, consultants and contractors have developed into an essential part of the workforce as skills requirements become more complex. Maintaining a mix of traditional and flexible talent is crucial for businesses to stay ahead in today’s dynamic climate. 

With the enormous interest in ChatGPT and generative AI, it’s not a stretch to think the pace of business transformation will only accelerate in 2024. And demand for contingent workers will continue to rise. Indeed, according to Ceridian, 65% of organizations plan to increase their reliance on contingent workers in the next two years. 

Talent Trends 2023

4. Tapping into New Talent Pools 

What We Said: 

Facing workforce shortages, organizations are expanding their applicant pool by targeting untapped talent like Generation Z, unretiring Baby Boomers and boomeranging ex-employees.  

What We Saw: 

In 2023, the UK government launched a “returnership” initiative to inspire those over the age of 50 to come back to work. The goal is to help older workers retrain and learn new skills, providing them with a roadmap back to the workplace and encouraging organizations to hire them.  

We also saw organizations turn their attention to the talent pool sitting right under their noses. Internal mobility was a hot topic for talent leaders in 2023 as recruiting new talent became more and more challenging and costly.  

We were also reintroduced to the concept of labor hoarding, a term coined in the 1960s. This practice refers to organizations forgoing head-count reductions now, so they’re prepared when business picks up. In an era of labor shortages, organizations are keeping their workforces to avoid the risk of losing good talent to a competitor and to skip the costs associated with hiring again. 

5. Rallying Around the Mission 

What We Said: 

Our Inside the Candidate Experience research revealed that for 50% of candidates, an organization’s mission and purpose are a key influence on their decision to apply. Yet, when evaluating career sites, we found details on the mission or purpose of the organization less than half (48%) of the time.  

What We Saw: 

Employees are more dedicated than ever to finding an employer that shares their values and offers them a sense of purpose. However, workers within organizations that lack a sincere commitment to improving the community and supporting climate initiatives often report disengagement.  

According to Gallup data from June 2023, 59% of global workers say they’re not engaged at work. This is worrying as we move into a labor market that favors employers, as they will inevitably become less motivated to keep their employees engaged. Yet, a key reason why someone quiet quits hasn’t changed—and it’s down to a lack of connection to the company culture and purpose. 

A lack of engagement in the workforce is a leading factor in the productivity vacuum. Going into 2024, my hope is HR leaders will go beyond simply thinking about wellbeing to view their employees as whole people—not just workers. Updating your employee value proposition (EVP) to be more human-focused can help strike the right balance between compassion and business interests. Shifting to a Personal Value Proposition (PVP), and customizing offerings so that each employee feels valued as an individual, can help in fostering a positive emotional connection. 

6. Engaging Outside Talent Acquisition Solutions 

What We Said: 

Despite economic uncertainty, business leaders foresee revenue growth in the coming year, but may need flexible and agile workforces achieved through contingent staffing to meet their top challenge of filling critical roles amidst a shifting talent landscape. 

What We Saw: 

We saw an increase in talent acquisition teams looking for quick wins. At PeopleScout, we are investing heavily in talent solutions designed to boost agility for employers of all sizes and across all industries. This includes offerings like our Amplifiers and PeopleScout Accelerate solutions launched this year. 

Amplifiers provide modular, targeted recruitment process outsourcing tailored to specific hiring needs. Clients can implement RPO support for just part of the talent acquisition lifecycle, whether that’s filling the top of the hiring funnel with high volumes of qualified talent or gaining deeper insights to guide strategic workforce decisions. This “as-needed” model is ideal for companies that want to remain nimble. 

Additionally, our PeopleScout Accelerate technology-enhanced RPO solution is purpose-built for fast-scaling organizations that need to ramp up recruiting quickly. We can implement PeopleScout Accelerate in just two weeks, providing access to our proven recruitment methodologies and our industry-leading Affinix talent acquisition technology suite right out of the gate. 

As we close the books on 2023, it’s clear the talent landscape continues to shift in new and uncertain directions. In the coming year, agile organizations that invest in the longevity of their workforce and truly connect with their people on a human level will maintain an edge. Rather than recoiling from change, forward-thinking talent leaders have an opportunity to guide their organization’s evolution. Now is the time to build workforces that can pivot on a dime while staying true to their purpose. 

Authenticity in Action: 6 Things Candidates Look for in Your Employer Brand

The secret lies in your employer value proposition (EVP).

Your EVP must place individual employees firmly at the heart of their own experience. This new approach to EVP—a Personal Value Proposition or PVP—is designed to resonate with employees as unique individuals with distinct motivations and aspirations.

Job seekers can see right through generic employer brands nowadays. Candidates crave authenticity and want to connect with a company’s true culture before joining. So, how can you craft an employer brand that both resonates with individual job seekers and showcases what your organization is authentically all about?

Here are six key areas today’s talent looks for when evaluating an employer brand’s authenticity.

6 Signs of an Authentic Employer Brand & EVP

Keep these priorities front and center as you shape your EVP to align both with your organizational priorities and employee needs.

1. Meaningful Connections

What Candidates Want:

In today’s job market, candidates aren’t just looking for a job—they want a workplace that helps them feel truly engaged and connected. A leading employer brand should attract top talent by cultivating genuine connection with peers, leaders and the overarching mission.

What Employers Should Show:

In our research report, Inside the Candidate Experience, we found that mission and purpose is a top three consideration for job seekers looking for a new job. Yet, less than half of employer show information about this on their career site.

By highlighting your organizational mission, you help candidates make an emotional connection to your employer brand. Amp up the authenticity through storytelling—how individual employees live your mission through their work, how your organizational policies reflect your brand purpose, how new hires can expect to make an impact when they join.

Purpose oriented employees are 47% more likely to promote their employer externally without incentive.

2. Holistic Development

What Candidates Want:

Employees are seeking work experiences that help them realize their potential beyond just job tasks. Workers are taking more control of their own professional trajectories, seeking opportunities that offer autonomy and alignment with their skills, passions and personal circumstances.

Work is no longer confined to a single job or career path. Instead, it is seen as a series of opportunities that facilitate personal and professional growth.

What Employers Show:

Development opportunities like mentorship programs, leadership workshops and reskilling bootcamps to support internal mobility are top of mind for employees—especially Gen Z. Training should address both hard skills (like coding, certifications or licenses and statistical analysis) and soft skills (like resilience, relationship building and empathy). However, we find that organizations don’t do enough to show the impact of this training on individuals and their personal and professional growth.

You can show this impact authentically by bringing it to life through telling the career stories of your employees. Watching a video of an employee sharing how they were able to go through a reskilling program and join a different department is far more powerful for a candidate than just reading about the program.

Here’s an example from Adobe showcasing their employees’ career paths on social with a global #AdobeForAll celebration.

3. Flexibility & Empathy

What Candidates Want:

Flexibility should no longer be the domain of people with children. Everyone wants more flexibility in where, when and how they work. It could be about caring responsibilities for parents, or it could just be having the time and space to pursue passions outside of work. Ultimately, this issue is about organizations demonstrating they trust their people and providing autonomy where possible.

What Employers Show:

Employees who are granted time and space to pursue their passions bring fresh energy, insight and creativity to the job. Yet, for our Inside the Candidate Experience report we audited the career sites of over 215 organizations and found that information on flexible working and work/life balance is mentioned just over half the time.

Help candidates experience this authentically by profiling employees who are embracing flexible work patterns. This helps them see how a role can fit into their own life. By understanding life outside work directly fuels innovative excellence within it, organizations can architect roles that let people show up as their best and truest selves every day.

4. Well-Being & Psychological Safety

What Candidates Want:

If this past era has taught us anything, it’s that employees require our care as much as any business strategy. The Great Resignation was fueled by individuals reprioritizing their well-being over their next promotion or paycheck. And Quiet Quitting is often the result of employees losing psychological safety and no longer seeing a return on their engagement.

Why Leaders Think Employees Quit:
Looking for better jobs
Compensation
Work-life balance

Why Employees Actually Quit:
Not feeling valued by their organization of by their individual managers
Not feeling a sense of belonging at work
(Source: McKinsey)

What Employers Show:

To keep employees healthy and productive, employers must start constructing safe spaces for people to bring their whole selves to work. That means prioritizing both physical and mental health, with an emphasis on creating environments where employees feel safe to both express ideas and dissent and even discuss failures without fear of backlash. It also means creating a culture of gratitude in which employees are given the opportunity to recognize and reward their peers for a job well done.

To communicate to candidates that your focus on well-being is more than lip service, include information on specific actions your organization is taking to support employees whether that’s wellness benefits or financial support programs. Don’t just state you have work-life balance programs—showcase how you empower people to utilize them through things like extra PTO days around major life events and even showing leaders modeling using your well-being perks to set the tone.

5. Diverse & Inclusive Environments

What Candidates Want:

Employees want to be a part of an organizations that celebrates true diversity, promotes cultural intelligence and fosters a workplace where multiple traditions, rituals and ways of thinking lead to innovation. These conscious cultures go beyond attracting candidates from underrepresented groups. They amplify their voices and put them into positions to reshape industry norms altogether. When asked how hearing from actual employees would influence their job search 86% of job seekers said they value stories from employees.

What Employers Show:

We found that 35% of organizations don’t feature a diverse group of real employees on their career sites. In addition, 60% of career sites don’t contain any video content in which employees share their personal journeys and stories. Often, we see that organizations mention their employee resource groups (ERGs) but fail to share the work these groups are doing and the impact they make within the organization and community. Employees want to see action, not virtue signalling.

Candidates find the voice of an average employee more credible than what companies say about themselves, so featuring real employee stories throughout the candidate experience is a proven way to engage candidates on an emotional level, building authenticity and brand trust.

35% of organizations don’t feature real employees on their career site

6. Community Engagement & Purpose Over Paycheck

What Candidates Want:

Employees are becoming more socially conscious and looking for employers that provide avenues for engagement with environment social governance (ESG) issues, with as many as 80% of workers in some industries saying that community and sustainability concerns play a role in whether they will resign from or remain at certain organizations. Two-thirds of candidates use social media to research companies during their job search, and they will look to your posts to see how your organization is backing up its promises.

What Employers Show:

Employers must take purpose beyond platitudes. Yet, we found that a one in three organizations are not posting employer brand related content to their social channels at least on a week.

A great example is Ben & Jerry’s. The company actively engages in social justice campaigns like Advancement Project, including on their social media channels, and gives employees time off to volunteer in community projects.

Include social media posts of photos and videos of corporate volunteer activities or ERG-sponsored events. Seeing images of real employees giving back makes your purpose-driven culture tangible for candidates. Even a corporate post of an individual employee who ran a marathon in support a charity close to their heart can show what purposeful empowerment looks like at the individual level.

The Power of Storytelling for an Authentic Employer Brand

Injecting authenticity into your employer brand is about moving past broad statements of intent, to the actions that back it up. Follow the old adage—show, don’t tell.

Your brand should remain as dynamic as your people. Don’t shy away from evolution when new priorities emerge. So be bold, stay real, and let your employer brand reflect what truly makes your organization shine.

Openreach Leadership Program: Finding the Directors of Tomorrow

Openreach Leadership Program: Finding the Directors of Tomorrow

Openreach Leadership Program: Finding the Directors of Tomorrow

One of the world’s largest communication organizations, Openreach, turned to PeopleScout for a sourcing-led recruitment solution including talent assessment design to find eight to 10 future directors for a brand new leadership program.

Situation

Openreach approached PeopleScout to help them stand up and deliver a new senior leadership program which would allow starters to rotate through a series of roles to provide them with the skills needed to be successful in a director position. The roles included:

  • Senior Engineering Area / Regional Manager Fibre Network & Delivery (FND)
  • Chief Engineer – Senior Operations Manager
  • Senior Area Manager – Service Delivery

Openreach wanted PeopleScout to drive the talent assessment process and to source candidates for the program, presenting a list of the most suitable.

The aim of the program was to improve diversity and innovative thinking within the business. The business was concerned about a lack of gender and ethnic diversity, and most of their employees came from a telecoms background. Openreach wanted to bring in candidates from diverse backgrounds with experience managing large operational teams outside of the telecoms sector.

Openreach also wanted to improve career pathways within the business. So, our second aim was to support internal mobility by introducing a new step stone between senior management and director levels.

Our team were given a short time frame of just four weeks to create a solution and design the process. Plus, we then had to present candidates to Openreach for interviews in a competitive market.

Solution

Our team were tasked with attracting and sourcing candidates, designing and supporting the assessment center and completing the recruiter screening.

Advertising Plan

To start, we interviewed senior leaders and heads of resourcing to understand the transferrable skills they were looking for. From this we were able to make a target list of industries and organizations which had similarities. These included field operations and management, logistics, and engineering as well as consumer-centric operations such as retail.

With this intel in hand, we developed a solution which included a candidate attraction marketing campaign, including writing job copy and building a microsite.

Our team devised an inclusive and effective advertising plan. This involved creating a tailor-made job advert and a microsite containing relevant and exciting content about the opportunities available. Using imagery and quotes from their current directors, we brought the Openreach story to life and showed what real employees’ roles looked like. We supported our diversity goal by using both female and male directors in the attraction content.

The microsite played the biggest part in telling the story, taking potential leadership program candidates through their first few years at the company, detailing where they’ll end up.

We partnered with Openreach’s media partner for the campaign strategy for which LinkedIn was predominantly used. Posts from employees were used as well as brand-led posts that recruiters leveraged to highlight roles. We again drove our diversity objectives by using more women in our social media posts to amplify their voices.

A Sourcing-Led Approach

To begin, the recruitment process was sourcing-led, focusing on the candidate experience and the thorough qualification of candidates. We also specifically targeted passive candidates from the industries we identified with key transferrable skills. In order to help bring the roles to life, we directed candidates towards the microsite and video content that PeopleScout created for the campaign.

Talent Assessment

Our team worked with Openreach senior leaders to design an assessment solution, involving job analysis and a competency assessment framework. This enabled us to create a stepwise assessment process to evaluate candidates through cognitive testing and personality profiling. The penultimate stage involved a competency-based interview to identify a shortlist of candidates to present to Openreach for final interviews.

The assessment design included a feedback report from the interview panel for each candidate as well as a feedback interview for candidates who completed the testing stage.

Results

PeopleScout’s assessment design for Openreach led to:

  • Improved diversity amongst new program joiners. Amongst the new joiners, 25% identified as female and another 25% identified as Asian or Black. All selected hires scored highly in both the online test assessment and the interview.
  • 3:1 interview-to-offer acceptance rate. Our detailed assessment process was a good predictor of success. From the 81 candidates who were screened by recruiters, 34 candidates were selected for assessment, with 23 advancing to final interviews. Out of the 23, 10 were offered roles with eight acceptances.

The overall process from start to finish included a collaborative relationship between all teams at Openreach and PeopleScout to successfully deliver a brand new program.

Ten months on from the candidates’ start dates, we can confirm they have all successfully passed probation and are all actively working towards a director position.

“PeopleScout were really thorough, understood our requirements and ensured that they were able to accurately represent our business and the specific roles we were recruiting for. Communication throughout the process was excellent and they delivered the end result we were looking for.  When we surveyed our new joiners about their pre-hire experience, without exception they all held PeopleScout in high regard. We would have no hesitation in using PeopleScout in the future.”

Katrina Baillie, Head of Resourcing, Openreach

At a Glance

  • COMPANY
    Openreach
  • PEOPLESCOUT SOLUTIONS
    Recruitment Process Outsourcing
  • ANNUAL HIRES
    10 future leadership program candidates
  • LOCATIONS
    Telecomms & Utilities
  • ABOUT OPENREACH
    Openreach Limited is a wholly owned subsidiary of BT Group. The telecomm provider maintains the copper wires and fibre cables that connect homes and businesses to phone and broadband.

City of London: Supporting Specialist Recruitment for Niche Roles

City of London: Supporting Specialist Recruitment for Niche Roles

City of London: Supporting Specialist Recruitment for Niche Roles

For several years, City of London Corporation have partnered with PeopleScout to support on a number of recruitment campaigns for hard-to-fill roles.

Situation

PeopleScout have worked as the City of London Corporation’s recruitment marketing media partner for over five years, and during that time, our sourcing team have supported a number of specialist recruitment projects. City of London have used our specialist solutions to find candidates for various unique and hard-to-fill positions, including:

  • Assistant Director – Animal Health and Welfare Service
  • Port Health Assistant Director
  • Port Health Manager
  • Security Manager – Smithfield Market
  • Head of Commissioning
  • Assistant Director – Cemetery and Crematorium
  • Technical Manager
  • Head of Operations – Central Criminal Court

Solution

Our solutions are sourcing-led, acting as an extension of the client’s own team and focusing on amplifying the client’s brand to make passive candidates aware of great opportunities. Our bespoke solution was based on the client’s needs and budget.

Over the years, our recruitment projects have included:

Signposting

Advertising and marketing on LinkedIn with recruiter-led profile matching and messaging to raise awareness and encourage quality applications by signposting talent to your vacancy, advertised on your website. Applications are tracked and all engagement is recorded for an end-of-campaign report.

Search and Selection

Full end-to-end recruitment support including briefing call, sourcing, screening, candidate management, shortlist submission, interview scheduling and offer management. Vacancies are posted on the client site, alongside other media and candidate’s are directed into our ATS for our recruiters to manage. As part of this solution, the client receives regular work-in-progress reports as well as an end-of-campaign report.

Results

Our partnership over the years with City of London has resulted in:

  • Consultative relationships built with hiring managers
  • High response rates from candidate outreach
  • Shortlists of a minimum of five qualified candidates presented for each campaign
  • Market insights compiled and presented back

At a Glance

  • COMPANY
    City of London
  • INDUSTRY
    Government & Public Sector
  • PEOPLESCOUT SOLUTIONS
    Recruitment Process Outsourcing
  • ABOUT CITY OF LONDON
    The City of London, also known as the Square Mile, is the financial district of London. As the governing body of the Square Mile, City of London provides a range of services, from policing to green space maintenance. They offer varied career opportunities to a diverse range of Londoners.