In a perfect world, hiring managers would have an endless pipeline of candidates who match every qualification, bring years of experience, and align perfectly with your culture. But in today’s job market, that’s no longer realistic. The talent pool is shrinking—meanwhile, employer expectations often keep rising.
If you’re struggling to fill roles, it might be time to shift your approach. This doesn’t mean lowering your standards—it means adjusting your hiring strategy to reflect today’s talent realities.
1. Understand the Market Shift with Data
Before adjusting hiring strategies, employers need to understand the scope of the challenge at hand.
According to ManpowerGroup’s 2024 Talent Shortage Survey, 75% of global employers say they’re having difficulty finding skilled talent—the highest in 17 years. This isn’t limited to highly technical jobs. Industries like manufacturing, transportation, and customer service are all feeling the pinch.
Why is this happening?
- Demographic shifts: Baby boomers are retiring faster than younger workers are entering the workforce.
- Slower immigration: Tightened immigration policies and global disruptions have reduced the inflow of skilled labor.
- Mismatch in skills: Many job seekers lack the specific digital, analytical, or industry-specific skills employers need.
What this means for employers: If your job requires niche expertise, a long list of qualifications, or years of experience in a tight labor market—you may be waiting a long time to fill it unless you rethink your strategy.
2. Reevaluate Your “Ideal” Candidate—Shift to Skills-Based Hiring
Instead of filtering candidates by degree, job title, or years of experience, focus on the skills that truly matter for success.
LinkedIn’s 2023 Future of Recruiting report found that skills-first hiring increased by 25% year-over-year, and companies using this approach often expanded their talent pools by up to 20x.
How to implement skills-based hiring:
- Identify the core competencies for the role (e.g., problem-solving, data analysis, customer support).
- Replace vague requirements like “3-5 years in a similar role” with statements like “Proven ability to manage client accounts and meet KPIs.”
- Use practical assessments or work samples in place of traditional resume screens.
Example: Here’s a hypothetical situation to consider. A marketing team struggling to hire a “Digital Marketing Manager with 5 years of B2B SaaS experience” broadened their criteria to “Strong performance in PPC ad management and campaign analytics.” They found a stellar candidate who had built an e-commerce side business and crushed their performance assessment.
3. Broaden Your Talent Reach—Tap Into Alternative Pools
The traditional job board approach won’t cut it when fewer candidates are actively looking.
Where to look instead:
- Underrepresented groups: Tap into partnerships with nonprofits, workforce development programs, HBCUs, women’s tech communities, and disability inclusion networks.
- Career returners: Professionals returning after a caregiving break or industry pivot often bring transferable skills and maturity.
- Veterans and transitioning service members: Many possess leadership, project management, and technical training directly applicable to civilian roles.
- Passive candidates: Build relationships on LinkedIn or through industry groups—even if someone isn’t applying, they might be open to a conversation.
Tip: Empower your team to act as recruiters. Encourage employees to share job openings, post about your team culture, and refer people in their networks. Referred candidates are not only more likely to accept offers—they also tend to stay longer.
4. Calibrate Expectations for Time and Process
In today’s market, slow hiring processes aren’t just inefficient—they’re a liability.
According to research by Greenhouse, 70% of candidates lose interest in a job if they don’t hear back within a week of applying. Worse, top candidates are often off the market within 10 days.
Ways to speed up your hiring process:
- Audit your time-to-fill metrics: How long does it take from job posting to offer accepted? Where are the bottlenecks?
- Eliminate unnecessary steps: Do you really need four interview rounds? Or a panel of seven stakeholders for an entry-level role?
- Streamline communication: Use automated tools for interview scheduling, real-time status updates, and offer generation—but always pair automation with a human touch.
Pro Tip: Set internal SLAs (service level agreements) for hiring managers—e.g., resume review within 48 hours, interview feedback within 24 hours.
5. Reassess Compensation, Flexibility & Development
Candidates today care about more than base pay. If your compensation package isn’t top of market, lean into what else you offer.
A 2024 SHRM report found that 83% of employees value flexibility as much as—or more than—salary. And nearly 60% of workers say opportunities to learn new skills would influence their job choice (LinkedIn Learning 2023).
Ways to make your offer more compelling:
- Flexibility: Remote or hybrid work options, flexible scheduling, and generous time off policies.
- Career development: Learning stipends, mentorship programs, or internal mobility paths.
- Well-being: Mental health days, parental support, DEI councils, or wellness reimbursements.
Example: One logistics company struggling to attract warehouse staff added childcare subsidies, restructured shifts to better accommodate parents, and highlighted these benefits in their job ads. Applications tripled in two months.
6. Invest in Internal Talent & Upskilling
If you can’t find the talent externally, consider developing it internally. Internal mobility can boost retention, fill critical gaps, and increase employee engagement.
LinkedIn’s 2023 Workplace Learning Report found that internal mobility increased by 20% year-over-year, and employees at companies with high internal mobility stay almost 2x longer than those without it.
How to build an internal talent pipeline:
- Conduct a “skills inventory” of your current team and identify growth opportunities.
- Launch rotational programs or short-term internal gigs to let employees explore different functions.
- Make promotion paths visible and attainable—include learning goals, performance criteria, and support resources.
Tip: Don’t wait for people to raise their hands. Proactively reach out to team members who show potential and let them know what’s possible.
7. Turn Data Into Continuous Improvement
Hiring isn’t a one-and-done process—it’s iterative. The more data you gather, the better your hiring decisions become.
Metrics to monitor:
- Source of hire: Which platforms bring in the best candidates?
- Time to hire: Are your processes getting faster—or slower?
- Candidate drop-off: Where in the funnel are you losing people?
- Offer acceptance rate: Are candidates saying yes, or walking away?
Tools to help: Use your ATS or HRIS to create dashboards that update in real-time. Combine quantitative data (conversion rates, time to fill) with qualitative data (candidate surveys, interview feedback) for a 360° view.
Final Takeaway
Yes, the talent pool has shrunk. But that doesn’t mean your hiring has to suffer.
The key is adjusting your expectations, expanding your strategy, and recognizing that today’s top candidates may not look like yesterday’s. When you move from rigid requirements to dynamic, skills-focused hiring—and meet candidates where they are—you gain more than applicants. You gain momentum, loyalty, and a reputation as a company worth working for.
