The Future of Talent Strategies, practices and

technologies for building

Acquisition 2022-23 the future workforce
AUGUST 2022

Sponsored by

www.hr.com | 877-472-6648
 CONTENTS
3 Executive Summary

8 A Review of Today’s Talent Acquisition Landscape

8 Seismic Shifts in the Labor Market

10 Responses to Increased Talent Acquisition Costs

11 The Rise in Internal Recruitment

12 A Paradigm Change in Talent Acquisition

14 The High Importance of Talent Acquisition Today

16 The Questionable Quality of Today’s TA Functions

19 The Factors Driving and Hindering Talent Acquisition

23 Talent Acquisition Tools and Technologies

31 The Future of Talent Acquisition

39 How TA Leaders Differ from TA Laggards

47 Key Takeaways

2 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 About the Survey Executive Summary
The survey called “The Future
It can be tough to keep up. First there was the pandemic, then
of Talent Acquisition” ran from
May to July 2022. There were
an upsurge in hiring along with massive employee resignations,
responses from 214 participants. followed by large increases in U.S. jobs despite two quarters of
negative GDP growth and high inflation rates!1
The participants represent a broad
cross-section of employers by
number of employees, ranging
So, what happens from here?
from small businesses with under
100 employees to enterprises No one really knows. It’s hard to predict the future of hiring amid
with 20,000 or more employees. such turbulence, but we do know that events are fast-paced and
Two-thirds of respondents, constantly evolving. And, we know that—whatever the economy
however, were from mid-sized or
ultimately does—there will continue to be workplace changes
large organizations, and the large
driven by new technologies, changing business paradigms, evolving
majority resided in the United
societal needs, and more.
States.

Many of today’s employees and job candidates continue to

prioritize flexible work arrangements, work-life balance, and
ethical work practices.2 They also want fair compensation rates
so that they can keep up with inflation.

Today’s talent acquisition (TA) professionals need to take

all these factors (and many more!) into account in order to
perform their jobs well. To help them keep abreast of what’s
happening, the HR Research Institute conducted this study on
the current state and near-term future of talent acquisition. More
specifically, this report delves into topics such as:

1. the capability and maturity of today’s talent acquisition

functions
2. the drivers and challenges facing TA
3. TA metrics and analytics
4. TA tools and technologies
5. predictions of what may happen next
6. characteristics and practices that differentiate the organizations
that excel at TA from the organizations that don’t

1
Pickert, R. (2022). "Falling jobless rate is set to complicate Fed's inflation fight." Bloomberg.com. Retrieved from https://www.bloomberg.com/news/
articles/2022-05-05/falling-jobless-rate-is-set-to-complicate-fed-s-inflation-fight
2
Kropp, B., & McRae, E. R. (2022). "11 trends that will shape work in 2022 and beyond." Harvard Business Review. Retrieved from
https://hbr.org/2022/01/11-trends-that-will-shape-work-in-2022-and-beyond

3 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Major Findings

Here is a summary of some of the key research findings in the report.

Major
Finding 1 Most organizations view talent acquisition as critical to the business and
bottom line, but relatively few of them truly excel at it

●● Half of respondents say talent acquisition is an essential or pivotal

human capital issue in their organization, and 80% say it is at least
among their top 10 human capital issues

●● However, just two-fifths (39%) say their TA capabilities are above

average and a mere 8% say their capabilities are “top notch”

●● Meanwhile, just one-fifth describe their TA functions as “world class”

or “advanced,” though 44% say their TA function is “established

Major
Finding 2 The majority of organizations struggle to find skilled candidates to
replace workers who have exited

●● The top factors influencing the TA strategies or activities include:

 the need to backfill to replace workers who have exited (70%)

 increased competition within their market or industry (57%)
 voluntary and involuntary employee attrition (53%)
 the need to hire for newly created positions to support future
growth (52%)

●● The top challenges facing the TA function include:

 a lack of candidates with required skills or experience (60%)

 just-in-time, reactive hiring approaches (49%)
 compensation and total rewards that are below the market rate
(46%)
 ineffective and time-intensive hiring processes (35%)

4 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Major
Finding 3 Most invest in paid tools and technologies in a bid to make TA more
efficient

●● A majority (65%) of organizations utilize 2 to 5 paid recruiting tools or

technologies

●● A smaller proportion (17%) utilize more than 6 paid recruiting tools or

technologies

●● About one in three (30%) organizations spend $25,000 to $100,000

on dedicated talent acquisition tools and technologies, including
recruitment advertising

●● More than a quarter (27%) spends $100,000 to more than $10 million
on dedicated talent acquisition tools and technologies, including
recruitment advertising

●● The most popular talent acquisition technologies or recruiting tools

utilized include:

 applicant tracking systems (62%)

 job posting tools (60%)

●● Of course, technology usage varies by size of organization; for

example, 76% of organizations with 1,000 or more employees use an
ATS, compared with 67% of mid-size and 48% of small organizations

Major
Finding 4 Organizations lack consensus on the most preferred TA metrics, though
quality of hire is most widely cited

●● The most widely used metrics used to quantify the impact or relative
success of the talent acquisition function include:

 quality of hire (42%)

 offer acceptance rate (41%)
 employee tenure and/or attrition (41%)

5 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Major
Finding 5 Respondents are most likely to say that the near-term future of TA will
focus on predictive analytics and strengthening the employer brand

●● Most respondents (67%) say hiring needs will increase a little

(37%) or a lot (30%) over the next two years

●● Over half (57%) say their overall TA budget will increase a little
(44%) or a lot (13%) over the next two years

●● Over half (55%) say the headcount in their TA department will

increase a little (40%) or a lot (15%) over the next two years

●● Over the next two years, organizations are most likely to invest in
these TA-related capabilities:

 people analytics and data-driven recruiting (49%)

 compensation equity and competitiveness (47%)
 internal mobility and employee retention (45%)
 diversity sourcing and hiring (45%)

●● Over the next two years, these are most likely to be key goals of the
TA function:

 strengthening employer brand and employee value proposition

(58%)
 creating an improved candidate or applicant experience (52%)
 ensuring a robust pipeline of talent for future hiring needs
(47%)
 increasing employee referrals (44%)

●● Over the next two years, these TA technologies are predicted to be

most impactful:

 talent intelligence/predictive analytics (62%)

 artificial intelligence/machine learning (39%)
 conversational intelligence/chatbots (34%)

6 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Major
Finding 6 Compared to organizations that do not excel at talent acquisition, those
that do are:

●● 4x more likely to use software for the purpose of talent pipeline

management

●● Over 3x more likely to say that TA is the most important human

capital issue for organizations today

●● Over 3x more likely to use an employee referral platform

●● Over 2x more likely to use offer acceptance rates and employee

attrition as key TA metrics

●● Over 2x more likely to use an applicant tracking system (ATS)

●● 2x more likely to believe their talent acquisition budget will grow over
the next two years

●● 2x less likely to say their TA processes are ineffective and time

intensive

●● 2x less likely to say their organization struggles with a “just-in-time,

reactive hiring approach”

7 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 A Review of Today’s Talent Acquisition
Landscape
Seismic Shifts in the Labor Market
An organization’s ability to survive and thrive is predicated almost
entirely on its employees. What many of us are still learning, however,
is how employee expectations and desires have shifted—sometimes
seismically—in the wake of the Covid-19 pandemic.

As we write this report, the U.S. economy is in a strange place. Inflation

remains high, there have been two quarters of economic contractions
(and predictions of contractions3 in various other nations as well),
and layoffs in the technology industry4. At the same time, the U.S.
unemployment rate is at a low 3.6%, August 2022 saw growth of
528,000 jobs, and average hourly earnings were up by 15 cents (or 0.5%),
according to the U.S. Bureau of Labor Statistics5.

In short, although unemployment may grow in coming months, the labor

market remains relatively tight for now. Indeed, one recent HR Research
Institute survey6 found that a whopping 87% of HR professionals said
that it has become more difficult to acquire talent over the last year.
The people analytics platform Visier reports7 that, as of June 2022, the
employee resignation rate is still at 1.7%, which is a decline from 2.7%
in August 2021 but still as high as it was in April 2021, when the Great
Resignation kicked off.

3
Swint, B. (2022). AMD stock dips. "Why analysts see it as a buying opportunity." Barron's. Retrieved from https://www.barrons.com/articles/amd-buy-
sell-stock-price-earnings-51659547248
4
Staff, F. C. (2022). "Tech layoffs continue across the board: Here's the latest." Fast Company. Retrieved from https://www.fastcompany.
com/90774924/tech-companies-continue-to-cut-costs-resulting-in-massive-layoffs
5
U.S. Bureau of Labor Statistics. (2022). Employment situation summary - 2022 M07 results. U.S. Bureau of Labor Statistics. Retrieved from
https://www.bls.gov/news.release/empsit.nr0.htm
6
HR.com. (2022, July). Why employees leave their jobs 2022. HR.com. Retrieved from https://www.hr.com/en/magazines/all_articles/why-employees-
leave-their-jobs-2022_l5i49m3t.html
7
Visier, Inc. (2022). Visier Monthly Resignation Report. Retrieved from https://www.visier.com/resignation-report/

8 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 US Overall Resignation Trends

Recent US resignation rates were

highest in August 2021, at 2.7%

US resignation rates were 1.5% in

March 2020, before the Covid-19
recession hit the US hardest

US resignation rates
declined to 1.7% in June
2022

US resignation rates were 1.7%

in April 2021, when the “Great
Resignation” began

Chart from Visier Monthly Resignation Report

All of which is to say hiring good employees remains a major challenge

for now. That’s why employers are being forced to adapt their processes
and policies to better align with employees’ personal and professional
priorities, such as growing demand for remote or hybrid work, more
flexibility and better work-life balance as well as more transparent,
equitable and inclusive company cultures.

Even if today’s resignation rate continues to decline for the next several
months, we expect it to surge again as soon as the economy begins to
recover.

9 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Responses to Increased Talent
Acquisition Costs
As a result of these changes, talent acquisition costs have sharply
increased, with some sources8 reporting that the cost per application
(CPA) rose 43% and the cost per click rose 54% in 2021 when compared
with 2020. As a result, dedicated budgets and recruiting related
resources have increased, with spend allocated primarily on staff
augmentation and process automation. HR.com’s Talent Acquisition
Community Leader Matt Charney notes:

By adding dedicated recruiting headcount while simultaneously

creating process efficiencies and reducing the burdens associated
with highly manual, low impact activities such as screening
and scheduling, employers are responding directly to market
conditions, particularly around time to fill and hiring velocity.
By combining personalization and automation, companies are
blending high tech with high touch to improve candidate and hiring
manager experience, reduce candidate “ghosting” and increase
offer acceptance rates while controlling direct recruiting costs,
all prominent trends and areas of focus within corporate talent
acquisition today.

8
Solomon, O. (2022). "Recruitment costs soared in 2021 as more opt for remote work." Recruiting Daily. Retrieved from https://recruitingdaily.
com/news/recruitment-costs-soared-in-2021-as-more-opt-for-remote-work/#:~:text=Appcast's%202022%20Recruitment%20Marketing%20
Benchmark,year%20when%20compared%20to%202020.

10 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 The Rise in Internal Recruitment
Charney argues that the same external strategies and programs are
also increasingly applied to internal recruiting and talent mobility,
with companies attempting to stanch attrition and increase employee
engagement by focusing on proactively upskilling, developing and cross-
training existing workers.

Promotions and lateral moves entail considerably less recruiting-related

expenses than external recruiting, and are one of the primary drivers
of both worker retention and job satisfaction. This new focus on long-
term employee development and career advancement, both linear
and dimensional, represents something of a recent paradigm shift in
recruiting related activities, which have traditionally focused primarily on
actively sourcing, attracting and converting qualified external talent on
an ad-hoc, “just in time” basis.

There can be both compensation and performance advantages to hiring

internally. Research conducted9 by the University of Pennsylvania found
that external hires earn 18% to 20% more than internal employees who
are promoted to similar positions. The research also indicates that
internal hires tend to perform better in the first two years as compared to
external hires in the same position. Internal hires also have10 lower rates
of voluntary and involuntary turnover.

As a result, organizations now see retention and recruiting as two sides

of the same proverbial coin. Charney argues that by applying external
methodologies to internal talent pools, companies can cut costs, create
a more flexible, future-proof workforce through upskilling and cross-
training, and establish themselves as more than just another employer.

9
Uzialko, A. (2022). "Not all companies want to hire from within." Business News Daily. Retrieved from https://www.businessnewsdaily.com/7767-
internal-vs-external-hires.html
Jefferson Online. (2019). "Hiring quality employees: Internal vs external recruiting." Jefferson Online. Retrieved from https://online.jefferson.edu/
10

human-resources/internal-vs-external-recruiting/#:~:text=In%20the%20study%2C%20external%20hires,less%20expensive%20than%20hiring%20
externally.

11 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 A Paradigm Change in Talent
Acquisition
This has created a renewed emphasis on skills-based hiring11, with
more employers implementing pre-hire assessment methodologies that
go beyond verifying hard skills or job requirements, and increasingly
measuring for elements such as flexibility, learning agility, emotional
intelligence and culture fit. “This more holistic approach to hiring offers
perhaps the strongest indicator of what the future of talent acquisition
holds; companies seem to be shifting their talent strategies from buying
top talent to building it,” states Charney.

Charney goes on to say, “Increasingly, companies have already sourced,

screened and selected their next hire before even opening a requisition.
This is because in just over half of all hiring events—a percentage that
has steadily climbed year over year for over a decade—the successful
candidate is already an employee.”

This adds up to a paradigm shift for the future of talent acquisition.

Charney states:

The future of talent acquisition seems to be less siloed as a

separate, externally facing function, already becoming much more
integrated with other core HR competencies, such as learning
and development, employee engagement and workforce planning,
whose focus is exclusively internal. The aphorism that “recruiting
doesn’t stop with an accepted offer” might be a hackneyed cliche,
but it remains universally true. The thing is, in today’s talent market,
recruiting never stops at all—past the point of hire, the employee
experience is fundamentally a candidate experience. If that
experience isn’t optimal, then those employees will quickly become
candidates again—only this time for the competition.

HR.com. (2022). The state of hourly and high-volume hiring 2022 report. HR.com. Retrieved from https://www.hr.com/en/resources/free_research_
11

white_papers/the-state-of-hourly-and-high-volume-hiring-2022-re_l4mzb1r9.html

12 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 This means that in the future, talent acquisition will become less likely
to be measured solely by transactional metrics such as time to fill or
cost per hire and more likely to be gauged in terms of “quality of hire”
metrics that empirically function to quantify total lifetime value of any
given employee. This is a “longer game,” to be sure, but it’s one likely to
be more impactful on the business and bottom line.

This should lead to a variety of benefits, including:

●● much closer alignment between TA and the business

●● b
etter and deeper relationships with employees in general and,
more specifically, with senior leadership

●● t he perceptual transformation of recruitment from commoditized

order takers to true talent advisors whose value to the organization
is ongoing rather than cyclically dependent on current hiring needs

Charney concludes that “the future of talent acquisition—if there is one—

is incumbent almost entirely on how well the function can transition from
its historical positioning as an intermediary of the human capital supply
chain into being the primary category manager for organizational talent.”

In this new world, recruiters must realize that success is quantified in

terms of the total lifetime value, return on investment and the relative
impact to the business and bottom line those hires represent.

13 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 The High Importance of Talent
Acquisition Today
Finding: Half of respondents view talent
acquisition as either essential or pivotal
In half of the organizations surveyed, talent acquisition is seen to
Defining Small, be either the most important human capital priority (26%) or among
their organizations’ top three human capital priorities (24%). Larger
Mid-sized
organizations are more likely to view TA as a priority. While 71% of
and Large respondents in large organizations say TA is pivotal or essential, just
Organizations over half (57%) in mid-size organizations and two-fifths of respondents
(41%) in small organizations say the same.
Throughout the
report, we look at
This prioritization may be attributed to the fact that TA today is more
the findings based
challenging than ever before. Organizations are constantly trying to fill
on company
roles with employees who have hard-to-find skills even while balancing
size. We deem
the needs of current employees who are seeking better employee
organizations with
experiences.
1-99 employees as
“small,” and those
Thirty percent of respondents say TA is “one of their top 10 human
with 1,000 or more
capital priorities/goals,” which means that 80% view it falling into one of
employees as
the three highest prioritization categories.
“large.” Mid-size
organizations
The bottom line is that talent acquisition remains a high priority, which is
are those with
not surprising given today’s low unemployment rates. It may become a
between 100 and
lower priority due to economic weakness. But it could become an even
999 employees.
higher one if, as some experts predict12, inflation starts to recede and
economic growth reemerges later in 2022.

Caldwell, P. (2022). "Why we expect the Fed to cut interest rates in 2023." Morningstar, Inc. Retrieved from https://www.morningstar.com/
12

articles/1106505/falling-inflation-should-allow-the-fed-to-prevent-a-recession

14 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Survey Question: Relative to other human capital issues,
what is the perceived value of talent acquisition within your
organization? (select the one that best applies)

Essential: the most important

human capital issue for the 26%
organization today

Pivotal: one of the

organization’s top 3 human 24%
capital priorities/goals

Just 2% say Important: one of the

TA is relatively organization’s top 10 human 30%
capital priorities/goals
unimportant

Moderately important:
not a strategic human 14%
capital priority/goal

Relatively
unimportant: seen as 2%
an ancillary task

0 5 10 15 20 25 30

15 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 The Questionable Quality of Today’s TA
Functions
Given the relatively high prioritization of talent acquisition, it is important
Talent Acquisition that organizations excel in this area. Do they? Our research indicates that
Maturity Model a minority do but most are middling or worse performers.

The HR Research
Institute devised a talent Finding: Just 19% of organizations have
acquisition maturity
model that generalizes talent acquisition functions that are world
on the stages that
organizations go through class or advanced
as they improve their TA
capabilities. Below is
We asked participating HR professionals about the status and “maturity”
how these stages were
classified for our survey of the talent acquisition functions in their organizations (see sidebar
participants. for descriptions). Using these definitions, only 5% of respondents
Nonexistent: No describe their talent acquisition function as “world class” and just
dedicated systems/ 14% describe it as “advanced.” These results are similar to last year’s
processes, hiring is ad
hoc survey on the same topic.13

Chaotic: Poorly defined

and unstandardized The low percentages of TA functions that fall into these top categories
systems/processes indicate that most organizations have yet to master the art of talent
Improvisational: Basic, acquisition. That is, their systems do not tend to be proactive,
reactive and tactical
strategically aligned and a source of competitive business advantage.
systems/processes

Established: Standard
HR-driven systems/ A large plurality of respondents (44%), however, feels their talent
processes acquisition functions are at least “established,” meaning that they have
Advanced: Superior and standard HR-driven TA systems/processes. These departments are
strategically aligned doing the basic job, even if they are not excelling at it.
hiring systems/processes

World Class: Proactive Worse, though, is the fact that more than a third (36%) of
and a source of
competitive business respondents view their TA systems as “improvisational,” “chaotic,”
advantage or just “nonexistent.” Given the dynamic nature of today’s business
environments, such systems are unlikely to gain competitive
advantages in TA.

H. R.com (2022). The future of talent acquisition 2021 report. HR.com. Retrieved from https://www.hr.com/en/resources/free_research_white_
13

papers/the-future-of-talent-acquisition-2021-report_ksr5xy8f.html?s=P0iyblXX0CIi4sQV

16 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Survey Question: Which of the following statements
best describe the talent acquisition function within your
organization? (select the one that best applies)

World Class 5%

Advanced
14%
More than two-
fifths describe their
Established 44%
talent acquisition
function as
“established” Improvisational 29%

Chaotic 3%

Nonexistent 4%

0 10 20 30 40 50

17 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: Fewer than half (47%) rate their
talent acquisition capabilities as top notch
or above average
When we asked about organizational TA capabilities, respondents
were somewhat more optimistic, with 47% saying those capabilities
were either top-notch (8%) or above average (39%). Although this
also indicates that there is still considerable room for improvement, a
substantial majority (87%) indicate that their organizations have average
or above capabilities.

Survey Question: How would you rate the overall talent

acquisition (TA) capabilities of your organization in
comparison to other companies in your industry?

Top-notch 8%

Just 13% say the Above average 39%

TA capabilities in
their organizations
are “below
average” or “well Average 40%
below average”

Below average 11%

Well below average 2%

0 5 10 15 20 25 30 35 40

Note: Numbers may not add up to 100% due to rounding. "Don't know" responses were removed
from the graph.

18 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 The Factors Driving and Hindering
Talent Acquisition
Finding: The need to backfill to replace
workers who have exited the organization
is seen as the most influential factor driving
TA strategies and activities
Until recently, there was talk about the so-called Great Resignation, a
period when record numbers of employees were quitting their jobs in
search of greener pastures. Given recent signs of economic weakness
as of August 2022, many assume those days are over. In fact, there are
some signs that the Great Resignation is starting to reverse course.14

So far, however, the change has not been dramatic. Although the
number of U.S. job openings15 fell by 5.3% to 10.7 million from May to
June, which is the largest decline since the Covid-19 recession, many
employees are still quitting their jobs. In fact, the quit rate, or share of
employed Americans leaving their jobs voluntarily, was 2.8% in June,
down only a little from the 2.9% in April16.

Therefore, it makes sense that most respondents (70%) cite need to

backfill to replace workers who have exited as the most influential factor
affecting TA strategies or activities. Similarly, 53% point to voluntary and
involuntary employee attrition.

However, there are other factors at play, including business competition

and growth. In fact, 57% point to increased competition within the market
or industry. And, 52% point to the need to hire for newly created positions
to support future growth.

14
Cassella, M. (2022). "The great resignation is beginning to reverse course." Barron's. Retrieved from https://www.barrons.com/articles/great-
resignation-51648145887
DiCamillo, N. (2022). "Despite fewer job openings, Americans keep quitting at record rates." Quartz. Retrieved from https://qz.com/despite-fewer-job-
15

openings-americans-keep-quitting-at-1849359897
U.S. Bureau of Labor Statistics. (2022). Table 4. quits levels and rates by industry and region, seasonally adjusted - 2022 M06 results. Retrieved from
16

https://www.bls.gov/news.release/jolts.t04.htm

19 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 A factor that is less widely cited but still important is the need for greater
diversity, equity and inclusion (DEI), noted by about two-fifths (38%).
This has, in fact, become a higher priority over the last two years in
organizations, according to various research studies conducted by the
HR Research Institute.

Survey Question: Which of the following factors influence your

organization’s TA strategies or activities? (select all that apply)

Need to backfill to replace workers

who have exited the organization 70%

Increased competition
within market or industry
57%
About two-fifths
of respondents Voluntary and involuntary
employee attrition
53%
say the need to
increase diversity, Need to hire for newly created
positions to support future growth
52%
inclusion and
Need to increase diversity,
belonging is an inclusion and belonging
38%
important factor
Changing business circumstances or
influencing their external market conditions
36%
organization’s
Need to create “future-proof”
TA strategies or hiring practices 30%
activities
Need to upgrade
organizational skills 30%

Expansion into new

markets or territories 28%

Diversification of business
16%
into new industries

Changing consumer behaviors

16%
and market trends

0 10 20 30 40 50 60 70 80

20 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: Three-fifths of organizations see
the lack of candidates with required skills or
experience as the top challenge for TA
In an era where jobs often require an evolving set of capabilities, many
organizations are scrambling to find candidates with the required skills.
Hence, it makes sense that the lack of candidates with required skills or
experience is seen as the biggest challenge (60%) facing the TA function.
Further, highly skilled candidates are often fielding offers from multiple
organizations, making recruitment even more challenging.

This requires building a long-term recruitment strategy that creates a

pipeline of talented candidates through networking and relationship
building. Building relationships takes time. Therefore, about half (49%) of
organizations say a just-in-time, reactive hiring approach is among their
biggest challenges. Further, over one-third (35%) of respondents cite
ineffective and time-intensive hiring processes as among their biggest
challenges.

This data helps explain why so many organizations give their TA

functions middling grades in terms of performance and maturity.
The third most cited challenge, at 46%, is “compensation, total rewards
below market rate”. With growing inflation and a high demand for talent,
compensation cannot be overlooked.

21 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Survey Question: What do you see as the biggest challenges
or obstacles when it comes to acquiring talent at your
organization? (select all that apply)
Lack of candidates with required
60%
skills or experience

Just-in-time, reactive
49%
hiring approach

Compensation, total rewards

46%
below market rate
Ineffective and time-intensive
35%
hiring processes

About a quarter Uncertainty about the future talent needs 25%

cite “weak
employer Lack of funding and resources 25%

brand and/or Lack of investment in new talent

24%
poor company acquisition technologies
reputation” as Weak employer brand and/or
23%
among the biggest poor company reputation

challenges to Lack of in-house TA capabilities,

20%
skills and experience
acquiring talent at
Misaligned recruiting
their organization 20%
resources and hiring demand

Limited interest and involvement

15%
by top management

Lack of business alignment and

internal credibility 14%

0 10 20 30 40 50 60

22 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Talent Acquisition Tools and
Technologies
TA Technologies Usage
Finding: Virtually all organizations use
TA technologies, with applicant tracking
systems (ATS) being the most common
Fully 93% of respondents say their organizations use talent acquisition
technology, with applicant tracking systems being most common,
chosen by three-fifths (62%) of respondents. ATS systems, of course,
have a number of benefits for organizations such as scanning resumes
for keywords, tracking and sorting applicant data, automating routine
tasks and more.

The use of ATS varies based on the size of organizations. Larger

organizations report using ATS to a much higher degree (76%) than mid-
size (67%) or small organizations (48%). This is likely due to the higher
volume of applications that large organizations receive.

Job posting tools (such as job aggregators) are a close second at

60%. They are useful in casting a wide net for prospective candidates.
Through consolidating information about open positions, they are able
to offer candidates more comprehensive information about vacancies.
Linkedin Recruiter, which is a hiring platform to help talent acquisition
professionals find and connect with prospective candidates, is the only
other tool cited by over half (59%) of respondents.

But there are many other tools as well, such as employee referral
platforms, video interviewing platforms, candidate relationship
management software, alumni hiring solutions, and much more.

23 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Survey Question: What talent acquisition technologies or
recruiting tools does your organization currently access or
leverage as part of your hiring process? (select all that apply)
Applicant tracking system 62%

Job posting tools (e.g., job aggregators) 60%

LinkedIn Recruiter 59%

Internal or external referral platform (standalone or integrated) 41%

Video or virtual interviewing software (on demand or real time) 35%

Remote recruiting events or virtual job fairs 33%

Technologies to promote job postings (e.g., pay-per-click advertising) 31%

Internal recruiting or alumni hiring solutions (integrated or native) 30%

Talent pipeline management software (e.g., CRM) 26%

Tech-enabled background and/or reference checks 26%

Automated scheduling software 24%

Automated pre-hire assessments or skills testing 24%

SMS, text messaging or mobile apply solutions (integrated or native) 23%

Recruitment research tools (e.g., talent intelligence) 17%

Interview management or structured feedback tools 16%

Profile aggregation or candidate discovery tools (e.g., SeekOut) 16%

Online talent marketplaces (e.g., Hired, UpWork) 13%

Agency portal/VMS/contingent workforce management software 10%

Automated job matching or candidate stack ranking 9%

Chatbots or other conversational intelligence tools 6%

We don’t have any dedicated TA tools 7%

0 10 20 30 40 50 60 70 80

About a quarter of organizations use

talent pipeline management software

24 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: A majority (65%) of organizations
use 2 to 5 paid recruiting tools or
technologies
Given all the choices of TA technologies, it is understandable that most
organizations leverage more than one paid recruitment tool. In fact, most
organizations utilize 2 to 5 paid tools or technologies, and 17% use at
least 6.

When investing in talent acquisition tools and technologies,

organizations should consider various characteristics, including how
the technologies can help alleviate their TA challenges, how well the
technologies integrate with existing tools, ease of use, training required,
maintenance options, return-on-investment data, and more.

Further considerations may involve matching the technology with

the culture and tone of the organization. Organizations may want
prospective candidates to get a feel of the company from the application
process. This requires technologies which are capable of being
customized for organizational needs.

Survey Question: How many paid recruiting tools or

technologies do you currently use in your organization’s talent
acquisition function?

More than 10 6%

6 to 10 11%

Almost one-fifth of 2 to 5 65%

respondents say
they use only one
recruiting tool or
Only 1 19%
technology
0 10 20 30 40 50 60 70 80

25 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 TA Technology Spending
Finding: More than a quarter of
organizations (27%) spend more than
$100,000 on dedicated talent acquisition
tools and technologies, including
recruitment advertising
Almost a third of organizations spend $25,001 to $100,000 on dedicated
talent acquisition tools and technologies, including recruitment
advertising. About a quarter spend under $10,000.

Much depends on the size of the organization. For example, about

32% of respondents in large organizations say they spend between
$500,001 to more than $10 million, while 36% of respondents in mid-size
organizations say they spend between $25,001 to $100,000, and more
than half (54%) of respondents in small organizations say they spend
under $10,000 on dedicated talent acquisition tools and technologies.

Although the amount of money spent on TA tools and technologies

depends on size of organization, we believe it is also a reflection of how
much of a strategic priority TA is within the organization.

26 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Survey Question: In U.S. dollars, what do you estimate your
organization spent over the last year on dedicated talent
acquisition tools and technologies, including recruitment
advertising?

More than $10 million 1%

$5,000,001 to $10,000,000 3%

$1,000,001 to $5,000,000 5%

$500,001 to $1,000,000 4%

More than a $100,001 to $500,000 14%

quarter spend less
than $10,000 on $25,001 to $100,000 30%
dedicated talent
acquisition tools $10,001 to $25,000 17%
and technologies,
including
Under $10,000 27%
recruitment
advertising
0 5 10 15 20 25 30

27 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Ease of Use
Finding: Most respondents say existing
talent technology is at least somewhat easy
to use
Organizations typically want technologies that are powerful but easy
to use for at least three groups: recruiters, hiring managers and job
candidates. Ease of use depends on a number of factors such as how
intuitive the system is, compatibility with mobile devices, speed of use,
customizable to suit individual needs etc.

How do companies fare in this area? Moderately well.

Most technologies are at least somewhat easy to use for recruiters,

candidates and hiring managers. On the other hand, only about two-
fifths say existing talent acquisition technologies are very easy to use for
recruiters (40%) and candidates (38%), while only 32% say they are very
easy for hiring managers to use.

Survey Question: How easy do you think it is for recruiters/candidates/hiring managers to use
your existing talent technology?

47% 47% 48%

50
40%
38%
40
32%
30

20 15%
13% 12%
10 5%
3% 2%
0
Downright difficult Not very easy Somewhat easy Very easy
Recruiters Candidates Hiring Managers

Editor’s note: Don’t knows were removed from this data

28 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 The Usage of Talent Acquisition
Metrics
Finding: Quality of hire is the most popular
TA metric, used by over two-fifths of
organizations
The use of metrics is important in quantifying the effectiveness of TA,
allowing organizations to understand gaps and areas of improvement.
Metrics also help top management understand the strategic importance
of TA.

Quality of hire is the most popular metric, used by 42% of organizations.

However, it is often difficult to quantify. It typically involves tracking the
performance of new hires over time. Of course, employee performance is
also a function of how new hires are managed. It can be difficult to tease
apart these two key factors.

Employee tenure/attrition and offer acceptance rate are a close second,

both metrics cited by 41% of respondents. In today’s job market—where
employees are frequently switching jobs—employee tenure becomes
strategically important for business continuity. It is an indication of how
well new hires fit into the organization’s culture and job roles that they
have been recruited for, and so it is one possible way to measure quality
of hire.

Meanwhile, offer acceptance rate reflects how competitive the

organization’s offering is in terms of factors such as compensation,
benefits, nature of the job, employer brand, and opportunity for
development and organization culture.

29 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Survey Question: Which metrics does your organization use to quantify the impact
or relative success of the talent acquisition function? (select all that apply)

Quality of hire 42%

Offer acceptance rate 41%

Employee tenure and/or attrition 41%

Recruiter activity metrics (e.g., outreach volume) 32%

Time to productivity/onboarding efficiency 31%

Source of hire 31%

Applicants per position 27%

Diversity, equity and inclusion outcomes 26%

Cost per hire/fill 24%

Employee engagement 23%

Satisfaction of stakeholders (e.g., NPS from candidates) 20%

Return on investment (ROI) 20%

Internal mobility/employee development 16%

Cost per applicant 16%

We do not measure or use metrics for TA efforts 13%

0 10 20 30 40 50

Recruiter activity metrics are used by

almost one-third of organizations

30 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 The Future of Talent Acquisition
Budget, Hiring Needs and
Headcount
Finding: Over half (55%) say overall
headcount will increase a little or a lot over
the next two years
Most respondents (67%) say hiring needs will increase a little (37%) or
a lot (30%) over the next two years. Given these projected needs, it is
understandable that a majority also believe that there will be an increase
in TA budgets (57%) and the overall headcount of the talent acquisition
department (55%).

Survey Question: How do you think that your organization’s hiring needs/TA budget/TA
headcount will change over the next two years?
50
44%

40%
40 37% 37%
35%

30%
30 28%

20
15%
13%

10
6%
5%
2% 2%
1% 0%
0
Will decrease a lot Will decrease a little Will stay about the same Will increase a little Will increase a lot

Hiring needs Overall TA budget Overall TA headcount

Just 4% say hiring needs will

decrease over the next two years

31 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Future Capabilities
Finding: Respondents are most likely to
automate interview scheduling over the next
two years
Most organizations (89%) plan to automate aspects of their talent
acquisition process over the next two years. Of the processes they
expect to automate, interview scheduling tops the list, with a quarter
of respondents choosing it. Automating interview scheduling with
technologies such as scheduling assistants can save considerable
time by coordinating hiring managers’ and candidates’ calendars
and availability. Other top answers include job advertisement and
recruitment marketing (23%), onboarding (22%), candidate sourcing
and pipelining (21%).

Survey Question: Which parts of the recruiting or talent

acquisition process do you expect to automate over the next
two years? (select all that apply)
Interview scheduling 25%

Job advertising and recruitment marketing 23%

Onboarding 22%

Candidate sourcing and pipelining 21%

Candidate matching/shortlisting 18%

Candidate pre-screening 16%

Skills assessments or pre-employment testing 15%

Background or reference checks 15%

One in ten
organizations Employee or external referrals 10%

do not expect to
Offer management 8%
automate any TA
related processes We do not have any immediate plans to automate TA 11%

in future
0 5 10 15 20 25

Editor’s note: Don’t know responses were removed which were 16% of the responses

32 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: Over the next two years,
organizations are most likely to focus on
people analytics and data-driven recruiting
We asked, “Over the next two years, which of the following capabilities
do you think your organization will invest in or focus the most on
improving?”

The most commonly provided answer is “people analytics and data-

driven recruiting,” cited by 49%. The idea here is to help TA professionals
make more insightful decisions and take more proactive stances in
terms of their TA strategies. This can help them better predict future
needs while uncovering gaps and biases in their existing practices.

Survey Question: Over the next two years, which of the following capabilities do you think
your organization will invest in or focus the most on improving?(select all that apply)

People analytics and data-driven recruiting 49%

Compensation equity and competitiveness 47%

Internal mobility and employee retention 45%

Diversity sourcing and hiring 45%

Company culture and internal collaboration 41%

Skills-based hiring and development 37%

Internal TA capabilities, skills 36%

Interviewing and selection (e.g., structured interviews) 36%

Process automation (automated assessments, chatbots etc.) 32%

Information security and data privacy 16%

0 10 20 30 40 50

Information security and data privacy are chosen by just 16% of

respondents as capabilities that organizations will invest in or
focus on improving over the next two years

33 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: Talent intelligence/predictive
analytics will be the most impactful
for organizations’ talent acquisition
departments over the next two years
We asked about which emerging technologies will be the most impactful
to TA over the next two years. “Talent intelligence/predictive analytics”
was, by far, the most widely chosen, cited by 62%. Why? We believe talent
intelligence can forecast future human capital needs, predict how well
candidates match current and future job openings, and thereby reduce
time-to-hire while improving quality of hire.

Second and third on the list are the use of AI/machine learning (39%)
and conversational intelligence/chatbots (34%), respectively. Artificial
intelligence has a variety of uses in TA such as in candidate sourcing
and screening, job posting and targeting, and scheduling interviews.
Processes such as sourcing candidates are often time-consuming
processes and require a lot of effort by recruiters. AI can be used to find
candidates from multiple sources in a fraction of time and even rank
them in order based on the search criteria.

AI can also be used in candidate screening by quickly sifting through a

huge number of resumes based on required qualifications. Not only is
this process more efficient, but AI can also be programmed to be legally
compliant and reduce bias. Further, the use of AI for targeted job ads
can make sure the job postings are relevant and have more potential for
success by reaching the most interested candidates.

Meanwhile, chatbots—which often have AI underpinning—can be useful

in improving candidate experience by providing real-time and continuous
support to candidates. Chatbots can be used to provide candidates with
a variety of information such as answers to commonly asked questions,
details on benefits packages, general company information and updates
on the recruitment process.

34 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Survey Question: If you had to guess, which of the following emerging
technologies do you think will be the most significant or impactful for your
organization’s talent acquisition capabilities over the next two years?

Talent intelligence/predictive analytics 62%

Artificial intelligence/machine learning 39%

Conversational intelligence/chatbots 34%

Online talent marketplaces/P2P recruiting

(e.g., UpWork, Hired) 27%

Information security and data protection 27%

Programmatic advertising 20%

Augmented and virtual reality (“The Metaverse”) 20%

Web 3.0/decentralized recruitment 18%

Blockchain-related technologies 10%

Organizational network analysis (ONA) 10%

0 10 20 30 40 50 60 70 80

Editor’s note: Don’t know responses were removed, being 28% of the original responses

One in five respondents say programmatic

advertising will be impactful for their
organization’s TA over the next two years

35 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Future goals
Finding: Two areas stand out as important
outcomes for organizational talent
acquisition over the next two years
We asked respondents about the key goals for their organization’s talent
acquisition function over the next two years. Two goals were chosen by
over half of participants: “strengthening the employer brand and value
proposition” (58%) and “creating an improved candidate or applicant
experience” (52%).

Candidates today are researching organizations before they even

consider applying. Therefore, the employer brand is crucial to attracting
the best candidates. Candidates’ perception of the employer brand is
influenced by the culture of the organization, the experience of existing
employees, salary, benefits, and advancement opportunities, among
other factors. This also requires organizations to build an employer
brand through a strong online and social media presence.

Creating an improved candidate or applicant experience is seen to be the

next most important goal. An improved candidate/applicant experience
can make the difference between an applicant accepting and declining
an offer.

Further, ensuring a robust pipeline of talent for future hiring needs,

chosen by almost half of respondents (47%), is essential in a tumultuous
job market where jobs need to be filled quickly with candidates having
specialized skills.

36 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Survey Question: Over the next two years, which of the following outcomes are key
goals for your organization’s talent acquisition function? (select all that apply)

Strengthening employer brand and employee value proposition 58%

Creating an improved candidate or applicant experience 52%

Ensuring a robust pipeline of talent for future hiring needs 47%

Increasing employee referrals 44%

Building a more diverse and inclusive workforce 39%

Better predictive analytics and workforce planning 37%

Increasing recruiting agility and change management capabilities 35%

Improving business alignment and cross-functional collaboration 35%

Improving individual recruiter productivity 34%

Eliminating bias from the hiring process 29%

Optimizing for remote hiring and virtual recruiting 25%

Lowering talent-acquisition-related costs 24%

We don’t have any TA goals 5%

0 10 20 30 40 50 60

A quarter say optimizing for remote hiring

and virtual recruiting is an important
outcome for their organization’s TA function

37 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: Almost two-fifths say they are
optimistic or extremely optimistic about TA
over the next two years
A majority of respondents (62%) are optimistic about the future of talent
acquisition, with a quarter saying they are slightly optimistic, almost a
third (31%) being optimistic and 6% saying they are extremely optimistic.
This suggests to us that most respondents have faith in the ability of
their TA functions to adapt to labor force changes while implementing
new processes and technologies.

Survey Question: When looking at the next two years talent

acquisition, which of the following best describes your
personal sentiment? (choose the one that best fits)

Extremely optimistic 6%

Optimistic 31%

Slightly optimistic 25%

Neutral 18%

Slightly pessimistic 14%

Pessimistic 5%

Extremely pessimistic 1%

0 5 10 15 20 25 30 35

38 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 How TA Leaders Differ from TA
Laggards
In this section of the report, we provide side-by-side comparisons
between leaders in TA and laggard TA firms. We divided the respondents
into two cohorts:

●● TA leader organizations: Those who answered the question “Which

of the following statements best describe the talent acquisition
function within your organization?” as “Advanced” or “World Class”

●● TA laggard organizations: Those who answered the question

“Which of these designations best describes the talent acquisition
(TA) process in your organization?” as “Nonexistent”, “Chaotic” or
“Improvisational”

Of course, correlation is not the same as causation. We cannot say with

certainty that any particular practice will result in better performance.
The data does, however, reveal interesting patterns about possible best
practices.

Finding: TA leader organizations tend to

have much better TA capabilities than TA
laggard organizations
TA leader organizations are far more likely to say they have top-notch TA
capabilities (33% vs. 1%) than TA laggard organizations. They are three
times more likely to say their TA capabilities are above average (57% vs.
19%). The differences in capabilities are likely to affect the efficiency of
TA processes, employer brand, and candidate experience, among other
TA-related outcomes.

39 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Survey Question: How would you rate the overall talent
acquisition (TA) capabilities of your organization in
comparison to other companies in your industry?

60 57%

50

40
33%
One in three
TA leader 30
organizations
say their TA 19%
20
capabilities are
top-notch
10

1%
0
Above average Top-notch
TA Leader Organizations TA Laggard Organizations

40 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: TA leader organizations are three
times more likely to say TA is the most
important human capital issue for the
organization today
Almost three-fifths (57%) of TA leader organizations say that TA is the
most important human capital issue for organizations today, compared
to just one-fifth (18%) of TA laggard organizations. TA leaders are
also twice as likely to say TA is among the organization’s top 3 human
capital priorities/goals (29% vs. 14%). In short, as we would expect,
organizations that are better at TA tend to prioritize it higher. Prioritizing
TA as one of the most important human capital goals of the organization
can serve to better align TA with the strategic business objectives.

Survey Question: Relative to other human capital issues, what

is the perceived importance of talent acquisition within your
organization? (select the one that best applies)

A majority
of TA leader Essential: the most important 57%
human capital issue for the
organizations organization today
18%
(86%) say TA is an
essential or pivotal
human capital
29%
issue for the Pivotal: one of the
organization’s top 3 human
organization capital priorities/goals
14%

0 10 20 30 40 50 60

TA Leader Organizations TA Laggard Organizations

41 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: TA laggard organizations are more
likely to struggle with TA strategic and
process-related challenges than are TA
leader organizations
While TA leaders and laggards alike cite “lack of candidates with
required skills or experience” as an important challenge, TA laggards
cite more challenges than TA leader organizations. For example, three-
fifths of TA laggard organizations struggle with a “just-in-time, reactive
hiring approach” compared to about a quarter (27%) of TA leader
organizations. TA laggards are also more than twice as likely (40% vs.
18%) to say their TA processes are ineffective and time intensive.

Survey Question: What do you see as the biggest challenges

or obstacles when it comes to acquiring talent at your
organization? (select all that apply)

Three-fifths Just-in-time, 59%

of TA laggard reactive hiring
approach
organizations Gap 32 pts 27%
struggle with just-
in-time, reactive
hiring approach
Ineffective and 40%
time-intensive hiring
processes Gap 22 pts 18%

Lack of business
27%
alignment and
internal credibility Gap 15 pts 12%

0 10 20 30 40 50 60

TA Leader Organizations TA Laggard Organizations

42 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: TA leader organizations utilize
metrics more often than TA laggard
organizations
TA leader organizations are more likely to utilize a variety of TA-related
metrics to a great extent than are TA laggard organizations. The ability
to measure, track and quantify TA-related processes seems to provide
valuable insights that result in continuous improvements.

For example, almost 70% percent of TA leader organizations utilize

“offer acceptance rates,” compared to just 30% of TA laggard
organizations. Further, over three-fifths (63%) of TA leaders track
quality of hire, compared to just 37% of TA laggards. TA leaders are
also twice as likely to track employee tenure and/or attrition (60%
vs. 30%). Further, they are almost three times more likely to track
recruiter activity metrics (54% vs. 19%).

Survey Question: Which metrics does your organization

use to quantify the impact or relative success of the talent
acquisition function? (select all that apply)
Seventy percent 69%
of TA leader Offer acceptance rate
Gap 39 pts 30%
organizations track
63%
offer acceptance Quality of hire
rate Gap 26 pts 37%

Employee tenure
60%
and/or attrition
Gap 30 pts 30%

Recruiter activity metrics

54%
(e.g., outreach volume)
Gap 35 pts 19%

51%
Time to productivity/
onboarding efficiency
Gap 32 pts 19%

43%
Diversity, equity and
inclusion outcomes
Gap 24 pts 19%

0 10 20 30 40 50 60 70 80

TA Leader Organizations TA Laggard Organizations

43 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: Eighty-five percent of TA leader
organizations utilize applicant tracking
systems
TA leader organizations are also more likely to leverage TA technologies
or recruiting tools when compared to TA laggard organizations. TA
leader organizations are twice as likely to utilize ATS (85% vs. 41%)
and more than thrice as likely to utilize an internal or external referral
platform (73% vs. 22%).

Survey Question: What talent acquisition technologies or

recruiting tools does your organization currently access or
leverage as part of your hiring process? (select all that apply)

Only two-fifths 85%

Applicant tracking system
of TA laggard Gap 44 pts 41%
organizations
utilize an applicant 82%
tracking system LinkedIn Recruiter
Gap 34 pts 48%

Internal or external referral 73%

platform (standalone or
integrated) Gap 51 pts 22%

61%
Remote recruiting events
or virtual job fairs
Gap 44 pts 17%

58%
Talent pipeline management
software (e.g., CRM)
Gap 46 pts 12%

0 20 40 60 80 100

TA Leader Organizations TA Laggard Organizations

44 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: Four-fifths of TA leaders expect
hiring needs to increase over the next two
years
TA leader organizations are optimistic regarding the growth of their
business and hiring needs, with more than four-fifths (81%) saying hiring
needs will increase a little/lot over the next two years. This optimism
is not shared by TA laggard organizations, with only half (52%) saying
that hiring needs will increase a little/lot. This could be indicative of the
fact that TA leader organizations expect to grow over the next two years
and therefore prioritize their TA function. Or, perhaps their excellent TA
function has contributed to the success and growth of the organization
and they expect this trend to continue over the next two years.

Survey Question: How do you think that your organization’s

hiring needs will change over the next two years?

TA Leader
Organizations 44% 37% 81%

TA Laggard
Organizations 31% 21% 52%

0 20 40 60 80 100

Will increase a little Will increase a lot

45 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Finding: Three-quarters of TA leaders
expect the TA budget to increase over the
next two years
Increases in hiring needs must be accompanied by an increase in the TA
budget to ensure proper processes and strategies are in place to support
the increase in hiring. While three-fourths of the TA leaders expect an
increase in TA budget over the next two years, just two-fifths of TA
Laggard organizations say the TA budget will increase a little/lot.

Survey Question: How do you think that your organization’s

overall talent acquisition budget will change over the next
two years?

TA Leader
Organizations
56% 19% 75%

TA Laggard
Organizations
31% 8% 39%

0 10 20 30 40 50 60 70 80

Will increase a little Will increase a lot

46 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 Key Takeaways

1
Leverage internal talent in the talent acquisition process. As we
Key noted previously, internal hires are often more economical, become
Takeaway productive more quickly, have better knowledge of organizational
culture, and are more likely to refer others. Internal hires also serve
the organization by retaining organizational knowledge and increasing
engagement. Naturally, organizations depend on external hires in many
cases when looking for specific skills that are not available internally, or
when the organization is looking to diversify its culture. However, some
organizations may want to adopt a “hire internally first” mindset to
match internal talent to available roles.

2
Align TA with strategic business priorities. Talent acquisition
Key strategies must be built on business goals. This requires business goals
Takeaway to be well communicated to all members of the organization and to be
understood by the TA team. We think it also requires HR to be a strategic
business partner involved in setting the strategic direction of the
organization. This involves making a list of critical skills for the business,
analyzing skills gaps, planning for attrition, meeting diversity objectives,
etc., all of which must match organizational goals.

3
Be proactive instead of just reactive. Being proactive in talent
Key acquisition involves building a strong network of potential candidates
Takeaway even before the need to acquire talent arises. This helps facilitate a
smooth recruitment process. This can be done through building an
online presence and growing a network to ensure a pipeline of talent is
available. This also helps in slotting new hires into appropriate positions
and enabling seamless integration into the company culture.

47 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 4
Focus on metrics to improve the TA process. TA-related metrics
Key and analytics can help professionals understand, manage and
Takeaway enhance the TA process. Insights from metrics can also help to align
TA with the organization’s goals. A clear understanding of metrics
helps HR professionals understand the impact of TA strategies and
make the required changes that help them remain competitive. Good
measurements also help in communicating with the other functions and
top management of the organization since it helps translate TA-related
efforts into numbers that are readily understood and make business
sense. Of course, the process of making sense of metrics via excellent
analytics is equally crucial. Having too many metrics may make it harder
to make sense of all the data. Organizations may be better served by
determining which specific metrics are most important to their particular
business model and then building excellent analytical tools and
approaches to those specific particular metrics.

5
Invest in TA tools and technologies. Appropriate tools and
Key technologies are indispensable in TA and help in reducing cost and
Takeaway improving efficiency of the talent acquisition process. Analytics tools,
for example, allow TA professionals to access a wealth of relevant
information that helps them make data-driven decisions. Of course,
the most commonly used technology for recruitment tends to be the
applicant tracking system. These days, many TA professionals expect
more of an ATS than just tracking applicants. Some of the features they
may desire are helping with candidate sourcing, managing interviews,
leveraging candidate relationship management tools, reporting
via dashboards, DEI recruitment and more. There are many other
technologies as well. For example, the use of appropriate technology
such as chatbots can help improve candidate experience through
offering more personalized and flexible offerings. The future of TA may
increasingly include sourcing technologies such as social listening, the
automation of interviews using real time video interview solutions, using
more gamification in skill assessment tools, and more.

48 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 6
Offer a customized compensation package. Compensation is always
Key important but, in the current era of inflation, it may be more important
Takeaway than ever. Organizations must be able to provide compensation and
benefits that not only make employees feel secure but also valued. This
can be done through benchmarking market compensation rates and
researching employee needs. When designing compensation packages,
organizations must consider the skills, education, and experience of the
candidate. They may also need to consider the cost of living in different
geographic locations. Other offerings that create a good compensation
package include paid time off, a signing bonus, performance-based
raises, tuition reimbursement, childcare subsidies and more. Today’s
organizations have multiple ways to personalize and create flexible
compensation offerings that meet the unique needs of each employee.

7
Focus on holistic offerings based on employee needs. Employees
Key today are looking for more than just a paycheck. Employees can also be
Takeaway attracted by more flexible work arrangements, more positive corporate
cultures, greater opportunities for learning and development, and more.
Further, employees today may expect personalized HR offerings that are
designed to match their unique circumstances. Organizations that are
able to offer an enhanced employee experience tend to be better able to
attract and hire top talent.

8
Focus on hiring a diverse set of employees. There are various studies
Key indicating that organizations tend to perform better financially and in
Takeaway terms of innovation if they are more diverse in terms of ethnicity and
gender. Organizations should ensure that at least some of their hiring
metrics keep diversity in mind, not just as a way of complying with
laws but as a way to boost organizational performance. Another type
of diversity can be found in the idea of “hidden workers.” These include
prospective employees who are willing to work but often overlooked
by organizations in their TA efforts. They include caregivers, veterans,
immigrants and refugees, those with physical disabilities, and relocating
partners and spouses. They can also include people with mental health
or developmental/neurodiversity challenges, those from less-advantaged
populations, people who were previously incarcerated, and those without
traditional qualifications.17 Recruiting these “hidden workers” could be an
important way to gain competitive advantage in the tough labor market
and improve diversity within the organization.

17
Shaw, D., Spitzer, B., Fuller, J. & Raman, M (2021). Is the talent you need hiding in plain sight? Retrieved from https://www.accenture.com/us-en/
insights/consulting/finding-hidden-talent

49 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 9
Strengthen the employer brand. Many employees today would like
Key to be associated with an organization that has a purpose, is ethical,
Takeaway provides a great work experience, and has a strong employer brand.
A strong employer brand will help organizations stand out among
the competitors who are vying for the same candidate. Leveraging
social media and making sure candidates know the “purpose” of
your company are ways to strengthen the employer brand. Further,
prospective employees may be interested in your key benefits and
perks, commitment to a positive culture, work life balance, etc. Utilizing
employee testimonials and stories to show real experiences of
employees in your organization can help build the employer brand.

10
Leverage proven AI tools. AI has gotten mixed reviews in the area of
Key talent acquisition. On one hand, advocates say that AI can help identify
Takeaway a candidate’s potential. AI can be used to score candidates based on
pre-determined metrics, thereby ensuring fair competition for roles.
On the other hand, there have been highly publicized cases in which
AI-based systems were trained on biased data sets, resulting in biases
in selection. So, organizations need to be careful when using AI for
recruitment, using solutions with a proven track record and ensuring that
the people using those solutions know how to use them well and wisely.

11
Align TA with other HR functions. TA requires a shift in thinking from
Key talent providers to primary advisors to other HR functions. Aligning TA
Takeaway with other functions such as L&D can help organizations develop more
of their employees to fit newer roles. This can be done through using a
talent management system that integrates aspects of talent acquisition.
By aligning L&D, talent acquisition, payroll, and workforce management,
the employees’ journey from hire to retirement can be visualized and
managed more efficiently. This also requires HR professionals and
managers to be well trained in all functions so that they may understand
how they are interdependent. For instance, L&D professionals must be
able to translate TA needs into training programs that develop internal
employees. Accelerated training programs can be utilized to cultivate hard-
to-find skills among internal employees who are already a good cultural fit.
Further, working in collaboration with TA, succession planning can develop
the leadership skills of current employees to ensure continuity of leadership
and talent pipeline.

50 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
 About SEEKOUT

The SeekOut talent platform enables companies to hire, grow, and retain
talent, helping great companies and great people grow together. Explore
deep talent pool data to hone your sourcing strategy, increase productivity,
and become the trusted talent advisor in your organization. Backed by best-
in-class actionable analytics, data and insights, SeekOut delivers a complete
picture of the people companies need and the people they have.

About HR.com and the HR Research Institute

The HR Research Institute helps you keep your finger on the pulse of HR!
Powered by HR.com, the world’s largest community of Human Resources
professionals, the HR Research Institute benchmarks best practices
and tracks trends in human resources to help more than 2 million HR
professionals (that many people can’t be wrong!). Companies are backing
up their strategic decisions with informed and insightful HR.com research
references!

Over the past few years, the HR Research Institute has produced over 100
leading edge primary research and state of the industry research reports,
along with corresponding infographics, based on surveys of thousands
of HR professionals. Each research report highlights current HR trends,
benchmarks and industry best practices. HR Research Institute reports
and infographics are available online, and always free. Visit hr.com/
hrresearchinstitute to maximize your HR potential. #hrresearchinstitute

51 The Future of Talent Acquisition 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022