The Talent Crisis is Real

A study we conducted in the G2 Crowd community on talent and recruiting found that many companies are facing a talent crisis, with 51 percent of respondents reporting having difficulties filling open positions due to a lack of available talent. Mid-market businesses are struggling the most, according to the data, while small businesses are experiencing less trouble when it comes to filling job roles with skilled candidates.

Those polled were people responsible for recruiting, hiring, approving hiring decisions or training/onboarding employees. These individuals reported issues finding skilled employees among a variety of departments and job roles, though there are some trends when it comes to the lack of talent available.

Highly skilled specialists, technology roles and executive roles were found to be the most difficult to hire for. This should be relatively unsurprising, as they require a higher level of skill and experience. Candidates for these roles may also be highly sought after or recruited, making the competition between companies higher as well.

Not only is the talent crisis frustrating for recruiters and HR professionals, it also can have an impact on day-to-day business. Of those surveyed, 87 percent reported the talent crisis’ impact on their company’s ability to meet customers’ needs as medium to high. In an increasingly customer-centric world, leaving important job positions open for long periods of time can create gaps, place an undue burden on other employees, and impact the overall health of a business in the long term.

So what are companies doing to address the talent crisis and engage applicants who have the appropriate skill sets? To gain an advantage in a competitive hiring market, survey respondents reported trying a variety of tactics, but “trying new/alternate talent sources” was the most prominent solution, with 42.2 percent of those surveyed saying it is a method they have tried. Other tactics to find and engage a skilled workforce include increasing retention efforts, leveraging social networks for recruiting, offering hiring incentives, expanding advertising efforts, and training existing employees to fill skill gaps.

Interestingly, 23 percent of respondents said that they are not taking any special efforts to address the talent shortage. While this could mean that these individuals are not actually being impacted by the talent shortage, it could also indicate that they have come to expect it, meaning that a shortage means business as usual for them.

There are many software solution categories that can be used to help businesses with talent challenges. Solutions related to acquiring talent like recruiting, talent acquisition suites and applicant tracking systems are of interest to many businesses. General human resources solutions like HR management suites, core HR and performance management help companies manage the entire employee lifecycle. In the solution section of the report, several categories are examined and the products are ranked to show the top eight based on G2 Crowd Score.

You can read more about the talent crisis and the solutions companies can use to overcome it in our Crowd Views on Digitial Transformation: The Talent Crisis report.

Talent Crisis Survey Methodology

The survey on the talent crisis was conducted in November and December 2016 by the G2 Crowd research department. To better understand the hiring difficulties for businesses today, G2 Crowd conducted a survey of 209 hiring managers, recruiters, influencers, and approvers in the G2 Crowd community. The survey looked at small, mid-market and enterprise companies and established if the respondents were having difficulty filling positions, what kinds of difficulties they experienced, what they believed contributed to those difficulties and what they are doing to address them.