Recruiting gets creative as talent shortages look long term

While headline figures have indicator falling labor shortages, many businesses are still dealing with consistent labor shortages. The combination of failing educational institutions, an inefficient labor market, and declining demographics suggest that employers will struggle with shortages in talent for the foreseeable future. With salary budgets tapped out, many employers are getting creative with talent sourcing, from building alumni programs to doubling down on retention.

Alumni network programs, which allow organizations to maintain connections with former employees through company updates, events, and ongoing career support. According to a 2023 EnterpriseAlumni report, a well-designed alumni program can generate up to 17% of all hires, with former employees and referrals ranking as the top and third-highest quality sources of hires, respectively.

Employee alumni programs not only serve as a powerful recruitment tool but also contribute to stronger employer branding. When former employees feel supported and engaged, they become brand ambassadors, actively promoting the company to potential candidates. Moreover, alumni programs can be leveraged to fill short-term and project-based roles, as well as to attract boomerang employees, who often have higher retention rates than non-boomerang hires.

In addition to alumni programs, companies are focusing on new retention strategies to keep their best talent from seeking opportunities elsewhere. Workday's recent Hiring Trends Report highlights the importance of addressing employee engagement, internal mobility, and incentivizing high-performing, high-potential workers. By prioritizing internal mobility and investing in their workforce, employers can mitigate the risk of a "potential exodus" when hiring conditions improve.

Immigrant labor has also emerged as a significant contributor to the US workforce, with foreign-born workers representing 19% of the labor force at the end of 2023, up from 17% in 2019. The Congressional Budget Office projects a net immigration surge of approximately 14 million over the five years from 2022 to 2026, a level of growth that previously took 15 years to achieve. This influx of international talent is helping to offset domestic population challenges and support labor force growth, particularly in states like Florida and North Carolina.

As talent shortages show no signs of abating, companies must remain proactive and creative in their recruitment and retention efforts. By embracing innovative strategies like alumni programs, prioritizing employee engagement and development, and leveraging the skills of immigrant workers, organizations can position themselves to attract and retain the top talent necessary to drive long-term success in an increasingly competitive labor market.