Resourcing and talent planning report

Competition for talent remains high

Competition for well-qualified talent has increased over the last year, according to 69% of respondents. Overall, 84% had tried to fill some vacancies and 64% of these experienced difficulties attracting candidates.

Many employers (56%) found it more challenging to retain talent over the past year and there was a rise in organisations taking steps to counter this. Retaining new recruits was also an issue for many: 41% of those that selected candidates in the last 12 months said new recruits always, mostly or sometimes resigned within the first 12 weeks.

Greater focus on developing skills in-house

Organisations are increasingly turning to internal training and development to meet their talent needs - over half (56%) said they developed more talent in-house over the last 12 months compared with the previous year. More were using entry-level or career-returner programmes to access and grow the skills they need.

Improving pay and benefits

Organisations struggling to recruit are increasingly offering better pay and benefits to address recruitment difficulties. Raising pay was one of the most common responses of those with retention difficulties, topped only by improving support for employee wellbeing.

Benefits of flexible working offerings increasingly recognised

The demand for flexible and hybrid working arrangements has grown, with organisations recognising these as key to attracting and retaining talent. Nearly three-quarters (74%) advertise at least some jobs as open to flexible working, and 54% as ‘open to location’. Organisations are increasingly positive regarding the impact of hybrid and remote working on engagement and retention, with 42% of those that offer this saying it has increased engagement and 45% saying it has increased retention.

Small improvement in recruiting diverse candidates

This year’s findings show improvements in efforts to attract and recruit diverse candidates, including at board level. Forty per cent were very or extremely active in their efforts to recruit diverse board candidates, up from 32% in 2022. Over half (51%) of those that attempted to fill vacancies said they recruited a more diverse workforce compared with the previous year.

Technology speeding up recruitment and improving experience

Some 78% of organisations increased their use of technology in the recruitment and onboarding process over the last 12 months. Nearly a third (31%) use some form of AI/machine learning – up from 16% in 2022. Yet the wider adoption of many available technologies remains limited. But of those that use AI, 66% said it improved hiring efficiency and 62% said it increased the availability of useful information for resource planning.

Rise in data management as a priority

More organisations are collecting data to inform their workforce planning and resourcing. The proportions of employers collecting data on the performance of new hires, the effectiveness of retention initiatives, the predictive validity of assessment methods and the return on investment of their recruitment have all risen. More in line with pre-pandemic levels, 46% of respondents say their CEO has had talent management as a key priority over the last 12 months, up from 38% in 2022.