Talent gets caught between cost reduction and strategic planning

Talent acquisition (TA) professionals find themselves in a challenging position, torn between the demands of strategic workforce planning and the pressure to reduce costs, according to a recent report from The Josh Bersin Company and AMS. Despite the crucial role TA plays in securing skilled workers, only 32% of TA leaders feel they are treated as strategic partners within their organizations.

This disconnect is further exacerbated by the ongoing skills shortage, with 60% of TA leaders citing it as their top concern. Simultaneously, 58% face tremendous pressure to improve the efficiency of recruiting processes, often at the expense of long-term strategic planning. The lack of a clear workforce plan in 42% of companies and the reluctance of 40% of HR leaders to adopt a strategic approach to hiring further compound the issue.

TA leaders also grapple with the need to enhance the skills of their recruiters, with 42% acknowledging the need for more training. However, the prioritization of cost-cutting measures over strategic talent acquisition by 45% of HR leaders poses a significant barrier to providing the necessary training and development.

The dynamic nature of business priorities presents a major hurdle to strategic TA planning, as talent leaders navigate uncertainty around work design changes related to AI and schedule flexibility. As employees increasingly choose to stay with their current companies, the focus is shifting towards employee experience, as highlighted in a recent Mercer report.

To address these challenges, companies must integrate HR professionals into the strategic workforce planning process, fostering collaboration between TA and retention teams. By sharing workforce planning data and empowering talent professionals to lead the planning process, organizations can bridge the gap between short-term cost-cutting measures and long-term strategic talent acquisition. Only through this integrated approach can companies effectively navigate the ever-changing landscape of talent management and ensure the resilience of their workforce.

Talent acquisition (TA) professionals find themselves in a precarious position, caught between the competing demands of strategic workforce planning and cost reduction, according to a recent report by The Josh Bersin Company and AMS. Despite the critical role TA plays in identifying and securing skilled workers, only 32% of TA leaders feel they are treated as strategic partners within their organizations.

The report highlights a significant disconnect between the perceived importance of TA and the actual level of inclusion in strategic discussions. While 55% of companies claim that TA specialists are an integral part of the business, the lack of clear workforce plans and the pressure to prioritize cost-cutting measures over strategic talent acquisition hinder TA teams from aligning their efforts with long-term business objectives.

Skills shortages remain the top concern for TA leaders, with 60% citing it as their main focus, followed closely by the pressure to improve recruiting process efficiency (58%). However, the absence of comprehensive workforce planning (42% of companies lack a plan) and the reluctance of businesses to adopt a strategic approach to hiring (40% of HR leaders) further complicate the situation.

Compounding these challenges, TA leaders struggle with inadequate recruiter training, with 42% acknowledging the need for additional training. Nevertheless, nearly half of HR leaders (45%) report being instructed to prioritize cost reduction over strategic talent acquisition, creating a significant obstacle to providing the necessary training and development for recruiters.