Survey Says Hiring Is Only Getting Harder — Here’s Why

There’s a blame game going on in the world of work. New research emphasizes that both talent leaders and job seekers agree hiring is getting harder, but the reason why is up for debate. Employers say there’s a shortage of quality applicants, but workers say it’s the roles that are lacking. Neither side seems to be meeting the needs of the other, but where exactly is it all going wrong?

We see a lot of data around the evolving dynamics between job seekers and employers, but this paradox is palpable. From Indeed-hosted roundtable discussions with talent leaders, we’ve heard firsthand accounts of practitioners struggling with hiring disconnects, flummoxed by the applications they receive, while social media is rife with candidates lamenting an impossible job search. 

Here’s the lowdown on our findings, plus a link to download the full global report.

42% of managers say a lack of skilled applicants is their main hiring challenge

It comes down to missed connections. The majority of employers and candidates surveyed say that a fair amount of open roles or applicants they see just aren’t relevant.

• 31% of job seekers say the biggest challenge in finding quality roles is a lack of pay transparency, the top answer for Canada, UK, and US respondents.
• Meanwhile, 30% say the biggest challenge is unrealistic role requirements, particularly in France, Germany, and the Netherlands.

Here’s the kicker: When given the option between a role with development opportunities or a higher salary, the majority of job seekers across all markets choose growth. As one Canadian job seeker stated, “​​Skills are permanent. Money isn’t.”

56% of employers say the greatest barrier to skills-first hiring is understanding

Our data sheds light on the importance of skill development, but employers aren’t quite hitting the mark for job seekers. One of the most striking insights is the confusion over what a skills-first strategy entails.

• 73% of job seekers value learning and development opportunities when deciding whether to apply for a role. But 41% say they don’t learn about those opportunities until the interview stage.
• The majority of employers in France (61%) and Germany (53%) have defined a skills-based approach. This compares to only 37% in Canada and 30% in the UK, where many say that’s due to satisfaction with their current hiring methods—contradicting earlier responses indicating they’re scrounging for talent.

What’s getting in the way? Job seekers want to see skills-based hiring and development, but employers are unevenly adopting and promoting the practices. Even where they are embraced, employers report being hampered by limited time and resources.

36% of employers are using AI in recruitment

Talent leaders are already stretched thin, so designing a new strategy can be seen as yet another hurdle. But when the decision to adopt skills-first practices is the difference between sink or swim, AI can offset workforce constraints.

• 52% of employers say they are using fewer or the same number of technological tools in hiring compared to three years ago, not taking advantage of the efficiencies AI can drive for their teams.
• But those who have used them are big believers — 93% are willing to commit even more time to training AI tools for recruitment.

The urgent opportunity: Employers who use AI to bolster a skills-first approach can unlock more diverse talent pools and stand out to job seekers.

Smarter work is better work. As you ramp up in the new year, we’ve got you covered on what employers and job seekers are doing across the globe. 

Check out the full global report, Smarter Hiring With Data-Driven Insights: Quality and Skills Edition, to dive deeper into how investing in learning and development opportunities, technology, and proper branding can redefine your hiring quality. And stay tuned to hear about more new research coming to the Leadership Hub this year.