What challenges do companies face today when recruiting new talent?

Weiji: The biggest challenge companies face is receiving few or no qualified applications. The low number of applicants who meet the company’s criteria causes the most headaches during recruitment. Of course, the type of position being recruited for plays a major role. Since the pandemic, some companies have struggled even more to find suitable staff than before. Companies that valued up-to-date recruiting practices and had a strong brand before the pandemic are better off.

The shortage of skilled workers has gone from being acute to becoming chronic in a very short time. Sectors such as retail, hospitality, IT, and healthcare are especially affected by this issue. In healthcare, for example, candidates now dictate how high the salary must be. If they don’t get what they ask for, they go to the next employer who offers it – regardless of work environment or cultural fit. It's not uncommon for vacancies to remain unfilled for many months because companies can't find the right person. Sometimes, they have no choice but to hire a professional who doesn’t fit the team culturally – as long as the position is filled and the hard skills are there. This puts a great deal of pressure on managers.

What has led to these challenges in recruiting?

There are various reasons. One is demographic development. The large baby boomer generation is retiring or will do so in the coming years, meaning more working-age individuals are leaving the labour market. As a result, there are fewer skilled workers than open positions – leading to a skills shortage.

Another reason is that employees’ expectations have increased. Due to the pandemic, more people are questioning whether their current employer still matches their values. Many of us worked from home for nearly two years. The blending of work and personal life is something many can no longer separate – nor do they want to. Employees want flexible working models and to decide for themselves when, where, and how they work. They prefer employers who support this work-life balance. If there is little or no flexibility, many are willing to switch employers.

Digitalisation across all areas of life has also created new challenges in recruitment. Companies that still recruit the same way they did ten years ago now realise that a standard job ad on a job board is no longer enough to motivate candidates to apply. Recruitment methods have become more diverse thanks to digitalisation. To stand out from the competition, it takes more than a list of requirements and perks like free fruit. Companies are developing their employer brand further, while those that haven't done anything in this area in recent years are falling behind. When current employees leave and new roles also need to be filled, companies struggle doubly to find suitable personnel.

What can a potential employer do to overcome these challenges?

A multi-layered recruitment strategy helps employers appear attractive. The basis for all communication – internal or external – is lived corporate values. On that basis, recruitment strategy, employer branding and the application process must be defined. To counter the shortage of skilled workers, a recruiting strategy tailored to the target group is essential. Job ads only reach active job seekers – around 30% of the workforce. Passive candidates, who are generally open to a job change but are not actively applying, make up around 60%. These figures are based on LinkedIn statistics.

In many sectors, we now have a candidate-driven market. I always say: “Treat candidates like your best customers.” What do I mean by that? Imagine a customer wants to order a product from you. After receiving the order, you simply don’t respond. What does the customer do? They buy from a competitor and probably never come back. This is a common story among job seekers. Ghosting after an application is a widespread phenomenon – and it damages a company’s image. Applicants may also turn away from the company as customers. The consequences of ghosting can be severe. This can be avoided with automated tools – digitalisation makes administrative tasks like sending rejections much easier.

How can a recruiter positively influence recruiting?

Companies must create the foundations so that recruiters know what to communicate and how. A recruiter today is much more than an administrative HR member. They sell and market the company and support candidates like a customer service agent. Recruiting has undergone a major shift – from document manager to strategic partner. The recruiter is on the front line and owns the candidate experience. If recruiters understand this role, they can build relationships with candidates and advise stakeholders more effectively.

I also believe recruiters should be involved in strategic decisions. They know what’s happening in the job market and which actions work or don’t. Even companies with HR generalists should prioritise recruiting strategy. In my view, recruiting is still undervalued at the executive level. Talent acquisition should be a top priority for every company. I see this even in multinational corporations where recruiting is not treated as a priority. Recruiting is heavily data-driven. To convince management of its importance, recruiters must communicate with hard facts and data.

Companies that view recruiting purely as a cost centre or administrative function will struggle even more in the years to come to find suitable talent.

What methods can be used to find suitable candidates quickly despite the shortage of skilled workers?

The passive candidate market offers the greatest potential. Whether via active sourcing or performance recruiting, these two methods involve approaching candidates directly. The foundation is a clearly defined candidate persona. If you know how your target group thinks and where to find them, you can use the right messaging to win them over. I’ve also had very good experiences with employee referrals – but this only works if the company is top-notch. Otherwise, employees won’t recommend the employer to friends or colleagues. And so we’re back to the topic of company values.

About Weiji Stocker and Recruitment Process GmbH

Weiji Stocker is an expert in recruitment strategies and the CEO of Recruitment Process GmbH. As a consultant, she supports companies in defining talent acquisition strategies and developing recruitment measures – helping them recruit the best talent more efficiently and effectively.

Recruitment Process GmbH specialises in recruitment strategies, active sourcing and recruiting training. With years of experience in recruitment, they empower recruiters and HR professionals to succeed in a constantly evolving job market.